By now, we hope we’ve convinced you of the advantages of turning to a fee-only investment firm with Registered Investment Advisors for assistance in achieving your long-term financial goals. But even within this narrower scope, there are often multiple choices. How do you decide? Of course you’re likely to seek an advisor who is geographically convenient, offers services that are right-sized for your needs, and is a good fit in terms of personality and areas of expertise. For Rockbridge, you can visit Who We Are on our website, or simply give us a call to learn more.
Another key differentiator is the fee-only investment advisor’s recommended investment strategy. It helps to know that, despite the seemingly countless variations, there really are only two main investment styles:
- “Active management” advisors try to forecast what is going to happen next, and successfully buy or sell according to those predictions — whether it’s within the market as a whole, in particular segments or for individual securities. Unfortunately, the burden of evidence and the costs involved weigh heavily against these active strategies, since they rely on gaining consistent, cost-effective control over an essentially unknowable future.
- “Passive management” advisors like Rockbridge help you focus instead on factors that are more within your control, such as your personal financial goals, and the solid body of academic evidence on how capital markets work. We apply these disciplined factors to help you build and manage your portfolio accordingly. And we provide ongoing support and advice to help you remain patient and on course when the markets grow uncertain.
By selecting a passive management advisor as your guide, you can better focus on your own plans instead of on the wild world around you.