Comprehensive Wealth Management
Your Family Office
The Beacon Hill Private Wealth family office service model covers the spectrum of solutions our clients require, including investment management, retirement and estate planning. In some cases, Beacon Hill Private Wealth delivers the solutions directly; in other cases, Beacon Hill Private Wealth partners with the client’s other trusted advisors to coordinate those solutions on behalf of the client.
Four Components to Well-Managed Wealth
Achieving and sustaining this level of effective wealth management involves informed integration of four practical elements: enhancing wealth with sound, evidence-based investing; protecting wealth against the uncertainties that could knock you significantly off-course; transferring wealth as part of your legacy goals; and donating wealth according to your charitable intents.
Understand and clarify your life and financial goals through our 360° Discovery process, creating a tailored financial plan.
Use academic research and financial science to build an investment portfolio that aims to give you the highest probability of achieving your goals with the least amount of risk.
Provide discipline, perspective and guidance to help you stay focused on the long term and on track towards achieving what is most important to you.
What Is Evidence-Based Investing?
Evidence-Based Investing (EBI) is a highly disciplined approach to investment management that combines the data from the past and present with honesty about the unknowable future. Where others would use forecasts, relationships or emotions to guide their decisions, EBI seeks to filter through noise, information, hype and emotion in order to make investment decisions grounded in facts, logic and reason.
EBI is grounded in planning, building and managing your portfolio according to more than 60 years of robust academic inquiry into how global markets are expected to deliver available returns to patient investors. Heeding the evidence, we focus on the factors that are expected to contribute the most toward achieving your personal financial goals:
- Asset allocation — To best manage most of the ongoing variation in expected returns
- Global diversification — To reduce the risks of concentrating too many eggs in too few baskets
- Cost and behavior management — Because most investors do the most damage by incurring unnecessary expenses (including taxes) and reacting to misleading emotional cues.
How Do We Apply the Evidence?
To convert academic insights into sound portfolio management, we turn to a handful of select fund families who are committed to these same principles. We construct the core of most client portfolios using low-cost, asset-class mutual funds and ETFs that follow a passive and/or evidence-based investment philosophy and that generally have low holdings turnover, primarily from Dimensional Fund Advisors, Vanguard, AQR Capital Management, and Bridgeway Capital Management. When appropriate for fixed income allocations, we can turn to a distinct solution for building individual bond portfolios, customized to deliver income and/or portfolio stability according to your unique goals.
Why Does Evidence-Based Investing Matter?
EBI is about confident investing — advancing toward the goals you’ve defined with energy to spare for the things you really want to be doing. It’s about informed action in place of hurried reaction, participating in market returns instead of chasing them, and shifting your mindset from getting rich to living a rich life.
You may think that EBI is standard operating procedure for all financial professionals to invest in this disciplined manner, but it is not. Simply put, biases, limitations in knowledge and resources, emotions, marketing tactics, compensation models and business models can all interfere with this objective being achieved.
For more information, download our "Fundamentals of Asset Class Investing" PDF.
A Clear Process
Our client relationships begin with getting to a clear view of your wealth and your goals. A clear plan is put in place and solutions are identified and implemented. But we recognize that life is dynamic and so are your plans, so we regularly discuss what has changed and continue a dynamic planning process.
Learn more about key moments in working with Beacon Hill here.