Financial Planning, Huntsville AL – Alan Markell, CFP®, EA, AFC
Investment Management, Personal Financial Planning, Insurance, Taxes

Discovery Financial Planning’s Investment Strategy

In a nutshell, our investment strategy is to have a highly diversified Buy-and-Hold, index funds portfolio.   We practice buy, hold, and re-balance.

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

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.

Buy-and-Hold strategy believes that market timing, i.e. the concept that one can enter the market on the lows and sell on the highs, does not work. It is better to simply buy-and-hold.

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

We minimize active management risk by investing in passively managed, index funds, because active fund management destroys value for 85% of long term investors.

We practice tax loss harvesting.

We believe in the efficient market hypothesis and modern portfolio theory.

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