Our Investment Philosophy
Investing isn't as simple as you'd probably think. At TwoTen Planning, we help you achieve steady progress, rather than following today's trends, to help you meet your financial goals with an evidence-based approach.
You have the right to a successful investment experience. Investing does not have to create stress, anxiety, or frustration. We seek to deliver successful investment experiences by capturing global market returns through an evidence-based approach that is backed by decades of peer-reviewed academic research. The goal is to tilt the odds of success in your favor so you can relax and focus on the priorities that matter most in your life!
Capitalism is Market-Based
Capitalism enables the creation of long-term wealth. Capitalism does a remarkable job of allocating resources to their most efficient use, and financial markets have rewarded long-term investors.
Markets Work
Embrace market prices. The market operates as an efficient information processing machine. Current market prices of publicly traded investment securities are fair and reflect the publicly available information, knowledge, and expectations of aggregate market participants.
Don’t Try to Outguess the Market
Trying to outguess the market through a prediction-based approach is futile and akin to competing against the collective wisdom of all market participants. There is little compelling evidence that anyone can reliably and consistently predict the markets with success. Instead, pursue an investment strategy that is evidence-based and effectively harnesses the power of market prices.
Consider the Drivers of Returns
Nobel prize-winning academic research has identified reliable drivers of investment returns. Designing, managing, and trading a portfolio around these drivers, while balancing costs and diversification, can improve investment returns over time.
Volatility and Return are Related
Investors who desire higher expected returns must be willing to accept greater levels of uncertainty.
Global Diversification Works
Diversification reduces uncertainty, controls risk, and increases the reliability of outcomes. Investing across and within global markets can broaden your investment universe and improve diversification.
Tax-Smart Asset Placement
Investment account types are taxed differently. And the tax-efficiency of the underlying investment strategy does matter. To minimize taxes and maximize after-tax returns, consider which investment strategy is allocated to each account type.
Investment Plan and Policy
Create your plan and invest according to an investment policy statement that frames your objectives, return target, risk tolerance, target allocation, and constraints. The policy serves as a framework and guide for investment decisions.
Align Your Investments with Your Goals
Your money has a purpose – to support your life! Invest your capital to reflect your goals and priorities.
Let your financial plan guide your investment strategy, ensuring your capital is bringing you closer to achieving your long-term vision.
Focus on What You Can Control
We believe that investors can substantially improve their odds of success by favoring diversified, low-cost, low-turnover, tax-efficient investment vehicles, and by emphasizing the known drivers of investment returns. Stay disciplined and maintain realistic expectations for investment performance outcomes over various time periods.
Citations
Dimensional. (2024). Pursuing A Better Investment Experience. Austin, TX.
Aspects of our investment philosophy reflect the opinions of TwoTen Planning, PLLC. There is no guarantee that any statements or opinions provided herein will prove to be correct.
Historical performance of markets and investment types may not be indicative of future results. Securities investing involves risk, including the potential for loss of principal. There is no assurance that diversification, strategies based on Nobel prize-winning research, or any investment plan or strategy will be successful.
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“Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interests but each of you to the interests of the others.”
