Just about everyone has their thoughts on what the “best” investment strategy is. While I don’t claim that the philosophy F5 Financial Planning uses is “the best”, I am confident that the strategy that we employ has solid foundations based on the academic research of Fama and French.
Our investment strategy is based on exploiting factors that are persistent and pervasive over time. These factors include:
- Equities versus fixed income
- Small versus big
- Value versus growth
- Profitable versus unprofitable
We use Dimensional Fund Advisors (DFA) core funds extensively in our portfolio construction. Do they guarantee success? ABOSLUTELY NOT! However, they do allow us to target market returns AND maximize our potential to capture the aforementioned returns. The article shown below describes how this approach has performed over the past decade. Interestingly even though the factors have NOT been as positive as historical averages, the approach has closely mirrored the overall market performance.
Successful investors recognize that investing is a long term proposition guided by and Investment Policy Statement (IPS). Feel free to reach out if you have any questions after reviewing the attached.
You can download a copy of the above article here
At F5 Financial Planning we focus on helping individuals and families find balance between faith, friends and family, fitness and finance. We make sure that they have the financial freedom to enjoy those things in life that are important to them. And while we believe the left-brain facts and data are critical; we work with our clients to get them in the right state of mind to focus on the goals they want to achieve.
Some other posts that you might like:
- Should You Pay Off Your Mortgage?
- How Are DFA Funds Different than Index Funds?
- How Families Can Calculate Retirement Income Wants Versus Needs
- What Your Grandma Taught You About Investing
- Making Sure You Can Collect a Paycheck in Retirement
Interested in Finding Out More?
We’d love to have the opportunity to hear about your situation. Send us an e-mail or give us a call to find out more about next steps
Folks, this is the same story that I’ve written about time and time again – All things in life come down to faith over fear
I write about non-financial topics and how to overcome our poor financial behaviors as THIS is the secret to “getting rich quick”
Today I’m going to show you how you can apply the basics of Six Sigma to build your personal financial plan
Many times, that right decision is to do nothing; so, in a sense you paid your advisor to “do nothing”
Consider the following headlines: Senate Confirms Yellen for Fed Industrial Production Notches Strongest Yearly Gain Since 2010 US Stocks Slide as Jitters Persist Corporate Profits Hit New High as GDP Revised Up Bond Investors Still Waiting for Yields to Rise Private...
It has always amazed me how uncomfortable some people are in discussing the topic of money. My guess is that is because of how they were – or were not – exposed to the topic. Growing up I saw my Dad and Mom work hard.
Helping You With:
– Wealth Preservation
– Wealth Enhancement
– Wealth Transfer
– Wealth Protection
– Charitable Giving
F5 Financial Planning
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4003 Heron Court
Naperville, IL 60564
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