Investment Management Process

Our process begins with obtaining a clear and complete understanding of your life goals and dreams, along with your concerns and expectations.  We'll review and analyze your current financial plan and investing strategy, identifying areas of strength and opportunities for improvement.  Then, we'll develop and implement tailored solutions with a goal of meeting your needs so you can feel confident, self-assured and empowered about your financial future. 

We believe that an effective investing process requires the right ingredients. These include TIME, DESIRE, DISCIPLINE and KNOWLEDGE.  We have found that many investors lack one or more of these which could lead to irrational investor behavior (see examples below) and suboptimal results.  Over the last 20 years, independent (DIY) investors have lagged the broad market benchmark by over 2% annually*.  We believe many investors simply want to feel more comfortable and confident with a trusted professional partner. This is where we come in.

We advocate the use of Modern Portfolio Theory as the foundation for your portfolio plan. “MPT” is a Nobel Prize winning economic theory that has been shown to reduce volatility and produce more consistent & reliable performance results**.  We believe that costs matter and as your fiduciary, we seek lower cost investment vehicles that suit your circumstances, within the risk parameters that are appropriate for you and are comfortable with.

Investment vehicles used include mutual funds and/or exchange traded funds (ETF's), both actively and passively managed (indexed) products. Additionally, individual stock and bond positions can be part of a customized client solution if deemed appropriate.  The research team at Stratos Investment Management™ are a resource for Century Wealth Partners.  This is possible because of our partnership with Stratos Wealth Advisors.  See "Tools and Partners" for more information about Stratos and Stratos Investment Management.

Examples of irrational investor behavior are below.  Souce: https://www.investopedia.com/articles/05/032905.asp

  • Loss Aversion – The fear of loss leads to a withdrawal of capital at the worst possible time.  Also known as “panic selling.”
  • Mental Accounting – Separating performance of investments mentally to justify success and failure.
  • Lack of Diversification – Believing a portfolio is diversified when in fact it is a highly correlated pool of assets.
  • Herding– Following what everyone else is doing; Leads to “buy high/sell low.”
  • Regret – Not performing a necessary action due to the regret of a previous failure.
  • Emotional Decision Making – Allowing “greed” to compel purchases of risk assets when there appears to be no risk (market at new highs); Allowing “fear” to drive the sale of growth assets after (or during) declines to “stop the bleeding”.

* (Dalbar study 2024)- https://www.ifa.com/articles/understanding-investor-behavior-portfolio-performance

** The modern portfolio theory (MPT) is a practical method for selecting investments in order to maximize their overall returns within an acceptable level of risk. This mathematical framework is used to build a portfolio of investments that maximize the amount of expected return for the collective given level of risk.  https://www.investopedia.com/terms/m/modernportfoliotheory.asp

There can be no guarantee that future performance based on MPT or any other investment strategy will be successful.  All performance referenced is historical and is no guarantee of future results. Investments involve risk including loss of principal and unless otherwise stated, are not guaranteed. The investment returns and principal value of the portfolio will fluctuate so that the value of an investor’s account, when redeemed, may be worth more or less than their original value. Please consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed here. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by (Stratos Wealth Advisors, LLC) or DBA Name), will be profitable or equal any historical performance level(s). Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice, or from any other investment professional. If you have any questions regarding the information on this website, please consult with your financial advisor. No strategy assures success or protects against loss.

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