Our Fiduciary Management Methodology

When you invest in the markets, you have to decide if you believe you can time the market or not. If you believe you can beat the market by being one-step ahead of it, commonly called “active investing”, we’re probably not the right fit for you. Research shows that jumping in and out of the market simply doesn’t work. The 2018 SPIVA scorecard showed that “over the long-term investment horizon, such as 10 or 15 years, 80% or more of active managers across all categories underperformed their respective benchmarks.”

If instead you believe the cornerstone of successful investing is a well-diversified portfolio, regularly rebalanced and tuned to your tolerance for risk, then we are the right fit for you. This is the more “strategic” style of investing.

Have a question about Wealth Management? Contact us now.

Here is a sampling of what we believe when it comes to investing in the financial markets:
  1. We don’t try to outguess the market. Markets are inherently efficient.
  2. We resist chasing past performance.
  3. We know that financial markets reward the long-term investor.
  4. We practice smart diversification by constructing globally diversified portfolios.
  5. We avoid market timing.
  6. We separate emotions from investing, knowing that emotions lead to poor decisions.
  7. We look beyond the daily headlines and keep a long-term perspective.

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The Fragile Decade

The 5 years leading up to retirement and the 5 years after retirement are known as the Fragile Decade. This is when market downswings can have an outsized impact on how long your retirement assets will last. Consider this example:

John and Sue retire at age 65 with $500,000 in identical balanced portfolios and plan to withdraw $25,000 annually, adjusted for 3% inflation. John retires as the markets go down. He averages an 8% return but runs out of money by age 83. Sue retires in a market rally. She averages the same 8%, with her corrections coming in later years. Her portfolio at age 90 is $1.6 million. Why the disparity? Markets don’t give averages; they give you actual returns that work out to an average. The order in which you earn that average really matters. If the market has a downswing in your Fragile Decade, it can forever change the trajectory of your retirement.

Investing by Time and Purpose

The risks inherent in the Fragile Decade is why investing for retirement income withdrawal needs a whole fresh look. The old way of investing for retirement was to keep a little pile of money at the bank and the rest of your money in a bigger pile of money in investments and hope that it would last a lifetime.

But today we use a more sophisticated planning philosophy that helps manage the multiple unknowns of the markets: when is it going to go up or down, by how much will it go up or down, and how long will it stay up or down?! We use The Bucket Plan® philosophy of segmenting money into three different buckets, Now, Soon, and Later, based on your investment time horizon, your risk tolerance and income needs. It’s deceptively simple in its effectiveness, and you will have your own uniquely constructed Investment Bucket Strategy, crafted to give you peace of mind throughout your retirement years.

Our Fee Schedule

We offer fee-only fiduciary management strategies, as a percentage of assets.  We do not receive income from trading commissions or 12b-1 mutual fund marketing fee.

Total Assets Under Management Annual Fee
$0 – $200,000 1.25%
$200,001 – $500,000 1.0%
$500,001 – $1,000,000 0.8%
$1,000.001 – $3,000,000 0.7%
$3,000,001+ 0.5%
This fee pays for your entire “guided tour” of retirement, where we manage not only your investments but also guide you with tax-planning, Social Security implementation, Medicare review, IRA Required Distribution process and general making-sure-you’re-enjoying-retirement check-in’s.
The Importance of Working with a Registered Investment Advisor Near You

Marsh Wealth Management is a fiduciary Registered Investment Advisor (RIA). And that matters. There is an important difference between an RIA and a broker dealer. In the broker dealer world, the advisor works for the “house”, who pays for their training, provides marketing support and pays for their pencils. In return, the advisors use the tools pre-designed to give the house an advantage. Don’t get us wrong – they may truly care for their clients’ well-being and be of high moral character. It’s just that they are constrained by a set of products pre-approved by their employer and the system is designed to reward selling rather than providing conflict-free advice. Broker dealers are compensated by commissions and, legally, all they have to do is provide a product that is “suitable” to you.In the Registered Investment Advisor world, there is no “house” and we buy our own pencils. We have unbiased access to virtually all investments and use an independent custodian to hold client assets. We are required by law to put our clients’ interests ahead of our own. This is known as the “fiduciary” standard of duty. Since we are paid a flat percentage of assets rather than commissions on trades, we are not incented to churn your account with needless activity. We are also NOT paid through revenue sharing arrangements with fund families, so we have no incentive to offer one fund family over another. Our flat fee structure effectively puts us on the same side of the table as you. If you grow, we grow. And we all want to grow.

Independent Investment Custodian

Sadly, we’ve all read about investment advisors who bilk unsuspecting retirees out of their life savings. You would be foolish not to be diligent in your choice of investment professional. It’s important for you to know that because we are acting in your best interest as fiduciaries, we do NOT hold any of your assets here at the company. Instead, TD Ameritrade is the independent custodian for investment accounts we manage on your behalf. They hold over $700 billion in assets and service almost 7 million accounts. You will receive monthly electronic or paper statements directly from TD Ameritrade and you also have 24/7 online access to your accounts through their online login portal.

Call Us at (865) 622-2162