Kochis Fitz
Personal Wealth Strategies & Management
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We implement portfolios for each client using “best of breed” opportunities, regardless of their source. We may use outside separate account managers, and large, institutional managers, or investment funds not normally available to individual investors (or which are, in fact, closed to new investors).
In appropriate cases, Kochis Fitz also employs mutual funds and/or ETF’s and/or ETN’s in the construction of investment portfolios.
We diversify investment portfolios by equity market capitalization (large and small), investment style (growth and value), market efficiency (developed and emerging), geography (domestic and international), and optimal correlation among asset classes (real estate, commodities, private equity, and fixed-income as well as public stock equity).
Nevertheless, as a consequence of our sensitivity to clients' long investment timeframes, Kochis Fitz is a primarily equity-oriented investment manager. History and the logic of necessary capital market behavior both support equity investing as most suitable for the funding of long-range financial objectives.
An overwhelming body of evidence indicates that consistently making accurate near-term forecasts of a market’s direction is extremely improbable. The attempt can also be costly and very inefficient on an after-tax basis.
Moreover, one or two incorrect or ill-timed decisions can more than undo all of the advantage of remaining committed to equity investments over the long-term. We coach our clients to accept and tolerate sometimes painful short-term volatility to reap the positive performance advantages that accrue over the long-term.
Consequently, using leverage to finance diversified, long-term assets makes strong economic sense for clients who are able and willing to accept short-term risk. For the right investor, a reasonable use of durable investment margin is a worthwhile strategy for augmenting long-term equity returns.
Taxes are inescapable for virtually all of our clients and are a very significant consideration for many of them. Kochis Fitz Wealth Managers are experts in mitigating the tax consequences of portfolio management. We exercise great care in the appropriate placement of investments within taxable and tax-deferred accounts and continually monitor and review portfolios for tax opportunities and to optimize when and how assets are bought or sold.
Expenses reduce investment returns for every client. Since we have no proprietary financial interest in any strategy or investment employed in clients’ accounts, our commitment to "open architecture" permits us to always pursue optimization of clients' portfolio at lowest available cost.
Kochis Fitz provides periodic reports detailing the progress of clients’ investment accounts. In addition to regular monthly or quarterly custodial statements, we provide our clients with quarterly valuation reports and performance reviews and year-end tax summaries to assist in ongoing planning.
In addition, clients receive our quarterly Wealth Management Commentary which conveys our view of the current economic and investment environment, and the results of our research efforts. It also provides important information about our outlook and opinions on such important topics as tax law changes, securities regulations, and innovative investment strategies.
