Investment Boot Camp

I served in the Navy during the first Persian Gulf War.  I’m thankful for the opportunity to serve my country.  My experience in the Navy taught me a lot about life.  I learned to type, use a computer, and many other skills that I take for granted today.  I also learned some skills I would have loved to live without like sweeping and mopping!

One of the early concepts that is drilled into you at boot camp is paying attention to detail.  We spent an enormous amount of time learning to focus on small details like tying knots, shining shoes, and wearing our uniforms.  If we made a mistake, there were two loving Company Commanders to shout the err of our ways.

How does all this apply to my work as a wealth advisor?

It’s really about establishing and repeating good habits over and over again.  My investment philosophy is based on that same attention to detail that I learned in Navy Boot Camp.  We were taught that bad things usually happen to good people when small details are neglected.  While lives may not be lost, they certainly can be ruined by poor money management.  So pay attention to detail as I reveal my Investment Boot Camp.

Four guiding principles of my Investment Boot Camp:

Pay attention to Expenses
Expenses reduce returns and often investors do not understand all of the costs involved in the management of their portfolio.  These expenses can impact wealth accumulation and distribution.  All things being equal, I encourage clients to utilize the investment with lower expenses.

Pay attention to Asset Allocation
Every portfolio should be allocated across a wide variety of asset classes to provide the optimum balance between risk and return.  This would include buying small, medium and large stocks, foreign stocks, growth and value.  The fixed income component may have a mix of corporate, municipal, treasury and foreign bonds.

Pay attention to Transparency
Transparency is at the core of everything I do, from investment selection, to financial planning, to client service.  Know what you own and why you own it.  Know the costs and the risks for your investments.  Make sure your advisor discloses everything.

Pay attention to a Long-Term Perspective
I believe in a long-term perspective when creating investment portfolios.  My focus is on what I can control and my clients’ goals-not maximizing short term performance.  A long-term perspective will keep you from making emotional investment mistakes at the wrong time.

So there you have it, my Investment Boot Camp. No yelling, cleaning or marching, just good common sense.  Applying these four principles should improve any investment portfolio.  Start with one or more and eventually strive to implement all four principles in your investment portfolio. If you would like some help with your portfolio, please email me at david@lexwealth.com or call me at (859) 225-2596.