When it comes to capital appreciation, our investment management solutions are designed to help you grow your wealth over time. We take a disciplined and tailored approach to investing, which starts with understanding your goals and risk tolerance. From there, we create a diversified portfolio that is carefully monitored and managed on an ongoing basis. Our ultimate goal is to help you achieve your financial objectives.
If you seek an investment management solution that aims to safeguard your capital while fostering long-term wealth growth, we would be delighted to engage in a discussion about our approach and how it aligns with your financial goals.
We offer two distinct strategies tailored to meet your financial goals and risk tolerance
As an investment advisor, my role is to provide personalized investment management to cater to your unique financial situation and risk tolerance. Unlike a hedge fund manager who pools assets from various investors into a single fund, I manage Separate Managed Accounts (SMAs) which are tailored to individual clients.
1. Passive Allocation Strategies (Index Investing):
Our passive allocation strategies are designed for individuals seeking a long-term, low-cost approach to investing. We believe in the power of the market and aim to replicate its performance rather than beat it. With this strategy, we construct portfolios using index funds or exchange-traded funds (ETFs) that track specific market indexes, such as the S&P 500 or the MSCI World Index.
The key benefits of passive allocation strategies are:
a) Broad Diversification: By investing in index funds, you gain exposure to a wide range of companies or asset classes, spreading risk across the market.
b) Low Costs: Index funds typically have lower expense ratios compared to actively managed funds, which helps maximize your investment returns over time.
c) Consistency: As the investments in the portfolio mirror the market, you avoid the pitfalls of stock-picking or trying to time the market, leading to more consistent and predictable returns.
2. Core + Satellite Allocation Strategy:
Our Core + Satellite allocation strategy is designed for individuals who desire a blend of passive investing with selective active management. This strategy combines a "core" portfolio of low-cost, passive investments with smaller, more actively managed "satellite" positions.
Here's how the Core + Satellite strategy works:
a) Core Portfolio: The core portfolio forms the foundation of your investments and typically consists of diversified, low-cost index funds or ETFs. This helps you capture broad market performance while minimizing costs.
b) Satellite Positions: To enhance potential returns or focus on specific investment opportunities, we allocate a portion of your portfolio to carefully selected individual securities. These satellite positions are actively managed after research and analyze potential opportunities.
The advantages of the Core + Satellite allocation strategy are:
a) Diversification: The core portfolio provides broad diversification, reducing risk, while the satellite positions add potential for higher returns by targeting specific areas or investment themes.
b) Potential for Enhancing Returns: This active management approach allows us to take advantage of market inefficiencies, uncover undervalued assets, or identify emerging trends and sectors that may not be fully reflected in passive index funds. By carefully selecting these satellite positions, we aim to generate additional returns that complement the performance of the core portfolio.
c) Flexibility: The strategy allows for customization based on your risk tolerance, investment goals, and market outlook. We can adjust the allocation between the core and satellite positions to suit your specific needs.
What makes us different?
Regardless of the strategy you choose, Wealth Habits will work closely with you to understand your goals, risk tolerance, and time horizon. We prioritize a long-term perspective and help you stay focused on your investment objectives, providing on-demand performance updates and offering guidance along the way.
Wealth Habits believes in open-architecture, transparent investing. We manage client investment portfolios, prioritizing the long term.
Low Cost & Tax Efficient
See how Wealth Habits' low-cost approach can help you make the most of your money.
We help you create a strategy to help manage, defer, and reduce federal taxes.
Ongoing personalized support
Wealth Habits helps ensure that your investments remain on track. We also provide guidance on when to sell or buy specific stocks or funds, and can help you stay informed about the market conditions that could impact your portfolio.
Disciplined Investment Process
Investing is a commitment to your future. It’s a way to grow and preserve what you’ve earned. Our disciplined investment process helps ensure your portfolio is positioned to withstand changing market and economic conditions.
1. Setting Your Objectives
We want to know you as a person and as an investor, your needs for today, and plans for the future. This is the cornerstone of designing your investment strategy. Initially, we conduct a thorough assessment to understand your financial goals, risk tolerance, and other personal circumstances. This allows us to create a bespoke investment strategy just for you. We do this at the beginning of the engagement and we try to do it annually with you in our conversations with you.
2. Creating Your Investment Policy (IPS)
Based on our conversations, we’ll draft your personal IPS. Think of it as a road map for your investment decisions.
3. Constructing Your Personalized Portfolio
Using your IPS as our guide, we evaluate different active and passive solutions and select the investments that offer the most potential return for your desired level of risk. Based on the assessment, a personalized portfolio is crafted. While there may be commonality in asset allocation across different client portfolios, each portfolio is distinct as it is tailored to your unique situation.
4. Managing Your Portfolio
Regularly monitoring the performance of your investments and making adjustments as needed to keep your portfolio aligned with your investment objectives.
There may be instances where you have legacy positions—investments that have been held for a long period and have appreciated in value. We recognize the importance of managing the tax implications of these positions. Our approach is to carefully substitute these legacy positions over time to align your portfolio with your current investment strategy, while being mindful of the capital gains generated to ensure tax efficiency.
5. Transparent Communication
We maintain an open line of communication to keep you informed about the performance of your portfolio, any adjustments made, and to discuss any changes in your financial situation.