The simple goal of the portfolio is to out-perform the S&P 500 stock index over a long-term period of time. All of these investments will be held in Schwab accounts. Clients will sign an Integrity First Planners, Inc. investment advisory agreement which will allow IFP to buy and sell positions in the account to achieve the stated objectives. Generally, these accounts will have at least $100,000 in assets. Normal positions comprising the portfolio will be individual equities, cash positions, and exchange traded funds. Usually at the time of purchase of an equity, a position will not exceed 5% of the total portfolio.
The positions are selected based on a set of criteria. Usually we prefer to add positions of established companies whose stock price is toward the lower end of a recent range (such as within the last year or two) and whose Price to Earnings ratio is low. The reasons a stock price may be lower could be a direct reflection of the company’s performance or more globally a reflection of the sector the company services. We also like to review companies which are profitable or will soon be profitable and which may pay a dividend. The old adage ‘buy low and sell high’ is the objective. Positions are added with the intent to hold them at least one year.
All assets are held with Schwab. Integrity First Planners, Inc. does not custody assets. You will receive statements (either paper or electronically) directly from Schwab. You also have the ability to log-in to your Schwab account directly (a link to the Schwab website is provided on our website under ‘account access’).
As all accounts are customized, from time to time, you may or may not hold the positions for various reasons.