Filling Your Investment Basket

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We believe in investing for the long haul. Regardless of your investment objective, having more money in the future is better than having less money. Our main focus is on maximizing total returns over a long time horizon.

However, sometimes we need to draw down investment assets, and investments tailored for potential long term gains may not be the best place to keep money you need soon. Planting grain will grow you more grain in the long run, but having seeds in the ground does you no good if you need grain to eat right now. So while we like investing for total return potential, sometimes you need a different mix in your basket to work towards your goals.

For immediate money needs, nothing beats cash. You may not see much (if any) growth on cash or equivalents, but it’s always right there if you need it.

If you don’t need money in your hand right away, but still expect to spend a chunk of money by and by, you have the potential to earn a little bit more with short term CDs and investment grade bonds. You can’t spend them on demand, but they have a face amount they’ll pay back in the not too distant future.

Diversified investment portfolios are a step between using lower-risk securities and more volatile holdings like individual stocks because they can include a wide variety of investments. They can potentially capture some market growth, without the same level of volatility presented by investing in only individual stocks.

Our total return philosophy is built around finding the biggest bargains in the investment universe, which sometimes leads us to more aggressive holdings such as individual stocks. These holdings are volatile in comparison and not good places to park money you may need to pull out suddenly.

We know that our preference for total returns does not always fit client goals. These other types of holdings allow us to build a basket that will accommodate your needs. Talk to us if you have any upcoming expenses looming on the horizon and we can help structure your basket to manage your goals.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you discuss your specific situation with your financial advisor prior to investing.

CD’s are FDIC Insured and offer a fixed rate of return if held to maturity.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.