Investment Management Philosophy
One of the primary services offered by Renewal Wealth are discretionary investment management services.
This service comes after Financial Planning, as prior to opening or investing an account for a client, the firm must do a full and complete inventory of the client's current situation, goals, investment experience, and risk tolerance and agree to certain strategies, principles, and methodologies of discretionary portfolio management (i.e. control). As per Federal and State law around Investment Management companies in the US, all client funds will always be held at a third party brokerage company (broker). Renewal Wealth at this time solely uses Interactive Brokers, LLC (Nasdaq: IBKR).
The investment management services emphasize "Active Management" (versus "passive management" (see Google "passive investment management")) with the belief and conviction that over the past 10-15 years, a significantly high percentage of Financial Services firms, individuals, pension funds, 401k/403b plans and more, have enlisted the services and solely relied on passively managed investments (mutual funds/ETFs from companies such as Vanguard, Blackrock to name a few). The goal of majority of these funds is to track and perform in line with specified indexes, and not to "actively" manage the underlying investments to perform "better" than the market index. In other words, as a result, with large concentrations of wealth in the US and globally simply tracking the indexes (e.g. the S&P 500), a "herd behavior" mentality has been created and manifested in the world of investing to such a significant degree, that the scale has tipped too far, thus creating what we believe (as well as many others) to be significant opportunities of find ways to "outperform" the market due to price, information and technical disconnects. This strategy, coupled with a focus on the Renewable Energy Sector (typically 50-70% of a clients investment/retirement portfolio at the moment of this writing) due to the current Geo-Political climate, has shown, since 2018, to be tremendously, and at times, miraculously successful. The firm will continue operating within these principles, guidelines and strategy, until there comes a time or occurs a reason, whether geopolitically, or otherwise to adapt, evolve or alter the investment management strategy.