(704) 236-6615 scott@southernwa.com

Investing Principles for Success

We believe firmly that every investor should clearly understand the underlying principles shaping the investing process we follow.

The four investment principles you see here have been intrinsic to our company since its inception, and they are embedded in our culture. They represent both our past and our future—an enduring philosophy that guides the investment decisions we help our clients make.

These principles were formed from our review of evidence about investment decision-making and success, but as with all sound principles, they’re intuitive and straightforward—steeped in common sense.

  1. We establish financial plans based on clients goals. An appropriate investment goal should be measurable and attainable. Success should not depend on outsize investment returns or impractical saving or spending requirements.  Defining goals clearly and being realistic about ways to achieve them can help protect investors from common mistakes that derail their progress. 
  1. Balance- Develop a suitable asset allocation using broadly diversified funds. A sound investment strategy starts with an asset allocation befitting the portfolio’s objective. The allocation should be built upon reasonable expectations for risk and returns and use diversified investments to avoid exposure to unnecessary risks.   Both asset allocation and diversification are rooted in the idea of balance. Because all investments involve risk, investors must manage the balance between risk and potential reward through the choice of portfolio holdings. 
  1. Cost- Markets are unpredictable. Costs are forever. The lower your costs, the higher your share of an investment’s return. And research suggests that lower-cost investments have tended to outperform higher-cost alternatives. To hold onto even more of your return, manage for tax efficiency. You can’t control the markets, but you can control the bite of costs and taxes.
  1. Discipline – Maintain perspective and long-term discipline. Investing can provoke strong emotions. In the face of market turmoil, some investors may find themselves making impulsive decisions or, conversely, becoming paralyzed, unable to implement an investment strategy or rebalance a portfolio as needed. Discipline and perspective can help them remain committed to a long-term investment program through periods of market uncertainty.  

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and Asset Allocation does not protect against market risk.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

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One-Page Financial Plan

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Independent Advisors Alliance, a registered investment advisor. Southern Wealth Advisors and Independent Advisors Alliance are separate entities from LPL Financial.

The LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents of the following states: North Carolina, South Carolina, Florida, Michigan, California, Arizona, and Virginia.

Southern Wealth Advisors
18716 W Catawba Ave
Cornelius, NC 28031