What is "evidence-based investing"?
Evidence-based investing is based on the science of investing. Its foundation is from the academic world where the reward comes from building a better mousetrap—unlike Wall Street, where the reward is selling expensive, often complex products in order to reap financial reward to those doing the selling.
Here's why it matters that we are an evidence-based advisory firm.
- Invest in a widely diversified portfolio.
- Make every effort to keep costs low.
- Follow the investment philosophy with rigor and discipline despite what happens in the markets.
- Manage your money with tax efficiency in mind.
- Make decisions that take your personal risk and return preferences into account and are based upon sound evidence.
- Manage your money in a manner that gives you the highest probability of success.
We will not:
- Excessively buy and sell investments or churn your portfolio.
- Make trades without taking tax implications into account.
- Place your money into funds that carry high fees in order to maximize commissions paid to us.
- Sell you complex investment products that make money for our bottom line, not yours.
- Make decisions that lack a sound, rational basis grounded in rigorous academic research.
What is "goals-based investing"?
"Goals-based investing" relates the success of an investment strategy to whether it helps you attain specific life goals (like saving for retirement or leaving a legacy to a particular charity).
At Grand Capital, we are goals-based advisors.
What is a "fiduciary advisor"?
A “fiduciary advisor” is required to always act in your best interest. It is the highest, most rigorous legal duty an advisor can owe to a client. Most employees of brokerage firms don’t owe a fiduciary duty to their clients. They can have undisclosed conflicts of interest—and resolve them in their economic self-interest—as long as the recommended investment is “suitable” for the client.
At Grand Capital, we are fiduciaries to you, in every aspect of our relationship.
What is the significance of holding the CFA® designation?
Earning the CFA® designation is a highly selective process. Fewer than one in five candidates becomes a CFA charterholder. The program consists of three exams with an average of 1,000+ hours of intense study to earn this designation. Considered to be the preeminent financial designation, the program covers a broad range of financial topics relating to investment management, financial analysis, quantitative analysis, equities, fixed income, and derivatives. Both Ken and Steve hold the CFA® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
What is a "fee-only" advisor?
A fee-only advisor receives fully disclosed compensation only from their clients. They don't accept compensation from vendors of investment products or others. A fee-based advisor can charge a fee and also accept commissions paid by the sponsors of the products they sell, thereby creating a conflict of interest.
At Grand Capital, we are fee-only advisors.
Who makes investment recommendations?
All recommendations are made by our closely-knit advisory team.
What is a "Registered Investment Advisor?"
A Registered Investment Advisor (RIA) is a person or firm that is legally obligated to provide advice that must put your interest above their own. Grand Capital Advisors is a Registered Investment Advisor, registered with the State of Michigan.
What is "financial personality"?
We are all affected by our history with money (even from childhood). Our notions about what works and what doesn’t are influenced by an endless stream of financial media and advertising and Facebook, country club, or water-cooler chatter. Emotions play a very large part in the financial decision making of individuals. There is a wide range of emotions that can come into play in good, bad, and "boring" times in the markets and economy.
The best way for us to build a plan and portfolio that will last through the market and economic cycles—as well as the ages and stages of life—is to do our best to understand your financial personality.