How Do We Help You?
Baron Financial Group is a team of trusted advisors that responsibly manages money and provides customized solutions for your unique needs. Our investment philosophy is to provide stable wealth growth and protection, guided by your financial goals and tolerance for risk, within the parameters of your time horizon and tax circumstances.
Your goals and needs are at the forefront of any investment plan
At Baron Financial Group, portfolios are designed to meet your financial goals. Our High Stability Wealth Management approach is based on Nobel Prize winning investing principles. The mix of stocks, bonds, cash and other asset classes is perhaps the most important factor in determining the overall return and risk of a portfolio. Our goal is to preserve your assets and to grow those assets responsibly. The best way to accomplish this goal is to build a diversified portfolio with multiple asset classes. While it may be possible to “outperform” by making a concentrated bet on a seemingly attractive investment, to do so entails a level of risk that we believe is unnecessary. Appropriate asset allocation should enable an investor to achieve attractive compound asset growth in the good years, while providing acceptable downside protection during the bad years. Asset allocation and rebalancing are the primary elements in the success of your investment portfolio.
The Seven Essentials for Portfolio Strategy Success
1. DIVERSIFY ACROSS ASSET CLASSES
Examples of several asset classes are: small cap domestic stocks, natural resources, real estate and international bonds. We incorporate many asset classes and greatly improve the diversification of your holdings. This diversification reduces downside risk and maximizes stability for a given level of return.
2. OBJECTIVE SECURITY SELECTIONS
Your portfolio will consist of Exchange Traded Funds (ETFs) and no load/low expense Mutual Funds for the equity, real estate and international portions of your allocation since volatility is the greatest risk for these asset classes, highlighting the need for diversification. Individual Bonds are used for your domestic fixed income asset class since protecting your portfolio from duration and interest rate risk are the priority.
We believe also that security selection is nearly as important as asset allocation. A good asset allocation (or investment policy) means you participate continually as markets move through their cycles and experience less downside. Good securities selection can also help limit the downside in bad markets.
3. INDIVIDUAL BOND SELECTION
Studies show that rebalancing back to an original allocation can add to the long-term return of a portfolio beyond the performance of the asset classes themselves. That added performance comes with less risk. Rebalancing is a method to in effect sell high and buy low. We will be selling an asset class that although it performed well may have become expensive, and replacing it with an under performing asset class that may also be undervalued. We rebalance on a contingent basis, when needed, as opposed to a regular basis (i.e. quarterly).
5. CAPITALIZE ON INSTITUTIONAL PRICING
6. MAXIMIZE TAX EFFICIENCY
7. BEHAVIORAL DISCIPLINE
An important point to note is that when we buy a mutual fund we are not buying the fund but are instead “buying” or “hiring” the manager. We will hire and or replace managers as we deem appropriate, based on our analysis, and research.
Behavioral discipline and sticking with the strategy enable us to monitor the performance of your portfolio and make adjustments, as market conditions change, without emotion. There are times when our client’s portfolios are doing better than the S&P; there are other times when they are doing worse. But over time they are able to participate in the historical growth of the market.