Optimizing your Assets

A BALANCED APPROACH: At Hippocratic Financial Advisors, we believe that an optimal investment strategy is imperative for any financial plan. History has proven that interest-generating investments such as cash and bonds have relative stability of principal. However, they provide little opportunity for real long-term growth due to their susceptibility to interest rates and inflation. On the other hand, equity investments have clearly enjoyed significantly higher expected returns historically, but are vulnerable to more severe volatility risk in the markets. To balance the need for safety and performance, we use Modern Portfolio Theory to bridge the gap between traditional and active investment strategies.

Modern Portfolio Theory is a highly disciplined, time-tested process that includes a customized Investment Policy Statement designed to identify the best investment strategy for your situation and answer questions such as:

  • Am I taking too much or too little risk with my investments?
  • Are my assets divided into different buckets to address different goals and different time horizons?
  • Are my investments generating unnecessary taxes?
  • Are my accounts being rebalanced so I stay within my risk parameters?

How your personal portfolio is structured depends on a number of variables that we incorporate into your customized portfolio. These variables include your current stage in the financial life cycle, your risk tolerance, tax situation and investment time horizons. In this way, we are able to manage your money with an equal emphasis on risk management and investment performance.

Whether your goal is to maximize returns, minimize volatility or some combination of the two, we can help build and continually manage a portfolio best suited to meet your needs.