WEALTH MANAGEMENT

Wealth Management

WEALTH MANAGEMENT

What are our Wealth Management Services?

Our wealth management seeks to preserve the client’s capital (both nominal and inflation-adjusted), achieve wealth compounding over time, and provide liquidity and income where needed
The portfolios are broadly diversified to prevent a large loss of capital under changing economic conditions. We utilize Exchange Traded Funds (that trade like stocks on the New York Stock Exchange) and Index Funds in various asset classes. We custom blend them into client portfolios, depending on their risk and return preferences
We seek to take advantage of under-valued and temporarily miss-priced S&P 500 sector ETFs by opportunistically purchasing them, pending their recovery to a fair valuation with time (mean-reversion), thus adding to portfolio performance.
We seek to harvest profits in the portfolio positions when appropriate on a tax-aware basis by closely monitoring their valuations and assessing their potential returns on a three-year rolling window ahead.
We emphasize full transparency relating to built-in expense ratios in our investment selections and specialize in building ultra-low-cost investment portfolios that continually improve returns to the client’s bottom line
We act as fiduciaries to the clients, free of conflicts of interest, and our interests are always aligned with the client’s welfare as their trusted advisors

We develop a written investment policy for your portfolio, in consultation with your family and you, that reflects your objectives such as principal preservation, inflation hedge, capital growth, income, liquidity, etc.
You grant us the authority to build and manage the portfolios on a discretionary basis following the investment policy and periodically report results to you
Depending upon the nature of the investments, such as stock and bond ETFs – they are fully liquid (prices subject to market conditions). Investments such as real estate are illiquid in the short term (three to five years). Clients might need to wait for opportune market conditions to sell their investments and realize cash
We do not use leverage, options, derivatives, short-sales, or short-term trading in managing the client portfolios

Riskless assets such as the US Treasury bills and notes (two-year maturity or less) are held in the portfolio primarily for liquidity. However, these instruments fail to safeguard the purchasing power of the principal invested in them in the long run
Inflation-beating investments such as blue-chip equities and real estate are either price-volatile or illiquid in the short run. Investors need to wait, several years on occasion, for equity prices to recover or the real estate to be liquidated, depending upon the prevailing economic conditions
We build portfolios blending stocks, bonds, and real estate investments, balancing the client’s stated investment objectives and overall risk/reward associated with them
When held for the long term, ignoring the short-term volatility, equities and real estate investments yield attractive total returns, and time compounding of wealth is achieved
We seek to achieve market tracking returns in stocks, bonds, and real estate using buy-and-hold strategies

Erosion of buying power over a long time due to inflation is one of the challenges to the owners of wealth
Risk assets such as stocks and real estate are proven asset classes that produce inflation-adjusted returns when held for the long term. However, stock prices are volatile in the short run, and real estate is illiquid
Good returns emerge when these asset classes are held with patience for periods exceeding five years or more
Investors must learn to endure short-term volatility while inflation-adjusted returns are achieved in the portfolios.
Emotional reactions to short-term volatility, forcing changes to the carefully laid long-term investment strategies is highly detrimental to the client’s wealth
This unemotional discipline to be adhered to by the client is an essential requirement for wealth compounding in the long run

All client assets are registered and held for the benefit of the families or their family entities on a fully disclosed basis at a reputable member of the New York Stock Exchange Member firm
Clients have full access to their investments online at any time and receive monthly statements in compliance with the US securities regulations
Client assets are not commingled at any time unless participating in pooled investments such as real estate or private equity
We do not act as general partners in pooled investments such as real estate, private equity, or venture capital-type investments
We comply with regulations such as AML, KYC, and FATCA as appropriate