At BSG&L, we believe that greater and consistent returns can only be achieved by 1) identifying long-term tendencies in the investment markets and 2) understanding fundamental shifts in expected investment returns.
How do we successfully execute this effective practice?
- We understand the relationships between the economy and the different asset classes, on both a global and domestic level.
- Our investment philosophy relies directly on:
- The combined business and investment experience of our team of advisors
- The quality of our research and information
- Our investment approaches are influenced heavily by:
- Our long-term observations of the investment markets
- The risk tolerance and investment horizon of each individual client
To successfully achieve your financial goals, we understand you must fulfill individual needs. We also understand that all clients do not share the same risk tolerance or investment horizon. Through discussions and questionnaires, we determine your appropriate asset allocation and manage your investments accordingly. Using a variety of risk models that weigh different investment classes, we offer an appropriate risk level for your portfolio.
Moderate Growth Model
- Most common model
- Generous allocation to both equities and fixed income asset classes
- Designed for above-average growth, but with lower risk than an all-equity portfolio
BSG&L has a basic investment philosophy of trying to minimize risk, or the volatility in returns in portfolios, while still achieving above-average growth. Because large percentages of assets are allocated to equities and fixed income, this portfolio can be adjusted to accommodate your individual needs.
- 60% Equity
- 15% REITs & Utilities
- 15% commodity MLPs
- 15% Growth & Income Stocks (ex: Johnson & Johnson, Eli Lilly)
- 15% Pure Growth Stocks (ex: Apple, Amazon)
- 35% Bonds
- 5% Cash
The flexibility comes from the way we allocate the equity positions and use minor shifts between the three asset classes. If you want more growth, we can reduce holdings in the REIT and MLP positions and increase the percentage we hold in the Growth and Growth & Income positions. The difference between Growth and Growth & Income can be illustrated by these positions.
Over the last 10 years, this portfolio has outperformed the S&P 500. While there will be times when an all-equity portfolio exceeds the returns in this portfolio, over time we feel this portfolio has a better return for the risk taken than a pure equity investment.
Retirement Income Model
- For more risk-averse clients
- Provides a much larger portion of fixed-income allocation
- Designed to generate an adequate amount of income while still growing the portfolio assets at a rate that exceeds long-term inflation rate
- Allows for an annual increase in monthly distribution amounts each year as inflation takes affect on your spending needs
In line with our basic investment philosophy of trying to minimize risk, nearly all of our equity investments are in income-producing assets which help lower the volatility of your overall investment portfolio. As a retirement income client, you do not want to experience large fluctuations in your monthly statements of account. Because of the large percentage of assets allocated to fixed income, this portfolio can also be adjusted to include a larger equity allocation if more growth is necessary.
- 25% Equity
- 70% Income
- Corporate & Government Debt
- Corporate Preferred Stocks
- Exchange Traded Notes
- Commercial CDs
- Government-Guaranteed Collateralized Mortgage Obligations
- 5% Cash
If you want or need more growth, we can substitute some income-producing equity holdings for the fixed-income holdings.
For more than eight years, this portfolio has been able to generate in excess of a 5% distribution rate, while still growing by more than the inflation rate, as determined by the Consumer Price Index. There will be times when an all-equity portfolio will exceed the returns in this portfolio.