Director of Patina Wealth’s Richmond Office Shares His Family’s Approach to Investing

In meetings with clients and prospects, frequently the conversation centers around the state of the economy, current market trends, asset allocation strategies, etc.  Rarely do I receive the question: “How do you invest your money?” 

I’ve recently read two fantastic books, The Psychology of Money by Morgan Housel and How I Invest My Money edited by Josh Brown and Brian Portnoy.  While both books are quick reads, they are thought provoking nonetheless.  The former is largely centered on the unique forces that affect one’s relationship with personal finance and investments.  The latter is a collection of short essays by investment professionals that answers the very question of how they invest their money. 

Therefore, the question begs, “How do I invest my money?”  The question really should read, “How do WE invest OUR money?”, as all financial decisions are a group effort in our household.  We are Co-CEOs in every aspect of our lives.  That being said, the short answer is, “right along with my clients.”  The vast majority of our retirement assets are invested in broadly diversified low-cost equity and fixed income exchange traded funds (ETFs).  We own the same funds, in roughly the same percentages as clients of similar risk tolerance.  We believe this approach provides the greatest opportunity for long term success, and we are all in on this.  We dollar cost average into these accounts on a monthly basis.  We also contribute monthly to a 529 account for our son that invests in the broad market via a low-cost index fund.  I don’t closely track the performance in this account; the important part is consistent monthly additions.  The cost of education is on the rise so this affords the opportunity to stash money away in a tax efficient manner. 

Similarly, our taxable accounts consist largely of index ETFs.  A smaller portion (~10%) are held in individual stocks of companies we know, use and trust.  We don’t plan to sell any of these names.  The goal is to hold for the long haul and allow the power of compounding to take root.  Because of this, we keep a fixed amount of cash in savings to help pay for any unexpected expenses that might arise.  Less than 1% of our liquid net worth is held in crypto currency. 

This plan works for us.  We are committed to this strategy and are confident the market and global economy will create value over our lifetimes.  That being said, there are no “right” answers in investing.  I know everyone is different, and success is defined uniquely for each individual or family.  My goal in helping clients is to find the strategy that makes them comfortable, works best for their family and provides them the best odds of achieving their own long-term success. 

John Mumper

Director, Patina Wealth

Richmond, VA

Nothing in this document is intended as investment, legal, accounting, or tax advice, and is for informational purposes only.