The Evolution of Risk Management Starts Here
We believe the traditional risk management model is broken. This is primarily because of siloed advice, high pressured sales tactics, and a lack of purpose-driven planning.
Wealthy investors have utilized risk management as part of a holistic plan to mitigate taxes, manage investment risk, stabilize income, and protect against the uncertainty of life.
When financial service practitioners act in a silo, they may solve one problem but may create other problems that jeopardize the client’s objectives. To avoid this, we utilize a multi-disciplinary approach that includes tax planning, risk management, asset management, financial planning, and estate planning. We feel integrated advice gives the clients their best chance at maximizing risk-adjusted returns and achieving their life goals.
We utilize a disciplined proprietary methodology we call Taxes First, Then Math to help manage risk.
Taxes First Then Math Methodology
Traditionally the risk management industry is singularly focused on individual products and/or strategies, sold by agents, who do not have a full understanding of a client’s needs. We only work with Tax Professionals that have a comprehensive view of their clients’ financial world.
Our decision-making paradigm is objective-driven, client-centric, and based upon math. We do this by looking at a client’s overall financial situation, including their tax returns, to identify potential strategies to reduce their tax burden.
We utilize our proprietary software and processes to evaluate and provide options that can help determine what is appropriate for the client. If we can measure and quantify it then we can apply math to eliminate subjectivity.
What is math? Do the numbers make sense?
- Is it cost-effective?
- Does it help mitigate risk?
- Will it improve tax-adjusted returns?
- Does it provide a good diversifier to help the client stay disciplined to accomplish their objectives?
- Does it address additional problems not typically solved with your traditional investment portfolios?
- Does it address the uncertainty of life?
Math is implementation. If a risk mitigation strategy does not put a client in a better tax or financial position, we will not recommend it.
There are perils everywhere. Taxes, investment risk, outliving your money, health deterioration, siloed advice, etc.
Our goal is to deliver Integrated Advice using our Taxes First, Then Math methodology.
Tax Efficiency
We can’t control the tax code, but we can control how we use it. There are legal, moral, and ethical strategies that we can utilize to help manage portfolios to help minimize taxes.
Some of the strategies we use include:
- Tax Location Optimization
- Tax Lot Harvesting
- Low turnover
- Tax-efficient investment vehicles
Our experience shows that our sophisticated approach to tax minimization can save investors 2% or more each year. 2% in any given year might not sound like much but compounded over a lifetime could amount to a significant increase to your wealth.
Yes or No?
- 1: Do you own mutual funds?
- 2: Do you hold securities for an average of 7 years or longer?
- 3: Do you harvest losses to offset future realized gains?
- 4: Do you hold or dividen paying securities in your taxable accounts?
Would you like to find you how you may be able to save taxes on investing? If you answered “No” for any of the above questions, please use the button below to request a review.
Controlling Costs
Investment costs, just like taxes, can drag down your portfolio return. We find that most retail investors pay more in fees and costs than they do in taxes.
Financial product manufactures have typically built opaque, hard to understand structures, that are designed to hide the true cost. Institutional investors typically steer clear of retail products due to these underlying hidden fees.
We value transparency and low cost designed to help you maximize your future gains.
How Much Are You Paying in Hidden Costs?
Diversification
Proper diversification includes exposure across asset classes, equity styles, and foreign markets. Modern Portfolio Theory is a disciplined approach employed by most institutional investors which utilizes math to help maximize risk-adjusted returns.
Many retail investors think that they are diversified because they own a collection of mutual funds. We have found that, for example, the mutual funds often held similar investments, negating the effect of diversification. Poor diversification can lead to more risk, higher costs, and higher taxes due to turnover.
Are You Properly Diversified?
Would you like to find you how you may be able to save taxes on investing? If you answered No for any of the above questions, please use the button below to request a Taxes First, Then Math Analysis.