Before joining Hill Investment Group, I spent part of my career at Dimensional Fund Advisors (DFA)—a firm whose investment philosophy has helped shape our own. DFA, like Hill, was founded on a simple but powerful belief: markets work. That foundational idea continues to shape how I view the world and reinforces my deep confidence in evidence-based investing.

It’s easy to think of “the market” as a complex or distant system. But in reality, we all interact with markets more often than we realize. Whether you’re selling a used couch on Facebook Marketplace, comparing mortgage rates, or negotiating with a contractor, you’re participating in a market—exchanging value based on available information, competing options, and mutual agreement. This same principle drives how trillions of dollars are traded globally every day.

What makes markets remarkable is their ability to reflect the collective wisdom, emotion, and activity of millions of participants. In the short term, markets can be unpredictable, reacting to headlines, global conflicts, elections, or economic data. But over time, they’ve proven to reward long-term thinking, discipline, and optimism.

Of course, that doesn’t mean every moment in the market feels good. Volatility can be unnerving, especially when headlines are loud and uncertainty is high. But as our co-founder Matt Hall recently reminded us, “sometimes you need to duck.” In other words, short-term turbulence is a natural part of investing. It’s the price we pay for the opportunity to pursue long-term growth.

If you take a step back, the broader trend is compelling. As David Booth, co-founder of DFA, noted in a recent commentary, markets delivered strong returns in early 2024, even amid geopolitical tensions and economic uncertainty. That’s not magic. That’s markets doing what they do best: translating risk, effort, innovation, and information into forward motion. It’s a reflection of human ingenuity—entrepreneurs solving problems, companies adapting, and people continuing to build and invest in the future.

At Hill, we believe that investing is ultimately an act of faith in global progress. When you invest in a broadly diversified portfolio, you’re investing in the belief that economies will continue to grow, that people will continue to innovate, and that the world will continue to move forward—not just in the U.S., but around the globe.

Yes, markets do go down. Historically, downturns have occurred roughly every six or seven years. But staying invested—despite those temporary declines—has historically been a reliable way to participate in long-term growth. On the other hand, trying to time the market or avoid short-term dips can carry a different risk: missing out on the recoveries that often follow.

There’s also a hidden cost to stepping away from the market: the mental load. The stress of trying to guess when to get in or out, or constantly second-guessing your plan, can be draining. Many investors eventually come to see the value of having a trusted advisor, not just to manage investments, but to help them focus on what matters most in their lives.

If you’re reading this, you’ve likely already embraced that philosophy. You’ve chosen to Take the Long View with us. Our encouragement now is simple: lean into that mindset. Let the markets do their job, while you focus on yours—being present with your family, pursuing your passions, and building a life filled with meaning and intention.

That’s the real return—and the heart of why we Take the Long View.

Disclosures:
This content is for informational and educational purposes only and does not constitute personalized investment advice or a guarantee of future results. Hill Investment Group does not provide legal or tax advice. Please consult your legal or tax professional regarding your individual circumstances. References to third-party firms or individuals do not constitute endorsements or affiliations unless explicitly stated.

At Hill Investment Group, when a few clients ask the same question, we know others are likely wondering, too. That’s why we created “Hey Hill”—a recurring newsletter feature where we answer common client questions and share our take. Have a question? Email us at service@hillinvestmentgroup.com.

We get this question all the time. While it sounds simple, the answer is personal. That said, we can use evidence and clear thinking to guide a smart approach.

It’s tempting to hold extra cash “just in case.” It feels safe. But over time, too much cash is actually a silent killer. It quietly erodes your purchasing power and your progress. Inflation eats away at its value, and the opportunity cost adds up.

Just like any of your assets, both allocation and location are essential considerations.

Here’s how we think about managing your cash strategically:

Start with the essentials.
Keep 3 to 6 months of living expenses in a high-yield savings account. 12 months if you’re particularly anxious. Think of this as your cushion for the unexpected.

Currently, we recommend our high-yield, easy-to-use cash management tool like this one. With it, we’re helping clients earn around 4% (as of publication) on cash, with no additional cost. This method also comes with enhanced FDIC protection and next-day access when needed—it’s perfect for things like tax payments or big upcoming expenses. It’s an ideal spot for cash you might need soon but still want working for you.

Don’t let cash pile up where it’s not working.
Checking accounts are for paying bills—not stockpiling. Once the essentials are covered, move excess cash into higher-yield options like the above or reallocate it toward long-term growth. Every dollar should be pulling its weight.

Cash in your portfolio? That’s a drag.
Cash is a return-killer in investment portfolios. We keep it low by design. Holding unnecessary cash means giving up potential growth. It’s one of the small but meaningful ways we “pick up pennies” for our clients without increasing risk.

The goal isn’t zero cash—it’s the right amount in the right place.

We’ll help you strike that balance so you’re confident, covered, and focused on taking the long view.

Let’s take a look at your setup—just say the word. 

At Hill Investment Group, we’ve found that when a few clients ask similar questions, many more likely share the same curiosity. To better serve you, we’ll periodically feature this “Hey Hill” segment in our newsletter, addressing common client questions and explaining our perspective. To submit questions for future newsletters, email us at service@hillinvestmentgroup.com.

Tax season always feels like a scramble. Are there things we (or you) can be doing throughout the year to make it easier – and smarter?

At Hill Investment Group, we believe taxes aren’t just a once-a-year concern. They’re a year-round opportunity. While most people only think about taxes in the spring, we’re building strategies into your plan every day—so you’re not just reacting in April, you’re planning ahead with purpose.

Markets move. Headlines shift. But one thing we can control is how efficiently your portfolio is managed from a tax perspective. It’s a key part of Taking the Long View, helping you keep more of what you earn—not just this year, but every year.

How We Build Tax Efficiency into Your Plan

• Strategic Asset Location – Some investments generate more taxes than others, and where you hold them matters. We structure your portfolio to keep tax-inefficient assets in tax-advantaged accounts, reducing unnecessary tax drag.
• Tax-Loss Harvesting – When the opportunity arises, we strategically offset gains with losses—lowering your taxable income without disrupting your investment strategy.
• ETF Investing – ETFs (Exchange-Traded Funds) allow investors to defer most, if not all, capital gains taxes until they sell, helping avoid surprise tax bills.
• Tax-Advantaged Accounts – From IRAs and Roth conversions to HSAs, we help you maximize the long-term tax benefits of these accounts.
• Charitable Giving Strategies – Tools like donor-advised funds, qualified charitable distributions (QCDs), and appreciated stock donations allow you to give while staying tax-smart.
• Estate & Gifting Strategies – Thoughtful wealth transfer planning helps minimize estate taxes and ensures your legacy is passed on efficiently.

Making Tax Season Easier

Beyond these long-term strategies, we make tax season seamless by preparing tax packets with key reports and details your CPA needs. Because we work closely with your tax team, we help ensure that your investment and tax strategies are always aligned.

If you have questions about how tax planning fits into your financial picture, we’re here to help.

Taking the Long View means thinking ahead—about taxes and beyond.