Our Investment Philosophy
A passive investment approach, based on solid investing principles, that captures long-term market returns with minimal cost and tax efficiency.
Plain and simple: sufficient diversification reduces risk. A diversification strategy is very important also because it is a mechanism by which portfolio volatility can be managed, and even targeted. While overall market risk cannot be eliminated using diversification, portfolio risk can be significantly reduced.
- Asset Allocation
Asset allocation is another way of saying "diversification across all asset classes". More important than trying to "time the market" or "pick stocks", strategic asset allocation is the factor that influences portfolio performance most. Asset allocation is a key tenet of passive investment management and exposure across a broad set of asset classes has shown empirically to reduce risk and optimize return.
- Passive Investing
Some people misinterpret "passive investing" as a term meaning inaction; however, this is far from the truth. A passive investor understands that attempting to outperform the market is futile, especially over the long term. This is not to say that investment management is worthless. Dynamic financial markets require that individual portfolios be rebalanced, and continually evaluated for the client's optimal asset allocation. Additionally, portfolios should be evaluated for tax loss harvesting opportunities, trading cost minimization and the influence of investing biases. Due to the factors mentioned, a good investment advisor can help investors manage their portfolios.
- Minimization of Investing Costs
As the financial services industry develops and further innovates, investors are presented with a growing complexity of opportunities when it comes to managing their money. Embedded sales charges and fine print continue to extract money from unwitting investors. These high fees, often unrecognized by investors, fill the coffers of financial institutions and money managers at the expense of the productive capital of everyday investors - our own clients! For this reason, Rymer Wealth Management commits to minimizing investing costs as much as possible and fully disclosing its costs, as well as those funds in which money is invested. Our investment management fees are much more affordable than current industry standards and we guarantee you will never pay more than 1% in total fees (excluding the alternative investment program) as a percentage of assets under management. This includes the all fees and sales charges from the funds in which your money is invested. In fact, you will often pay much less than 1.00% in overall trading costs.
- Investing Discipline
The discipline of behavioral finance has made valuable contributions to the field of investment management. Thanks to the research and analysis performed by psychologists and behavioral economists, we can now better understand how our own behavior and biases can affect our investment and financial decisions. As an investment advisor, RWM can help you understand investing biases and navigate your investment decisions. Investing biases are a primary factor in the formation of market bubbles and irrational price behavior. This is one of the reasons it is better to use an independent and objective advisor to manage your investment assets.