The term portfolio management typically refers to investments and how assets are selected based on one’s time horizon and risk tolerance. This process of selecting the right allocation for your investments is essential for achieving a certain market return over time.
We are always looking for ways to improve the performance of our clients’ portfolios by providing high-quality investments while keeping fees low. All mutual funds and exchange-traded funds charge an expense ratio, which is the cost of operating the fund and includes the manager’s fee, as well as various other operating costs. These expenses are not the same as loads, so even a no-load fund has an expense ratio. While loads (sales commissions) are additional charges, expense ratios are internal costs that reduce the fund’s total return. We purchase no-load funds for our clients and endeavor to use funds with expense ratios that are low relative to peers. Still, within the universe of no-load funds, there are various share classes, each of which charge a different expense ratio. While an individual might be able to purchase a no-load fund directly from the fund family, the expense ratio for the available share class will be higher than for an institutional share class of the same fund. The latter is reserved for larger investors (or institutions with many clients) and generally has a large minimum investment requirement. In exchange for the higher minimum, the fund charges a lower expense ratio.
I heard about a study that found people were more likely to vote if you ask them, “are you a voter?” as opposed to, “do you plan on voting?” The way you view yourself matters. If you identify as a voter, then you are more likely to go to the polls or send in your ballot at election time. It’s the same with fitness – if you identify as a runner, you are more likely to run consistently, because it’s not just something you do, it’s who you are.
You may have heard about direct indexing, as it has become a popular topic in financial circles over the last couple of years.
Modera invests in a variety of securities for its clients. These may include mutual funds, exchange traded funds (ETFs), and individual stocks, among others. All of these investments can and do experience significant price pullbacks from time to time. While Modera’s research committee focuses on investments it can hold for the long-term and performs significant due diligence before adding any new positions, price declines still happen. In this article we will discuss how we monitor investment securities and our process when a stock or fund does not perform as expected.
At some point in your life, there is a chance that you will inherit money or assets left from a grandparent, parent, or other family member. When someone that you love passes away, it is an emotional experience and going through the process of inheriting the assets they chose to leave you can add to the rollercoaster of emotions. Before you start making plans, make sure you know how the inheritance can affect your existing financial situation, including your taxes and other financial planning areas. A good place to start is to understand some common sources of inheritance, which we will discuss in this article.
At Modera, our investment philosophy does not include a designated allocation to cash. We believe that our clients’ accounts should be fully invested in a well-diversified portfolio dictated by their specific financial goals. Typically, our cash management strategy is that we maintain a minimal amount of cash on hand, just enough to cover fees and/or trading costs, or to fund any outgoing disbursements that the client takes on a recurring basis.
Historically, annuities have been a controversial topic and often subject to criticism among financial advisors. And, to some extent, there is good reason for this. Annuities have been synonymous with aggressive sales tactics and high fees. But is there ever a case for purchasing an annuity? And what are the options if you already own one?
As the name implies, stock buybacks (also known as share repurchase programs) happen when companies buy back their own shares.
An incredibly strong housing market over the last few years coupled with rising interest rates has put affordability out of reach for many home buyers.
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