Low Cost Portfolio Construction We provide investment management through our custodians at either TD Ameritrade or Charles Schwab. Our investment philosophy is to combine investment strategies and asset classes in order to manage risk. Typical strategies include asset allocation, tactical management, and the use of alternatives. Our core managed account holdings generally utilize low cost investments such as ETF’s and indexed mutual funds. As a general rule when constructing asset allocation-based portfolios, we often use a satellite portfolio that may contain actively managed funds and / or ETF’s in asset classes that we believe may benefit from such management. An example of this is the high yield tactical bond space, where we have seen significant historical risk reduction and improved risk adjusted returns from many managers utilizing the strategy; especially when volatility is high. Since past performance is not indicative of future results, we regularly review market and economic data in order to build a market outlook, that helps guide our allocations and investment selection. Our satellite holdings may also include cyclically managed sectors or asset classes we deem as fundamentally undervalued or technically poised for positive long or short term returns. Disclaimer: All investments include a risk of loss which the client should be prepared to bear.