At OCFP, we act as a fiduciary, with a legal and moral responsibility to represent your interest. Our investment philosophy is one of passive index investing. Your portfolio will be designed around your specific circumstances, investment time horizon and risk tolerance. Changes in the asset allocation are made when personal circumstances change. To maintain this asset allocation, we use annual rebalancing. This annual rebalancing is what differentiates passive management from a buy and hold philosophy.
I believe that the best vehicles for long-term wealth accumulation are no-load, low-cost, tax-efficient index mutual funds and exchange traded funds (ETFs). Owning individual stocks increases a portfolio’s risk with no guarantee of greater than market returns. I do not believe in market timing or technical analysis. The future of stock prices is never predictable. The costs of active management and market timing are drags on an investor’s returns that are very difficult to overcome.
I am not an investment guru or fortuneteller. I cannot guarantee the future return of your portfolio because the future is unknowable. (This seems pretty obvious, but the retail brokerage industry tries to convince you otherwise). By studying the past we can get an excellent idea of the kind of portfolio that should allow you to reach your lifetime financial goals.