Investment Management
Basic Management
Basic investment management is appropriate for most clients who want an efficient long-term investment portfolio. We believe that the keys to successful long-term investing are having a well-diversified mix of investments, staying committed to investing through market ups and downs, and keeping costs low. Our goal is to provide you with an investment experience that captures the returns provided by the market with an appropriate level of a risk and gives you confidence that you are steadily building towards your financial goals.
Specialized Management
Clients with special tax situations may benefit from our Specialized investment management service, which utilizes options trading to control risk and generate tax losses. Options are a complicated investment product that can either enhance or lower risk when used in different combinations. For our purposes, we use options to lower the risk of portfolios that are overexposed to a concentrated stock position.
We reduce the risk by building an options strategy that moves in the opposite direction of the concentrated stock. If the stock goes down, the options combination goes up and partially offsets the stock loss. If the stock goes up, the options combination goes down, offsetting some of your stock gain but also creating a capital loss. The capital loss can then be used to negate the capital gains from selling other investments. This process of harvesting capital losses from options can also be used for clients who don't have concentrated stock but want to accumulate losses to offset a future capital gain.
Options trading has its own set of risks, including lower trade volume and higher trading costs. In an extreme market environment, even an options strategy that is intended to lower risk could experience outsized losses. For many clients, this type of investment management is not appropriate, but in the right opportunity, it could create significant tax savings. TrueVector Wealth Advisors can review your situation and determine if you might be well-suited for our Specialized investment management.