A portfolio built around your plan.
Your portfolio is built around your goals: what the money is for, when you will need it, how much income it has to provide, your taxes, and how much up and down you can handle. That takes more than picking funds. It means deciding what each dollar is meant to do, how much risk it can safely take, and how all your accounts work together. Investing involves risk, including the possible loss of the money you invest.
Illustrative target mix for a Modern Wealth portfolio at each risk level. Portfolios built to lower taxes in taxable accounts hold no alternatives. Your actual mix may differ.
Purpose first, portfolio second.
Three questions come before any investment decision. Your answers set your mix of investments, not a guess about what the market will do next.
What the money is for
Retirement, selling a business, a child's education, a home, or money for the next generation. Each goal has its own timeline, its own need for cash along the way and its own ability to ride out a bad year, so each one is invested differently.
Risk tolerance and risk capacity
Risk tolerance is how much up and down you can stomach. Risk capacity is how big a drop your plan can handle before your goals are at risk. The two are often different. When they are, your plan decides: your mix follows what the money needs to do, not how you feel in a good year.
What you already own
I look at all your accounts together: where you own the same thing twice, what you are paying, where too much rides on one investment, what you originally paid for holdings in taxable accounts, and which investments are left over from decisions made years ago. Accounts drift over time, and that drift is often where hidden risk sits.
Six building blocks, one philosophy.
Every portfolio uses the same building blocks. How much of each you hold depends on how much risk is right for you. The approach stays the same.
A balanced stock core
Your stocks start from where eight of the largest investment firms agree, not one person's guess about what will do well next. Broad and balanced, with no big bet on any one type of company.
Global, not just American
You own both U.S. and international companies, so your money is spread across the world's economy instead of riding on one country.
A few careful leans
Up to 15% of the stock portion may go to long-term themes: artificial intelligence, advanced computing, cybersecurity, defense, space, energy and power infrastructure, biotechnology, and robotics and automation. Cautious portfolios hold less, and the most cautious hold none.
Owning the stocks, not just a fund
In taxable accounts, I can buy the individual stocks in an index instead of one fund that holds them. That makes it possible to sell the ones that are down to lower your taxes, to leave out companies you would rather not own, and to keep taxes in mind all year.
Professionally managed bonds
Bonds are loans to governments and companies that pay you interest. Yours are run by professional bond managers. Clients in higher tax brackets can use municipal bonds, whose interest is generally free from federal income tax.
A different kind of cushion
Alternatives are investments designed to behave differently from stocks and bonds, held in funds you can buy or sell on any market day. Cautious portfolios hold more of them, and the all-bond portfolio holds none. Private investments are separate and are not part of any model. Nothing here removes the risk of loss.
- StocksFor growth
- BondsFor income and steadiness
- AlternativesTo move differently
Spreading your money out does not remove risk, and no portfolio can be protected from loss. Point at a piece.
My focus: steadier results for the risk you take.
These portfolios are not built to chase a hot market. They are designed to give you a steadier ride for the amount of risk you take. Your money is spread widely, and it includes alternatives that seek to move differently from stocks and bonds. In a year when stocks and bonds both fall, the alternatives aim to help soften the drop. Spreading your money out does not remove risk, and no portfolio can be protected from loss.
A portfolio built with bad years in mind, instead of one chasing whatever is popular.
Each model is a set level of risk, labelled by its share in stocks. Different accounts can use different models. Point at one.
Eleven models, one discipline.
There are eleven portfolios. They range from all stocks, which aims for the most growth and has the biggest swings, to all bonds, which aims for income with smaller swings. Each one is a set level of risk. I match you to the one that fits your plan, your comfort with risk and everything else you own, then adjust it over time to keep it on track. Different accounts can use different portfolios: money for a purchase in three years should not be invested like a Roth IRA you will not touch for twenty.
A portfolio matched to the risk that is right for you, reviewed and adjusted over time, not a one-size-fits-all product.
