Investment Management
Our investment management services design portfolios to help you improve returns and reduce risk, so you can comfortably achieve your financial goals.
How we accomplish this:
1.) Carefully Control Costs
A significant factor in investment returns is the cost of the investments you own in your portfolio: high-cost investments are likely to provide lower returns than low-cost investments.
We construct our investment portfolios using ultra-low-cost funds whenever possible. This can improve the probability of being successful in your retirement planning and can reduce drag on your investment returns.
2.) Investment Management for Tax Efficiency
We employ multiple strategies that are designed to increase the tax efficiency of your portfolio.
These strategies include managing asset turnover, asset location, and tax-loss harvesting.
Whenever you buy or sell an investment, costs and potential tax liabilities are incurred, including hidden costs like bid-ask spreads. By managing asset turnover, we aim to protect returns, mitigate expenses, and avoid taxes.
Through strategic asset location, we optimize what investments are held in which type of account for each individual client. For example, less tax-efficient investments are held in tax-advantaged accounts while tax-efficient investments are held in non-tax-advantaged accounts. This strategy can lower your tax liability as compared to a strategy that does not employ strategic asset location.
Tax-loss harvesting is the selling of securities that have incurred a loss to offset a capital gains tax liability. This strategy is typically employed to limit the recognition of short-term capital gains since they are generally taxed at a higher federal income tax rate than long-term capital gains. It is also a way to defer taxation of investment gains if your income is too high to contribute to tax-deferred accounts.
3.) Optimize Asset Allocation
There are often asset classes that are trendy and popular. For example, ccryptocurrencies gold, etc. have, at times, been touted as the “next big thing.” Investments in these types of assets can often be inappropriate for well-designed retirement portfolios.
We do not chase trendy investments. We only invest in asset classes that:
- Have been shown through academic research to provide superior risk-adjusted returns through multiple market cycles
- Work well when invested together in a diversified portfolio
Want to learn more about how our investment management services can help you achieve your financial goals? Schedule a free financial assessment.