Protected Growth Portfolio™

This product is designed for retirees and for those who consider protection of their assets is more important than stellar gains in the market. Of course, we want the portfolio to grow when the markets are good but the most important thing is to avoid big losses when the market is bad.    

We manage this portfolio using options to protect, and to enhance, a core portfolio of U.S stocks.  For retirement accounts we typically use the S&P 500 ETF which pays a small dividend of 1.2% currently. For taxable accounts we typically use the Nasdaq 100 ETF which pays a minimal dividend of .5%. In other words, our focus is growth and not dividends, which are taxed whether you use the money or not. 

That being said, another one of our objectives is to maximize growth but minimize taxes.  For the 5 years that we have managed this product, none of our taxable accounts has paid any taxes on the growth.  And our 5 year annual return has averaged about 10% per year after dividends and fees. Our worst year was 2018 when the portfolio was up 1% and 2020 was our best year with growth of 20%.

Our base management fee with this strategy is 1% of the portfolio value; we collect this fee quarterly.  Funds can be drawn out of the account any time. Many of our clients even set up a monthly distribution. The minimum required investment is $250,000.