Investment Management

Our Investment Philosophy

At Step By Step Financial, we understand that managing investments can be challenging for busy families. Our investment advisory services are designed to help you reach your financial goals with ease and confidence. We use a passive investment management approach, focusing on low-cost, tax-efficient index mutual funds or ETFs to build diversified portfolios that aim to match market returns.

Our investment philosophy and strategies are rooted in three key components:

  • Asset Allocation: We choose the right mix of asset classes (stocks, bonds, cash) based on your risk tolerance, financial goals, and investment time horizon. This balances risk and return by diversifying your investments.
  • Asset Location: We place different asset classes in taxable and tax-advantaged accounts (like IRAs or 401(k)s) to minimize taxes and improve after-tax returns. Tax-efficient investments go in taxable accounts, and tax-inefficient investments go in tax-advantaged accounts.
  • Asset Dedication: This strategy matches your investments to your future financial needs by dividing your money into three parts: cash for immediate expenses, individual high-quality bonds for medium-term needs, and stocks for long-term growth. It is customized to fit your goals and risk tolerance, ensuring steady income and financial stability. We utilize the work of Asset Dedication, LLC to craft dedicated portfolios rooted in this philosophy, 

Reap What You Sow

It’s been said that you reap what you sow. When it comes to enjoying your investments, this is especially true. Even if you don’t have thousands of dollars to invest, choosing where to park your money can be highly rewarding. Through developing a personalized investment strategy, diversification, and avoiding short-term distractions, we aim to help create and preserve your wealth so you reach your financial goals.

Our Investment Planning Process

  1. Create a Point-in-Time Snapshot: We analyze your current portfolio to understand where you stand. In some cases, we can provide immediately actionable steps that benefit you, like leveraging tax-selling or profit-harvesting opportunities.

  2. Develop an Investment Strategy: Based on your snapshot, we’ll develop personalized investment strategies to help you reach your financial objectives. This may involve building upon your existing portfolio or proposing a set of tax-efficient investments aligned with your personal financial goals.

  3. Implement Your Plan: Our dynamic approach to investment planning evolves with your changing circumstances. We’ll guide you through investment plan transitions as you experience life and lifestyle changes.

  4. Consult and Counsel: Our relationship is an ongoing partnership. Throughout our relationship, we’ll review your investments, keep you informed, and constantly communicate with you about proposed changes and potential risks or opportunities for your investments.

By partnering with Step By Step Financial, you can confidently take control of your financial future. Our tailored investment planning services ensure that every aspect of your financial life is considered, helping you achieve your dreams and secure your family's well-being.

Meet with one of our professionals to learn more about our investment planning strategies.

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Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.