BUILDING ASSETS

Compounding Account Growth

Simply stated this is the most valuable aspect of account management, and the area where Westwood seeks to exert the most influence. As an example: an account that compounds at 10 percent annually after taxes and fees will double every 7.2 years. In the opinion Westwood percentage growth on top of percentage growth is the most important factor for long term account management. This area is where we deploy our strategies and experience.

Favorable Tax Strategies

There a number of common strategies that Westwood uses to reduce the effect of taxes. The primary strategy is to hold securities for long term gain. Many mutual fund and money managers have a performance first and only outlook. This can result in more short term gains, which are taxed at an individual´s normal income rate. Higher tax rates on an investors account translates into slower compounded growth.

Investing for a Long Term Horizon

"One of the primary mistakes made by investors and managers is to attempt fast gains. This can result in additional risks and often time losses." Our strategy is to minimize account turnover and invest for the long term. Minimizing account transactions, or turnover, reduce commission cost, which benefits the account. Investing for the long term reduces risk.

The Continuous Addition of Capital

New investors should consider that additional contributions to their accounts are as important as any other strategy. Don´t try to play catch up, this can be disastrous. New investors should invest for the long term and strategize for reasonable growth.