Investment Philosophy

The following summarizes our firm’s core beliefs. These provide the basis for your Investment Policy. We are committed to its consistent implementation. Policy design, implementation, continuous monitoring and, as necessary, modification, are integral parts of the investment process.  Our success is measured not by performance statistics but rather by our clients’ success in achieving their goals.

CORE BELIEFS

Investment Goal
Your investment goal is the primary source of guidance in making investment decisions.  It is the basis from which all risk and reward questions will be assessed.  It is our responsibility to educate you in the process and to assist you in defining, quantifying, and prioritizing your goals.  We view your investment goal as important as having a destination on a flight plan.  What use is a flight plan if you do not know where you are going?

Investment Plan
Growing capital to generate future income is the primary objective of United Wealth Managment.  We believe this is best accomplished with an investment plan that plots the course to reaching investment goals, your destination. We monitor the plan, plot the progress and analyze the risks of the course ahead.  We view the investment plan much like a flight plan.  It plots the course and provides the guidelines for analyzing risk and making decisions in order to reach your destination.  Could you imagine attempting a flight to Paris without a flight plan? We cannot imagine investing without an investment plan.

Risk Tolerance
In general terms, we view risk as the uncertainty of investment returns and the certainty of inflation.  We believe that your risk tolerance and awareness is a significant constraint in the investment process.  We want you to sleep well in turbulent markets before and during retirement.  It is our responsibility to provide awareness and education on investment risk.  It is our objective to maximize real returns commensurate with acceptable volatility and a sound investment plan.

Asset Management
Asset Allocation (diversification) is the strategy of spreading your investments over a variety of different asset classes and over a variety of investment vehicles and management styles within each class, in order to reduce the risk of substantial loss.  Lack of proper diversification can cause you to miss unexpected opportunities and/or expose you to unforeseen investment pitfalls.  Allocating your capital according to a carefully planned diversification scheme will enable you to achieve the greatest possible risk adjusted return, commensurate with your needs and willingness to bear risk.  We reject the use of market timing or trend following.

Active Versus Passive Management
We believe that the choice between active or passive management is not either/or.  We use both.  In general, passive management may have the advantage of reduced fees while active management may provide increased performance or further diversification. It is our objective to evaluate opportunities of each and to present those opportunities where appropriate.  It’s no different than flying an airplane, sometimes it is better to fly it on autopilot and other times it is better to fly it by hand.

Crew Resource Management
We believe the client / advisor relationship is a crucial element of success, no different than what it is in the cockpit.  The best resource each other has is one another, the client and the advisor.  Open and resourceful communication is crucial to the process.  It is essential you know what to expect from us and for us to know your situation.  We are in the cockpit together.

 

CORE INVESTMENT OBJECTIVES