“What is your intention?” It’s a big question, and one that leads nearly every aspect of your life – including the parts that deal with money.
An investment intent is based on the intractable belief we have in the principles and practices that guide our decision-making for our investment portfolios. In times of market upheaval and through the dark of uncertainty, our investment intent enables us to control our emotions, shut out the noise, and focus on the things that really matter over the long term.
An investment strategy, while important, is nothing more than a manifestation of an investment intent. Strategy can evolve as circumstances might warrant. Intent is the guiding principles that guide our investment strategies in all circumstances.
Our investment intent, is made up of three core beliefs:
- Transparency – We only invest in mutual funds and ETF’s that are easy to understand and to explain.
- Diversification – Asset diversification has proven to be instrumental in building long-term investing success. As such, we will utilize passive asset allocation (buy-and-hold with periodic rebalancing) strategy with the level of risk dictated by each clients’ Prosperity Planning process. Active asset allocation (market timing) will be minimized to 5% or less of a portfolio and will be utilized when arbitrage (discount pricing) conditions exist within the market.
- Socially Responsible Investing (SRI) – It is a key consideration in our investment selection, especially for those clients who specifically request SRI. For socially conscious clients, we make every attempt to invest in those funds and/or ETF’s that take into consideration investments that are:
- Stewards of the environment
- Devoted to serving local communities
- Committed to higher labor standards
- Dedicated to producing high-quality and safe products
- Those that manage their organizations in an exemplary or ethical manner, or have plans to become all of the above.
Our investment intent keeps us focused on the process which is our investment strategy. If mistakes are made, we have a rational process for uncovering and learning by them. No panicked reactions or second guessing, just a clear assessment of where we are today in relation to where we want to be, and whether the current strategy is the one to get us there. At worst, we adjust the strategy. At best, we leave it alone because it still supports our core beliefs about the market.
The Prosperity Experience with Mackey Advisors™ allows you to open your eyes to what you really want out of life, and design a plan for exactly how to get there.
Our investment intent allows our professionals to act as your fiduciary, to ensure your assets are managed for your benefit, according to your plan and in your best interests.