Investment Philosophy Investing is far too often and for far too many a loser's game. The returns earned by investors in the aggregate inevitably fall well short of the returns that are realized in our financial markets. Here are some reasons why:Costs - Investors need to pay much closer attention to costs because they can make such a huge difference in their overall return. What investment companies charge for fees and expenses varies greatly. Everything being equal the lower the costs the greater the return.Stock Picking and Market Timing - One would think that professional money managers, the so called "experts", could pick enough good companies and avoid enough bad ones to beat the stock market average which is made up of all the good and bad ones combined. What the vast amounts of research tell us is that most don't outperform the stock market average. And as investors we're entitled to get that market average minus expenses. As far as market timing goes, let's just say that the greatest influx of money into funds occurs when they are doing well and the greatest redemptions occur when they are performing poorly. During market extremes, when emotions are high, investors often take actions that are can be detrimental to their long term goals. Buying high and selling low is always a loosing strategy.Track Record Investing - It would seem logical to chose a fund because it had a great track record. However, the historical data continues to show that past performance has little to do with future performance. In fact it's so lousy that fund companies are required by law to list the following disclaimer in their prospectuses and marketing material - " Past Performance Is No Indication Of Future Performance".More reasons could be listed but hopefully you're getting a sense of Bay Point's philosophy. We don't employ these strategies in our planning. History continues to prove that it's foolish to count on past performance hoping that a good track record will consistently continue. It very rarely happens. And if a large percentage of actively managed funds under perform the stock market average and you're entitled to receive that average why would you pay management fees and wind up with less? In regards to investment costs, it's a no brainer - the lower the better.We firmly believe there are more prudent and efficient ways to build wealth. We also think it's healthy to ignore Wall Street and the so called "experts" and spend more time on what's really important in your life. Successful investing just boils down to getting your fair share of stock market returns. And one of the best vehicles to do that is with unmanaged index funds. We prefer to call it "asset class" investing because of the various asset classes that make up the global market.Successful investing is all about having proper asset allocation, appropriate diversification and lower costs. It doesn't have to be complicated or sophisticated as so many think. In fact it's fairly simple because it based on pure common sense. Notice we didn't say easy. If it was easy everybody would be rich and as John Bogle, founder of Vanguard Funds, has stated: "While an index or asset class strategy may not be the best investment strategy ever devised, the number of strategies that are worse are infinite".