Investment Strategy  


An investment strategy is a plan of investing among various asset classes, taking into consideration such factors as the investor’s goals, objectives, risk tolerance, time horizon, and the asset classes’ correlations.   These goals might be retirement, buying a home, or saving for college.

In a nutshell, our investment strategy is to have a highly diversified, Buy-and-Hold, low operating expense portfolio of index funds.

Buy-and-Hold is a long term investment strategy based on the view that in the long run, financial markets generate a good rate of return, despite periods of volatility or decline.   The practice of Buy-and-Hold style is based on the belief that no one can consistently time the market.   It is better to simply Buy-and-Hold.

We strongly emphasis portfolios, sometimes referred to as a “4-Fund Portfolio”, composed of the following:

  1. U.S. stock market index funds,
  2. International stock index funds,
  3. Bond market index funds, and
  4. Real Estate Investment Trust (REIT) index funds.

We adhere to the Efficient Market Hypothesis that essentially is, markets are efficient and for investing purposes, assets are fairly priced.

We use diversification to reduce risk.

We practice Rebalancing which is a risk management tool.   Rebalancing is the process of realigning the weightings of one’s portfolio of assets.  Rebalancing involves periodically buying or selling assets in your portfolio to maintain your original desired level of asset allocation.

Buy-and-Hold involves fewer transaction fees and fewer taxable events, because costs directly reduce the investor’s return.   This strategy reduces the costs of investing.

We minimize taxable events by using index funds which have much lower turnover than actively managed funds.

We avoid excess trading which creates taxable events.

 We avoid switching clients existing investments, resulting in taxable events, if their investments are good.

We practice Tax Loss Harvesting which is a tax management tool.   Tax Loss Harvesting is the selling securities at a loss to offset a capital gains tax liability.   Tax loss harvesting is typically used to limit the recognition of short-term capital gains which are normally taxed at higher federal income tax rates than long-term capital gains.

Basically we invest the same way as we recommend our clients to invest.   “We eat our own cooking.”

Harry Markowitz, Portfolio Selection
William F. Sharpe, The Arithmetic of Active Management
Anna Bernasek, The Man Your Fund Manager Hates
John C. Bogle, Equity Fund Selection: The Needle or the Haystack?


For more information or to schedule a complimentary initial consultation, call Alan Markell at 256-881-9637  or email

11410 Woodcrest Drive SE,
AL - 35803
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