Investment Principles


Fee-Only Planning vs. Commission-Based Planning – IPA’s compensation is derived from management fees based on the value of assets under management, not from commissions on the sale of investment products. Fee-only services eliminate the conflict of interest between the advisor and client because there is no connection between the sale of a product and the advisor’s compensation. Too often in commission-based advisory relationships, the client’s best interest is compromised by the need for the advisor to sell a product, whether or not it is appropriate and suitable for the client. By working on a fee basis, we ensure that our advice is objective and unbiased, not motivated by product sales. In addition, IPA’s management fees are usually much lower than the cost of buying commission-based investment products.

Money Management vs. Product Sales – As your money manager, IPA will not be engaged in selling you investment products. Rather, we will buy investments on your behalf based on a set of investment guidelines that we develop with you. IPA’s investment recommendations are based solely on your personal situation and preferences. IPA will discuss all investment recommendations with you and obtain your approval before any securities are bought or sold. The minimum portfolio size for direct management is $250,000. This service includes development and implementation of the initial investment plan, ongoing monitoring and administration of your portfolio, quarterly written performance reports and annual in-person meetings.

Investment Planning vs. Random Buying and Selling – Many investors take a random, haphazard approach to managing their money. They might respond to a salesperson’s pitch about an “exciting” investment opportunity or buy an investment they saw advertised or mentioned in a magazine article. The result of this piecemeal process is a confused, disorganized collection of investments rather than a well thought out portfolio in which each investment serves a particular purpose. Investment planning eliminates randomness, replacing it with a systematic process designed to help you reach your financial goals with peace of mind.

Strategic Asset Allocation vs. Market Timing – Based on discussions with clients, IPA establishes a fixed asset allocation that allows the client to live as comfortably as possible with their investments under any imaginable market conditions. Changes in this asset allocation are made only if something significant changes in the client’s life, not based on the vagaries of the financial markets. We accept the inherent volatility of the financial markets and learn to live with it rather that react to it. We believe firmly that no one can consistently predict short term movements in the stock and bond markets and benefit by adjusting their portfolio accordingly.

Long-Term vs. Short-Term – The most important determinant of investment success is the amount of time invested, not the timing of when an investment is made. Successful investing results from owning high quality investments over a long period of time in order to take advantage of the power of compound interest.

Mutual Funds vs. Individual Securities – Mutual funds are the primary investment vehicle in all IPA client portfolios. Mutual funds offer broad diversification, access to the best investment talent available, abundant choice, low fees and liquidity. Rather than reinventing the wheel by trying to select the best stocks and bonds itself, IPA identifies mutual fund managers with the best track records and assembles an all star team of such managers for its clients.