At Buckeye Wealth Management, even though we believe there is more to living your Ideal Life than money can provide, we also know that it is the hard earned money you have saved over the years that will help make it all possible.
As your Personal Financial Officer (PFO), we act as a true fiduciary, placing your interests above our own. This is why we operate as a fee-only firm and do not accept commissions or any compensation from the products we recommend for your portfolio, you can be absolutely sure that our recommendations are based on your best interests alone.
Our goal in designing your portfolio of investments is to provide consistent performance over time while minimizing large downside market losses, which could take several years to recover. Our investment process and strategies are designed for growth, but more importantly centered on risk management in order to protect during major market declines. See Investment Management Services for a more detailed listing on our process. We do this using a Core-Satellite Investment approach.
The core portion of the portfolio is a long-term, buy and hold strategy made up of a well-diversified asset mix of asset classes that are representative of an efficient portfolio, designed to maximize return while minimizing risk. It will contain an allocation to US equities, Non-US equities, (including emerging market equities), fixed income both US and International, Cash and alternative investments such as real estate and commodities, to name a few. A large portion of the US equity exposure will be made up of high-quality dividend paying companies. This is accomplished using mostly Exchange Traded Funds (ETF’s), Individual Stocks and Institutional Level Mutual Funds.
The satellite investments, on the other hand, consist of shorter-term, tactical ideas that may present themselves in certain market environments and/or regions or countries of the world. Satellite investments will by design be held for short periods but can be held for long periods of time as well, and are selected by some unique characteristics or style of investing, such as technical analysis. Within a portfolio, there is no limit to the number of satellite investments you can have but they will generally be limited to a reasonable number that could be monitored on a regular basis, which percentage is determined by each allocation model. Satellite investments can focus on certain themes, asset classes, regions, countries, strategies, etc. and will be mostly invested in ETF’s, leveraged ETF’s and Individual Stocks.
The proportion invested in each will depend on your investment objectives and risk tolerance which will determine your specific Asset Allocation Model.
Asset Allocation Models
We operate in 5 basic asset allocation models, consisting of qualified, non-qualified and consolidated models within each category. Each designed based on the amount invested in each model, they are:
Conservative: Core (90% of assets): 73% Fixed Income, 22% Equities & 5% Cash
Satellite (10% of assets): Dynamic Tactical Allocation
Moderate: Core (85% of assets): 55% Fixed Income, 40% Equities & 5% Cash
Satellite (15% of assets): Dynamic Tactical Allocation
Balanced: Core (80% of assets): 38% Fixed Income, 57% Equities & 5% Cash
Satellite (20% of assets): Dynamic Tactical Allocation
Growth: Core (75% of assets): 23% Fixed Income, 75% Equities & 2% Cash
Satellite (25% of assets): Dynamic Tactical Allocation
Aggressive Growth: Core (70% of assets): 10% Fixed Income, 88% Equities, & 2% Cash
Satellite (30% of assets): Dynamic Tactical Allocation