Investment Management Overview

Whether you are building savings for a future goal or using savings for monthly income, investing is not easy.  At any point in time, someone can give you a perfectly logical explanation on why certain investments should do well, and someone else can clearly show why they won’t.  Our investment strategy is built to take that confusion out of the process.

First, we intentionally allocate our 4 different models into 7 different broad asset categories.  The 4 models are Aggressive, Growth, Moderate, and Conservative.  While all 4 models will include the same broad asset categories, the percentage held in each category will be different, based on risk.  (See our current allocations)  The allocations are tweaked each year based on the risks and opportunities at that time.  Each investment selected for each asset category is a no-load, no-transaction fee fund.  The goal of diversification among the broad asset categories is to give strong returns while at the same time reducing risk.

Second, each model will hold a set percentage that will be dedicated to T&W's proprietary Sector Rotation Strategy.  In short, we line up 11 different sectors and sort them based on short-term performance.  We select the sector at the top of the rankings and continue to hold that fund as long as it remains in the top 25% of the sector funds.  When it does fall below the 25% mark, we sell that fund and select the then top-performing sector.  This process safeguards against the natural fear and greed emotions that accompany investing and attempts to catch economic and market tailwinds to increase returns.