Investment Management

Your investments may need to last you 25+ years in your retirement. An investment portfolio that is diversified, low-cost, and tax efficient has a greater chance of lasting longer than one that is not. 

One of the first steps we perform is a thorough analysis of each of your investments. You will know the following after our analysis: 

  • How much am I really paying for my investments?  
  • What are the tax implications of the investments I select?  
  • Are my investments properly diversified?  

Tax Saving Opportunities

After our review of your investments, we will look at reducing your risk exposure, simplifying your investments, and making your investments more tax efficient. Some of the tasks that we may perform include the following: 

  • Tax-loss harvesting 
  • Roth conversions, including the mega backdoor Roth  
  • Rebalancing of investments 
  • Divesting concentrated stock position 
  • Transferring and/or consolidating investment accounts 
  • Asset allocation planning 

The Benefits of Asset Allocation

Asset allocation planning is the process of holding your investments in the most tax-efficient location. In general, we will use the following process as a guide: 

  • Hold tax-inefficient investments in your IRA to defer tax until distribution. 
  • Hold appreciating assets in taxable accounts to defer tax on appreciation, and only pay capital gains tax when sold.  
  • Hold high-growth investments in Roth IRAs to get the maximum benefit from nontaxable status. 

Low-Cost Investments

We use low-cost funds so that more income flows to you and not the fund companies. We mostly use Vanguard and DFA funds. In case you have not heard of DFA, you can click here for more information. If you work for the government and have a TSP account, we incorporate your holdings into the rest of your portfolio. We do not pick individual securities or use market-timing schemes.