Just this week Gene Fama of the University of Chicago won the Nobel Prize in Economics for his research that fundamentally comes down to,“No one can consistently and predictably beat the market.”  Historically, investors have believed that they hired advisors to beat the market. If this can’t be done, then why would anyone pay to work with an investment advisor? It’s a great question and one that I’ve heard many times throughout my career.  In fact, I asked the same question myself before I became an advisor in 1997.

Put simply: A great investment advisor acts as “an emotional circuit breaker.” The real value of having an investment advisor that knows your goals, hopes, and dreams is that she or he can be your behavioral coach.  This is the person helping you “take the long view”.  The person that won’t let short term market gyrations disrupt a well thought out, long-term investment plan.

To learn more about “Advisor Alpha,” consider reading this April, 2013, research piece by Donald Bennyhoff and Francis Kinniry of Vanguard, one of the largest mutual fund companies in the world. Hill Investment Group holds Vanguard in high esteem for offering low-cost, tax-efficient, passive options. While Vanguard offers solid mutual funds, we are fortunate to be able to bring our clients what we feel are even better solutions (or choices).  The funds that our clients, and we ourselves, own are offered exclusively through advisors. For your information, each advisor at Hill Investment Group has an investment advisor serving their family too because we value the discipline or the advisor alpha.

What is Monte Carlo? It is a statistical method for analyzing random phenomena such as market returns.

How can it help you? This basic overview of Monte Carlo explains why this tool is so helpful in viewing an uncertain future.

Download “Understanding the Basics of Monte Carlo” (PDF)