Do you hold a portfolio of stocks and/or bonds? Then you should be focused on optimal asset allocation. TTG Financial offers portfolio management services that apply advanced models and technical tools to construct a custom target allocation for you. We manage everything from standard brokerage and corporate accounts to trusts and qualified accounts, ensuring your portfolio has the precise mix and weighting of investments needed to pursue your goals.
Diversification is the bedrock of effective portfolio management. It is the process of selecting a mix of investments that lack correlation with one another or with the broader market. A classic example is the relationship between stocks and bonds: they often exhibit low, or sometimes even negative, correlation. This means that when market or economic factors cause stock prices to fall, the price movement of bonds is typically unaffected, providing a crucial buffer against losses.
Decades of research affirm that asset allocation is the primary driver of a portfolio's return and volatility. Simply put, asset allocation determines where your money is strategically invested in the market. Since this strategy is fundamentally about risk management, the optimal mix of assets is unique to every investor, tailored specifically to your individual risk tolerance and long-term financial goals.
Asset allocation is dynamic and requires oversight. As asset classes perform differently, your portfolio will drift away from its target risk profile. We counter this with periodic rebalancing—buying and selling holdings as necessary, or directing new capital—to ensure the portfolio consistently maintains its planned allocation.
Tax efficiency is integrated into our portfolio management process. We strategically place assets across your taxable and tax-advantaged accounts to minimize overall tax liability—a concept known as asset location. By leveraging the lower rates on long-term capital gains and qualified dividends versus ordinary income, we ensure your investment strategy and your tax strategy work together based on your individual tax circumstances.
Many investors inadvertently accumulate a collection of individual holdings without considering how they work together, often resulting in unintended over-allocation to a single area. This haphazard approach can expose them to far more risk than they realize. To achieve diversification and attain your financial goals, a strategically constructed and well-managed portfolio is essential. TTG utilizes a structured approach to integrating your investments with your overall financial plan.