Polaris Advisors’ primary goal is to provide unbiased, honest and accurate financial advice. We are an independent firm, beholden to no one but our clients. Our compensation comes only from our clients and only so long as we continue to provide the service and excellence they expect. We put our client’s interest before our own, and work for them to find the answers they need while paying close attention to their costs, performance and the preservation of their wealth.
Within our client base are both institutions and individuals. The former can expect an enhanced level of reporting and accounting, as required by their boards and auditors. For our individual clients, we provide a suite of services which can include Retirement Income Planning, guidance with their transition from work into retirement, analysis and recommendations with financial decisions about insurance or real estate transactions, tax advice, tax preparation and trust and estate planning.
Polaris manages client accounts using a process similar to that employed by pension consultants and the managers of endowment funds. Both avoid speculation and focus on controlling risk and providing cash flow.
We begin by constructing model accounts, where different investment types are chosen to receive parts of our client’s accounts. We hold stocks for growth, bonds for income and cash for safety. Growth allows our clients to fund cost increases over time. Income pays for expenses today, and cash is used to avoid selling our investments during times of trouble. How much we hold of each determines how much risk a portfolio contains. We call this “risk profile” our “Investment Policy.” Each client determines the Investment Policy that is applied to their accounts.
With this overall “Policy” in place, we staff our portfolios with a mix of top rated, actively managed mutual funds and ultra-low cost index funds. We carefully scrutinize all our active managers to see how they have done in past markets, both up and down, review their ethical policies, and understand their corporate culture, employee tenure, training and experience to determine the likelihood of continued success.
A properly structured account should always have something that’s working and something that’s not. This is what’s meant by “balance.” It gives us someplace to go for our client’s withdrawal distributions over all investment cycles, without having to sell when the markets are down. We call this process; “Harvesting the Global Economy.” We strive to earn what the world economy has to offer, tempered by the risk tolerance each client can bear.