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 that meet 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*. Others simply 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 a healthy 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 will seek out lower cost / higher quality investment vehicles that suit your circumstances…all within the risk parameters that are appropriate for you and are comfortable with. As fiduciaries, we are held to the highest ethical standard in the financial services industry. Simply put, we are legally and ethically required to always act in our client’s best interest.  CWP is a “fee only” adviser. We receive no compensation from any product or investment vehicle. Furthermore, we have a vested interest in your success. The better you do, the better we do.

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.  Moreover, bond laddering** and/or barbell*** strategies are appropriate for some of our clients. The investment & research team at Fundamentum™ are a tremendous resource for Century Wealth Partners and our clientele.  This is possible because of our partnership with Stratos Wealth Advisors.  See "Tools and Partners" for more information about Stratos and Fundamentum.

Examples of “Irrational Investor Behavior”:

  • 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”.

*Over the last 20 years, independent (DIY) investors have lagged the broad market benchmark by nearly 3% annually (Dalbar study 2017).

** Bond ladder — which attempts to match cash flows with the demand for cash — is a multi-maturity investment strategy that diversifies bond holdings within a portfolio. It reduces the reinvestment risk associated with rolling over maturing bonds into similar fixed-income products all at once.

*** A Barbell strategy is formed when a Trader invests in Long and Short duration bonds, but does not invest in the intermediate duration bonds. This strategy is useful when interest rates are rising; as the short term maturities are rolled over they receive a higher interest rate, raising the value. 

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. 

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