[et_pb_section fb_built=”1″ admin_label=”Investing Image Section” _builder_version=”4.6.0″ _module_preset=”default” background_image=”http:\/\/springwaterwealth.com\/wp-content\/uploads\/2020\/09\/Factor-Investing.jpg”][et_pb_row make_equal=”on” admin_label=”Investing Image Row” _builder_version=”4.6.0″ _module_preset=”default” custom_padding=”112px||365px||false|false”][et_pb_column type=”4_4″ _builder_version=”4.6.0″ _module_preset=”default”][et_pb_text admin_label=”Investing Image Text” _builder_version=”4.6.0″ _module_preset=”default” header_font=”Roboto Slab||||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”60px”]<\/p>\n
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[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.4.8″][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text _builder_version=”4.6.0″]<\/p>\n
Decades of academic research concludes that most active managers – whether managing mutual funds, separate accounts, or hedge funds – don’t outperform the market itself. Although some active managers outperform the market during certain periods, it’s impossible to know in advance which managers will beat their relevant benchmark indices.<\/span><\/p>\n Broadly diversified funds that allow you to invest in the market as a whole are generally much less expensive and much more tax-efficient than traditional actively managed funds.<\/span><\/p>\n \u200b<\/span>A better investment experience can be enjoyed by designing your investment strategy to capture the market’s returns, while also seeking to avoid risks that offer no additional expected returns. This involves tilting your portfolio towards securities that have been shown through academic research to produce higher expected returns over time.<\/p>\n Furthermore, focusing things that are in your control – like fund fees and to a lesser extent taxes – yields true benefits.\u00a0 Therefore, using low-cost index funds and tax planning adds to the long-term success of your portfolio.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_divider _builder_version=”4.4.8″][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text admin_label=”1″ _builder_version=”4.4.8″ text_font=”Montserrat||||||||” text_text_color=”#0c71c3″ text_font_size=”24px”]<\/p>\n 1 \u00a0| \u00a0EMBRACE MARKET PRICING<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 1″ _builder_version=”4.4.8″ text_font=”Open Sans||||||||” text_line_height=”1.8em”]The market is an effective information-processing machine. Each day, the world equity markets process billions of dollars in trades between buyers and sellers \u2013 and the real-time information they bring helps set prices. [\/et_pb_text][et_pb_image src=”http:\/\/springwaterwealth.com\/wp-content\/uploads\/2020\/07\/Markets-and-Prices.png” title_text=”Markets and Prices” align=”center” admin_label=”Image for 1″ _builder_version=”4.4.8″][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_divider _builder_version=”4.4.8″][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text admin_label=”2″ _builder_version=”4.4.8″ text_font=”Montserrat||||||||” text_text_color=”#0c71c3″ text_font_size=”24px”]<\/p>\n 2 \u00a0| \u00a0DON’T TRY TO OUTGUESS THE MARKET<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 2″ _builder_version=”4.6.0″ text_font=”Open Sans||||||||” text_line_height=”1.8em”]The market\u2019s pricing power works against fund managers who try to outperform through stock-picking or market-timing. As evidence, only 22% of US equity mutual funds and 10% of fixed income funds have survived and outperformed their benchmarks over the past 20 years.<\/p>\n [\/et_pb_text][et_pb_image src=”http:\/\/springwaterwealth.com\/wp-content\/uploads\/2020\/07\/Survivors-and-Winners.png” title_text=”Survivors and Winners” align=”center” admin_label=”Image for 2″ _builder_version=”4.4.8″][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_divider _builder_version=”4.4.8″][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text admin_label=”3″ _builder_version=”4.4.8″ text_font=”Montserrat||||||||” text_text_color=”#0c71c3″ text_font_size=”24px”]<\/p>\n 3 \u00a0| \u00a0RESIST CHASING PAST PERFORMANCE<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 3″ _builder_version=”4.4.8″ text_font=”Open Sans||||||||” text_line_height=”1.8em”]Some investors select funds based on their past returns. Yet past performance offers little insight into a fund\u2019s future returns. For example, most funds in the top 25% of previous five-year returns didn\u2019t maintain a top 25% ranking in the following five years. 4 \u00a0| \u00a0LET MARKETS WORK FOR YOU<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 4″ _builder_version=”4.4.8″]The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically the equity and bond markets have provided growth of wealth that has more than offset inflation. 5 \u00a0| \u00a0CONSIDER THE DRIVERS OF RETURNS<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 5″ _builder_version=”4.4.8″ text_font=”Open Sans||||||||” text_line_height=”1.8em”]Academic research has identified these equity and fixed income dimensions, which point to differences in expected returns. Investors can pursue higher expected returns by structuring their portfolios around these dimensions. 