Guiding Principles of Investing: A Review of the Spring Seminar
In our Spring Seminar, financial planner Dr. Benjamin Strother addressed a timely and foundational question: How does Benson Financial Group approach investing?
We aim to capture the full breadth of the market through diversified exposure to a low-cost, passive investment portfolio—all grounded in a financial plan built around the goals our clients are working toward.
If you follow the investment world or financial news, markets often seem noisy, impulsive, and unpredictable. Though the topic was chosen well in advance, it proved especially relevant given current market conditions. A recent downturn driven by tariff concerns led to a sharp decline and investor anxiety.
So, how do we make sense of such market behavior? How do we entrust our future to a system that swings between irrational despair and exuberance?
Dr. Strother offered a steadying perspective—a reminder of the core pillars of BFG’s investment philosophy:
Investment decisions should be backed by a plan.
Clients need a plan behind their invested dollars—if the plan hasn’t changed, then neither should the investments, especially based on daily market headlines.
In the short term, markets are difficult to predict, but in the long term, we can invest with more confidence in positive returns. As the time horizons lengthen, so do our expectations for positive market performance.
Time in the market, not timing the market, drives success.
We can—and should—expect downturns to happen, like the ones we’ve seen recently. In fact, over the past 100 years, the market (S&P 500) averages an annual drawdown of 12.8%. The market has posted positive annual returns 75% of the time, with an average increase of 10.4%. If we are willing to invest for the long haul, these modest returns are outstanding as they compound over time.
At Benson Financial Group, we believe in efficient markets—that stock prices are extremely accurate and reflect all publicly available information. This leads us to use a passive investment approach focused on lowering fees and remaining in the market, even amid drawdowns.
While it may be tempting to pull out when the market is down, history shows it’s nearly impossible to sell at the right time and buy back in at the right time, when the market has bottomed. Missing just a few of the market’s best days can significantly reduce long-term returns.
Some investment strategies can help, particularly dollar cost averaging—the regular, incremental investment of funds over time. This discipline reflects a lifestyle of margin and intentionality, committing to growth even when markets are down. When market prices dip, you can purchase more shares that will increase in value over time. Dollar cost averaging is one of the most powerful wealth-creation strategies, helping to make regular contributions to our future selves.
Our investment philosophy is framed through personalized planning, understanding our clients’ investment strategy with their retirement goals and other future needs. Strategies differ according to when they will be used.
Funds not needed for 10+ years are fully into the stock market.
Funds needed in the short term can be feathered into a bond strategy.
We encourage saving early through dollar cost averaging and seeking diversified exposure to the market in client portfolios with a commitment to long-term thinking.
We believe this approach leads to financial freedom and creates the financial margin to bless others and the world around us.
*These views are those of the author, not of the broker-dealer or its affiliates. This material contains an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. All investments involve risk, including loss of principal. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources.
