Planning, Patience, and Common Sense


Our investment philosophy—the basic tenets that govern the design of our clients’ portfolios—holds that a disciplined approach to asset allocation is essential to long-term portfolio growth and the mitigation of downside risk. And while our peers in the financial industry profess similar approaches, we believe that many lack the very attribute they cite as fundamental: the discipline to stick to the plan. Market dynamics breed advisors who make rapid, but not always prudent, changes to client portfolios. We make adjustments deliberately and thoughtfully by holding steadfast to six core principles, each vetted over our 30 years of professional practice—six tenets that seek to ensure diligent consideration of every decision made on your behalf.

Realizing the benefits of a long-term asset allocation requires discipline.

A wise, long-term asset allocation strategy takes into account a client’s immediate, short-term, and longer-term goals and objectives; which is to say, a well-designed plan provides for a lifetime of possibilities. A portfolio fitted specifically to a client’s unique circumstances mitigates surprises and creates consistency, thereby discouraging investors from reacting impulsively or chasing trends. Equity markets are particularly volatile; thus, investors who are exposed to a high percentage of stocks generally must have a sufficiently long time horizon to realize the potential that stock investments offer.

A long-term portfolio is not a static portfolio.

Since markets perform erratically and unpredictably, investments must be managed to take advantage of market aberrations, both rumored and real. While our asset allocation strategies focus primarily on the long view, we also incorporate a pragmatic approach that makes provisions for life events along the way. We plan for the present, for beginnings, for futures, and for legacies. We plan for lifetimes.

Fixed-income plays an important role in reducing downside risk.

Although fixed-income investments do not typically exhibit the same potential for growth as do equities and alternatives, they do, however, generally provide a measure of stability and predictable cash flow.

Alternative investments can provide diversification and growth opportunities.

Alternative investments continue to broaden the universe of financial instruments. As with a number of diversification tools, alternative investments allocated prudently can enhance returns while mitigating risk over time; but even low or moderate exposure to alternatives requires experience, agility, fluency and the knowledge that can come only from immersion rather than mere cursory study of the alternative asset market.

While difficult to find, investment managers that regularly exceed their benchmarks do exist.

While a majority of investment managers underperform their benchmarks over time, it has been our experience that, with effort, diligence, and ongoing stewardship, we can identify and engage a handful of managers who normally exceed their benchmarks on absolute and risk-adjusted bases.

Fair and transparent fee structures are a matter of principle.

Fees are real costs that affect our clients’ bottom line. Simply put, the more a client pays, the less they get. The deliberate control of fees and expenses is an essential component of our ability to add tangible value to a client’s portfolio. Since our compensation is directly linked to the value of a client’s account, and not to the investment products we select, we align our interests with our client’s. By principle, Orgel Wealth Management does not, nor will we ever, accept compensation, whether direct or indirect, from the wide landscape of investment products we consider for our clients’ portfolios.