At Watts Gwilliam & Company, we offer a highly structured investment process applied with rigor and diligence. Our process is guided by our investment philosophy—that objectivity, expertise and product independence are all absolutely necessary in order to design, implement and monitor an appropriate portfolio for your needs. We monitor client accounts with a careful eye to rebalancing with the objective of maintaining the risk control effects of asset allocation.
Our approach embraces far more than sophisticated investment tools, approaches and technology. We believe investors need and deserve objective investment advice that is delivered in a broader context of planning issues and family goals. We work with you to establish objectives and provide ongoing reviews to ensure these goals continue to meet your expectations.
Investing is an ongoing process that continues throughout your lifetime. A successful financial strategy must comprehend your goals, always with an eye to your time horizon, and removed interests that may conflict with the client’s needs. At the beginning of each client relationship, we consider numerous factors, including goals, tolerance for risk and the client's time frame. Please see our risk tolerance form to access your own personal objectives.
Risk Form >
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At Watts Gwilliam & Company, we believe that the only “free lunch”
in financial markets is achieved through effective portfolio
diversification. While we accept the fact that the returns of a
single investment directly correspond with the amount of risk
associated with the asset, a carefully constructed blend of
investments that move independent of one another create results
that reduce total portfolio risk without the sacrifice of lower
returns. Achieving these higher returns with lower risk provides
the “free lunch”.
Central to our portfolio design are four key philosophies:
1. Successful diversification can only occur by mixing
non-correlated asset classes into an effective blend.
2. There are great risks and costs associated with actively
picking stocks, or investing in actively managed mutual funds,
and an investor’s stock exposure should be done by investing in
the whole market.
3. Keeping costs low and maintaining tax efficiency is necessary
in maximizing the net-returns to the investor.
4. The risk and reward of an investment are inseparably related.
Those seeking high returns must hold riskier assets.
Our clients experience the following investment process:
1. Client Profiling: This is achieved through an interactive,
and in-depth, client interview process. This collaboration helps
our advisors truly understand the client’s desires, goals,
ability to assume investment risk, and time horizons. The
success of this step is critical to the overall success of our
2. Determine proper investment allocation: With a thorough
understanding of the client’s situation, we are able to set the
proper allocation between stocks, bonds, and alternative
3. Allocate traditional investments (stocks and bonds) into low
costs, diversified portfolios, including both U.S. and non U.S.
4. Allocate alternative investments to areas such as real
estate, commodities, managed futures, hedge funds, etc.
5. Monitor and rebalance the portfolio to ensure proper
alignment with the client’s goals and objectives.
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