Goal-Oriented Investment Management: Asset allocation and investment strategy
Our portfolios are carefully designed to each client’s unique situation and use individual stocks and bonds for greater control. By hand-selecting stocks and bonds for each portfolio, we are able to provide greater control over the timing and magnitude of capital gains in addition to the ability to project future income.
We develop your portfolio using a combination of our three investment strategies (shown to the right), customized to you based on the following:
- Your goals and objectives for both yourself and your family
- Your risk tolerance
- Your expectations for capital growth and need for income (with a focus on generating sufficient income to maintain steady cash flow to support essential expenses and your desired retirement lifestyle)
Understanding your desired retirement lifestyle and retirement income needs helps us shape your investment objectives and guide your overall financial planning, ensuring your portfolio is aligned with your long-term goals.
After establishing these factors, we introduce an investment strategy tailored to your needs, balancing growth and income that strives to meet your long-term retirement income needs and provide stability throughout retirement.
Effective investment strategies for retirement planning aim to balance growth to outpace inflation with capital preservation so that funds last throughout your lifetime. A balanced retirement portfolio aims to strike the right balance between preservation and growth, especially since retirees may need their savings to last 30 years or more. Effective wealth management and financial planning are essential for ensuring a balanced retirement portfolio has a sufficient likelihood of generating income and lasting throughout retirement.
Growth Equity
Uses companies with the ability to grow their revenue and earnings at a quicker pace than both peers and the market as a whole.
- Market-leading companies
- Large and mid-cap domestic and developed international markets
- Sustainable competitive advantage
- Revenue and earnings growth characteristics superior to peers
- Responsible for long-term capital appreciation potential
Income Equity
Uses companies that are well-established in their field with stable cash flow and the ability to support above-market dividend yields.
- Mature corporations
- Large to mega-cap, mostly domestic companies
- Stable revenue and earnings
- Below-average price volatility
- Above-market dividend yields
- Responsible for generating an attractive and increasing income stream
Fixed Income
Uses bonds to reduce portfolio volatility and provide diversification from equities, principal preservation, and a steady stream of income.
- Investment-grade bonds in a duration-managed framework
- Responsible for generating a steady income stream and dampening volatility
WHAT TO EXPECT WITH OUR INVESTMENT MANAGEMENT SERVICES?
- Risk-averse investing focused on achieving your long-term goals, with an emphasis on investing wisely for long term growth while carefully managing risk.
- Investment decisions that draw on over 40 years of experience navigating complex markets
- A diversified portfolio of individual stocks and bonds crafted to meet your growth and income needs. Our firm believes that continued exposure to stocks in retirement for suitable investors may support portfolio growth and retirement spending needs over time.
- A long-term investment approach with a focus on owning good companies, rather than just good stocks
- A selection process that considers both the macro-environment as well as a fundamental analysis of each company
Please note: Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results.
HOW DO WE SELECT SECURITIES?
Our approach uses both “top-down” and “bottom-up” analyses, guided by experienced investment managers who provide professional analysis throughout the security selection process. This provides a view of the bigger picture as well as detailed analysis into the individual securities considered for each portfolio. Only companies that satisfy requirements for both our top-down and bottom-up analyses are considered for inclusion. Investment decisions are based on a thorough evaluation of each security’s growth potential and expected investment returns to ensure alignment with your retirement goals.
The information provided here is general in nature and does not constitute personalized investment advice. Clients should consult with a qualified investment manager before making any investment decisions.
CAN WE CUSTOMIZE PORTFOLIOS TO YOUR PERSONAL SITUATION?
Our Advisors use information gathered from client meetings, goal discussions, risk tolerance questionnaires, and financial plans to develop individualized, goal-oriented, and balanced investment portfolios. Each portfolio consists of a mix of different investment strategies that range from higher risk to little-to-no risk. In addition, our advisors customize necessary elements of our investment management process to each client’s particular situation. Ways in which we customize portfolios include:
- TAX-SENSITIVE INVESTING: We can spread a sizable taxable event over multiple years to reduce an individual’s total multi-year tax burden. In addition, we can help avoid important tax triggers that may have an outsized effect on overall finances. Tax-advantaged accounts, such IRAs and 401(k)s, may help you build your savings over time. Utilizing tax-deferred accounts as part of your investment strategy in retirement may provide significant tax benefits compared to taxable accounts, which are also considered for additional savings and withdrawal flexibility. We also help clients understand annual contribution limits for retirement accounts, including the opportunity for catch-up contributions if you are age 50 or older. When planning withdrawals and account selection, it is important to consider income tax implications, as different accounts may be subject to varying tax treatments. For example, Roth contributions may be ideal for those who expect to be in a higher tax bracket in the future, and Roth conversions can also be a strategic way to secure tax-free growth and withdrawals by moving funds from traditional IRAs to Roth IRAs during lower-income years.
