Your investments should support your plan, not become the plan.
Every portfolio we manage starts with a written plan for what the money is for. Then we build it, research it, rebalance it, and review it with that purpose in view, year after year.
One couple's portfolio, built around what it's for.
Laura sold her share of the engineering firm she co-founded. With Michael, she now has more invested than ever, spread across seven accounts, plus a large block of stock inherited from her father. Follow their portfolio in eight chapters.
An illustrative couple. Names, allocations, and details are hypothetical and do not represent an actual client or a recommendation. Investing involves risk, including possible loss of principal.
Hypothetical allocations for illustration only. Diversification and rebalancing do not ensure a profit or protect against loss.
Write down what it's for
After the sale, Laura and Michael had more money than ever, and less clarity about it. Before we invested a dollar, we wrote an Investment Policy Statement with them: what the money is for, when they'll need it, how much volatility they can live with, and exactly how we'll manage it.
What we do
Create a written Investment Policy Statement that outlines your goals, time horizon, risk tolerance, and how your portfolio will be managed.
What you leave with
A written plan for your money that you helped shape, and can hold us to.
Build a portfolio that fits
Their money sat in seven accounts at four institutions, much of it overlapping. We brought it together into one diversified portfolio built from our in-house investment models, then tailored it to their IPS: more stability for the next five years, more growth for the decades after.
What we do
Build diversified portfolios using our in-house investment models, tailored to your needs.
What you leave with
One portfolio with a clear purpose, instead of seven accounts with none.
Choose every investment deliberately
For each part of the portfolio, we looked at performance, risk, fees, and the experience of the people managing the money. Where low costs matter most, we used index funds. Where we believe a skilled manager can add value, we used active ones.
What we do
Research investments carefully, looking at performance, risk, fees, and manager experience, and use both active and low-cost index funds where each makes sense.
What you leave with
A reason behind every holding, and costs you can see.
Stay on target
After a strong year for stocks, their portfolio had drifted riskier than their IPS allows. We rebalanced it back to target, trimming what had grown and adding to what had lagged. We do the same when markets move sharply, or when money comes in or goes out.
See the difference
What we do
Rebalance portfolios regularly, and whenever markets shift or money moves in or out, to keep them on target.
What you leave with
A portfolio that keeps matching the risk you agreed to.
Keep taxes in view
Selling to rebalance can create a tax bill. So when international markets dipped, we harvested losses in those funds, and rebalanced with new cash and those losses rather than selling their most appreciated shares.
What we do
Manage taxes in your investment accounts through strategies like tax-loss harvesting and avoiding large capital gains.
What you leave with
A portfolio managed with your tax bill in mind.
Have cash ready when it's needed
Their daughter is getting married next June, and they want to help their son with a down payment on his first home. We set that money aside in stable, liquid holdings well in advance, so neither moment depends on what the market does that month.
What we do
Plan ahead for cash needs and large expenses so money is available when it's needed.
What you leave with
Money for life's big moments, ready on time.
See the whole picture
Two of their largest assets weren't in our portfolio: Michael's 401(k) at work, and the bank stock Laura inherited from her father, now more than a fifth of their wealth. We factored both into every decision, and built a plan to reduce the bank stock over several years with taxes in mind.
What we do
Help manage concentrated stock positions, and consider accounts held outside our management.
What you leave with
Every account counted, and a plan for the position that carries the most risk.
Review it every year
Each year we sit down for an in-depth review: how the portfolio did against the plan, what changed in their lives, and whether the IPS still fits. This year, with the wedding behind them and the bank stock cut nearly in half, we updated their IPS for what comes next.
What we do
Hold an in-depth investment review each year, and update your Investment Policy Statement as your goals change.
What you leave with
A portfolio that keeps pace with your life.
Chapter 1 of 8
Your portfolio is one part of your plan, connected to every other.
We never manage investments in isolation. Every decision about what to buy, sell, or hold is shaped by the rest of your financial life.
Your financial planSets what the portfolio is for, and when the money will be needed.
Your tax strategyShapes which accounts hold which investments, and when we buy and sell.
Your retirement incomeDetermines how much must stay stable and easy to reach.
Your estate planGuides how accounts are titled and who they pass to.
The common thread throughout has been an advisor who takes the time to understand our goals before offering a solution.
Paul and Stephanie Herriott, clients
These clients were not compensated for this statement. Testimonials may not be representative of the experience of other clients and are not a guarantee of future performance or success.
Begin with a conversation about what your money is for.
Bring your statements, including the accounts we wouldn't manage. We'll show you how they fit together.
