1. We seek to lessen loss. Many advisers push their stock picking prowess. They want you to believe that they can tell you what will become the next Amazon or Google.
Unfortunately, very few will have a plan for protecting your portfolio. Most will dance around the subject by saying, “We diversify.”
Yet many advisers do not understand the mathematical meaning of diversification. (Hint: It does not mean you have a little of this, a little of that and a little of something else.)
Lessening loss requires a plan to actively reduce risk in the face of a hurricane or wildfire. At Pacific Park Financial, we take specific steps to batten down the hatches and board up the building.
Like the “We diversify” advisors, we anticipate the best. Unlike the others, we also plan for the worst.
2. We eliminate emotions from decision-making. There are times when human beings are prone to feeling greedy or panicky. That said, it does not need to be part of the investing process.
We recognize that, operationally speaking, decisions must be data-driven as well as mechanical. We may not want to buy in a scary economic environment. However, if our indicators tell us to add risk, we adhere to our rule-based decision making.
The same holds true for selling positions. If a pullback kickstarts sell signals across our suite of data-based indicators, we act. Feelings will have nothing to do with it.
3. We offer the benefits of a boutique firm. Many advisory firms flaunt the fact that they manage billions in assets for tens of thousands of people. Some of those financial corporations have tens of thousands of employees.
Regrettably, many multibillion-dollar businesses require pyramid structures to provide information and services to countless clients. In most instances, the decision makers near the top of that pyramid are several degrees of separation from the ‘relationship managers’ who speak with you.
At Pacific Park, when you call or stop by, you are speaking with the decision makers. No pyramids. No six degrees of separation. Rather, there is a simple horizontal structure for you to speak with us directly.
In a similar vein, extremely large asset managers are more likely to pay lip service to client care. Yet their sales associates and ‘vice presidents’ frequently push you into pre-set portfolio models.
In contrast, Pacific Park recognizes individual needs. We also understand the importance of developing strategies for your existing positions and establishing comprehensible timetables to bring your portfolio up to speed.
Indeed, we are small by design. Our clients are not sales targets. They are individuals with specific requirements and unique circumstances.