What makes MMWM different from other financial advisors? In addition to our unique approach, we offer a combination of benefits that most firms simply cannot match. These include:
Independence: We have a variety of possible client engagements and at the end of the first meeting we will recommend a course of action disclosing all fees and costs associated with our recommendation.
Model: We utilize a proprietary financial decision making model to evaluate potential financial strategies. Without a macro economic model to verify your decisions, you’re left to chance and may be swayed by opinion and sales hype. How do you know if a strategy that someone is selling is right for you? What tool do you use to evaluate these financial decisions? We test our strategies before implementation to ensure they conform with the laws of math as well as macro economic theory and align with your goals and dreams.
A Proven Methodology: Most advisors have large weightings to US stocks, because people “feel” they are safer. Admittedly, when viewed in the context of the last 20 years, these portfolios looked good. But at MMWM, we also understand that this past performance does not guarantee future results. That’s why we take a diversified approach designed to minimize your risk and fluctuations.
Low Cost: 70% or more of all actively managed mutual funds will underperform their respective indicies over the long run. Most advisors ask you to assume that their fund managers add value, when in reality they would be better off using low cost, tax efficient solutions.
We believe a core portion of the portfolio should be in passive, low cost, investment vehicles. Active funds have their place especially in illiquid, less efficient markets like sector specific areas. We utilize these areas of opportunity in the satellite portion of our portfolio.
Consistent Rebalancing: Timing the market is a losing strategy in the long run. In order to ensure your portfolio does not take on undue risk, it is imperative that you rebalance on a predetermined basis. Rebalancing frequently appears counterintuitive, since you are selling vehicles that have performed well, and buying those that have decreased in value. But, in reality, rebalancing forces you to obey the single most logical rule of investing: Buy low and sell high. Over time, we feel that this approach provides the most consistent, risk-controlled method of investing.
Self Managed: We manage assets in house. This allows us to utilize non-traditional assets and tactical asset allocation. Both of these methods aid us in reducing overall risk to a portfolio without compromising the return. In house management also gives us the ability to reduce costs to the client by removing an additional layer of potential fees.
We also control the asset allocation decision in house, via our investment committee. We are able to enter illiquid, under-followed areas of the market that possess attractive risk vs. return characteristics that a large firm would not enter because they would move the market.
