Blankinship & Foster, LLC
We work with you to construct an investment portfolio specifically tailored to your needs, goals and objectives. This process is guided by the following core principals:
Recognition of Risk
An investment strategy must be based upon an understanding of the risk of loss of capital (market risk) and the risk of loss of purchasing power (inflation risk). Risks associated with an inordinate lack of liquidity and fluctuations in the cost of money also must be addressed. We believe it is important to minimize the volatility of the total portfolio.
Balance of Assets
Proper investment planning generally requires a balanced approach, with due consideration given to short and long term liquidity needs, the blending of lower and higher risk strategies and the combination of income and growth oriented investments. We believe in a portfolio approach which includes both income and growth oriented investments.
In managing investments, we focus on total return; that is, current income plus growth in value. If current income is needed to meet living expenses, those funds may be obtained either from investment income or from liquidating a portion of the asset growth. We believe that yield, while important, is only one component of the return on your investments, and must not override other considerations.
We monitor current and anticipated economic cycles and macro-economic changes in order to allocate portions of investment assets into areas of future growth. We believe successful investment performance is primarily a function of proper asset allocation rather than asset timing.
There are no simple answers to investment decisions in our volatile economy. We believe diversification across a variety of investments is essential to balancing risk with adequate return.
Investment planning requires a disciplined approach. Short-term emotional decisions often defeat a well-designed investment program. You must feel comfortable with a long-term investment strategy designed to achieve results over at least a five-year investment cycle. With an understanding of investor behavior born of our experience, we are able to make difficult decisions by adhering to a pre-designed portfolio strategy. We believe disciplined application of an investment strategy is the key to long-term success.
Income Tax Considerations
Income tax considerations are an important component of investment planning. However, it is essential to recognize that economic return is the primary objective. Proper tax planning requires a long-term view of tax reduction and deferral rather than a "quick-fix" at year-end. Moreover, tax consequences must sometimes take a back seat to prudent investment decision-making. We believe that paying taxes on investment gains is preferable to having no gains to tax.