Investment risks and remedies

This year has been another roller coaster ride for investors. The sovereign debt problems in Europe are hanging on like a bad cold, casting a pall over the financial markets. It seems that the economy can’t shift into the next gear, perhaps because of the prospect of the “tax cliff” this coming January. Low interest rates usually spur more economic activity, but oddly they now seem to have taken the urgency out of making decisions. No one feels the need to “lock in” today’s low rates, which, in turn, contributes to economic sluggishness.

There can be little question that the economy is fragile at the moment. This has been the weakest recovery in living memory. The usual responses of policymakers to economic weakness don’t seem to be having the expected results.

That puts investors in a bind. The Federal Reserve Board has announced that interest rates will remain at their historic low levels well into 2013. How will savers wring more income from their portfolios during the next two years? What happens if the economy does lapse again into recession, exacerbating the unemployment problem? Could asset values be at risk, as they were in 2008? What if inflation takes off? How should investors respond to these many and varied risks?

We suggest enlisting the services of professionals.

What we bring to the table

We’d like to be able to say that we have a magical solution to every investor’s needs right now. We don’t. No one does. And you probably already understand that.

What we do have are trust and investment services that are objective, personalized and comprehensive.

Objective. Our investment advice reflects the same high standards that guide our work as trustee. We don’t deal in exotic financial engineering; we invest in instruments that ordinary people have heard of and can understand. To remove any chance of conflict between our organization’s interests and our client’s interests, we do not work on commission. Instead, we charge moderate annual fees, based on the market value of our clients’ holdings. When the dollar value of a client’s account grows over the years, we receive more dollars of compensation. If a client’s account shrinks in value, so does our reward.

Personalized. As we see it, our business is not simply managing investment programs. Our business is helping people—helping our clients achieve their financial goals. We’ve learned that serious investors can’t settle for a “one size fits all” approach. We see each of our clients as possessing a unique mix of financial facts, family circumstances and personal goals. The better we understand each client’s unique situation, including his or her tax picture, the better our chances of retaining the client’s business for many years to come.

Comprehensive. In addition to providing our investment clients with unbiased guidance, we keep accurate records, submit detailed statements and safeguard securities under strict audit control—all for moderate fees that can be substantially lower than the fees at some other firms.

Can we tell you more?

Like to know more about our services for investors? Call on us! We look forward to discussing your requirements in detail, in person.

(August 2012)