Integrity, Experience, Unbiased Perspective
Douglas Augenthaler, CFA®, CFP®
Chief Investment Officer
Highbrace Advisors offers comprehensive financial planning and professional investment account management for individuals, families and retirement plans.
Financial planning is not just for the wealthy. This extended period of very low interest rates has pressured all retirees and near retirees dependent on bond portfolios for income. A nest egg that was once considered ample for retirement may now be questionable based on the reduced income it produces making formal financial plans especially important. This is no time to be complacent about retirement and that makes financial planning a critical tool that can give you confidence that you can still achieve your goals, or provides the early warning that saving a little bit more now will pay off in the long run. We utilize industry leading financial planning software to develop our financial plans. No one knows precisely what the future will bring, but prudent financial planning can improve the odds of living the way you want to live during retirement.
Once the plan is completed, the challenge then shifts to making the plan work and investing in a manner that is consistent with your goals, while minimizing risk to the extent possible.
For many years, bonds have been the choice of retirees, providing safe, stable income. Bonds still provide safe, stable income, just not enough of it! As a result, investors have been forced into riskier assets as a means to produce the desired level of income. This is a situation unique in our lifetime and one that requires new methods to manage portfolio risk in this new world of chronically low interest rates. One way we achieve this is by utilizing the benefits of alternative investment strategies, which are now increasingly available in the form of mutual funds and exchange traded funds. This gives us better control of portfolio risk while maintaining the ability to produce attractive returns.
What is an alternative Investment? An alternative investment is an asset that is not one of the conventional investment types, such as stocks, bonds and cash. The oldest and most common is a long/short strategy that invests in stocks both long and short. Being long a stock will profit when the stock rises in value. Being short a stock will profit when the stock falls in value. A talented manager using both has the opportunity to create equity-like returns over a full market cycle with less portfolio volatility.
We invite you to call or email us to learn more about our investment approach, alternative strategies and how we can help you achieve your financial goals.
(Mr. Augenthaler's photograph by Julie Skarratt.)
“Investing should be more
like watching paint dry or
watching grass grow.”
– Paul Samuelson