A Unique Way to Define Good Investing – Challenge the mainstream!

Over the years, the mainstream financial world has completely misinformed us and misguided us on what constitutes great investing. This is conventional thinking – there’s a far better way.

They push the idea of active investing, the exciting idea of “placing bets” on when to buy what and when to sell it.

The best way to invest is “own everything” as that way you own each big winner. Statistically proven market behaviors like small company stocks outperforming large company stocks can be employed by a slight over-weighting towards small company stocks. We call that “Evidence-Based Investing” since the strategy is backed by statistical proof or evidence.

In the conventional view of investing pushed by the financial mainstream, it is expected that every year there will be capital losses. Enough “losers” are sold near the end of the year to offset capital gains with the goal of zero capital gains taxes. (Legally avoiding taxes is wonderful but not because your net gain each year is zero or less!)

It has been common in my investment advisory practice to take on new clients with accumulated “capital loss carryover” from the past. In other words, their investing results have been so poor – that their gains have not overcame their losses.

My clients have the opposite problem. After they have been on board for a few years – all their asset classes – their DFA funds – have increased in value. So when we re-balance their portfolio –  capital gains are generated with no capital losses available to offset them. That’s OK. In fact, that’s great! That should be your GOAL. If you’re paying capital gains taxes, it because you have capital gains to pay them! You’re making money!

Do you currently have capital loss carryover? If so, come see us! It’s unfortunate to be in possession of capital loss carryover – but once you have it – see us and your gains will be even more fun, because at least for awhile, the capital gains we generate will be offset by your unfortunate losses that occurred before we started working together.

A new quote for the Statue of Liberty: “Give us your concerned about the economy, weary of market dropping bad news, your huddled masses holding capital loss carryover yearning to invest in a sane way that generates capital gains.”

We will help you cope with the non-stop news and noise, stay focused and generate taxable gains in your taxable accounts!

If you have any questions

Email Me

Or would like to talk further

(760) 804-0910