How It Works For You
Free Market Portfolio Theory
Efficient Market Hypothesis
Based on this hypothesis, any attempts to “beat the market” are a matter of luck rather than any skill or investment strategy. “The market’s pricing power works against mutual fund managers who try to outsmart other participants through stock picking or market timing. As evidence, only 17% of US equity mutual funds have survived and outperformed their benchmarks over the past 15 years.”*
Modern Portfolio Theory
“Diversification helps reduce risks that have no expected return, but diversifying within your home market is not enough. Global diversification can broaden your investment universe.” *
Four Factor Model
- Market: Equity Premium – stocks vs bonds Company
- Size: Small Cap Premium – small vs large companies
- Relative Price: Value Premium – value vs growth companies
- Profitability: Profitability Premium – high vs low profitability companies
“Academic research has identified these equity dimensions, which point to differences in expected returns. These dimensions are pervasive, persistent, and robust and can be pursued in cost-effective portfolios.” *
The Science Of Investing & How It Works For You
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” — Paul Samuelson, first American to win Nobel Prize in Economics
Our management is passive, not active. Active management relies on the judgment and experience of a manager to buy and sell based on forecasts and analytical research. Active managers are wrong over half of the time.
Passive management doesn’t try to profit from short-term market fluctuations but focuses on long-term “buy and hold” strategies, global diversification, and risk management as outlined in the Free Market Portfolio Theory.
You will never receive a call from us touting the latest fad, or recommending a “hot” stock. We do not “time the market” or chase performance. Our investing is not based on the latest news or short-term economic outlooks. During times of market turbulence, we will help you manage your emotions so that you do not fall victim to making poor investment decisions.
No one has a crystal ball or special trading strategy that works as consistently as the Free Market Portfolio Theory. The financial markets reward long-term investors. People expect a positive return on the capital they invest and, historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
Let us and the market work for you!
The Mechanics of Investing with Better Money Decisions
Where Are The Assets Held?
How Do I Pay Management Fees?
Am I Locked Into A Contract?
How Often Do I Meet With You?
A: We prefer to meet with all of our clients at least twice per year. These meetings can be in person, over Skype or via phone. We also communicate via text and email. So we accommodate whatever works best for you! Most importantly, we are available when you need us. Let us know how we can help. If you have a decision you need to make, contact us and we will get back to you quickly.
Better Money Decisions, LLC, may transact business only in states in which it is registered, or in which it is excluded or exempted from registration.
Better Money Decisions, LLC, is currently registered in the states of New Mexico, Arizona, Texas and California.