At Progress Wealth Management, we believe that your portfolio should reflect your values, goals, and risk tolerance so you can reach your financial goals in life without having benefited from the successful operation of companies you may not agree with, ethically.
This is why we decided to offer fully customized, ethical portfolios also referred to as Direct Indexing.
What is Direct Indexing?
Traditionally, financial advisors use Mutual Funds or Exchange Traded funds to manage money because at the time, they were the lowest cost, simplest option. With trade commissions dropping to zero, it’s now feasible to skip the middleman and create our own mutual funds, instead. This gives advisors everywhere the ability to be more tax-sensitive and eliminate exposure to companies and industries that don’t align with our client’s values without sacrificing performance.
What’s the benefit of using this strategy over ETFs or Mutual funds?
Two things in specific.
- More Transparency means you’ll know more about what you’re actually invested in so you know if the stocks you’re in.
- Lower Fees – By Avoiding Fund Fees, you could save more throughout your life than you might expect.
What could this mean for your future?
Through hiring on a financial advisor, it could mean a lot of money to your future. Vanguard did an analysis to quantify the value of hiring a financial advisor and what they found was, by hiring a financial advisor, the average client benefited by roughly 5% per year after fees, year over year. That means that after 24 years with the same advisor, you’d expect to have nearly twice as much money. If you’d like to read their study, click here. Keep in mind, we have not done our own independent study to confirm or deny this study that was performed by Vanguard and past performance is not a guarantee of future results.
Alternatively, we also offer more traditional portfolios using ETF’s and Mutual Funds custom built with your goals and risk tolerance in mind for individuals whom are looking for something they’re more familiar with.
Want a more specific idea of what portfolio we’d recommend and why?
Click here to schedule a complimentary appointment or call us at 425.577.0660.
Want to Learn More about Investing? Request a complimentary investing guide by clicking here.