Sierra Financial
Planning & Asset Management

1380 Lead Hill Blvd.
Roseville, CA 95661
(916) 791-1572
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Investment Strategy

We recommend a globally diversified portfolio utilizing low cost indexed investment vehicles. Exhaustive academic research has shown that investing in individual stocks, defined as active investing, almost always yields returns less than unmanaged market indexes. Because financial markets are efficient, any attempt to beat them frequently produces disastrous results.

We develop diversified portfolios by combining asset classes that in the short term move dissimilarly to one another. This strategy helps to reduce risk within one's portfolio. Investing too heavily in a particular asset class can result in large losses when markets turn.

We utilize indexed based investments to capture the entire return of each asset class. We follow a strict buy-and-hold discipline with periodic rebalancing to target allocations.

Our preferred mutual fund family is DFA (Dimensional Fund Advisors). DFA provides low cost tax efficient indexed based mutual funds across a broad range of asset classes. Their index methodology is based on academic research. DFA funds can only be accessed through a select group of qualified investment advisors which includes Sierra Financial Planning & Asset Management. We receive no compensation of any kind for utilizing DFA funds.

Sierra Financial Planning & Asset Management is a Registered Investment Advisor licensed by the state of California.

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