- DownSold to capture a loss
- Left outWhat you prefer not to own
- Large stockSpread out gradually
Instead of one fund, you own the companies' stocks yourself. It runs in the background, and you can always see what you own.
Direct indexing: owning the stocks yourself.
An index fund is one investment that holds hundreds of companies. With direct indexing, you own those companies' stocks yourself instead. That lets me do things a fund cannot. I can sell individual stocks that are down to capture losses that lower your taxes, even in a year the overall market is up. I can leave out industries or companies you do not want to own. And if you hold a lot of one stock that has grown in value, I can move it into a spread-out mix gradually, within a yearly tax limit you set. It runs in the background, and you can always see what you own. Direct indexing is available for larger taxable accounts. Minimums apply and are higher for more conservative portfolios.
A portfolio shaped around what you own, what you paid for it and what you prefer, with taxes handled all year instead of in a December rush.
Taxes managed all year, across every account. Tax benefits are not guaranteed. Point at an account.
Managed for what you keep.
Taxes are one of the few investing costs you can control, so I manage them all year. When an investment is down, I may sell it to capture a loss that can lower your taxes. This is called tax-loss harvesting.
- Trades are coordinated across your accounts, including your spouse's.
- Higher earners can use municipal bonds, whose interest is generally free from federal income tax.
- When you move to Modern Wealth, I make the switch gradually, with your taxes in mind.
- Staying invested while harvesting. When I harvest a loss, the sale is replaced with a similar fund so your portfolio stays invested.
- Your actual tax rates. Trading decisions use your household's real federal and state tax rates, not a generic assumption.
Tax benefits are not guaranteed, and I do not provide tax advice.
Investment decisions made with your tax bill in mind.
Cash on hand at every step, so you are never forced to sell at a bad time. Point at a step.
Balanced around what you already own.
If most of your wealth is tied up in one company, whether it is your own business or your employer's stock, a typical portfolio quietly adds more risk on top of the risk you already carry. I do the opposite. I build a spread-out base around that one large holding, make sure you have enough cash that you are never forced to sell at a bad time, and keep taxes in view at every step. When it is time to reduce a large position, such as founder shares, stock options, restricted stock or company stock in a retirement plan, owning individual stocks lets me do it gradually, within a tax limit you set, instead of all at once.
A portfolio that accounts for the rest of your wealth and balances around it, instead of ignoring it.
From saving to spending.
Once your portfolio starts paying you a regular income, its job changes. Your mix of investments, how much cash is on hand and which accounts you draw from first all change too.
Cash for the next few years
Money you will spend in the next few years kept in something stable, so you are not forced to sell in a down market.
Accounts drawn in order
Withdrawals taken from taxable, tax-deferred and Roth accounts in an order that helps keep your tax bill down.
Required distributions, planned
Required minimum distributions, the yearly withdrawals the IRS requires from retirement accounts after a certain age, planned ahead instead of rushed in December.
Rebalancing that raises cash
Rebalancing used to raise cash, by trimming what has grown the most to fund your next withdrawal.
Withdrawals stress-tested
How much you withdraw tested against a bad market early in retirement, higher inflation and a longer life.
Risk set by your income
The income you need, not a rule of thumb, deciding how much risk the portfolio takes.
Reviewed on a schedule, not on a headline.
A strategy only works if you stick with it. Changes are made for reasons tied to your plan, not because of last week's market news.
- All year
- Automatic rebalancing Portfolios rebalance automatically when any part drifts meaningfully from its target.
- Deposits in batches New deposits are invested in regular batches rather than piecemeal, and deposits and withdrawals help nudge your mix back toward its target.
- Tax-loss harvesting Chances to use losses to lower your taxes, reviewed all year and following the IRS wash-sale rules.
- Cost check Costs and holdings checked regularly, so you only pay for what is earning its place.
- Every quarter
- Model research I review the model portfolios of eight of the largest investment firms and use where they agree as the starting point for your core mix.
