Overview: PortfolioSmart

Possible vs Probable

Las Vegas was built on people believing it was possible they’d win and casinos knowing it was probable they wouldn’t. Wall Street may have quite a lot in common in this regard.


Knowing the difference between the possible and probable is essential to your investment success.

Investment history has shown that it’s difficult, if not impossible to consistently ‘beat the market'.


Financial markets are large and complex, hedge funds and other institutions spend immense amounts of capital on research and technology with the hope of building even a very small edge. Why would you or your advisor try to compete with them?


If picking managers, stocks or timing investments is irrational, what can you do to achieve your investment goals?


PortfolioSmart has two core components, avoiding complexity and layers.

“The definition of genius is taking the complex and making it simple.” ― Albert Einstein


Avoid Complexity

Timing investment buys and sells is one form of complexity. Esoteric investment strategies are another. Multiple custodians and managers will also increase complexity. Complexity requires more resources to manage, which in turn increases costs. Increased costs typically lead to increased risks in your portfolio. Thoughtful structure and intentional design can save you from making portfolio complication mistakes.


Avoid Layers

Layers add complexity and increase the cost. It’s common to see the ‘mass advisor’ try to pick and time funds that pick and time securities. Each layer makes it more challenging to understand and manage, and likely reduces your probability of success.


Thanks to passive investing, building a diverse portfolio of investments is now free or nearly free. The mass adviser is primarily a salesperson, but historical expectation and massive marketing budgets have positioned them as “investment experts.” Understandably, many investors have succumbed to the clever advertising of the financial services industry, and continue to work with expensive advisers. Further, understanding what specific activities generate return is beyond simply assessing how nice an advisor is. It’s scary to contemplate how many people trust their financial future based on how much they like someone.


An Alternative

At WealthFactor, we developed our RiskSmart investment approach to maximize the probability investor outcomes will be successful. We use technology and process to increase portfolio and tax efficiency; while reducing your costs with our low .35% management fee.


Get in touch today if you’d like to keep more of your money and discover how WealthFactor’s RiskSmart investing can help achieve your investment goals.



Disclosures and Disclaimers: https://www.wealth-factor.com/disclosures-and-disclaimers


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525 3rd Street, Suite 230

Lake Oswego, Oregon 97034

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