Insight Wealth Management believes in adding investment value by providing superior personal service, and by minimizing fees, turnover and realization of tax liabilities. Since we are compensated on the basis of a percentage of assets under management, we have no incentive to trade frequently to generate commission revenue. Frequent trading increases unnecessarily client costs through transactions expenses and generation of tax liabilities. Our goal is to achieve the highest after-fee, after-tax portfolio returns for our clients.
IWM uses a value oriented approach to select investments. Value investing consistently beats other styles over the long term. IWM does not engage in short-term trading or market-timing, both of which typically generate more costs for investors than superior investment performance. We select stocks, bonds, funds and other types of securities as appropriate for each client based on their return and risk objectives, and their suitability for the client's portfolio. All portfolios are diversified across asset classes, sectors and securities with the goal of maximizing long-term return without exceeding the client's tolerance for investment risk.
IWM avoids actively-managed mutual funds preferring to invest in individual securities (stocks and bonds), ETFs and index funds through low-cost custodians with reputations for outstanding service, such as Schwab Institutional. According to the CFA Institute, mutual fund investors pay an average annual expense of 1.42 of their assets. For a $500,000 portfolio, for example, those expenses cost an investor a cumulative $71,000 over ten years, assuming no return on the initial investment. If the investment grows, those fees are even higher. That is on top of commissions and other fees paid to advisors who put their clients in mutual funds. Using low-cost brokerage and custodial services, individual securities, and indexing most of those fees stay with the client adding to their portfolio's growth and value.