Investment Strategies

Investment Strategies

By Katherine Vessenes, JD, CFP®, RFC
President, MD Financial

Every physician needs a solid investment strategy that can take them through both up and down markets and keeps doctors from making bad decisions during market turmoil.

We use a thoughtful, award winning and scientific process outlined by Modern Portfolio Theory.

In short we believe:

  • Our clients are best served working with an advisor, like us, who has a fiduciary duty so they will always recommend what is in the client’s best interests.
  • A buy and hold strategy has shown to reward investors over the old-fashioned, conventional approach of trying to buy the right stock at the right time and time the market.
  • Working with a company that has the lowest internal fees, means more money in our clients’ pockets.
  • All modifications to a clients’ portfolio are based on proven, scientific research.
  • We stay invested, even in down markets, just rebalancing as necessary to maintain the same risk level.
  • We are always available to service these accounts as needed.
  • Control the things within your control. This includes tax strategies, internal fees, and your portfolio structure.

We use the following process when it comes to managing our clients’ money:

  1. First, we talk through the financial research, and why we use Dimensional Funds (DFA). Katherine and Josh are two of the 2,500 advisors nationally who have been approved to recommend these funds.  If this approach seems to resonate with our clients, we will then,
     
  2. Look at the historical ups and downs of different portfolios, taking both their risks and their potential rewards into consideration. We talk through the worst year ever in the market, 2008, and see if another loss like that would be too emotionally devastating for our doctor. If so, then we know we must reduce the risk by adding more bonds.
     
  3. We frequently assign different risk levels to different portfolios and accounts. For instance, money saved for children who are going to college in five years, needs to be invested much more conservatively than funds that will be used in retirement 30 years from now.
     
  4. For most clients, we meet quarterly to review their accounts and discuss if changes are necessary.  Each account is tracked with advanced technology that allows you to review all of your accounts online at any time.

We literally could choose thousands of other ways to invest our clients’ money because we are completely independent. We have decided that DFA gives our clients the best opportunity to succeed.  Call us today to learn more about how we can enhance your portfolio to make it work harder for you.