Built to survive the bad decade.

Anyone can build a portfolio for a rising market. The construction that matters is the one that holds up when the plan is being withdrawn from and the market is not cooperating.

Investment management is not stock picking, and it is not a model portfolio chosen from a risk questionnaire. It is the ongoing job of making sure the money is invested in a way the plan can actually live with: in the right accounts, at a level of risk the household can absorb, at a cost that is visible.

The account matters as much as the holding

The same fund can produce materially different after-tax outcomes depending on whether it is held in a taxable brokerage account, a traditional IRA, or a Roth. Asset location, deciding which holding belongs in which account, is one of the few levers available that does not require predicting anything about markets.

It is also one of the most commonly skipped, because it requires seeing every account at once rather than managing each one in isolation.

Defense is a position

Staying fully invested at all times is a choice, not a neutral state, and it is a choice that is easiest to defend in hindsight during a rising market. Our models are managed with capital preservation as an explicit objective, which means there are conditions under which the appropriate position is a defensive one.

That approach will lag in a strong, uninterrupted advance. It is a deliberate trade, made because the damage a deep drawdown does to a portfolio being withdrawn from is not symmetrical with the gain it gives up.

Cost and conflict, stated plainly

Fees compound in the same direction as returns and in the opposite direction for you. Every layer (the advisory fee, the expense ratio inside a fund, trading costs, and any commission attached to a product) belongs on the table before a recommendation is made, not in a disclosure discovered afterwards.

Our disclosure page sets out how the firm is compensated.

Where this goes deeper

Each of these is a full page on the specific decision it covers, with the figures and sources behind it.

It all starts with a plan

The portfolio is downstream of the plan, never the reverse. What the money has to do, on what date, and how much loss the plan can absorb are settled first; the allocation is the consequence. A portfolio designed before those answers exist is a guess wearing a spreadsheet.

Sources
  1. S&P Dow Jones Indices, SPIVA Scorecards: active versus benchmark performance across market segments. View source ↗
  2. Morningstar, Mind the Gap: investor returns versus fund total returns. View source ↗

Figures are as of the period stated by each source and are subject to change. Statistics describe populations and are presented for education only; they are not a projection of any individual result.

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