Investing

When it comes to investing, nestegg builds portfolios that are based upon academic research, and determined by each client’s assets, liabilities, their goals, their tax situation and their need to access their investments in the future. We do not believe in the “active” approach of Wall Street firms, “tactical shifts”, “sector bets” or making investment decisions based on the “breaking news” cycles of financial media. We help clients tune out the noise and focus on what matters most to them.

Embrace Market Pricing

The market is an effective information-processing machine. Each day, the world equity markets process billions of dollars in trades between buyers and sellers—and the real-time information they bring helps set prices.

Don’t Try to Outguess the Market

The market’s pricing power works against mutual fund managers who try to outperform through stock picking or market timing. As evidence, only 23% of US equity mutual funds and 8% of fixed income funds have survived and outperformed their benchmarks over the past 20 years.

Resist Chasing Past Performance

Some investors select mutual funds based on their past returns. Yet, past performance offers little insight into a fund’s future returns. For example, most funds in the top quartile (25%) of previous five-year returns did not maintain a top‐quartile ranking in the following five years.

Let Markets Work for You


The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.

Consider the Drivers of Returns

Academic research has identified these equity and fixed income dimensions, which point to differences in expected returns.

Investors can pursue higher expected returns by structuring their portfolio around these dimensions.

Practice Smart Diversification

Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.

Avoid Market Timing

You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.

Manage Your Emotions

Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions.

Look beyond the Headlines

Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future while others tempt you to chase the latest investment fad.

When headlines unsettle you, consider the source and maintain a long‑term perspective.

Focus on What You Can Control

A financial advisor can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience.

When considering investment decisions for our clients, we focus on the factors that will best deliver successful outcomes. We look at the factors of risk and reward, asset allocation, credit quality and credit duration. We seek investments that have low costs, and low-turnover rates. And we rebalance portfolios periodically to make sure that they are aligned with our clients’ cash flow needs, as well as their “sleep number” for investment risk.

This disciplined approach leaves emotion out of the process, and allows clients to pursue their goals more confidently.