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Our Investment Philosophy

Investment & Financial
Planning Philosophy

“There seems to be some perverse human characteristic that likes to make easy things difficult” - Warren Buffett

“Empty pockets never held anyone back. Only empty heads and empty hearts can do that.” – Norman Vincent Peale

We believe that prior planning, hard work, and discipline are the secrets to financial success.  It’s not a complex formula, but it is certainly the path least traveled, because it is not the “easy” path to success.  In fact, there really isn’t a high probability path to success that’s “easy”.  If you want a high likely-hood of accomplishing your goals then, you have to look deep inside yourself, work hard, and hire someone to help you to stay on track.

Our General Philosophy:

  • Help you find the highest probability path to accomplish any financial goal you may have.
  • Help you to stay on track once we identify and implement them.
  • Help you to adjust your course as life changes over-time.

It probably will not be easy or quick but we will help you every step of the way.  Life is about probabilities and all we can do is make the best choices that we can in our lives.  Sometimes things will not work out as we planned; but many times they will, and as we calculate the sum of successes and failures from a life of good choices, we are confident that you will be much more successful than you would have been otherwise.

Our Investment Philosophy:

Investment management is the most common service we perform for our clients. It is not the core of what we do, that is planning we mentioned above, but it is the main means by which we help our clients leverage their hard work and capital to accomplish their goals. Our general philosophy shines through into our investing because we manage our clients’ money very scientifically and systematically by helping them choose an investment strategy that will help them achieve their goals with the highest probability of success with the statistically least amount of risk for their specific goals and desires. We believe:

  • You cannot statistically “beat” the markets over the long-term.
  • Low costs are one of the most important variables and we strive to reduce costs always, which leads us to favor passive/index strategies.
  • Human behavior is the biggest detractor from investor returns (a documented 3-7%/yr long-term under-performance), our close relationship and process helps us to help our clients bring their returns much closer the optimal market/index return.
  • Fundamental analysis (active management) can add value, in certain areas and times, but only if it comes at very reasonable cost (only marginally above an index strategy).
    • We reject tactical (market-timing) investment strategies as fallacious and generally too expensive to provide any long-term value to most investors.

We believe that our process of combining relationship, knowledge, technology, and process helps us to help our clients attain a much more efficient market return for our clients, which will in turn help them to accomplish their underlying important life goals.

Formulating an investment strategy:

We help our clients define the goals that they are saving/investing for, determining the risks they are comfortable taking, adjusting the risk to return profile to the differing time-frames of various goals and weaving this all together into an efficient and practical investment plan. We tailor our portfolios to our individual client needs and we have created over 100 model portfolios (most firms have ~5-10) and we are always willing to customize when one of our models doesn’t fit, which is why we have so many already.

There are so many people and companies out there today that will tell you that what you want “can’t be done” without even trying because you do not fit their “cookie cutter” model or they try and make you feel bad or wrong because of the goals you have or the way you believe. rebel Financial was started in antithesis to this mentality, we will always try to accomplish your goals and accommodate your beliefs in most efficient and practical way possible!

We also offer  the following values based investing strategies:

1) Socially Responsible Investing (SRI)/Environmental, Sustainable, Governance (ESG) – Many of us believe that our investments should be guided by the same principals and ethics that we live by in our own lives. Whether its labor practices, good governance, being environmentally sustainable, investing in renewable energy sources, etc. We have solutions to help you do so without sacrificing investment performance and only at marginally higher costs (this keeps reducing every year).

2) Christian Values based Investing – Investing with an emphasis on Christian Values is very important to many of our clients and we try to build investment strategies that can help them accomplish their long-term goals while building their principals into their investment strategy.

3) Shariah/Halal based Investing – This is still an area that is in it’s infancy in the US, but it continues to improve every year. We have only been able to roll these models out to our clients since 2015 because there just were not enough investment providers available to build diversified portfolios. We are pleased to say that this has changed and we are excited to help our Muslim clients invest more confidently, according to their beliefs.

Creating an investment policy statement:

Many wealthy individuals and most institutional investors have an investment policy statement.  It is a plan of how they investment their resources and guidelines to keep them on-track as environments and situations change.  Watch this video to learn more about investment policy statements and ask us to create one for you:

Implementing your investment strategy and maintaining it over time:

Implementation is one of the most important aspects of any plan because it turns our words into actions and creates the reality of our goals and dreams. Our entire process is about continually implementing our plans and making our investment strategies and financial plans work “practically”, not just “theoretically”.

Every one of our client portfolios is assigned to one of our model portfolios (currently we have more than 100), or we can design a unique model when the situation calls for it, in which we assign many rules from our technological integrations with Morningstar Office, iRebal, and our custodians to monitor for potential actions that need to be acted on each individual client portfolio and, they are addressed every business day. We manage all of our clients’ investments with discretion which means that we have to authority to correct any problems with your portfolios as they arise, not just when we can raise you on the phone or you have time to schedule an appointment with us. This type of management is the minority in the financial advisory world because we must assume more liability for our firm, but it results in much more attention to your investments and the successful implementation of your investment strategy.

Helping you bring it all together:

Although this is the “Investment Philosophy” section we would be remiss to neglect that financial planning is basis on which an investment strategy should be built upon. Unfortunately, most people do not have a formal financial plan; they only have some general idea of goals that they want to accomplish along with some quick calculations and research they’ve done. While we do serve many clients in this capacity (as Asset Management Clients), we do recommend that you consider looking at your entire financial plan and how everything will weave together to help you accomplish your desired goals, from which we can build a more comprehensive investment strategy.

 

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