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Our Beliefs

  • “Market timing does not work.”  -Source - Peter Lynch, One up on Wall Street.  Market timing is an attempt to alter the mix of assets based on a prediction of the future.  Because the future is random and unpredictable, market timing is a flawed idea and strategy.  As such, we will never attempt to market time at Carlson Financial Advisory.
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  • Successful investing is goal oriented and therefore requires planning.  People with a plan, a strategy, and an investment policy succeed financially.  Those chasing performance as a substitute for planning rarely succeed.        
 
  •  “Asset allocation is responsible for over 90% of the variability of returns over time.”    Source:  Ibbotson and Brinson Studies 
 
  • Investor behavior is the main determinate in long term equity returns.  For this reason, we only accept clients who are committed to advancing their own fiscal literacy by attending our investment forums and by engaging in our coaching process.  Professional athletes work out on a regular daily basis, not once or twice a year!
 
  • Academic studies show time and time again that most professional full time money managers fail to meet even a benchmark return because they cannot consistently pick the best stocks and avoid the losers.  As such, our portfolios are designed to capture market returns and are a more responsible path to wealth creation than stock picking.
 
  • We use low-cost, structured portfolios and apply active rebalancing so as to practice the act of buying low and selling high.
 
  • We eliminate conflicts of interest by removing commissions on all securities accounts.  We are a “fee only” investment fiduciary advisor.
 
  • Free markets work – Capitalism and equities are the greatest long term wealth creation tools known to mankind.
 
  • Stock picking, market timing and track record investing are forms of speculating and gambling and in no way are to be confused with prudent long term investing.  
 
  • We believe in an academically sound, Nobel Prize winning modern portfolio theory to achieve the greatest returns for the amount of risk an investor is willing to take.  
 
  • Learning the answers to “The 20 Must Answer Questions for Your Journey Toward Peace of Mind” is the best way for investors to find true peace of mind with their money.  

 

1. Have you discovered your True Purpose for Money, that which is more important than money itself?
 
2. Are you invested in the Market?
 
3. Do you know how markets work?
 
4. Have you defined your Investment Philosophy?
 
5. Have you identified your personal risk tolerance?
 
6. Do you know how to measure diversification in your portfolio?
 
7. Do you consistently and predictably achieve market returns?
 
8. Have you measured the total amount of commissions and costs in your portfolio?
 
9. Do you know where you fall on the Markowitz Efficient Frontier?
 
10. When it comes to building your investment portfolio, do you know exactly what you are doing and why?
 
11. Are you working with a financial coach versus a financial planner?
 
12. Do you have a customized lifelong game plan to guide all of your investing and spending decisions?
 
13. Do you have an Investment Policy Statement?
 
14. Have you devised a clear-cut method for measuring the success or failure of your portfolio?
 
15. Do you fully understand the implications and applications of diversification in your portfolio?
 
16. Do you have a system to measure portfolio volatility?
 
17. Are you aware of the incentives brokerage firms and the financial community have when selling           commission-based products?
 
18. Do you know the three warning signs that you are gambling and speculating with your money versus prudently investing it?
 
19. Can you identify the cultural messages and personal mindsets about money that destroy your peace of mind?
 
20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode?
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