Investment Philosophy
Although each portfolio MFA creates is tailored to individual needs, every investment we make is consistent with our investment philosophy, which rests on the following principles:
- Minimize Costs: Since taxes and transaction costs are every investor’s largest expense, we minimize tax liability while utilizing low and no-cost investment vehicles.
- Portfolio Construction: Proper asset allocation is essential to aligning your investments with your objectives, time horizon, and risk tolerance. Proper diversification within these asset classes can reduce volatility and manage risk.
- Index Investing: We adhere to a prudent, proven, and profitable investment strategy known as index investing. We are not stock pickers, market-timers, or active traders.
- Strategic Management: We seek to identify macro trends and invest accordingly.
Investment Management Process
MFA realizes that each person’s investment parameters and goals are unique. Therefore, we will develop customized investment strategies that support your objectives, time horizon, and risk tolerance. The portfolio design process starts with:
- Identifying appropriate asset classes and allocations.
- Coordinating funds to various account types to support your goals and minimize taxes.
- Making specific security recommendations for each account.
- Meeting liquidity requirements for shorter-term goals or funding needs.
Our independence enables us to integrate your entire asset base into your planning, irrespective of where the assets are held. We may make brokerage or custodian recommendations to support your investment strategy, but ultimately it is your money and your decision. Once your money is invested, we will periodically review your portfolio with you. This includes reviewing your goals, measuring your progress, and making any necessary adjustments. As always, your individual needs guide our work.