Indexing for the long haul

Overall philosophy

John Bogle, founder of Vanguard Investments is considered the father of passive index investing. Passive, Index investing requires the investor to constantly look at the larger picture. Short-term losses in indexes are shrugged off in passive investing.

The most common equity benchmark is the S&P 500. The S&P 500 Index reflects the 500 largest publicly stocks in the US Economy. Other indexes include Russell 2000 (small caps), Barclays Aggregate Bond Index (total bond) and MSCI International Equity Index (international equity index)

Advantages of long term index investing include low costs, historical returns and diversification. The buy and hold approach allows the investor to take advantage of long term vs short term capital gain rates. The historical buy and hold approach has out performed most all active managed portfolios. The diversification of 500 equity exposures helps the investor from experiencing the volatility of just a few holdings.

Why doesn't everybody invest in a passive index manner? There are several reasons why people invest the way they do. Sequence of returns; risk tolerance and behavior factors all weigh in on why we have different investment strategies.

We work with our clients to create custom portfolios to match risk tolerance and investment time horizon. If you are ready to schedule a discovery call to compare your current portfolio with our professionals click here

Frequently Asked Questions

Please reach us at joe.ward@brookwoodinvestmentgroup.com if you cannot find an answer to your question.

How do we get started?

We start all accounts with a discovery call. Our goal is to establish a plan that coincides with your risk tolerance and investment time horizon.

Do I have to call my current advisor to transfer my current account?

If you decide to open a new account with Brookwood we can generally request assets be transferred. Generally for 401(k) rollovers the participant must initiate the transfer of funds. Either way our professionals will assist you every step of the way.

Am I going to owe taxes for switching?

Qualified plan rollovers generally are not taxable unless there is a distribution to the account holder. Though liquidating non-retirement accounts will encounter capital gain or losses. Assets transferred in kind will not encounter a taxable event until liquidated.

Disclosures

Brookwood Investment Advisory

Brookwood is headquartered at 3930 E. Ray Road, Suite 155, Phoenix AZ 85044. It is important to read our disclosures available at this link: https://brookwoodinvestmentgroup.com/disclosures/. Advisory Investments contain risk which may result in the loss of principal.

Insurance Related Recommendations

Our representatives are licensed insurance agents with affiliated or non-affiliated companies. In this role, they may recommend certain insurance-related products for which they may receive compensation via direct commissions. This creates a potential conflict of interest, as the commission earned could influence their recommendations. It is crucial that you review your representative's Brochure Supplement to understand any potential conflicts.

You are under no obligation to purchase any commission-based products from our representatives. You are free to purchase insurance-related products recommended by our representatives through other, non-affiliated representatives and/or companies.

Tax and Law

Our advisors do not give legal or tax advice. You should always consult with a licensed professional in these areas concerning your financial plan. Our professionals may provide referrals but do not practice law nor prepare tax documents.