Prior to any investment action, we put great effort into understanding the important influences on each of your accounts. Like a stool held upright by three sturdy legs, understanding your goals, risk tolerance and circumstances forms the necessary foundation to a balanced investment plan. If one area is not included or considered, the plan might weaken. Once the three legs are discussed, clarified and properly understood, we will suggest the appropriate investment model. Silversage acts as a fiduciary by putting your interests first.
Each model uses both active and passive investment styles to capture the best of both strategies. Passive indexes deliver inexpensive market returns to investors. Active managers may provide protection during market downturns, and many established management teams have consistently demonstrated superior results. So we use both. We are intermediate- to long-term investors. Successful investing requires patience, especially during market declines.
Generally, we consider about 80% of each model as Core. Core holdings serve as the foundation for each model. While we generally prefer to be fully invested and not hold much cash (at least for extended periods), our Satellite positions allow us some flexibility to react to current market and economic conditions. Core and Satellite positions may be passive or active, and some Satellite positions may be held for extended periods if we feel the asset continues providing value to the model.