How We Build Portfolios – Putting the Puzzle Pieces Together

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    Ryan P. Johnson CFA, CFP®
    Director of Portfolio Management and Research

    At Buckingham Advisors, we fully integrate all aspects of financial planning, investment management, and business services. We are a Registered Investment Advisor (RIA) that is held to a fiduciary standard, which is putting clients’ interests ahead of our own. We have many employees with professional designations such as CFP®, CFA, CPA, and more. Our wealth advisors and financial planners work with clients to determine the best asset allocation, or mix of stocks and bonds, for your investments. We do not take an age-based approach to asset allocation, and your annual cash need is an important consideration. We also practice strategic asset placement that could help reduce the taxes on your investments.

    Outside holdings, taxes, special instructions, and strategic asset placement are all integrated into your portfolio building process. We can coordinate your managed investments with outside holdings such as pensions, 401(k), and TSP accounts. While we are very tax-aware, there are certain instances where it is advantageous to take capital gains. We do not universally avoid or defer gains, because sometimes capital gains are not taxed. In your custom portfolio, we honor your special instructions, such as a “do not buy” or “do not sell” request. The placement of your investments by account type such as IRA, Roth IRA, Trust, or taxable account matters for tax purposes. Charitable giving from the right accounts can also be an important tax planning tool.

    Stocks, bonds, cash, and exchange traded funds (ETFs) are the primary portfolio building blocks, and many considerations are made for each investment. Within fixed income (bonds), we decide what time to maturity, level of quality, and issuers are best for your portfolio. Within equities (stocks) we have purposeful weights to large cap and small cap stocks, international and emerging markets, and specific large cap sectors. We have an in-house research staff that takes an evidence-based approach. We work to keep internal expenses low, and we work to get the best return on your cash. We can also use ETFs to add instant diversification in international stocks, small cap stocks, and fixed income. We also evaluate an asset class known as alternative investments.

    We communicate with our clients frequently to ensure the dozens of portfolio-building decisions remain aligned with an overall financial plan, and we conduct regular investment reviews for each household.

    Buckingham Advisors can assist with your financial planning, investment management or small business needs. Please see our Events Page for upcoming seminars.