With Regard to Investments, What does HFH Planning do?

We, as almost everyone alive, attempt to view the future.
When I say everyone, don’t we expect the place where we get our breakfast to be there when we get up in the morning? We expect the travel time to the office to be almost the same, etc.
We look at what has worked in the past and, although we know we cannot drive looking through the rear view mirror, we use history to predict or forecast.

Prediction: to calculate (some future event or condition) usually as a result of study and analysis of available pertinent data; especially: to predict (weather conditions) on the basis of correlated meteorological observations

Forecast: to declare or indicate in advance; especially: foretell on the basis of observation, experience, or scientific reason

We use only “value” oriented funds because, over an extended period of time, they return the same as “growth” funds with less volatility.

We use mutual funds. Not index funds. The ETF industry has made a big deal about using index funds because the cost is lower than managed funds and indexes beat 85% of managed funds. So it gives us a job for two reasons.
1. Index funds always underperform their index (there are fees and expenses).
2. We need to find the funds that are part of the 15%.
We use Morningstar as the search vehicle and then cross check our selection by using Standard & Poor’s ratings and the Lipper rankings.
We monitor the funds on a quarterly basis and analyze the fund’s returns compared to their peers. We compare not only apples to apples, but Granny Smith to Golden Delicious.

We use managers who stay consistent. Large Cap managers who don’t stray into the Small Cap field, etcetera.

That is the services we bring to the investment area of our practice.
It is part of what we do to help clients to navigate the “financial jungle.”

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