Investment Philosophy
At One Degree Advisors, we believe money should be a tool to help you live the life you want, not something that controls you.
For people nearing or in retirement, investing isn’t solely about chasing the highest return. It’s about protecting your lifestyle, making sure income is dependable, and leaving a legacy that reflects what you care about. That’s why we start with your plan, not the markets. Your goals establish the direction, and the investment portfolio is built to support it.
We believe in something simple but somewhat controversial: that optimists win over the long-term. Crises come and go, innovation endures, and the world’s great companies will keep solving problems and creating products. One must stay invested long enough to benefit. Our role is to help you do that.
We combine evidence-based investing with a disciplined process, then walk with you through the ups and downs to keep you on track. The target result is confidence in your plan, clarity in your portfolio, and more freedom to focus on the life you’ve worked so hard to build.
Our Investment Approach
- We start with your goals and values, not with products or predictions.
- Our strategies are grounded in decades of independent research, not guesses about the market.
- Every portfolio is designed and managed in-house, which often leads to lower costs and greater consistency.
- We emphasize tax efficiency within portfolios. It’s not just what you make, it’s what you keep.
- During market downturns, we follow established rules to rebalance and utilize your “war chest” when taking income.
How We Invest
We design portfolios primarily utilizing ETFs and mutual funds with intentionality, discipline, and rooted in research. Below are the four primary building blocks we use to construct portfolios.
1. Broad Market Stocks
This is the foundation for long-term growth: diversified exposure to U.S., international, and emerging stock markets. Don’t think of it as just buying stocks. By investing in stocks, you’re an owner of some of the world’s greatest businesses. Companies you know, use, and rely on every day.
Within these stock investments, we tilt toward well-researched drivers of long-term returns like value, size, and profitability, backed by decades of research.
In retirement accounts, we also apply a rules-based adjustment, modestly tilting the allocation between U.S. and international stocks based on long-term leadership.
2. Broad Market Bonds
Bonds are the stabilizer, not designed to beat stocks over the long-term. We emphasize high-quality, short- to intermediate-duration bonds in an effort to reduce volatility and support income needs.
For those nearing or in retirement, the dollar amount within bonds becomes your income “war chest.” This “war chest” is built to create several years worth of stable and reliable income in retirement. This can allow you to avoid touching your stocks at the worst possible time, which may help reduce sequence of returns risk.
Within clear rules, we are prepared to adjust the duration of bond holdings when interest rate conditions shift and trends change.
3. Focused Factor Stocks
This is a focused strategy that increases exposure to stock factors such as value and momentum, using a rules-based, quantitative approach. One reason these stock factors may outperform over time is precisely because they deviate from the broad market, including periods of underperformance. It’s a case of no pain, no gain. History shows that those who stick with disciplined rules through the rough patches are the ones who capture the long-term reward.
4. Tactical Allocation
This is a tactical strategy that adjusts exposure to U.S. stocks, international stocks, treasury bonds, real estate, and commodities based on quantitative data. When trends are strong and upward, we participate in growth. When trends deteriorate, the strategy reduces exposure and moves to defensive assets. It’s a data driven way to manage downside risk without relying on gut instinct or prediction, supported by academic research.
Why This Works
Markets will rise and fall. That’s not the problem. The challenge is staying invested through the storms, because that’s when the seeds of long-term wealth are sown.
We all face the same temptation: to pull back when markets are falling, or to chase what’s been hot when things are booming. Research shows that this is where many investors lose ground. For example, investors often earn less than the very funds they invest in, simply because of the timing of when they buy and sell.
That’s why we put emphasis on structure and discipline. Rebalancing, diversification, and having a plan for income are what can keep you invested through volatile markets. And guidance matters too: research shows that quality coaching and a disciplined process can add meaningful long-term value.
Our philosophy is designed to do exactly that:
- Keep you invested when headlines tempt you to run.
- Use systematic rules so you’re never guessing in the moment.
- Make sure your portfolio is aligned with your life, taxes, and income needs.
Stock market downturns happen, with bear markets (20%+ declines) occurring every six years on average over the past 150 years. These reductions are a psychological cost, not a permanent loss. This cost is necessary for long-term growth. History shows that crises end, and recoveries happen, and disciplined investors who stay the course have long been rewarded.
Keeping You on Course
The greatest value we provide is not in picking funds or predicting markets. It’s in taking the burden off you. You don’t have to be your own financial advisor anymore. Behind the scenes, we maintain the structure, discipline, and rules that keep your portfolio aligned with your plan. Our job is to keep you from abandoning the plan when fear strikes, and to encourage you to keep working the plan when the headlines try to distract you. That way, you can stop second-guessing every market downturn and focus on living your life, knowing there’s a steady hand on the wheel.
- We never make changes because of headlines. We only adjust when the evidence demands it.
- Our investment committee meets regularly to review research, costs, and risk.
- We document decisions so our process outlives market noise or personnel changes.
- Updates are applied firm-wide so every client benefits from the same consistency.
Closing
Markets will test investors with both challenges and opportunities. While no one can predict when they will come, history reminds us that patience, discipline, and a sound strategy make all the difference. Our role is to help you stay focused on your plan so you can move forward with confidence.
Because in the end, the goal isn’t only about return on money – it’s about return on life: the ability to live fully, find joy in what matters most, and create a legacy that endures.
Let us help you live the best life possible with the money you have.