Active Investors
“Right Now” is a critical period
If you are an active investor, late in your career, then you probably have a substantial nest egg. This is a very critical period for you, because although you may be continuing to add to your portfolio, financial decisions you make now have a big impact on your future. You may already have a vision for what a full retirement should look like. Or, you may enjoy your profession but still intend to transition to a phase in which you are working less, and maybe enjoying a second home more.
You are paying rent on Wall Street
You are a member of a group that is the bread and butter of traditional, fee-based advisors. Your portfolio funds the lion’s share of the profit that goes to financial advisors, mutual fund managers, stock analysts, wall street landlords, and even television and print financial media outlets. You may be shocked to learn that you are probably receiving less than half of the return that a passive, index investor expects from their portfolio. (Read our main essay – Active vs Index Investing after you’ve finished with this page).
Listening to the Nobel Prize winners
Active investors who are avid stock-pickers or newsletter readers will need to add to their basic assumptions about the market in order to get comfortable with index investing. The work on index investing comes from two generations of Nobel Prize winning economists. These academics have no allegiance to Wall Street, and their only interest is in exploring the boundary where risk meets return. If you can change investment styles, you are likely to pay less taxes and have more cash in the bank.
If Investing is your hobby
Investing may be your hobby – if so don’t despair. If you can allocate a significant fraction of your capital to index investing, then you can have the benefits of tax-efficient returns while still retaining some capital for speculation. You will hear no mandate from us that you walk completely away from the excitement and “big kill” potential of active trading.
As you read deeper into the site, you’ll develop a feel for what portion of your portfolio you want to continue to manage actively, if any. We are happy to work within the confines you set for us. Our approach.
Our main article contrasts active and index investing, and includes an analysis of how advisors, fund managers, and the government all take more than their fair share of the return on your capital.
Indexing without an advisor
In addition to the main essay, you may find that our essay on Indexing Without An Advisor will give you a sense of what Ross Asset Advisors can do for you. Investors who are well-versed in the intricacies of ETFs like SPDRs, WEBs, and VIPERs can still benefit from the advice we provide on appropriate diversification, portfolio construction, and rebalancing. Whether you ultimately choose to work with an advisor – or to change advisors – we wish you good luck and hope that you enjoy reading deeper into our website.
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