Policy design, implementation, continuous monitoring and modification, as necessary, are integral parts of the investment management process. We believe in the “efficient markets theory”, “modern portfolio theory”, and long term buy and hold strategies in regards to securities investments. This philosophy is supported by years of historical research from some of the world's leading financial economists.
Brown Wealth Management is one of a select group of financial advisory firms permitted to invest in Dimensional Fund Advisor Funds (DFA). The relationship between DFA and Brown Wealth Management is based solely on shared views about how capital markets work and how best to provide clients with a successful investment experience. It involves no financial relationship or incentive of any kind. DFA supports advisors like us through educational conferences featuring some of the nation's most distinguished financial economists.
Client Related Issues
Goal Setting
We believe that clients set their own goals. It is our responsibility to educate them in the process and to assist them in defining, quantifying, and prioritizing their goals.
Cash Flow
We believe that clients need total return, not dividends or interest. The traditional concept of an 'income' portfolio is archaic and places unnecessary and inappropriate restrictions on portfolio design.
Expectations
We believe that 'conservative' assumptions are a dangerous myth. An investment policy should not be prepared based on unrealistic expectations. If necessary, we will refuse the engagement.
Risk Tolerance
We believe that our clients' risk tolerance is a significant constraint in the wealth management process. Success can be measured by our clients' ability to sleep well during turbulent markets.
Tax Constraints
We believe that tax considerations must be considered. However, the goal of tax planning should be to maximize after-tax returns, not to minimize taxes. Neither reported turnover nor holding period calculated from reported turnover is a useful measure of tax efficiency. Annuities should generally only be considered when asset protection is an issue (in those states where the law protects annuity assets).