As a PARTNERSINWEALTH client, you probably understand how we work with you and your other advisors to optimize your finances—aligning savings and investments with life goals, exploiting the fruits of collaboration, taking a 360-degree view of your family’s wealth. We talk about these matters in our face-face-meetings with you. But regarding your investment portfolio you may not know what happens behind the scenes, while you are busy working, playing and living your life.
We monitor your portfolio virtually every business day. Our system, Total Rebalance Expert (tRx) from Morningstar, is one of the most powerful, robust asset management tools in the industry. It checks for changes in your accounts on a daily basis, seamlessly integrating even with your outside accounts to compile a master picture of your wealth. It alerts us whenever your holdings get out of balance (for instance, as dividend payments increase cash beyond its allocated level) and calculates the trades needed to rebalance. We manually decide upon the actual trades to execute, taking into account the availability of current market opportunities and the impact of potential capital gains.
We also take into account the taxes involved, with tRx aiding our efforts to reduce your portfolio’s tax footprint. It helps us identify opportunities for tax loss harvesting. This involves selling an investment in a down cycle in order to offset future gains and thereby lower or eliminate future tax liabilities. The idea is to maximize the after-tax return on your whole portfolio.
As with taxes, we seek to minimize the fees your portfolio incurs. And that plays a role in the investment products we use, which third parties such as Morningstar have ranked among the lowest-fee assets in the industry. Scouring the market for best-in-class investments, we look beyond basic stocks and bonds to all forms of mutual funds, commodities, real estate, private and alternative investments anywhere in the world. Not every investment product meets our standards (in fact, most don’t). But we never stop looking for new candidates to evaluate.
It’s a matter of finding the best investments, but also of diversification—having the best mix of asset classes for you. It’s not unusual for a client portfolio to have more than 15,000 individual assets. So keeping the allocation balanced is crucial. We believe in Modern Portfolio Theory, and implement investment philosophies from the most rigorous, scientific and recognized researchers in the world, including Nobel-Prize-winning academics at institutions such as the University of Chicago and Stanford University.
All of our ‘behind the scenes’ work is intended to put you in control of your wealth, but without you having to spend your valuable time worrying about it. It lets you relax. It lets us be your knowledgeable and trustworthy single point of contact—one you can trust as a sounding board for all financial matters. To learn more, please contact Jim Waters, CFP®, at 713.964.4028 or email@example.com.