Personal Strategy®
A strategy as unique as you are
A strategy as unique as you are
Personal Strategy® is a globally diversified multi-asset class portfolio built with individual stocks and ETFs, designed and managed specifically for you.
Personal Strategy® is a globally diversified multi-asset class portfolio built with individual stocks and ETFs, designed and managed specifically for you.
1.
Portfolio building
Portfolio building
All our model portfolios utilize our proprietary Smart Weighting™ methodology and are designed to maximize return for a given level of risk.
2.
Strategy selection
Strategy selection
Your portfolio personalization starts with our strategy selection algorithm, driven by factors that are unique to you.
3.
Dynamic portfolio allocation
Dynamic portfolio allocation
We implement and maintain a dynamic portfolio allocation for you that changes over time as your financial situation evolves.
4.
Monitoring and maintenance
Monitoring and maintenance
We monitor your portfolio and make adjustments as needed. This includes disciplined rebalancing, and tax optimization strategies such as tax loss harvesting.
Advantages of your Personal Strategy
Advantages of your Personal Strategy
Tax optimization
Tax optimization
Our sophisticated tax-optimization process focuses on three key areas: asset location, tax-loss harvesting and tax efficiency.
Disciplined rebalancing
Disciplined rebalancing
We review portfolios daily for rebalancing opportunities. This provides the potential for enhanced returns by creating a systematic way of buying low and selling high.
Smart Weighting™
Smart Weighting™
Smart Weighting provides more even exposure to factors such as size, style, and sector, potentially providing better diversification for your portfolio.
Dedicated advisor
Dedicated advisor
Your own dedicated financial professional will be there along the way to help with financial planning needs and behavioral coaching.
1 By avoiding tax-inefficient funds and adding the benefit from tax location and tax loss harvesting, our research shows proper tax management can improve portfolio returns by up to 1.0% annually. Inefficient funds alone can carry an average tax cost ratio of 1.5%, which is based on YCharts data for all domestic equity mutual funds as of March 31, 2024. Calculations take the average tax cost ratio since inception of each fund. If a fund did not provide a tax cost ratio since inception, it was excluded from the calculation.
2 Vanguard Advisor’s Alpha ® Perspectives: “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha,” corporate.vanguard.com/content/dam/corp/articles/pdf/putting_value_on_your_value_quantifying_vanguard_advisors_alpha.pdf. [corporate.vanguard.com]
All investments are subject to the risk of loss. This information is intended only to illustrate a potential index strategy. Past returns are no guarantee of future performance. There can be no assurance that any strategy will be profitable, or that the equal weighting approach described above will perform better than the S&P 500 or other market-weighted index. Actual results for Empower Personal Wealth Composite Personal Strategies are available upon request.
We performed a hypothetical back-test using historical market returns for the six major liquid asset classes: U.S. stocks, international stocks, U.S. bonds, international bonds, alternatives, and cash. We then selected six of the commonly utilized model client asset allocations, ranging from highly aggressive to conservative, and ran a performance analysis from 1970 to 2022. Two sets of returns were calculated for each asset allocation: one with annual rebalancing and one without. Out of all portfolio outcomes, the annually rebalanced portfolios generated a performance benefit of up to 0.1%. The research, views, and opinions contained in these materials are intended to be educational; may not be suitable for all investors; and are not tax, legal, accounting, or investment advice. RO3798482