Reid Financial

Our investment recommendation process starts with understanding your goals, risk tolerance, need for income, tax situation, and time horizon.

Our investment philosophy is grounded in Modern Portfolio Theory which is backed by Nobel Prize winning research. We use this knowledge of market returns and risk to develop an asset allocation that fits your situation. Asset allocation has been shown to be the single most important factor in long term performance. Examples of asset classes used include large cap stocks, small cap stocks, value stocks, foreign large and small cap stocks, emerging market stocks and bonds. While you must take some risk to achieve a given return, by using a diversified allocation you can avoid taking unnecessary risk. We believe sticking to an asset allocation over a long time and not attempting to guess where the market is headed is the right way to invest.

We work closely with some of the most established names in the financial services industry, mutual fund companies who have a proven track record of historical success. We always have to state that past performance is by no means an indicator of future returns. However, we feel partnering our clients with companies who have delivered consistently solid results over time is the most prudent approach.

We believe a passive investing strategy produces superior returns. We don’t do market timing, stock picking, or hunting for the hot mutual fund. While these active management techniques are popularized in the media, this approach just doesn’t work for most people. Analysis of investor behavior shows the average active equity investor underperforms the market indices. These poor results are due to active management (or mismanagement!!). The evidence greatly supports the use of a disciplined long term strategy and a strong mutual fund portfolio.

As an Investment Advisors Representative we are held to a fiduciary standard. A Financial Advisor held to a Fiduciary Standard occupies a position of special trust and confidence when working with a client. As a fiduciary, we are required to act with undivided loyalty to our clients. This includes disclosure of how we are to be compensated and any corresponding conflicts of interest.