Balanced Portfolio

This portfolio is designed for the conservative, long-term investor. Our goal with the Balanced Portfolio is to achieve a consistent rate of return while minimizing portfolio volatility.

This strategy provides for both income and appreciation. Because we are balancing our assets between stocks and bonds, our volatility over time will be considerably less than a strategy that is geared 100% to stocks. We are allocating our money between no-load stock mutual funds, ETFs, and short-to-intermediate term bond funds.

clientOur mutual fund allocations are determined by selecting the top performing, no-load funds based on their risk-adjusted rate of return. A dollar amount is allocated to each fund, reviewed periodically, and gradually adjusted as market conditions change. This portfolio does not rely on market timing. We will be fully invested in a combination of common stock funds, balanced funds, and income funds. Our allocation to each asset class will be determined by the risk/reward potential of the stock and fixed income markets.

Our methodology for the Balanced Portfolio begins with the selection of 10 to 12 funds from our extensive database of stock, balanced, and income funds. The goal is to select funds which have produced the best return with the lowest risk. We analyze the returns during rising and falling market environments. We then calculate the Ulcer Performance Index (UPI), which is the combined rating that correlates risk to the actual return of the fund. After selecting the top twelve funds, our allocation model determines the portfolio weighting of each fund.

Our balanced approach is not for the aggressive investor. It is for investors whose financial goal is for moderate growth in their portfolio without the volatility and risk of being overly weighted in stocks. The balanced strategy might underperform during bullish phases, but we expect it to prove its worth during negative market environments.

To use a baseball analogy, we expect the Balanced Portfolio to consistently hit singles and doubles. It is not geared for the home run, but then again, followers of the balanced strategy should be able to rest much easier during bear markets.

II. Balanced Portfolio:

The minimum account is $100,000.

As compensation for its service, Advisor is paid a Quarterly Management Fee in advance based on the size of Client’s account under management. If the client or family members open additional accounts our billing rate is based on the total assets of all the accounts.

[table caption=”Investment Minimum $50,000.” width=”500″ colwidth=”100|50|100″ colalign=”left|right|center”]
ACCOUNT SIZE~ANNUAL RATE
$100,000-249,999~1.25%
$250,000-499,999~1.00%
$500,000-749,999~.85%
$750,000-999,999~.75%
Above $1,000,000~0.65%
[/table]