At
Noyes Capital we work with portfolio optimization
software and our many years of market experience
to design portfolios that strive to meet your
risk tolerance profile and financial needs.
While there is always substantial risk in any
investment portfolio, there are clear techniques
that can help increase your expected return and/or
reduce your portfolio volatility (risk).
The four concepts that we build into every portfolio
we design:
1)
Keep your fees and transaction costs low
The
power of investment compounding is amazing and
is critical to individuals' financial health.
By cutting your mutual fund management fees,
hidden turnover fees, custodian charges and
advisor fees, you can create substantial long
term savings for you and your family. Ever
10 basis points matters in the long-run.
2)
Place your investments in the proper vehicles
for tax efficiency
Your
after-tax portfolio return can be increased
by placing stocks, bonds, mutual funds and ETFs
in the proper investment account.
Certain investments are better suited for IRA’s
and 529’s instead of taxable accounts.
This may require customized investment selection
to best fit your needs. Tax efficiency is extremely
important over time, including holding investments
for long-term capital gains and low tax rate
dividends.
3)
Maintain portfolio diversification to reduce
combined volatility
When
we talk about diversification in a stock portfolio,
we’re referring to the ability to reduce
risk exposure by investing in various companies
across different sectors, industries or even
countries. This should reduce the price
volatility of your portfolio since not all industries
and sectors move up and down at the same time
or at the same rate. This provides for
a more consistent overall portfolio performance.
4)
Use a forward looking asset allocation
At
Noyes Capital, we believe in the business cycle
and the resulting bull and bear markets.
We deploy strategies over the cycle that uses
flexible asset allocation and portfolio optimization
to strive to generate superior results over
time. This forward looking investment
approach requires substantially more effort
than the so-called “buy and hold”
strategies used by many securities firms and
advisors. We use our twenty-four years
of investment experience and discipline to strive
to maximize and protect investment returns during
all stages of the investment cycle.
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