As the dominant determinant of portfolio risk and return, asset allocation is the single most important investment decision an investor will make. After identifying permissible asset classes and setting specific parameters, we work with the client to design an "tax efficient portfolio" – selecting those investment vehicles that complement each other to maximize return, minimize risk while meeting outlined tax efficiency goals.
Once the appropriate asset allocation is formulated, we work with the family members and their accountant to assess the impact of asset return variability and potential tax implications. We believe our clients should fully understand the volatility associated with the markets in which they are investing. Together, we will examine how asset allocation decisions affect the investment portfolio in real terms – that is in dollars and inflation-adjusted results.