Investment Management
Discretionary Investment Management is available freeing you of the burden of research, watching the markets, and making investment decisions. We typically manage investments only after a Roadmap for Retirement has been created, but in limited cases we may accept an engagement for Investment Management services only.
Management Fee
| 0.25% quarterly | up to $1,000,000 under management |
| negotiable | on assets over $1,000,000 |
The fee covers discretionary management of your investment portfolio(s) using our Defender Tactical Strategies rather than static portfolio models. We also provide additional benefits to management clients at no extra charge, such as:
- 24/7 online access for monitoring Roadmap for Retirement and/or aggregated household accounts.
- Convenience of periodic review with us at your home or office for local clients (by phone or online for distant clients).
- Ongoing access to us for questions (email/phone/online).
The fee is a percentage of assets under management and payable at the end of each quarter. $250,000 minimum asset total for discretionary Investment Management. Minimums and service format may be negotiable on a case-by-case basis. Third party fees such as fund expenses or transaction charges are separate from the management fee charged by SecondHalf.
Investment Philosophy and Approach
Large investment losses can be hard to take at any age, but they can be devastating in the second half of life. So our top investment priority is managing portfolio risk...but everyone claims that, so what does that actually mean?
While we trade infrequently, we “actively” manage your asset allocation, attempting to avoid large capital losses but still capture a reasonable amount of financial upside when market conditions are appropriate. This may involve shifting among stocks and bonds, temporarily increasing cash allocation, trend-following trading, using stop-loss orders to protect the downside, or using options to hedge against losses or potentially capture gains.
Most of the financial industry uses traditional approaches to wealth management, which are based on Modern Portfolio Theory and the Efficient Markets Hypothesis. They assume: (1) risk is defined as fluctuation in the value of your investments, (2) investors are rational, and (3) there is no such thing as an overpriced or underpriced investment. In our view, those are silly notions that have no basis in reality.
Financial markets will always experience abnormal conditions, government and central bank policies can distort asset prices and cause financial “bubbles,” and investors are always prone to swings of fear and greed. These situations create pricing imbalances: overpriced assets to avoid and underpriced assets to consider owning.
