Applied Research = Better Portfolios

Wealth Teams Solutions is a group of experienced fiduciaries. Our mission is to help investors fund their goals with a time-tested process built on three decades of academic research.

 

Our Process Can Help You…

  • Decrease Volatility and/or Increase Return
  • Use Modern Portfolio Theory to Optimize Portfolio Construction
  • Reduce Fees & Expenses…Up to 50%
  • Reduce Taxes…Up to 40%

 

Contact us for a free analysis, or call us at 877-282-4768

 

We can show you how to use Modern Portfolio Theory to master the “4 Critical Factors”…

 

Factor #1: VOLATILITY

  • FACT: According to a recent survey by DALBAR, Inc., over the last 30 years, the S&P 500 stock index delivered an average annual return of 11.06%. Over the same period of time, the average equity mutual fund investor’s average annual return was only 3.79%.
  • PROBLEM: Sharp market downturns–Volatility–causes investors to panic and liquidate their equity portfolios despite significant losses in order to avoid further loss.
  • SOLUTION: Capture the Bounce! Wealth Teams knows Volatility is a natural part of market growth. Based on 85-years of market analysis, every downturn has resulted in a bounce, a larger uptick. The key to minimizing the “down” is staying invested with efficient diversification. At Wealth Teams Solutions, our clients “Capture the Bounce” by staying invested which equates to greater returns.

Factor #2: PORTFOLIO CONSTRUCTION

  • FACT: Proper Portfolio Construction determines portfolio performance 94.6% of the time according to the famous 1980’s pension study done by the Brinson Group. Conversely, stock performance and market timing only accounted for superior returns–as compared to T-bills–less than 6% of the time.
  • PROBLEM: Most advisors do not perform the necessary quantitative work critical to proper Portfolio Construction; therefore they don’t know which asset classes generate the best historical returns. Amazingly, over the past two generations, most portfolios have been dramatically under-invested in the best performing asset classes.
  • SOLUTION: Wealth Teams uses proven academic and historical data to identify the best performing asset classes to judiciously manage risk. Our proprietary software and analytical tools for Portfolio Construction have delivered consistently high performing returns for our clients.

Factor #3: FEES & EXPENSES

  • FACT: Fees and Expenses for typical investor portfolios average more than 4% annually based on Morningstar data. This is very costly, especially in down markets!
  • PROBLEM: High asset management fees, unnecessary and undetermined trading costs and losses attributed to the bid/ask spread can reduce your portfolio return or increase your losses by as much as 2.5% annually. High Fees & Expenses erode returns and overall portfolio value.
  • SOLUTION: At Wealth Teams, our fees are typically 20%-40% less than traditional advisory fees. Given our approach to portfolio construction, management and turnover, we reduce total fee erosion by more than 50%. Our lower Fees & Expenses mean better value to our clients. Moreover, we fully disclose to our clients why and what we charge.

Factor #4: TAXES

  • FACT: To quote the legendary Judge Learned Hand, “…Any one may so arrange his affairs that his taxes shall be as low as possible; there is not even a patriotic duty to increase one’s taxes.”
  • PROBLEM: According to historical Morningstar data, average portfolio turnover exceeds 80% annually. This means very few gains are classified as long- term capital gains and end up being taxed as ordinary income. Without the proper strategy, Taxes are a huge and expensive problem.
  • SOLUTION: Wealth Teams investigates the historic turnover rate for every client’s portfolio and utilizes investment strategies to minimize turnover. This reduces Taxes on the repeated sale of assets within the fund during the year. As a result, our clients keep more of what they earn.

Is it time to revisit the cost/value of your relationship with your financial advisor?

 

If it is, we would be happy to run an analysis for you at no cost or obligation. This can help you put some important questions to rest. If you are interested, LET US KNOW or call us toll free at 877-282-4768. We would love to hear from you.

 

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