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Our Investment Philosophy

Synergy Wealth Management is focused on having a fiduciary role in the advice we provide, rather than simply providing products and services that are "suitable."  We help our clients build and manage their liquid wealth, and believe this can be done using the time tested strategies of diversification, patience, and asset class investing.  Investing should be done in an efficient way with fees and costs being transparent. We like to put it in simple terms by asking, "The last time you made a large purchase, such as a home or a vehicle, did you have detailed knowledge of all of the costs?  Why would purchasing an investment product that can have major financial implications be any different?" 

We believe that markets cannot be beat over the long term once costs and taxes are accounted for.  The conventional approach to investing, active management, involves predictions such as forecasting the next "hot stock", or trying to time the transactions.  It has been academically proven that the traditional way of investing does not work with consistency over the long run.  No one has a crystal ball in the investment industry, no matter how hard they try to tell you that they do.  Please see SPIVA and Persistency for more information.

We believe it is imperative that our clients learn how to read a prospectus.  We educate our clients on how to read all of their paperwork, versus immediately sending it to the recycle bin.  

More on Our Investment Philosophy

INVEST WITH AN OBJECTIVE:  Prudent investment management includes defining your current financial situation and goals, and how to reach your objectives in an efficient manner.

FOCUS ON WHAT YOU CAN CONTROL:  Costs, Diversification, and Tax Implications are controllable.  Market factors that drive investments up and down are out of our control. 

UNDERSTAND THE COSTS AND FEES: We believe you should have a clear understanding of all costs, including implicit and explicit expenses.  If the recommendation has multiple share classes, we use the lowest cost share class available.

DON'T TRY TO OUTGUESS THE MARKET:  Academic and statistical research shows that trying to beat the market through stock picking and market timing does not work over the long run.  Short term performance does not equate to long term consistency.

RESIST CHASING PAST PERFORMANCE: Past performance alone provides little insight into an investment's ability to outperform in the future.  Past performance does not dictate future results!

FEE-ONLY INVESTMENT MANAGEMENT:  We believe investors need to understand what they are paying for in a clear and concise way.  We prefer to have our compensation tied to your portfolio.

RECOMMENDATIONS THAT ARE FREE OF FINANCIAL INCENTIVES:  As an independent advisory firm, we have no proprietary products, and we do not accept, nor recommend, products that pay us revenue sharing.  We believe that financial incentives create conflicts of interest.  Conflicts need to be eliminated or minimized, and clearly disclosed.                        

PASSIVE MANAGEMENT:  Speculation on predicting the future (active management) leads to additional costs and may reduce long term gains.  Low turnover, the buying and selling of individual securities in a fund or portfolio, reduces transaction and tax costs.  Passive management embraces efficient market pricing, along with working with the markets vs. against them.

DIVERSIFICATION IS KEY: Diversification reduces, but does not eliminate uncertainty.  Concentrated investments add risk with no additional expected return.  Asset allocation along the dimensions of size, value, profitability, and market exposure primarily determine the results of a broadly diversified portfolio.  Focus on stock characteristics vs. individual securities.   

DISCIPLINE AND PATIENCE: Staying invested for the long run is the best way to fully participate in what the markets have to offer.  Managing emotions during market cycles can pose a challenge, but it is crucial for long-term success.

LIQUIDITY:  We generally only recommend investments that are liquid, and can easily and inexpensively be converted to cash.

Please note: This content is for informational purposes. Please consult an advisor to discuss your individual situation prior to making any investment decision. Diversification and asset allocation strategies do not assure profit or protect against loss.