How an investment advisor can add value
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Takes the time to understand you
A diligent advisor takes the time to understand the nuances of your complete financial situation and your ability
and willingness to take risk. Often a client’s net worth would suggest a high capacity for risk, yet careful consideration
of the client’s investment outlook and experience indicates otherwise. An experienced advisor designs an appropriate
portfolio based on your future needs, retirement accounts, and family tax situation.
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Helps you stay focused on your investment goals
Most people fail to periodically rebalance their portfolios to maintain the appropriate risk/reward levels as their life
situation changes (for example, as they near retirement). This takes commitment, discipline, and effort that most people
neglect. As a consequence, their investment performance suffers and they may not be able to achieve their goals.
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Acts as a haven in a storm
Most of us naturally get quite emotional as we watch our net worth plummet. A good advisor counsels his clients not to
react to market gyrations. Numerous studies show that investors are well rewarded by having a long term outlook.
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Employs and keeps abreast of the latest financial analytical tools and research
At Lexington, we use various tools to model portfolios and develop financial plans to supplement our research in helping us
craft the best possible portfolios for our clients and helping them meet their long term objectives. Additionally, we take
into account the latest economic and financial research.
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Provides access to the best funds
Many independent investment professionals find that the institutional quality funds from Dimensional Fund Advisors meet
clients needs in a manner superior to other funds. Several industry and academic papers support this conclusion. See, e.g.
How Enhanced Index Investing Can Be Used To Enhance Your Investment Portfolio,
DFA Versus Vanguard: Has DFA Outperformed Vanguard by Enough to Justify its Advisor Fees?
Note: any performance reflected in these articles are not Lexington’s performance history and that portfolios we manage may have significantly different returns.
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Keeps abreast of changing tax laws
Changes to the tax code often have important ramifications for a client’s portfolio. Working in conjunction with other
members of your wealth team, we can help adjust to this changing landscape.