- Every year
- Written review A written review at least once a year, and a conversation whenever something important changes.
- Benchmark check Each portfolio is compared against a blend of broad U.S., international and global bond indexes matched to its stock and bond mix.
- When life changes
- Your mix revisited When your life changes: a business sale, a new job, a new goal or a change in the income you need.
A strategy you can actually explain.
No sales pitch. A written plan, the reasoning behind it and the discipline to stick with it.
- A clear purpose for each account and each goal
- A risk level based on both your comfort with ups and downs and how much your plan can handle
- A review of what you own today: overlap, costs, any large single holdings and what you paid for them
- A written target mix of investments, with the reasoning behind it
- A plan for how your accounts work together, instead of the same mix copied into each one
- Taxes considered in where each investment is held and when trades happen
- A plan for any large holding in one company's stock, on a timeline you agree to
- A plan for taking withdrawals once the portfolio starts paying you
- Clear rules for when and how your portfolio is rebalanced
- Simple reports showing what you own and what it costs
- A regular review schedule, and a person to call in between
Before you start.
How do you determine the right investment risk level?
I look at two things. Risk tolerance is how much up and down you can live with without changing course. Risk capacity is how big a drop your plan can handle before your goals are affected. When the two disagree, your plan decides: your mix of investments follows the income you will need and when you will need it, not how the market feels today.
Should every account have the same allocation?
Usually not. Each account has its own job, its own timeline and its own tax rules. Money you will spend in three years should not be invested like money you will not touch for twenty. Investments that produce a lot of taxable income usually belong in the accounts where that costs you less. What matters is the mix across your whole household, with each account playing its part.
How often should a portfolio be rebalanced?
When your mix drifts too far from its target, not on a set date or because of the news. Rebalancing means selling some of what has grown and buying what has lagged, to get back to your target. New deposits and withdrawals do part of the work. In taxable accounts, selling can create a tax bill, so I weigh that cost against the benefit of getting back on target.
How are taxes considered in investment decisions?
Before a trade, not after. I weigh the tax a sale would cost against the reason for making it, hold each investment in the type of account where it makes the most sense for taxes, use losses as they come up to offset gains elsewhere, and spread big changes over time when that helps. Your results depend on your own tax situation, and I do not provide tax advice or promise tax savings.
What happens to the strategy during a market decline?
Market drops are expected, and your plan is built for them ahead of time. Money you will need soon is kept where it does not have to be sold in a downturn. Rebalancing usually means buying what has fallen, and losses may be used to lower your taxes where that helps. What does not happen is a change of strategy in the middle of a bad month.
What's the difference between Modern Wealth, Modern Index and Modern Advisement?
All three use the same research. Modern Wealth is my managed portfolio of funds for retirement and taxable accounts. Modern Index uses direct indexing for larger taxable accounts: you own individual stocks, which gives more chances to use losses to lower your taxes. Modern Advisement is for people who manage their own accounts: I provide the model, and you make the trades.
Do you use alternatives in taxable accounts?
Yes, in standard taxable portfolios. Portfolios built to lower taxes use municipal bonds instead and hold no alternatives, because alternatives would take the place of that generally tax-free income.
Do you offer private equity or private credit?
Yes, for eligible clients, case by case, and outside my model portfolios. Most of these funds are open only to accredited investors or qualified purchasers, meaning people who meet SEC income or wealth requirements. They usually let you take money out only once a quarter, and they can limit withdrawals. I'll walk you through whether one fits your plan. For most clients, they aren't necessary.
Can I invest in companies before they go public?
Occasionally, if you are an accredited investor and an opportunity is available. You would be investing in a single company, your money can be tied up for years, and you could lose all of it. So I treat it as a small, optional part of your portfolio at most, and only when your plan can handle the risk.
Let's chat.
Build an investment plan around your goals, your taxes, your timeline and your real-life needs. Start with a free thirty-minute conversation about what you own today and what you want your money to do.
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