Our Investment Approach
The Johnson Lyman Wealth Advisors approach to portfolio management is a direct result of our cost-efficient, risk-aware investment philosophy and commitment to acting always in our clients’ best interests.
Investment Philosophy
We believe that wealth is created through successful participation in global capital markets, over the long term. Johnson Lyman Wealth Advisors manages client's portfolios to harness the wealth-creating power of those markets over time to deliver attractive investment returns as inexpensively and tax efficiently as possible, consistent with each client’s tolerance for risk and return.
Measured Approach to Risk
We believe that risk should only be undertaken to the extent necessary to achieve our clients’ objectives. For many of our clients, risk is not necessary, but instead is a preference. Our role is to provide clarity so that clients can be informed, deliberate, and intentional about the real relationship between risk and return. But, regardless of whether risk is a preference or a requirement, Johnson Lyman Wealth Advisors strives to achieve broad diversification across and within major asset classes to reduce the volatility that is inherent in any portfolio.
Open Architecture
We implement portfolios for each client using best-of-breed opportunities, regardless of their source. We normally implement client portfolios with institutional class mutual funds or exchange traded funds (ETFs). We might also use outside separate account managers or investment funds not normally available to individual investors who implement strategies using individual security selection (typically in the fixed income area).
Equity and Other Growth Assets over Fixed Income
Portfolios tend to be broadly diversified among major asset classes, which we define as stability-oriented Fixed Income and growth-oriented Equity and Other (which might include exposure to real estate, natural resources, commodities, or flexible and asset allocation funds). Nevertheless, for portfolios designed to meet long-term investment timeframes, Johnson Lyman Wealth Advisors often favors strong growth-oriented weightings. History and the logic of capital market behavior support this approach as most suitable for the funding of long-range financial objectives.
No Market Timing
We believe that no one can consistently make accurate near-term forecasts of a market’s direction. Attempting to do so can be costly and inefficient on an after-tax basis.
Furthermore, an ill-timed decision can more than undo all of the advantage of remaining committed to growth-oriented investments over the long term. We coach our clients to accept and tolerate sometimes painful short-term volatility to reap the positive performance advantages that accrue over the long term.
Sensitivity to Expenses and Taxes
Taxes are inescapable for all of our clients and are a significant consideration for many of them. Our advisors are experienced in mitigating the tax consequences of portfolio management. We exercise care in the appropriate placement of investments within taxable and tax-deferred accounts and continually monitor and review portfolios for tax opportunities.
Expenses reduce investment returns for every client. Since Johnson Lyman Wealth Advisors has no proprietary financial interest in any strategy or investment product, we strive to select investments for our clients that combine top performance expectations with the lowest possible cost.
