The Stanton Group WP Investment Management Philosophy
By John Stanton
At The Stanton Group WP, our financial planning services allow us to develop personal solutions to meet our clients’ unique needs. We evaluate every area of a client’s life, from insurance to retirement savings and estate planning, to develop a plan that will enable them to achieve their goals.
Financial planning is our first priority. However, that doesn’t mean investments are not important. The way your investments are handled is crucial to the success of your plan.
Because of this, we believe that the best path to investing is to know what you own. We help our clients invest mostly in individual securities because that is the best way to know what you own. It also reduces expenses and increases control and transparency.
The Importance Of Risk Management
Many financial advisors like to focus on investment returns, but the most important thing to address when it comes to investing is managing overall portfolio risk. I got to experience stock market risk first hand during my first year out of college working with a large investment manager in 1987. From August 25 of that year to October 19, the stock market experienced a severe crash, dropping about 33%.
I was fielding calls at the time, speaking with anxious clients. Many of them were retirees or close to retirement and I remember their anguish. They had been told to invest a certain way, and now they were forced to cancel or reduce their retirement plans because their portfolios had simply lost too much.
That experience stuck with me and now helps to guide my investment management philosophy. I know that developing a process to preserve a portfolio through a bear market can make the difference between a comfortable retirement and a financial disaster.
Research has shown that moving with the crowd on Wall Street usually isn’t a good idea. The correct decisions often require you to move against the crowd. You may have been told to stay fully invested in stocks and just ride out any bear market that comes without concerning yourself with risk. But that doesn’t do you much good when your portfolio, your lifetime savings, is down 33%.
Our 5 Core Strategies
In light of our keen awareness of risk, we have developed 5 different investment strategies. Each of our clients is in a different stage of their life journey, goals, and tolerance for investment risk. Every one of the strategies is fully liquid and actively managed. All portfolios can be customized, based on client preferences.
Conservative Fixed Income
Our conservative fixed income investment strategy consists of a laddered portfolio of high-quality bonds, with minimal exposure to select fixed income funds. It is designed to minimize interest rate risk, provide a competitive current yield, and preserve capital.
Moderate Fixed Income
The moderate fixed income strategy is also a laddered portfolio of high-quality bonds, but it is complemented by investments in investment-grade individual preferred securities. This portfolio is designed to produce income and to maximize fixed income total return potential.
Our conservative balanced investment strategy is a diversified portfolio of both stocks and bonds. It is weighted approximately 60% fixed income with a strategic target of 40% exposure to stocks. The stock exposure utilizes our risk management process.
The balanced portfolio offers more exposure to stocks than the conservative balanced portfolio. This diversified portfolio is weighted approximately 50% fixed income and 50% stock. Stock exposure utilizes our risk management process.
Our most aggressive investment strategy, the moderate balanced, is a diversified portfolio weighted approximately 40% fixed income with a strategic target of 60% exposure to stocks. Stock exposure utilizes our risk management process.
While the above are the core strategies of our practice, we don’t want our clients to feel limited by them. Non Listed Alternative Investment Funds can be reviewed, including the risks, for qualified clients as a compliment to core holdings.
How We Can Help You
Investing can be confusing, especially considering all the different messages and advice given these days. It’s easy to get caught up in the excitement of investment returns without taking risk seriously.
I don’t want anyone to repeat what I saw back in 1987. Or 2001-2002, 2008-2009, for that matter. I believe every investor has a right to know the amount of risk they’re taking, the total fees they’re paying, and the quality of their portfolio’s investments.
If you are unsure about any of this, I would be happy to review your current portfolio, and strategy, with you. I can help you understand the risk, fees, and quality of your current portfolio. If it’s not optimal, I will provide you with my recommendation and proposed alternatives to consider in the current environment. Schedule a call online today.
John Stanton is the Wealth Advisor at The Stanton Group WP | SeaCrest Wealth Management, LLC. With more than three decades of experience in the financial services industry, he serves as an advisor for clients, focusing on financial planning and the investment strategies to support their financial plan. Based in Naperville, Illinois, John serves clients in Naperville, Plainfield, Darien, and throughout the state. Learn more about John’s services by visiting www.stantongwp.com or connecting with him on LinkedIn. You may reach John Stanton at 630-445-2380 or email JStanton@seacrestwm.com.
The Stanton Group WP provides investment advisory services through SeaCrest Wealth Management, LLC (the “SWM”), a registered investment advisor. SWM is a registered investment advisor (“RIA”) with the U.S. Securities and Exchange Commission located in the State of New York. SeaCrest Wealth Management, LLC can be reached at (914) 502-1900.
Certain assumptions may have been made in the preparation of this material as at this date, and are subject to change without notice. This is not an investment recommendation or a solicitation to become an investor in a pooled fund and/or a separate account managed by the Firm. Unless indicated, these views are the author's and may differ from those of the firm or others in the firm. We do not represent this is accurate or complete and we may not update this. Past performance is not indicative of future returns.