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The True Evolution of Investing: Personalized Customized & Tax efficient

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One of the major benefits of being an independent advisor is the ability to evolve and enhance my clients’ investment strategy choices. At the Bradford Pine Wealth Group (BPWG), we’re always on the lookout for more effective ways to offer my clients personalized, risk managed, and tax sensitive portfolios. As an independent advisor, I’m not reliant on any one company to provide me with the best of what they have. Instead, it’s my view that I have the ability to provide my clients with the best of what’s out there overall (oftentimes people think they’re getting this kind of service when they’re actually not).

In any case, after extensive due diligence process, BPWG recently forged a partnership (November 2018) with a large asset management company who will allow me to bring white glove service and a higher degree of customization to my clients’ investment portfolios.

This wasn’t easy to find, as such a high level of service isn’t available at most firms.

Truly individualized asset management can be difficult to offer because it requires expertise, technology, and sufficient infrastructure. That’s why so many investors are put in one-size-fits-all “model” portfolios which they don’t actually realize that they are in, and this also doesn’t meet their specific needs. At the same time, you probably recognize the value in having your preferences and financial needs addressed in your investment strategy.

While my business has always been focused on providing truly individual investment management for each of my clients, this relationship gives me the opportunity to offer so much more. Investors with $1 million in investable assets now have the ability to access a customized and actively managed portfolio, which means a lot – in my opinion, it is a strategy comparable to those used by institutional investors.

Of course, that doesn’t mean it’s for everyone: if you choose to stay in your well-diversified model portfolio you can still receive a lot of the benefits of diversification and market exposure. But here’s why this approach to portfolio management matters so much to me as an advisor – and why I think you should also consider it for your own investments.

What can a personalized strategy offer?

Personalized portfolio management isn’t management by a mathematical model and is not “set it and forget it”. It’s about reflecting the goals, objectives, risk tolerance and preferences of the investor. It is a thoughtful approach driven by a dedicated portfolio management team who I work very closely with on a daily basis – and who my clients can also interact with on a regular basis. This type of investment management can give you greater precision in aligning your investment strategy with your objectives and overall financial life.

Your personalized investment portfolio can:

  • Account for the big picture by considering other investments, real estate, and additional assets held outside of the portfolio to ensure that the portfolio fits with and complements other pieces of the puzzle.In short, we don’t just look at the assets we’re managing: we look at them all.
  • Control taxes by monitoring the potential impact of every trade every day. Every dollar that stays in a client’s portfolio rather than going to Uncle Sam compounds over time and helps to create meaningful wealth. In my experience, most firms are not willing to put the work in to provide individualized tax management at the client level. 
  • Control risk by monitoring and adapting both your investment strategy and each individual position in light of shifting markets.
  • Control income generation and distribution by precisely targeting an appropriate balance that works towards each client’s specific goals. We can construct your portfolio to meet your specific income needs.

Your average model or cookie-cutter portfolio simply can’t do this much for you. 

A truly customized portfolio

A personalized portfolio is absolutely within reach for high-net worth investors (those who have $1 million or more in investable assets). At this level of investment, your advisor and portfolio manager can help you build a custom portfolio that mostly employs individual securities, rather than relying solely on mutual funds or ETFs.

Why would you want to own individual names?

The simple answer is that a tailored portfolio utilizing individual stocks and bonds allows for a higher degree of control and precision that is not achievable when in a cookie cutter model or mutual fund.

Using individual securities for the bulk of your investments has important potential benefits: they have no hidden management fees, no risk of “slipping” from their benchmarks, they don’t have capital gains distributions to manage, and they aren’t subject to emotion-driven inflows and outflows like mutual funds.

That makes individual securities very useful as an anchor in your portfolio – and it’s even more powerful when you know that the balance of sectors and asset classes can be adjusted depending on any other securities you already have. Of course, there are risks involved in investing in individual securities that are important to take into account. For some investors, this approach may not be suitable.

At BPWG we complement a foundation of individual securities with mutual funds that target specific strategies, such as international equity and opportunistic fixed income.

A holistic approach to investment management

It’s important to note that your personalized portfolio isn’t just a standalone set of investments: it’s built to account for all of your investable assets to create more coordination in your strategy and more tax efficiency overall. Being holistic means we can also take steps to mitigate potential risks in other areas or to diversify into sectors where you want more exposure.

Over time, we’ll monitor your portfolio to make sure it’s always in line with your goals. We’ll check in regularly to keep tabs on how those goals are evolving and to make sure that you’re clear on what you own and how it’s performing. Behind the scenes, your portfolio management team has support and resources to monitor the economy and markets to track potential risk areas and rebalance your portfolio accordingly. This can possibly help you avoid getting caught in a major recession.

Finally, we make sure to bring other stakeholders into the conversation when appropriate: this might include your CPA or other professional advisors. That way, we can coordinate your risk management and tax budgets/strategies appropriately. This level of communication fosters a relationship where the client, the advisor, and the portfolio management team are always in alignment.

Try it: I think you’ll be convinced

I’ve been in the trenches for over 26 years, and I’ve gained a lot of knowledge over this time. It’s my conviction that this is simply a better way to invest. With a portfolio that considers the big picture, stays aligned with your overall goals and objectives, actively manages risk and taxes, and comes with a team of very experienced portfolio managers who work directly with me and my clients, I believe your probability of successfully meeting your goals and objectives increases significantly. 

Many of my clients have seen a great deal of success building their wealth in their own way and have a unique set of goals and objectives that will change over time. Those evolving financial goals and objectives can’t always be met with a cookie-cutter portfolio, which is why I am very excited to bring a more personalized approach to my clients.

However, don’t just take my word for it. See for yourself: I strongly believe you’ll come to the same conclusion. I have so much conviction, I’ll be shocked if you don’t!  

Written by Bradford Pine with Anna B. Wroblewska


To learn about retirement savings, download my free eBook, “10 Tips You Need to Know About Your IRA Rollover.” This short book is packed with critical information that will help you make the right decisions about your retirement savings.

Written by Bradford Pine Bradford Pine Wealth Group – New York City Financial Advisors The views and opinions expressed in an article or column are the author’s own and not necessarily those of Cantella & Co., Inc. It was prepared for informational purposes only. It is not an official confirmation of terms. It is based on information generally available to the public from sources believed to be reliable but there is no guarantee that the facts cited in the foregoing material are accurate or complete. Comments may not be representative of the experience of other investors. Investor comments and experiences are not indicative of future performance or results. Views and opinions expressed in the comments section are the author’s own and not those of Cantella & Co., Inc. No one posting a comment has been compensated for their opinions.

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