Investment Management
Investment management is the professional management of various securities (stocks, bonds, options, mutual funds, ETFs) and assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. We may use a variety of investment strategies and tactics, such as diversification, asset allocation, tax-loss harvesting, direct indexing, portfolio rebalancing, and more to achieve the desired results for our clients.
We can help a person achieve financial goals in several ways:
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Diversification: Investment managers can help diversify a person's portfolio across a range of asset classes, which can help reduce risk and increase the likelihood of achieving financial goals.
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Expertise: Investment managers have the expertise and resources to research and analyze different investment options, and make informed decisions on behalf of their clients. This can be especially helpful for those who may not have the time or knowledge to manage their own investments.
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Professional advice: Investment managers can provide personalized advice and recommendations based on a person's specific financial goals and risk tolerance.
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Regular review and adjustment: Investment managers regularly review and adjust a person's portfolio to ensure it remains aligned with their financial goals and market conditions.
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Fiduciary Responsibility: The fiduciary standard is important because it helps to ensure that financial professionals are acting in the best interests of their clients, rather than in their own self-interest. When financial professionals act as fiduciaries, they are required to disclose any conflicts of interest and to fully disclose all fees and charges associated with their services. This level of transparency helps to build trust between financial professionals and their clients, and helps clients to make informed decisions about their finances.
Overall, investment management can help a person achieve financial goals by providing expert advice and a professionally managed portfolio that is tailored to their specific needs and goals.
Asset Allocation
Asset allocation is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The goal of asset allocation is to diversify an investment portfolio in order to spread risk and improve the chances of achieving financial goals.
Income Planning
We have a range of options for generating income from an investment portfolio, depending on the specific investments held in the portfolio and the investment goals of their clients, from dividends, interest, option-based income, and more.
Stress Testing
Stress testing in investing refers to the practice of evaluating the performance of an investment portfolio under different hypothetical scenarios, typically involving market or economic stressors. The purpose of stress testing is to identify potential vulnerabilities in an investment portfolio and to assess the potential impact of adverse events on the portfolio's performance.
Risk Management
Risk management is an important aspect of investing that involves identifying, assessing, and controlling risks in order to maximize returns and achieve financial goals. We begin by identifying a client's risk tolerance and ensuring an appropriate level of risk and return is achieved.
Options Strategies
Options can create additional opportunities to create income or reduce risk and are especially beneficial for those with restrictions on buying or selling particular stocks.
Goal-Specific Accounts
There are a variety of investment accounts with specific tax benefits to help achieve your financial goals. From education expenses, retirement planning, and estate planning, we can determine the mix of accounts that fit your goals best.
Tax-Aware Strategies and ESG
The advancement of fintech has created opportunities for smaller investors to replicate strategies typically reserved for institutional investors. For investors with taxable investments, we can implement strategies to harness capital gains and losses to offset income, while maintaining appropriate levels of income, risk, growth based on client needs.
Proven strategies designed for you
Tax-Loss Harvesting
Tax loss harvesting is a strategy that involves selling investments at a loss in order to offset capital gains and potentially reduce tax liability. When an investor sells an investment at a loss, the loss can be used to offset capital gains from the sale of other investments. If the losses exceed the gains, the excess losses can be used to offset up to $3,000 of ordinary income per year. Any remaining losses can be carried forward to future tax years.
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It's important to note that tax loss harvesting should be viewed as a long-term strategy, as the goal is to minimize taxes over the course of an entire investment horizon rather than in a single tax year. It's also important to consider the potential impact on an investment portfolio when deciding to sell investments for tax loss harvesting purposes.
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Index Replication and Direct Indexing
Direct indexing is a strategy in which an investor holds a customized portfolio of individual securities rather than a traditional index fund. Direct indexing allows an investor to have more control over the specific holdings in their portfolio and to tailor the portfolio to their specific investment objectives and constraints.
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Direct Indexing can provide advantages over traditional index funds via tax efficiency, cost savings, and by avoiding companies an investor prefers to avoid (tabacco, guns and firearms, etc.).
ESG Overlays
ESG investing can be a way for investors to generate financial returns while also promoting positive societal and environmental impacts. However, it is important for investors to carefully consider the limitations and risks of ESG investing in order to make informed decisions about their investments.
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ESG investing allows investors to align their investments with their personal values and beliefs, potentially resulting in a sense of fulfillment and satisfaction. y investing in companies that prioritize ESG factors, investors can potentially drive positive change and contribute to a more sustainable and equitable world.
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It is important to note, while some studies have suggested that ESG investing may lead to improved financial performance, it is not guaranteed. There is a risk that an ESG-focused portfolio may underperform relative to a more traditional portfolio.
