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Basics of Separately-Managed Investment Accounts

Wednesday, November 2, 2011 @ 01:11 PM

Back in the 1990′s, anyone and everyone could invest in a handful of individual stocks or mutual funds and easily see year after year of 20% + gains.
Over a decade (and two major recessions) later, we have all learned the hard way that those days are long gone. Successful investment portfolios now require more attention than ever, and that’s why Separately Managed Accounts (SMA’s) are more popular than ever.
This type of account used to be available only to those with $500,000 – $1 million and up in investable assets. But over the past few years more and more money managers have made themselves more available to the assets of the masses. This type of account provides the structure necessary to avoid the larger market losses, as the clients are provided the service of investment officers whose daily job is it to make sure accounts are allocated properly.
The old way of doing things, which typically meant static asset allocations with mutual fund holdings — perhaps reviewed with an advisor once or twice a year at best — led many a client to huge market losses (often 30% plus), especially in 2002 and 2008.

But now investors with as little as $50,000 – $100,000 in investable assets can be treated to the investment tools of the uber-wealthy. These tools are extremely effective at managing downside risk and maximizing the long-term dollars in the client’s pockets. And isn’t that what investing is all about?
Contact us at to learn more about separately managed account options that fit what you are looking for.

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The Emotions of Market Losses

Tuesday, November 1, 2011 @ 07:11 PM

Over my career as an Investment advisor┬áRaleigh NC, I’ve been witness to at least 2 (and maybe now 3) economic recessions. Unfortunately, every time a large market dip occurs (just as it did last week), I am reminded that investors generally react in a way that surprises me.
As last week’s market tumble occurred, I expected to be overwhelmed with client phone calls and emails expressing the need to review their existing investment accounts as soon as humanly possible. As the week moved forward I was reminded that my inital expectations were generally incorrect. It became more and more apparent to me that most investors had reached the point where fear had shut down any desire to actually look behind the curtain of their porfolios.

I constantly remind clients that ignoring a problem will not make it go away. It’s very important to have a decent understanding of the risk/reward relationship of your investments. Measuring tolerance for downside risk is especially important, and that’s the type of volatility that can keep you up at night. And once that is evaluated, it’s important to coordinate your investments with your own personal risk tolerance at least once a year.
If you’d like a free, no-obligation evaluation of your current portfolio and/or risk tolerance, please contact us at

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