Our Approach

Our Investment Philosophy

At Michael MacDonald Financial, we use a “best of breed” approach: After much research and investigation we establish relationships with investment managers who demonstrate dedication and excellence, and are in our opinion the “best of their breed.”

We believe that persification, as a sole risk reduction tool, is not enough. Because LOSS MATTERS! It matters financially and emotionally. Loss is not just about percentage losses, it is also about the loss of time. By implementing “The Accumulate and Protect Overlay Strategy” we utilize diversification as an overall risk reduction tool and protection as a loss-minimizing tool.

“Accumulate and Protect,” as we call it, is a process that we believe keeps us true to your goals, objectives, and risk tolerance. Under this disciplined program we track the S&P 500’s 12-month rolling average. Each month we take the closing price on the last trading day and add it to our rolling average. If the new average number is above the rolling average we continue on until next month. If the new number is below, we track the close daily until it goes back above the 12-month rolling average. If instead the new average falls 8% from the rolling average, we transfer 75% of your investment with us into a defensive, or “protected,” mode. When the market recovers, we re-enter the market to get back to our original portfolio allocation.

Our philosophy is to create customized investment portfolios, monitor them carefully, and provide active management. Our investment method includes:

  • Diversification. Your assets are placed in different investment classes, from inpidual stocks, mutual funds, and ETFs to bonds, real estate, and commodities, both of with are accessed throught ETF's and mutual funds not the direct holding. Then we rebalance your portfolio regularly to maintain the proper mix.
  • Active Management. We take action based on market trends. We are participants in the market, managing your assets with a view toward taking advantage of clear opportunities.
  • Risk Management. Every action we take is guided by your risk profile established in the Riskalyze process. In most portfolios we apply the “Accumulate and Protect” strategy. We have extensive experience in the insurance and risk management field.
  • Cost Controls. We primarily use Exchange Traded Funds (ETF) as well as institutional no-load funds with low expense charges.

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Contact Detail

Michael MacDonald Financial
2300 Contra Costa Blvd Suite 175
Pleasant Hill, CA 94523

Phone: 925-521-0110

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