Investment Process

Moller Financial does not try to predict what the market is going to do tomorrow or six months from now. Instead, we look for ways to help you successfully reach your goals with a high level of confidence. We do this by implementing and following rules-based investment strategies.

Opportunistic Rebalancing

This strategy begins with setting a target allocation for each investment - for example 50% to U.S stocks and 50% to international stocks. As prices go up or down, these allocations will change over time. By utilizing sophisticated technology, we continually monitor our client’s portfolios and can identify opportunities to take advantage of a variance in an investment’s weighting within the portfolio.  If an investment's allocation falls too far below the target, we buy more. Likewise, if an investment's allocation increases too far above its target, we sell some. This rules-based process is known as rebalancing and is a way to buy low and sell high - a nice outcome indeed.

One of the characteristics of this approach is that the portfolio is always fully invested, including during periods of temporary significant declines. Through opportunistically rebalancing and saving, clients can use these temporary declines to their advantage - buying stocks when they are on sale. 

Managing Risk

Based upon our client’s financial plans, we determine the appropriate mix of investments, often referred to as asset allocation.  For clients that have significant time before they plan to tap into their investments, a broadly diversified equity portfolio focused on long-term appreciation may make the most sense.  For clients approaching or in retirement, the focus often turns to reducing volatility and creating an income stream as they transition to living off the portfolio.  Reducing exposure to equities and adding fixed income investments can help accomplish these goals. 

For some, constructing a customized bond ladder using individual issues can be a way to create an income stream from the portfolio to match up with their income needs.  For others, creating a broadly diversified fixed income allocation to complement their equity exposure may be a better approach.  The key is constructing a customized portfolio based off a comprehensive financial plan, not based off a market opinion.