Our Philosophy – Investing

While the firm strongly believes that no one can consistently predict short term market conditions, it does believe that an investment portfolio can be strategically designed to take advantage of long term trends that are supported by historical market observations.

In creating a client investment portfolio, Peak Wealth utilizes a well diversified mix of passively managed exchange traded funds (ETF’s) (a security that tracks an index but trades like a stock on an exchange), no-load index mutual funds, and no-load actively managed mutual funds. Peak Wealth utilizes indexed funds because of their low internal expenses, and tax efficiency.  With index funds, the firm is only attempting to capture the market return of the various representative asset classes.Picture1  Actively managed mutual funds are selected to represent an asset class when a mutual fund manager has delivered consistent, low volatility performance under varying market conditions and the fund is tax efficient and charges reasonable fees.

The most crucial factor in Peak Wealth’s investment philosophy is keeping the expenses related to client portfolios as low as possible. Expenses are a direct drag on portfolio performance and represent real money lost to clients.  Peak Wealth advocates a “Buy and Rebalance” philosophy that focuses on “buying” a diversified portfolio of multiple asset classes and “rebalancing” the portfolio, as necessary, to maintain the desired asset allocation indicated by the client’s investment time horizon, risk tolerance and goals. By rebalancing client portfolios the firm is essentially selling assets that may have outperformed over a period (selling high) and using these funds to add to positions that may have underperformed during that same time frame (buying low).

We are pleased to offer clients mutual funds from Dimensional Fund Advisors.  Dimensional funds are no-load, no 12b-1 fees and low expense ratios.   We have partnered with TD Ameritrade Institutional to enable us to provide our clients with low-cost, high-quality investment management.

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