Having a sound investment plan is a key element of realizing your goals and aspirations. At IndiePlan^TM, we strive for simplicity. Portfolios need not be overly complex. Low-cost broad-based index funds are a cornerstone of our investment approach.

However, we believe simplicity should not imply being simplistic. Our experience has taught us to be mindful of index methodologies and their limitations, to respect serious academic research, to be skeptical of back-tested results and complex financial products, and to recognize situations where systematic active management may add value.

Our investment advice is built around four principles:

First, always assess the balance between cost and value. It pays to be cost sensitive, but cost should not be the sole determinant of portfolio holdings.

Second, practice goal-based investing. Risk is not only about portfolio volatility. Our biggest risk is failing to live a life of joy, meaning, and purpose. Alignment of resources with specific objectives leads to long-term satisfaction.

Third, develop a diversified investment plan and stay the course. Markets are noisy and sometimes volatile. Long-term satisfaction depends on long-term discipline.

Fourth, “timing the market” is rightfully criticized, but that doesn’t mean investors should be price indifferent. The expected return and risk of global markets may diverge substantially, and investors can choose to allocate capital accordingly.