Our investment philosophy is a critical component of success.

In over 35 years’ experience, it has become apparent that no one person has all the answers. Rather, successful investing is an activity of specialists. So we provide clients access to well-regarded traditional and alternative asset class managers, then craft portfolio strategies specific to each client’s life goals and financial challenges.

Our primary goal is to create an asset mix that will provide a balance between expected risk and return for a long-term horizon. We believe no one has demonstrated an ability to consistently time the markets, so we rarely make asset allocation decisions due to short-term market shifts.

To help clients work toward their financial goals, we strive to identify top managers in their respective asset classes using a thoughtful due diligence process. We utilize Wells Fargo Advisors Financial Network (WFAFN) and several other respected, independent research groups in these efforts. This approach helps assure our clients that their investments are in the hands of experienced professionals.

We employ a combination of actively managed and passive index programs in our portfolio construction process. Active management can contribute to results while indexing can provide clients with diversification and help manage their investment costs over time. Where appropriate and depending on each client’s timeframe, risk tolerance, etc., we may also explore a variety of risk transference strategies.

Rather than benchmark comparison, we focus on outcome-based portfolio construction. Our in-depth planning process establishes a “personal benchmark” that helps track our progress toward each client’s specific goals. We use this primarily and will also track against an industry benchmark as a secondary process.

We proactively review our positions, managers and benchmarks to consider what rebalancing to our target weights may be needed. This helps ensure the portfolio continues to address our clients’ needs. Despite market volatility and economic uncertainty, clients believe they can achieve their financial goals and enjoy a “Life Well Lived.”

We work collaboratively to develop a plan best suited for each client’s unique needs. This gives a sense of clarity, organization and empowerment over their financial future.

Our investment strategy focuses on “Balance”

At KWM, we emphasize prudent portfolio “balancing” over speculative investment timing and chasing historic performance. Our strategy strives to:

In this low interest rate environment, we focus on high quality equities with histories of generating competitive, consistent dividend performance. Specifically, our strategy guidelines strive to balance:

  • International: Ratio of 3:1 domestic to international.
  • Capitalization: Ratio of 3:1 large to mid-cap.
  • Style: Equate “value” to “growth” styles of equities.
  • In an effort to manage high volatility investments, we recommend clients limit their exposure to:
    • Small cap securities
    • Emerging markets and international debt
    • Narrow sector investments

With interest rates near historic lows and seemingly poised to rise than fall, we see this as a challenging environment for fixed income investments. To provide clients with downside cash flow protection in case of market decline, we help clients explore the guaranteed benefits that annuity products offer.

We understand and appreciate that each client presents unique circumstances and needs. After developing a thorough understanding of each client’s time horizon, cash flow needs and risk tolerances, we collaborate together to recommend an allocation consistent with the above guidelines that we believe is most capable of achieving their goals and providing financial confidence.

Despite market volatility and economic uncertainty clients believe they can achieve their financial goals and enjoy a “Life Well Lived.”

For over 35 years we have been helping our clients achieve a life well lived.  As you seek a trusted source for your financial advice, we invite you to consider our “2nd Opinion” program for a complete, unbiased review of your financial program. 

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Kauffman Wealth Management and not necessarily those of Wells Fargo Advisors Financial Network. Dividends are not guaranteed and must be authorized by the company’s board of directors. Diversification and asset allocation do not ensure a profit or protect against a loss. Please note that international investing involves special risks, including currency fluctuations, differing financial accounting standards, and possible political and economic volatility. Any guarantees are based on the claims paying ability of the insurance company.

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