Our portfolio design philosophy places our clients’ best interests at the center of our strategy.
We examine your goals, as well as your risk tolerance, to determine the balance between your financial needs and your emotional wants.
We take a long-term view toward mitigating and managing risk, so our philosophy is oriented around building broad and globally diversified portfolios across and within asset classes.
We don’t believe in timing the market – ever.
When appropriate, we consider the use of smart beta, a strategy that attempts to deliver a better risk/return trade-off through the use of alternative weightings, based on different criteria than traditional market-cap weighted indices.
We are also able to assist investors who are focused on socially responsible investing. We conduct additional extensive research and have a proprietary SRI model portfolio developed by our investment committee.
We use active management for a portion of our bond allocations.
In our experience, we believe that active management of fixed income, or bonds, may outperform passive management on a more consistent basis. We aim to maximize our opportunity for better returns for you. Therefore, we include active management in 50 percent of the bond allocation within our wealthpath model portfolios.
We are firm believers in constructing tax-efficient portfolios. To this end, we utilize tax-loss harvesting in taxable accounts to help mitigate the taxes you owe.
Tax-loss harvesting involves intentionally selling a security that has experienced a loss. By “harvesting” the loss, we can offset taxes by replacing the security with a different one in the same asset class. wealthpath clients can benefit from our periodic review for tax-loss harvesting opportunities.
To maintain the proper distribution of asset classes in your portfolio, we engage in periodic portfolio rebalancing on behalf of our clients.
Portfolio rebalancing is the process of buying or selling portions of your portfolio to ensure we maintain your target allocations in the appropriate weightings. A disciplined rebalancing process can potentially lead to higher returns over time.
M.J. Smith & Associates portfolio allocation does not depend on a simple measure of risk tolerance. We understand that a person’s capacity to take on risk is just as important as the emotional willingness to take on risk.
By considering an investor’s goals, cash flows, existing assets, as well as his or her willingness to absorb risk, we can more closely quantify a client’s true risk tolerance. Our wealthpath consultants will analyze the integration of mortality probabilities with cash flows, savings rates and existing assets, and stress-test them to produce the asset allocation that is right for your situation.