Investments… Just… Not… Growing…
THE Client’s SITUATION
Sandy and Jill were not particularly happy about the performance of their portfolio and wanted a second opinion. Despite a long bull market, their investments just weren’t growing.
PARAGON’s investment management team found that Sandy and Jill’s portfolio was the typical “kitchen sink” approach that we find in most investment advisors’ portfolios. Packed full of expensive “long-short,” “managed futures,” and “multi-alternative” mutual funds designed mostly to make money for Wall Street, while delivering mediocre returns at best for investors, Sandy and Jill’s portfolio was ripe for a tune-up.
Our team helped Sandy and Jill transfer their investments to a low cost professional account at Fidelity or TD Ameritrade, and rebuilt their portfolio. First, we upgraded them out of mutual funds, using low-cost, tax-efficient Exchange Traded Funds (ETFs) and individual, investment-grade bonds to reduce unseen costs. Then, using the latest research in factor investing and market-cycle returns, we positioned them to try to maximize their returns for the amount of risk they were willing to take.
PARAGON continues to provide continual coaching and market updates, helping Sandy and Jill transition from average investors, worrying about the market because of the 24-7 news cycle, to disciplined, confident, effective investors, content to watch their money grow over time.
VALUE TO THE CLIENT
Now enjoying a low-fee portfolio and feeling confident about their future because of detailed retirement planning, Sandy and Jill were able to reduce their income tax burden because, unlike mutual funds, Exchange Traded Funds are generally very tax efficient, distributing little or no taxable “phantom income” that makes tax planning difficult.
Now, instead of a basket of high-cose, meaningless portfolio holdings, Sandy and Jill now enjoy a lean, focused portfolio they understand, designed within their risk tolerance, protected from recession-driven market crashes by our Recession Protocol™. This investment policy allows them to be competent, confident investors – a critical component of portfolio growth in retirement.