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Personal Investors

Core Investing2024-03-12T01:20:07-04:00

Core Investing

Core Investing

Strategies for building next-level wealth

What is core investing?

When it comes to investing your own money, you shouldn’t have to trade off performance for fees or value for trust. Building a portfolio requires time, patience, and the right strategy. A core position in stocks, bonds, and other types of investments can provide you with a sense of security, satisfaction, and a feeling of stability. But, get it wrong, and you end up with feelings of regret, dissatisfaction, and (worst of all) losing money.

This is why we developed the Wealth Builder Program, a specific, disciplined investment strategy that helps investors with less than $50,000 begin building wealth. Our advisors use the program to build a core portfolio that can help meet real-life goals. A strong flexible investment portfolio begins with a core position of marketable securities that focuses primarily on diversified indexing. Core provides a strategic foundation allowing investors to pursue specific investment goals. They are managed with a disciplined approach and can be rebalanced during difficult markets.

An effective core may differ from one investor to the next, but five principles apply to all: broad exposure, tax efficiency, low fees, long-term perspective, and diversification.

  • Broad Exposure

    Core investors can gain broad exposure to different types of asset classes such as stocks and bonds. This also includes exposure to both domestic and international stocks, corporate or government bonds, and other types of investment products. Building a portfolio that is exposed broadly to these types of marketable securities can help reduce value fluctuations during periods of extreme volatility.

  • Tax efficiency

    By reducing the trading frequency, Core accounts, by design, strive to reduce short-term capital gains. This results in keeping more profits in the account, paying less in taxes on the securities held within the portfolio, and increased long-term growth.

  • Diversification

    The topic of portfolio diversification is not without its opinions. Some investors believe that by purchasing many different stocks or bonds, their portfolios are more capable of weathering volatile economies and market conditions. However, adding too many stocks makes it difficult to manage and track the performance of each. We believe in a correct balance of marketable securities, which includes a mix of stocks, bonds, and other types of securities.

  • Low Fees

    Lower investment costs keep more of your money working for you. And because all core accounts reinvest dividends, capital gains, and interest, you get more money working for you, compounding annually, and setting you up for more growth or income.

  • Long-Term Perspective

    We believe in a long-term approach to investing. History has demonstrated that long-term portfolios tend to perform better as compared to those with short-term goals. Long-term investors often achieve lower capital gains taxes and superior compounding. Core accounts are designed for investors with a long-term perspective who see the value in maintaining a five to ten-year minimum commitment of their investment capital.

Core account features are based on investor feedback. Things like fees, quality, and management came a close second to trust and relationships. We took all of these into consideration to create accounts that are tax-efficient, diversified, and easy on your wallet.

Frequently asked questions about the Wealth Builder Program

Is it difficult or time consuming to build a core?2024-03-09T00:40:56-05:00

In a few simple steps, you can create a core account that is diversified, tax-efficient, and easy on your wallet.

What are the fees for the Wealth Builder Program?2024-03-09T00:40:49-05:00

The fees are exactly the same as our other fees. Please see the fee schedule page for details.

What is the minimum investment?2024-03-09T00:39:04-05:00

There is no minimum amount required to start investing in the Wealth Builder Program.

Why is asset allocation an important part of core investing?2024-03-09T00:36:36-05:00

Diversification: Asset allocation spreads investments across various asset classes (such as stocks, bonds, and real estate) to reduce risk. Different asset classes often perform differently under the same economic conditions. By diversifying, investors can mitigate the impact of poor performance in one asset class with gains in another, reducing the overall volatility of the portfolio.

Risk Management: It allows investors to manage their risk tolerance effectively. By allocating investments according to one’s risk appetite, financial goals, and time horizon, investors can aim for optimal returns while keeping the risk at a manageable level.

Maximizing Returns: Proper asset allocation can help investors maximize returns by capitalizing on the growth potential of various asset classes. For example, equities have historically provided higher returns over the long term compared to bonds, but they come with higher volatility. Allocating assets according to personal goals and market conditions can enhance the portfolio’s growth potential.

Adaptability: Asset allocation isn’t a set-it-and-forget-it strategy. It allows for adaptability to changing market conditions and personal circumstances. As financial goals, risk tolerance, and the economic landscape evolve, reallocating assets can help investors stay on track toward their goals.

Discipline: A strategic approach to asset allocation can help investors maintain discipline during market volatility. It encourages a systematic approach to investing, such as rebalancing the portfolio to its target allocation, which can prevent making impulsive decisions based on market highs and lows.

Get started

How would you like to begin?

Hint:
You can open an account now and add money later. After your account is opened, all you’ll need to do is add your bank information for future transactions.

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