April 24, 2018 | News
In our fourth and final installment in our investment update series, we will be reviewing our fifth investment principle and the changes we have made to LifeGuide InSight’s Enhanced Index Portfolios. If you enjoy golfing, especially GOLFING FOR FREE, you won’t want to miss the last paragraph below!
Our 5th investment principle is “Keep expenses low but focus on value.” Our InSight Enhanced Index portfolios embody this principle through the utilization of low cost, broadly diversified, index funds. In brief, the philosophy behind investing through passive index funds is that consistently choosing individual stocks that will produce a greater return than the stock market (US Stocks, International Stocks, etc.) is a difficult task. The hurdle becomes even higher after considering the fees and taxes involved with active management.
In the past, our implementation of index investing has been through Vanguard and iShares Exchange Traded Funds (ETFs). Vanguard’s index funds, in particular, have revolutionized the industry due to their low cost and diversification. While the use of Vanguard and iShares has been superb, we have continued to investigate ways to improve our Index model, which led to the transition to Dimensional Fund Advisors (DFA) for the stock allocation. The fixed income and real estate portions of the model have remained the same.
DFA is a global investment firm that has been serving investors for more than 35 years. With several Nobel Prize-winners steering their investment philosophy, we were drawn to their deeply academic approach. Their approach to investing is closely tied to index investing, but it applies decades of research which has identified various “premiums” that have historically enhanced returns. Their strategy is typically referred to as “smart indexing”. DFA takes advantage of the identified premiums by still buying the entire market but tilting their funds to increase the exposure to the premium. For example, one of the premiums they identify is company size. Historically, smaller companies have outperformed larger companies over time. DFA seeks to capture this premium by allocating more of the fund’s resources to smaller companies than a typical index fund would. The other premiums that their stock funds utilize are value, profitability, and momentum. Their website contains a treasure trove of useful information which we encourage you to review.
We have been intrigued by DFA for several years and are excited about being able to provide you access to these funds. DFA has an application and a screening process for firms that wish to utilize their funds. We are excited to announce that after successfully working through their vetting process, LifeGuide has received access their funds.
If you have any questions, please don’t hesitate to contact us.
Each year we contribute a portion of our proceeds to The LifeGuide Impact Fund. One of the chief purposes of the LifeGuide Impact Fund is to support local ministries and organizations that are important to our clients and staff. One of the common ways that organizations raise funds is to hold golf tournaments. A benefit of sponsoring these events is that LifeGuide often receives complementary foursomes and meal vouchers. We would like to share these opportunities with LifeGuide clients and their friends. If you would like us to notify you about these free golfing opportunities, please email Leslie at firstname.lastname@example.org, and we will add you to our golfers email list. We currently have multiple opportunities available to golf at some really nice courses in May and June. More details about what is available and the process for expressing interest will be shared via the LifeGuide golfers’ email list soon.
LifeGuide Financial Advisors, LLC is a registered investment advisor. Information about funds is for general information. Nothing in this post should be considered specific investment advice. Asset allocation may vary by the client and depends on objectives and tolerance for risk. Funds, like any other type of security, may be subject to the volatility of financial markets and additional risks associated with investing in fund securities. Please see the prospectus for the mentioned funds for further information and other risk considerations. Upon request, LifeGuide will assist clients and prospective clients in obtaining fund prospectuses.
You have important questions, and we want to get you answers. We offer everyone a complimentary, no-strings-attached Exploration Meeting where we get to know each other, understand what you’re looking for, and answer all of the questions you have. In preparation for our conversation, we ask everyone to first complete a short five-minute, online Intro Questionnaire.
Once we receive your submission, we’ll reach out to schedule your complimentary Exploration Meeting. Type in your name, email, and preferred phone number below to get started!
The topic of long-term healthcare can be complex, time consuming, and, quite frankly, not a lot of fun. We’re here to help.
We are Dave Ramsey ELPs for long-term care, as well as SmartVestor Pros. We offer all of Dave’s fans a complimentary, no-strings-attached LTC Exploration Meeting where we will take the time to know you, answer your questions about LTC, and provide quotes and recommendations tailored specifically for you.
To prepare quotes for you, we ask that you complete a short three-minute online LTC Questionnaire.
One we receive your questionnaire, we will shop your case to multiple insurance companies, prepare quotes, and reach out to schedule your LTC Exploration Meeting. Type in your name, email, and preferred phone number below to get started!
You’ve come to the right place! Our Managing Partner, Doug Denlinger, is a SmartVestor Pro as well as a Dave Ramsey Endorsed Local Provider (ELP) for long-term care insurance.
Like Dave, we believe that financial peace is a critical component to leading your most impactful, fulfilled life—the life you are called to live. And we want to help you get there. Which is why we offer all Dave Ramsey fans a complimentary, no-strings-attached Exploration Meeting where we answer your questions and get to know each other.
In preparation for our conversation, we ask everyone to first complete a short five-minute, online Intro Questionnaire. Once we receive your submission, we’ll reach out to schedule your complimentary Exploration Meeting. Type in your name, email, and preferred phone number below to get started!