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Your money should be invested strategically. Our approach is designed to grow your assets efficiently and save you money. Regardless of your situation, lower risk for the same amount of expected return is better. That’s why we utilize all global liquid asset classes and adhere to the principles of Modern Portfolio Theory†.Schedule Your Consultation
Our Investment Approach
Start with the big picture. Personal Capital pulls all your accounts together and creates a plan designed to meet your retirement goals. That’s why we call each portfolio a “Personal Strategy”. We believe our efforts to integrate your data and projected cash flows with your investment portfolio give you the best chance to meet your retirement goals.
Trying to find the next hot stock or jumping in and out of the market is not the answer. Our unique “Smart Indexing” approach takes traditional indexing to the next level. Let us show you how it can generate better performance by avoiding inevitable sector or style busts.
A properly diversified global approach can allow you to earn a higher return while minimizing risk.
We monitor your portfolio every day and make the changes necessary to keep you on track. Smart rebalancing can reduce risk and add up to 0.4% in annual return 1.
Brokers charge fees and commissions. Mutual funds embed their costs inside the fund – hidden fees that take a bite out of your return. Personal Capital charges one simple low fee with zero trade costs.
We reduce your tax bill in three main ways:
- Avoid mutual funds and only use tax efficient investment vehicles
- Tax loss harvesting
- Tax allocation (for investors who have taxable and IRA accounts)
Tax optimization can increase return by up to 1% 2.
1 Benefit to rebalancing derived using historical asset class returns for various multi-asset class portfolios. It represents the difference in annualized return from1970-2013 for a portfolio rebalanced annually versus a non-rebalanced portfolio with the same starting asset class weights. The figure does not include the effects of cash flows, fees, or securities transactions, all of which would have impacted returns. Out of six portfolios tested, ranging from conservative to aggressive, 0.45% was the lowest annual benefit obtained from annual rebalancing.
2 By avoiding tax-inefficient funds and adding the benefit from tax location and tax loss harvesting, our research shows proper tax management can improve portfolio returns by up to 1.0% annually.
Most people don’t actually know how much they are paying for investment management or fund fees. And it is often much more than they realize.
Our fees are low, transparent, and aligned with our clients’ best interest. One simple fee includes investment advice, portfolio management, custody and trading.
Your assets are held at a world-class third party custodian who we pay a fee based on assets, not per trade. You don’t pay for trade commissions and have lower costs. It allows us to make trade decisions objectively, based on what is best for your portfolio.
This arrangement makes Tactical Weighting and Tax Optimization possible - the type of service previously only available to institutions and ultra-high net worth individuals.Learn More >
† Markowitz, Harry. "Portfolio Selection." Journal of Finance, 1952.
Invest with Us
Start the conversation about your financial future. You can reach us directly at (855) 855-8005, click to schedule a call with one of our advisors, or enroll directly in our investment services.Schedule Your Consultation