- LEGACY POSITIONS & RESTRICTED COMPANIES: This may include holding a position in a company not included in our investment strategies or intentionally not investing in specific companies for reasons personal to the client.
- OTHER: Our process allows us to work within various investment constraints, enabling us to orchestrate a portfolio strategy that accomodates unique circumstances critical to your needs.
Questions?
Please let us know if you have any questions about our firm or our services. One of our Wealth Management Advisors would be happy to assist you.
How We Select Securities
TOP-DOWN APPROACH
Our top-down approach analyzes and provides an overview of the macro-economic environment, or the broad economy. This includes trends in overall global economic growth, employment, inflation, and more. Interest rate trends and market conditions are also key factors in determining sector allocation and investment choices. Once complete, this analysis is used to determine sector allocation within our investment management strategies.
In declining markets, allocating a portion of the portfolio to fixed income investments such as treasury bonds may help preserve principal, though these investments generally offer lower yields and may not grow quickly enough to keep pace with inflation. Diversification in a bond portfolio is important, as yields will vary based on the credit quality of the issuing entity, the duration of the bond, and current market conditions.
BOTTOM-UP APPROACH
Our bottom-up approach looks at individual securities (stocks and bonds) in detail. We carefully compare each security or company to its sector and competitors. As a part of our analysis, we consider the company’s financial situation, management team, business strategy, ability to adapt, and track record.
We also evaluate dividend paying stocks for their ability to potentially generate income and support portfolio withdrawals in retirement. Growth potential and expected investment returns are key factors in selecting securities that can provide long-term retirement income and help outpace inflation.
Have experts in your corner
We take a comprehensive approach to investment management. Our suite of services is designed to help you achieve your goals, ensure your family is taken care of, minimize your tax burden, and protect your legacy.
Risk Management
Managing risk is a cornerstone of a successful retirement strategy, especially as you approach or enter retirement. Aiming to protect your retirement savings from market volatility, inflation risk, and other uncertainties requires a thoughtful approach to asset allocation and investment selection. By diversifying your investment portfolio across a range of asset classes—including stocks, bonds, and fixed income securities—we potentially reduce exposure to market risk and smooth out returns over time.
As your retirement goals and risk tolerance evolve, it’s important to adjust your investment strategy accordingly. If suitable, we may shift a client’s portfolio towards more conservative investments, such as fixed income securities, to help preserve capital and generate steady income.
We can help you develop a comprehensive risk management plan tailored to your unique needs. This includes evaluating your risk tolerance, identifying appropriate asset allocation, and considering your unique income needs to help you achieve your retirement goals with confidence.
Tax Considerations
Tax planning is a vital part of maximizing your retirement income and preserving your wealth. The type of retirement accounts you use—such as traditional IRAs, Roth IRAs, and 401(k)s—can have significant tax implications for both your contributions and withdrawals.
Beyond account selection, it’s important to consider how investment income, such as capital gains and dividend payments, will affect your taxable income each year. The strategic investment management we provide aims to help you lessen the impact of taxes on your investments, whether through careful timing of withdrawals, managing portfolio withdrawals, or utilizing tax-advantaged accounts.
Investment Monitoring
Maintaining a successful retirement portfolio requires ongoing attention and proactive management. Investment monitoring involves regularly reviewing your portfolio to ensure it remains aligned with your retirement goals, risk tolerance, and changing market conditions. This process includes evaluating investment performance, assessing whether your asset allocation is still suitable for your objectives, and making adjustments as needed to stay on track.
As needed, we will periodically rebalance your determined asset allocation and manage risk. Additionally, we will implement tax-efficient strategies—such as tax-loss harvesting—as needed to help minimize tax liabilities and enhance your after-tax returns.
At Godsey & Gibb Wealth Management, we ensure that our clients’ portfolios are continuously monitored and adjusted as needed to reflect evolving needs and objectives. This disciplined approach helps you better navigate market changes and stay focused on achieving your long-term retirement goals.
Access to Investment Experts and Education
Godsey & Gibb clients benefit from direct access to the experts who make the investment decisions, a level of engagement typically reserved for institutional investors and family offices. This unique opportunity allows you to discuss your portfolio in detail, gain deeper insights, and have your questions answered by the professionals guiding your investments.
Staying informed about market trends and economic developments can help you feel confident your portfolio strategy and retirement planning is in good hands. By working with us, you gain access to expert guidance and ongoing education tailored to your unique goals.
Begin Your Independent Wealth Management Journey
For forty years, we’ve helped high net worth families preserve wealth and build legacies that span generations. Our original clients from 1985 trusted us with their financial future—and their families continue that trust today. If you’re ready for wealth management that puts your interests first, we’d welcome the opportunity to learn about your family’s goals. Reach out to us by clicking below.