PRISM Wealth Advisors, LLC

Our Investment Philosophy

1) We are investors, not speculators, and it is very important to distinguish the two.

Speculation – Engagement in transactions that involve considerable risk but offering the chance of large gains, especially trading in stocks and commodities.

Investment – the laying out of money or capital in order to gain profitable returns, as interest, income, or appreciation of value.

2) The portfolio construction process starts with this basic premise: our client's ultimate goal is to receive income from their portfolio. Thus we focus on income as well as appreciation from the very beginning. It is our opinion that cash flow from the portfolio should be closely monitored in addition to the portfolio value.

3) Over time, growth of income is equally as important as growth of capital. A portfolio comprised mainly of fixed income investments will struggle to accomplish either of those two goals. We must keep our options open for opportunities in all areas of the investment spectrum for vehicles that will provide income, growth of income, and capital appreciation.

It is this concept that is behind the Three in One Investment Strategy. The Three in One is designed to achieve three goals in one portfolio. They are:

1) Current Income —The portfolio can be designed to achieve a range of income yields, depending on the age and income required.

2) Growth of Income — One of the main components of the Three in One strategy utilizes dividend paying stocks of companies that have a long track record of increasing their dividend. These dividend increases give the portfolio the opportunity to provide income growth, or pay raises if you are retired.

3) Growth of Capital —The portfolios are designed with a combination of income and growth investments so it has the potential for capital appreciation as well as income. However, the income component of the portfolio can provide comfort as you are being "paid to wait" for your growth.

Our investment strategy is suitable for clients who desire current income or expect to draw income from their portfolio in the future. It can be used for taxable accounts but is ideally suited for retirement accounts including IRAs and 401(k)s.

There are risks involved with investing which may include market fluctuation and possible loss of principal value. Particular investments may not be suitable for certain situations. Carefully consider the risks and possible consequences involved prior to making an investment decision.

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Our Investment Philosophy