How are you protected?


Your assets are protected in a variety of ways. The most important thing is that your assets remain your property at ALL times even as we manage them. We track your money wherever it is and you can obtain third party verification of everything.

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What Is Diversification?

Diversification is "not putting your eggs in one basket." No matter how confident we may be on any individual investment, risk of loss for a single security is inherently higher than it is for multiple, not-too-similar investments. A less thought about risk is tax risk, different types of accounts are taxed in different ways. Your portfolio will be diversified in three key ways:


  1. Different asset classes - we use a mix of US Stocks, Foreign Stocks and Bonds (and occasionally cash, real estate stocks or commodity related investments) so that your portfolio is not subject to the risk of loss in one particular market.

  2. Funds - for most accounts, the bulk of assets will be kept in funds. These are baskets of stocks or bonds that minimize the risk of loss from any individual company. Some accounts may hold individual stocks and we make sure to diversify that risk using complementary funds.

  3. Tax diversification - we encourage clients to keep their assets in multiple account types - Taxable Accounts, Traditional IRAs and Roth IRAs. Each of these has different tax rates and limitations on withdrawals. Contributions to traditional IRAs reduce your current tax burden, but withdrawals are taxed as income. Deposits to Roth IRAs are taxed, but you can withdraw the funds tax-free. Individual accounts have no restrictions on deposits and withdrawals, and only capital gains, dividends and interest are taxed as they occur.


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Protecting Against Identity Theft

We take your privacy very seriously. We maintain a list of everyone who you will allow us to talk to about your accounts, be that your spouse, children, attorney, CPA or nobody at all! Your personal information is safe with us.


  1. If someone calls asking about your account, we need explicit authorization from you to divulge information to them.

  2. We practice the utmost discretion and will not even verify that you are a client to anybody we do not have permission to speak with.

  3. We digitize and securely store records as quickly as practicable. Paper copies of anything with personal information - even just a scrap of paper with your name on it - will be shredded in our commercial shredder daily.

  4. If you like, we can help you check your credit report each year at no cost to you. Just ask us to help if you would like to have a copy of your three main credit reports sent to your home each year.

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Mitigating Market Swings

Stock market volatility can be frightening. Whenever you are invested in stocks, you are subject to that volatility. There are ways to mitigate that volatility, however.


  1. Diversification - US stocks, Foreign Stocks and Bonds do not all swing the same way at the same time. Maintaining positions in different asset classes means that your entire portfolio is not subject to the whims of one market.

  2. Dollar Cost Averaging - when you initially open an account, or deposit a significant amount of cash, we may not invest it all immediately. By spreading the purchases over several months, we keep cash on hand for opportunistic purchases and as a buffer.

  3. Stop Loss orders - in general, when the market declines, we would rather buy more at a discount than sell out hastily. We do keep each client's particular situation in mind and may set target amounts to preserve.

  4. We maintain an outlook commensurate with your investment horizon. If we view the risk of loss as too high for your time period, we will exit that particular investment.


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Protecting You From Fraud

Trust is a huge issue when dealing with your finances. Fortunately for you, we make it easy for you to verify what is going on at every step of the way.


  1. We never actually have possession of your money. While we can make deposits for you, checks are not made out to us, but to your account at TD Ameritrade. Even better, we can set up secure bank-to-bank transfers between your local checking account and your investment account for deposits and withdrawals.

  2. Your accounts are held by a third party custodian, such as TD Ameritrade. Any statements or reports that we generate can be verified by statements that they send you. This prevents us from falsifying figures in your account.

  3. We and TD Ameritrade have public emergency backup plans in place should disaster strike.

  4. Your accounts are protected by the SIPC against loss while TD Ameritrade holds them. This subjects them to stringent quality controls meant to prevent loss as well as adequate insurance to recover your securities if needs be. More information can be found at the SIPC website here.