Investment Planning

First, let’s dispense with the notion that anyone can control gross investment returns. That’s because no one gets to control either the markets or the economy — just ask members of the Federal Reserve. They’d love to be able to do that! 

That leaves us with what we can control: risk, taxes, and expenses… 

• Risk: We control risk by identifying the rate of return required to achieve your goals, and targeting that return at the lowest level of risk we can. Either too much or too little risk lowers your odds for success. So, once targeted, it’s critical that we maintain that level of risk. For this, we employ a scientific rebalancing process, at the optimal frequency, and using optimal trading bands. 
• Taxes: Portfolios can generate a lot of taxes — if not managed with taxes in mind. Also, a portfolio can even be used to reduce taxes on outside income. We continually scan portfolios, using sophisticated software, to place and keep securities in the most tax-efficient accounts, make tax-efficient trades, and identify opportunities to harvest temporary losses so that we can use them later to offset future taxable gains. 
• Expenses: We control expenses by utilizing low-cost institutional custodians, regulating trading frequency, taking advantage of institutional funds that both tax manage and rebalance internally, and by avoiding the cost of actively managed funds wherever practical. 

In summary, no one gets to control gross returns, that is simply a fact. But there is a great deal we can do to control risk and to increase net returns after taxes and expenses — the bottom line, which is all that really matters. Schedule an opportunity to speak with one of our wealth consultants to learn how we can help you with our investment planning expertise.