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Linda Parks
Financial Advisor, LLC


115 West Dryden Road
Freeville, NY 13068

Phone: (607) 844-4852
Email: LindaParksFA@twcny.rr.com
Follow Linda Parks on LinkedIn

Investment Management

Linda Parks, Financial Advisor, LLC is an independent, NYS Registered Investment Advisor (RIA) based near Ithaca, New York.

In the summer of 2007, I set out with 3 other people on a 37-foot sailboat to cross the Atlantic Ocean.

I think of sailing as an analogy for good investing: it requires the knowledge necessary to create and implement a good plan, exercise discipline and patience, and reduce risk.
 
Knowledge. Before undertaking the voyage, the skipper studied crossing histories, selected a boat he knew was capable of making the passage, and selected competent crew.
 
A book or article about investment management is not a page turner for most people, so I’ve done the work for you. Academic studies have shown that stock picking and market-timing investment actually diminish long-term returns. I offer a proven, cost efficient method of investing based on long-term analysis of markets by Nobel prize–winning economists. My investment strategy is based on research that demonstrates that 96% of portfolio performance comes from asset allocation.

Discipline. On a sailboat, a successful passage depends on discipline. The well-being of boat and crew depends on each crew member maintaining focus and holding the course.

When normal market fluctuations change the value of the investments in your portfolio, we rebalance it to maintain the appropriate allocations. This means that when one asset class has done well relative to other holdings, we’ll sell a portion of the well-performing assets and reinvest the winnings in ones that are currently selling at a lower price. The beauty of this system is that you automatically buy low and sell high. It’s hard to allow yourself to sell an asset when it’s doing well because you think it may go higher. It takes discipline to stick to the system regardless of the impulse to do otherwise.

Patience. I happen to be wired to enjoy life aboard sailboats and making ocean passages. Crossing an ocean by sailboat is not about quick results. Generally, it requires long hours each day, and conditions can be the same, and boring, day after day. The waves surge and recede, and the wind strengthens and weakens—repeatedly. Holding your course is what gets you to your destination. 

These conditions apply to the stock market as well. The market fluctuates, and most days aren't particularly dramatic. Maintaining your coursethe allocation of your investmentsand holding steady are necessary components of successful investing.

Risk management. When I pursued being part of the crew, I was looking for adventure. I understood the risks of the passage, however, and reduced those risks by selecting a well-equipped boat, a qualified crew, and a skipper who put the safety of crew and boat first.

We're all familiar with the adage, "Don't put all your eggs in one basket." A well-diversified portfolio includes a balanced selection of stocks and bonds in companies of various sizes and in a variety of industries that are diversified across geographical boundaries. This kind of allocation reduces risk and creates a more stable portfolio. Together, we will create an investment policy statement based on your circumstances: we will use this as a base for determining your asset allocation.

The end of the passage. There were days in which our progress was slow at best and we in fact lost ground. We successfully landed at our destination after 28 days at sea. Our patience and discipline had paid off.

I understand that managing your finances is not an easy task and that you need to feel comfortable with your financial advisor. I offer a free initial consultation so you can determine whether I will be a good fit for you and your needs.











 

 
 
Linda Parks
Financial Advisor, LLC


115 West Dryden Road
Freeville, NY 13068

Phone: (607) 844-4852
Email: LindaParksFA@twcny.rr.com
Follow Linda Parks on LinkedIn