Our five main investment management styles are highlighted below. We have included characteristics of each, who they might appeal to, and the average all-in cost to you for each style.
- Typically has a 100% allocation to equities, but fixed income can be added at discretion of P&A.
- Largely individual stocks, with exchange-traded funds (ETFs) and mutual funds mixed in to round out the portfolio.
- If you want to know exactly what stocks you own, Custom Equity will appeal to you.
- This style allows us to more effectively manage your realized gains & losses each tax year.
- Our fee schedule begins at 1% of assets per year, with the first breakpoint at $1 million.
- The average all-in cost to you (including trading commissions) is generally in the 1.04% to 1.08% range on an annual basis.
- This style is invested 100% in bonds, bond funds, and other fixed income securities.
- If you want a predictable income stream and lower volatility than a portfolio with stocks, this style will appeal to you.
- If you’re in a high tax bracket and want the tax-free interest from municipal bonds.
- If you prefer knowing when your bonds will mature, this style should appeal to you.
- Same fee schedule as Custom Equity.
- Our most popular management style, this is a combination of Custom Equity & Fixed Income.
- Primarily individual stocks and bonds, with some mutual funds and ETFs mixed in to round out the portfolio.
- Asset allocations are tailored to your risk tolerance, financial goals, and time horizon.
- A good option if you don’t want all your invested assets exposed to the stock market.
- Same fee schedule as Custom Equity and Fixed Income.
- No-load and no transaction fee mutual funds are used to achieve proper diversification.
- Low cost index funds constitute anywhere from 60% to 100% of these accounts. Index funds seek to replicate the return of a market benchmark or index, such as the S&P 500. Managed mutual funds, where the fund manager seeks to beat a certain index or benchmark, represent the remainder of the portfolio.
- Mutual Fund Accounts are rebalanced twice per year at a minimum. Rebalancing involves bringing each mutual fund back to our desired weighting. Funds that have outperformed typically are trimmed, while those that have underperformed typically are added to.
- If you plan to consistently add to or withdraw from your account, this style may be of interest.
- Our fee schedule for Mutual Fund Accounts starts at 0.75% annually.
- The all-in cost to you (which includes the underlying mutual fund expenses, as well as our management fee) is generally between 1% and 1.25%.
- Exchange-traded funds (ETFs) are baskets of stocks or bonds similar to mutual funds, but they trade during the day like individual stocks and bonds do.
- Our ETF accounts will be formally rebalanced (or reviewed for rebalancing) two times per year. In effect, they are constantly being monitored for any investment that falls outside of our preferred range.
- These accounts work well for investors who are comfortable with mutual fund-like products and who want to minimize their expenses.
- Our fee schedule for these accounts starts at 0.75% annually.
- The ETFs we use have relatively lower expense ratios than mutual funds. The all-in cost to you (including ETF expenses, trading commissions, and our management fee) is generally around 1%.
You won’t read this on many other financial adviser websites, but given our fee-only business model it’s in our interest to keep your investment management fees as low as possible. Clearly, this aligns your interests and ours.
If you have any questions or would like more information about how P&A would manage your investments, please call us at 402-328-8800 and ask for Pitt, Dan, Jon, Diane, Trey, or Blake.