Our investment principles
At Moller Wealth Partners, we follow three investment principles that are critical to your success: Diversification, Minimized Costs and Discipline.
Our approach to portfolio diversification includes three strategies:
U.S. and international markets
Include “real” assets
Spread risk among
hundreds of companies
Over 70% of the global economy and 50% of the global stock market is outside of the U.S. Owning a globally diversified portfolio reflects this reality and may help smooth the ride for long-term investors.
Real estate (using investment vehicles known as Real Estate Investment Trusts—REITs), natural resources, or commodities.
By owning index-based mutual funds and exchange traded funds (ETFs), investor risk is spread among hundreds of companies within each fund.
It has been well-documented that high costs erode long-term returns. Most active mutual funds have annual expenses of 0.8% or more and very few outperform an index over a long time horizon. This is why we invest your money in passive funds that are intended to match the performance of an index and cost significantly less than active funds. Instead of hand-picking individual stocks, passive funds buy all the stocks that make up an asset class (or index). Using passive index funds allows you to keep more of the return that you earn.
The enemy of a well-prepared, long-term financial plan is emotion. It can be easy to get emotional during the ups and downs of market cycles. Whether you call it grit, determination, perseverance, resilience, or discipline, staying with your plan through good times and bad is the golden rule of investing. To take human bias and emotion out of the equation, we use time-tested, rules-based investment strategies for managing a portfolio. So, you can have peace-of-mind through the ups and downs of market cycles. But if you do start to worry when the market cycles change, just pick up the phone and call us. We’re happy to discuss all the reasons why we should stay the course.