TIMELESSPRINCIPLES

INVESTINGOF

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Market movements, business decisions, economic events,

performance of your investments. Instead of worrying about events that are out of your hands, focus on

FOCUS ON WHAT YOU CAN CONTROL

TUNE OUT THE NOISE

PUT TIME ON YOUR SIDE

DON’T TRY TO TIME MARKETS

News cycles driven by fear, uncertainty, and doubt can challenge even the most disciplined investor. Some headlines spark anxiety, while others try to goad you into chasing

to make faulty investment decisions. When in doubt, tune out

You’ve probably heard someone tell you that “buying low and selling high” is the road to investment success. The problem is that you never know how the market will perform from year to year or which segment will outperform. Yesterday’s winner may be tomorrow’s loser, and chasing performance is rarely a

a prudent investment strategy that seeks to protect and grow your investments in all market environments. 2

have provided growth of wealth that has more than 1

Create an investment

and risk tolerance.

along dimensions of expected returns.

Diversify broadly.

Minimize taxes.

Reduce expenses and turnover.

S&P 500 3-Month T.Bill 10-Year T. Bond

$100

$1,000

$10,000

S&P 500 Index$123,667

1946–2013 (Compounded Annually)

$100,000

1946

1966

1976

1956

1996

1986

2006

2013

Higher Rates

Lower Rates

Bonds S&P 500 Russell 2000

2007 2008 2009 2010 2011 2012 2013 2014

China Headed for Hard Landing

Is the Bull Market Over?

Oil Prices

Plummet

2

5

76

8

UNDERSTAND ALL FORMS OF RISK

KICK UP THE SAVINGS

AVOID THE EMOTIONAL ROLLER COASTER

DELEGATE THE DETAILS

and rising healthcare costs mean that many Americans face the

While you shouldn’t be reckless about risk, make sure that fear of investment loss isn’t leaving you open to other forms of risk.

Spending less and saving more is one of the best things you

simple example: if you had $250,000 in savings, earned an annual salary of $100,000, and invested 10% of your salary each year at a 6% nominal annual return (with 3% annual

if you increased your savings rate by just 1% each year to a maximum of 15%, you’d end up with $966,269. 3

Financial professionals can help you create a customized

we can’t control markets, we can help you use them to pursue

S&P 500 returned 9.9% between 1995 and 2014, the average investor fared much worse, seeing only a 2.5% return during the same period. Why? Research suggests that investors make poor investment decisions about buying and selling, frequently driven by the opposing psychological forces of fear and greed.

Higher Savings Rate

Saving just 1% more each year could make

Stable Savings Rate

Inve

stm

ent B

alan

ce$954,295

Stable vs. Increasing Savings Rate

$250,000

$350,000

$450,000

$550,000

$650,000

$750,000

$850,000

$950,000

2 4 6 8 10 12 14 16 18 20

$801,950

Euphoric

Nervous

Defeated

Desperate

Hopeful

Rigorous goals discovery

Tax-smart

monitoring and oversight

Regular reviews and responsive service

Investment strategy development

CLIENT

Disclosures:

Price Index (All Urban Consumers) compounded annual rate. Past performance is no guarantee of future results. Indexes are not available for direct

to measure the performance of the developed stock markets of Europe, Australasia, and the Far East. Barclays Aggregate Bond Index (formerly the

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