The Prudent Man Rule is based on common law stemming from a 1830 Massachusetts court formulation written by Massachusetts Justice Samuel Putnam. The rule is a legal principle that is used to restrict the choices of the financial manager of an account to the types of investments that a person seeking reasonable income and preservation might buy for their own portfolio. At LPL we adhere to these values as our first priority in building long-term relationships with our clients that encourage open and honest communication. We structure tax smart diversified portfolios of multiple products that seek to maximize return while minimizing risk within the constraints defined by our client. We coordinate traditional asset classes with complementary products that aim to maximize portfolio return while minimizing the risks within the portfolio. This has and always will be the foundation of our central philosophy.
