Investment Advisory Services
As a small, independent Advisory firm, we do things a little differently. Our focus is on you.
We believe in capitalism, and the principal functions of the stock market are based on capitalism. As such, changes in the markets will occur, sometimes positive and sometimes negative. As a capitalist-based market, it will respond accordingly to correct or adjust. Therefore, long-term focus does not guarantee positive returns, but historically the market has performed positively when viewing it from a long-term perspective. By constructing portfolios with a focus on purposeful diversification, controlling expenses including fees and taxes, and taking appropriate risks, we build portfolios and manage them in a manner that is built to weather the storms we’re sure to encounter over time.
Determining the best investment vehicles for you.
Clients coming from brokers or other firms generally have up to three types of accounts: IRA/Rollover IRA, Roth IRA, Individual/brokerage.
However, there are several additional investment vehicles that should also be considered.
This is truly an area of strength and client focus for Adirondack Retirement Strategies. Because we take the additional time and steps to get to know our clients, there are several additional vehicles that are reviewed and managed for you. Our general focus is on current and future tax implications, as well as developing financial habits and building wealth for you or your heirs. Then we go one step further and discuss additional vehicles clients can consider that we don’t manage.
Focus on fees and diversification
The combination of fees and diversification can greatly impact your results. Often, clients that come to us from a broker don’t realize the fees they had been paying due to the investments they were in. And diversification can be developed, or overlooked, in an endless number of ways.
Since fees can have a large impact on your long-term return, our personalized investment recommendations consider not only the quality, the risk and return, but also the impact of fees. As a former teacher, I can attest to the high fees typically found in 403b plans that most individuals do not realize. Although this is highly dependent on your individual circumstances, often times there are better options that should be considered.
Diversification can take on many forms. We will explain how we diversify, and why we choose the securities or assets we invest in. And as part of our Financial Planning Services, we will also review your employer-sponsored plans and recommend changes if warranted. Although this is seldom done elsewhere, the additional level of service helps both you and Adirondack Retirement Strategies ensure intentional diversification based on your individual circumstances. And, if you are currently working with another firm, we will show you a side-by-side comparison of what you have been invested in, what we recommend, and why.
Attention and focus on your investments
When a firm has several hundred clients, it’s unlikely the individual you meet with is personally monitoring your portfolio on a daily or even monthly basis. And, also unlikely they’ll be able to readily recognize as industry changes occur, how they could impact you based on your personal circumstances.
We are small on purpose so we can personally monitor your portfolio on a daily basis. And, yes, since we know our clients’ individual circumstances, we do reach out to them when there are new opportunities or industry changes that could impact them. In 2020, for example, as soon as we learned of changes regarding Required Minimum Distributions, we contacted our affected clients to discuss options with them.
Portfolio monitoring and management
On a daily basis, we monitor all activity as well as changes in balance for all client accounts.
Adirondack Retirement Strategies clients are encouraged to take advantage of the account monitoring tools available on TD Ameritrade’s platform (our trading platform and custodian). Clients receive real-time balances and alerts when there is activity in their account either on-line or via a phone app.
At least on a bi-annual basis, we review all investment securities we invest in to ensure they continue to be the best choice for what we wish to achieve regarding cost, performance, fees, and diversification. We may alter our future securities choices based on the outcome.
We review client holdings to re-balance and manage proper diversification on an on-going basis, not just in preparation for annual review or as a result of a client request. Dependent on individual client circumstances and market considerations, this could be done on a bi-annual, quarterly, or monthly basis. This may result in selling some securities that have outperformed to capture profits to invest elsewhere, or it may alter future investment percentages when periodic contributions are expected to re-align targeted diversification.
Unique opportunities for sole proprietors
We are a small business, too, so we want to ensure other eligible and interested small businesses have more opportunities to save for retirement!
Our experience is that other firms don’t discuss this option, but we encourage our sole proprietor clients to consider an Individual (Solo) 401k. The primary benefits are tax advantages and higher contribution limits than a Traditional IRA or Roth IRA.
Options for contributing to your plan
Generally, clients coming from other firms contribute in lump sum amounts. Many individuals prefer to contribute on an on-going basis and don’t want the hassle of writing a check each time. But, since this is generally a relatively small amount, it’s uncommon to be given the option.
A high percentage of our clients prefer to invest on a weekly, bi-weekly, or monthly basis – and we encourage it! You benefit from this approach because:
1) retirement investing becomes a budgeted item so you are more likely to continue to contribute to your plan, and
2) we can purchase securities on a consistent basis, so you’re able to take advantage of dollar-cost-averaging (reducing short-term volatility as a result of market timed purchases).
* Automated contributions can be set up to be withdrawn from a savings or checking account.