IndiWealth Strategies

Investment strategies are the tools used to achieve our client missions. IndiWealth may incorporate several strategies within an investment plan to focus on each objective and time horizon. Every strategy is actively managed for opportunity but within the bounds of the stated risk tolerance. 

Time-Based Strategies

Time horizon is a critical element of an investment plan. IndiWealth portfolios focus on time to achieve the mission.

  • This portfolio is designed for near term recurring expense coverage, a “rainy day” fund, and any known expense items coming in the next 1-3 years.
  • The focus of this portfolio will be capital preservation and income generation.
  • The portfolio risk tolerance would be “conservative” and is managed to target less than 25% risk of the stock market volatility over time. *
  • This portfolio is designed as a medium term (3-7 years) strategy to replenish assets in the short term bucket, provide a hedged approach to stock volatility, and provide income generation through bonds and alternative assets.
  • The focus of this portfolio will be on income generation and hedged equity allocations.
  • The portfolio risk tolerance would be “balanced” and is managed to target 50% to 70% of the stock market volatility over time. *
  • This portfolio is for investors with greater than 7 year time horizons or as the growth strategy of the portfolio. This includes strategies for increasing wealth and legacy planning with long term time horizons. 
  • The focus of this portfolio will be on long term capital appreciation (growth).
  • The portfolio risk tolerance would be “growth” and is managed to target nearly 100% risk of the stock market volatility over time. *

Tax Efficient Strategies

Taxation should be considered a key component of any taxable asset allocation strategy. By incorporating tax sensitivity and tax efficient assets, investors can keep more of what they earn in returns. 

The tax efficient strategies will focus on assets that have taxable benefits (like municipal bonds), lower allocations to ordinary income-producing assets, and utilize strategies around tax loss harvesting to achieve the objectives for non-qualified accounts (like individual and joint accounts). IndiWealth will actively manage these strategies with an emphasis on tax efficiency while also focusing on the time horizon to achieve the mission.

  • This portfolio is designed for near term recurring expense coverage, a rainy day fund, and any known expense items coming in the next 1-3 years.
  • The focus of this portfolio will be capital preservation and income generation.
  • The portfolio risk tolerance would be “conservative” and is managed to target less than 25% risk of the stock market volatility over time. *
  • Tax efficiency will be derived from municipal bond allocations, tax efficient ETFs, and low turnover.
  • This portfolio is designed as a medium term (3-7 years) strategy to replenish assets in the short term bucket, provide a hedged approach to stock allocation, and provide income generation through bonds and alternative assets.
  • The focus of this portfolio will be on income generation and hedged equity allocations.
  • The portfolio risk tolerance would be “balanced” and is managed to target 50% to 70% of the stock market volatility over time. *
  • Tax efficiency will avoid hedged equity allocations that cause significant taxable events. Instead, assets will be focused on municipal bonds for income and more tax efficient stock solutions while maintaining the targeted risk profile range.
  • This portfolio is for investors with greater than 7 year time horizons or as the growth strategy of the portfolio. This includes strategies for increasing wealth and legacy planning with long term time horizons. 
  • The focus of this portfolio will be on long term capital appreciation (growth).
  • The portfolio risk tolerance would be “growth” and is managed to target nearly 100% risk of the stock market volatility.
  • Tax efficiency will be generated via lower turnover to achieve a higher level of unrealized capital gain and on assets that achieve preferred long term capital gains over ordinary income. Also, when appropriate, we will incorporate tax loss harvesting and tax reduction strategies to enhance after tax returns.

IndiStock

This portfolio is a stock allocation focused on long term capital appreciation. It is actively managed to experience a similar volatility profile to the SPDR S&P 500 ETF (SPY)* and tax efficiency will not be considered part of the investment process.

IndiStock will invest in US stocks and / or international ADRs. Selections will be made based on fundamental criteria including: business health and competitive advantage, growth propects, cash flow generation, and valuation reasonable to their future opportunity. This portfolio may incorporate exchange traded funds (ETFs) or options based strategies to hedge positions or adjust exposures as desired.

IndiBond

This portfolio is 100% fixed income assets with an objective of total return based on both price return and income generation. It is actively managed to experience a similar volatility profile to the Vanguard Total Bond Market ETF (BND)* and tax efficiency will not be considered part of the investment process.

IndiBond will invest in exchange traded funds (ETFs) and selections will be based on fundamental criteria including management of: duration, credit risk, and relative value. Assets selected will include US Treasuries, agency bonds, asset backed securities, corporate bonds, collateralized loan obligations (CLOs), senior bank loans, and preferred stock.

* Stock market volatility is based on the 10-year standard deviation of the iShares MSCI ACWI ETF (ACWI). More detailed information can be found at morningstar.com. SPY volatility is based on the 10-year standard deviation of the SPDR S&P 500 ETF (SPY). More detailed information can be found at moringstar.com. Bond market volatility is based on the 10-year standard deviation of the Vanguard Total Bond Market Index ETF (BND). More detailed information can be found at morningstar.com.