Broker Check

Wealth Management

Here at The Davis Financial Group, wealth management is synonymous with the implementation of a comprehensive financial plan that helps clients protect what they have, grow it in an appropriate way, and share and distribute it during their lifetimes and afterward in ways that reflect what is important to them. Of course it includes management of actual investment assets, but we understand our clients’ wealth as much more than their accumulated financial assets. It includes their families, their accomplishments, their values, their passions, their many treasures that may or may not be in a countable form. Most of all it includes their peace of mind, their freedom from worry and anxiety about money. By engaging in a comprehensive planning process with us, our clients are able to understand exactly where they stand, and are able to envision strategies that help promote their continued wellbeing.

As part of the implementation of most plans, we offer investment management services, and when it comes to managing investible assets, we excel, but not because we have a ‘secret sauce” or anything like that. We are firm adherents of Modern Portfolio Theory and the strategic process of matching risk tolerance and time horizon with broad asset class diversification. There is a place for some clients for tactical intervention during especially volatile times or moments of tremendous opportunity. But in general, we believe that most long term results are the product of disciplined, cost-effective asset allocation models using appropriate combinations of individual stocks and bonds, mutual funds, and ETFs.

Our clients tell us that perhaps our greatest service to them beyond the selection of the right combinations of investments is the disciplined approach that prevents them from the mistakes so many investors make, of pulling out of the market at the wrong time, and getting back at the wrong time – or not getting back in at all. Volatility is here to stay, and managing it is perhaps the most important thing investment advisers can do for their clients. Often that management is at the emotional or behavioral level, not the technical.

There is a lot of talk these days about “alpha”—the extent to which an adviser can help clients beat the blended benchmarks associated with their investments. One thread of the debate is whether actively managed mutual funds – most of which rarely beat their benchmarks – are “worth” the fees when more “passive” vehicles, like index funds or ETFs, which track indexes, while not presuming to beat the benchmarks, at least largely match it, with far lower fees. We understand the dynamic of this debate, and conclude that there is no all right or all wrong answer – each investor requires choices about vehicles appropriate to their portfolio and circumstances.

But by far the way we approach the search for “alpha” is at the macro level – for each investment there is an appropriate mix of vehicles and asset classes and types – there are no universal imperatives, no rate of return that signals success or failure. The question we ask is “what is this investment for?” Income? Long term accumulation? Legacy? For each case, there is an appropriate strategy and an appropriate combination of investment vehicles. The plan we develop for clients is what drives our decision making when it comes to making investment decisions, and in this way, the “alpha” – the extent to which we set expectations and strive to outperform them  -- is the plan itself!

We believe that we DO have a “secret sauce”. The alpha we seek is the plan and the planning process itself that continually monitors and updates and guides us to making prudent and creative decisions and choices of investments that help our clients get to desired destinations. Our intense and comprehensive planning process is what differentiates our work and creates the alpha our clients seek.

*There can be no assurance in our investment process. Actual results may vary.

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