6 \u00a0| \u00a0USE SMART DIVERSIFICATION<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 6″ _builder_version=”4.4.8″ text_font=”Open Sans||||||||” text_line_height=”1.8em”]Holding securities across many asset classes can help manage overall risk. But diversifying only within your home market isn\u2019t enough. Global diversification can broaden your investment universe and should improve your results. 7 \u00a0| \u00a0AVOID MARKET TIMING<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 7″ _builder_version=”4.4.8″ text_font=”Open Sans||||||||” text_line_height=”1.8em”]You never know which asset classes will outperform from year to year. By owning a globally diversified portfolio, you\u2019re well-positioned to earn returns wherever they happen. 8 \u00a0| \u00a0MANAGE YOUR EMOTIONS<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 8″ _builder_version=”4.4.8″]Many people struggle to separate their emotions from their investments. Markets move up and down, and reacting to current market conditions can lead to poor investment decision-making. 9 | \u00a0LOOK BEYOND THE HEADLINES<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 9″ _builder_version=”4.7.1″ text_font=”Open Sans||||||||” text_line_height=”1.8em” hover_enabled=”0″ sticky_enabled=”0″]Daily market news and 24\/7 commentary can challenge your investment discipline. Some messaging is meant to create anxiety about the future, while others are intended to motivate action. \u00a0If headlines unsettle you, pause to consider the source, and maintain a long-term perspective. 10 \u00a0| \u00a0FOCUS ON WHAT YOU CAN CONTROL<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text for 10″ _builder_version=”4.4.8″ text_font=”Open Sans||||||||” text_line_height=”1.8em” hover_enabled=”0″ sticky_enabled=”0″]A fiduciary financial advisor can provide advice and guidance to help you focus on actions that will add value. This leads to a better investment experience and greater peace of mind. OUR LOCATIONS<\/strong><\/p>\n Our Portland office is conveniently located off the SW Denney Road exit from Highway 217.<\/p>\n 6600 SW 105th Avenue, Suite 155 Our Bay Area office is located in downtown Santa Cruz.<\/p>\n 133 Mission Street [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Schedule Consultation” _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff”]<\/p>\n SCHEDULE A FREE CONSULTATION<\/strong><\/p>\n If you’d like to learn more about how we can help you build a solid plan for your future, let us know by filling out our contact form. Or give us a call at (888) 998-4796.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff”]<\/p>\n CONNECT WITH US<\/strong><\/p>\n Want to keep up with the latest news from Springwater? Follow us across our social networks.<\/p>\n [\/et_pb_text][et_pb_social_media_follow _builder_version=”4.2.2″][et_pb_social_media_follow_network social_network=”twitter” url=”https:\/\/twitter.com\/SpringwaterWM” _builder_version=”4.2.2″ background_color=”#00aced” follow_button=”off” url_new_window=”on”]Twitter[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”facebook” url=”https:\/\/www.facebook.com\/SpringwaterWealth\/” _builder_version=”4.2.2″ background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]Facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”linkedin” url=”https:\/\/www.linkedin.com\/company\/springwater-wealth-management\/” _builder_version=”4.2.2″ background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]LinkedIn[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Our Investment PhilosophyDecades of academic research concludes that most active managers – whether managing mutual funds, separate accounts, or hedge funds – don’t outperform the market itself. Although some active managers outperform the market during certain periods, it’s impossible to know in advance which managers will beat their relevant benchmark indices. Broadly diversified funds that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":8,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/4429"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=4429"}],"version-history":[{"count":0,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/4429\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/8"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=4429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n[\/et_pb_text][et_pb_image src=”http:\/\/springwaterwealth.com\/wp-content\/uploads\/2020\/07\/Markets-Reward.png” title_text=”Markets Reward” align=”center” admin_label=”Image for 4″ _builder_version=”4.4.8″][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_divider _builder_version=”4.4.8″][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text admin_label=”5″ _builder_version=”4.4.8″ text_font=”Montserrat||||||||” text_text_color=”#0c71c3″ text_font_size=”24px”]<\/p>\n
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\n[\/et_pb_text][et_pb_image src=”http:\/\/springwaterwealth.com\/wp-content\/uploads\/2020\/07\/Diversify-Globally.png” title_text=”Diversify Globally” align=”center” admin_label=”Image for 6″ _builder_version=”4.4.8″][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_divider _builder_version=”4.4.8″][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.8″][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text admin_label=”7″ _builder_version=”4.4.8″ text_font=”Montserrat||||||||” text_text_color=”#0c71c3″ text_font_size=”24px”]<\/p>\n
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Beaverton, OR 97008<\/p>\n
Santa Cruz, CA 95060<\/p>\n