Broker Check

How We Are Different

WE ARE DIFFERENT . . . HERE WE OUTLINE HOW & WHY
BOUTIQUE APPROACH REDEFINED

While we are large enough to manage a broad and diverse client base nationwide, our structure is compact enough to always deliver personalized client service. What that means is you will get all the benefits of a large investment firm without the cookie-cutter, ‘you’re only a number’ approach. At Prestige Wealth Management, we view our clients and employees as one big family.

TACTICAL INVESTMENT MANAGEMENT

While most money management is INSTITUTIONAL, we add in the TACTICAL approach to ‘HEDGE THE DOWNS!’ But what does this mean?

The big box money managers follow institutional management which – in simpler terms – means that they design ‘model portfolios’ that will ‘fit’ the needs of different types of investors. So what this means is, conservative investors go into the conservative model portfolio, aggressive go into the aggressive model, and the moderate investors are placed into a model that is somewhere in-between. Now, once your risk tolerance is established, then you are placed into portfolios that ‘fit your risk profile’ and, on a quarterly basis, the model portfolios are rebalanced to their initial allocations of asset classes.

For example, one conservative portfolio may be set at 10% cash, 40% fixed income, and  50% equities in the utilities and consumer staples sectors. Once a quarter has  passed, the 50% equities might have grown to be 60% of the value of the total portfolio, so to realign to the original asset allocation, equities will be sold and reinvested into the government bonds, to keep the cash, bonds, and equities percentages as the model was designed. Th s rebalancing is simply adjusting your overweighted and underweighted holdings back to the model portfolio’s allocations. As you can see, this is very passive and reactive, not preemptive, or a proactive way to manage money. Unless the institution that created the model portfolio changes the model’s asset class allocations, then rebalancing is just an exercise in math – lacking any real management at all.

Tactical asset management is the opposite. On a weekly, even daily, basis, data and algorithms are being analyzed to determine what the current market is and where it is going, and that information is what leads to rebalances and can happen as often as necessary. This management style allows us to quantify a client’s MAXIMUM loss may be based off their tolerance while pursuing portfolio growth, and to hedge the risk up to that maximum acceptable loss. Among other features, you also have access to not only our research team but some of the best algorithm tracking data in the industry, research teams, analysts, and software to be able to monitor and ensure that when major things are happening it is being taken care of and address in a timely manner. In our experience, we have found that people do not pay for information because information is everywhere, people pay for service, for organization and implementation of strategies that are custom to you and nobody else and that is what we can offer.

While there are never ANY guarantees in market investments, we have found this tactical, quantifiable hedge a tremendous tool for our clients, giving them more peace of mind regarding their overall investment strategy, especially during volatile times where the market experiences dramatic changes or uncertainty. So, while we do provide traditional institutional management options, we highly leverage our tactical management capabilities for our clients’ benefit.

THE REALITY OF THE MODERN ‘FINANCIAL ADVISOR’

THE REALITY OF THE MODERN ‘FINANCIAL ADVISOR’

One of the secrets of the money management business is that most ‘financial advisors’ DO NOT do financial planning. Most provide only financial statements or if they give you a “plan” they run some 10-30 page ‘Financial Analysis Report’ produced by some financial software which simply gives you a projection of the probability of whether your portfolio will last throughout the rest of your life based on your desired income need. But if you look closely, the report is run based off an “projected average rate of return” which is typically a fixed rate of return between 5 - 7%. Under these calculations, it completely opens you up to one of the largest risks of retirees, Sequence of Returns risk.

Here at Prestige Wealth Management, we not only are your guide up to the top of the mountain, which is retirement, but we also plan for your descent with a bullet-proof income plan which segments your short-term income needs to minimize risk while giving your growth portfolios the time they need to grow the rest of your portfolio.

Once you become a client of Prestige Wealth, we create an detailed financial plan that accounts for increases in taxes and inflation, as well as applying the sequence of return risk to your portfolio to establish a clear path to financial success even with higher future taxes and the potential for negative investment years.

Our Plan always incorporates income planning strategy, benefits planning when possible, and principal protected/guaranteed asset classes. By doing this it broadens our scope well beyond your typical market only (stocks and bonds) financial advisor. We tailor design your ‘financial shelter’ through this planning process to meet your unique requirements.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

team@pwealthmgmt.com | 817-637-8121

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