Free RISK ANALYSIS

 
Portfolio Stress Testing

What is Portfolio Stress Testing?

Stress Testing is about assessing the potential impact of economic scenarios (e.g. oil crash, inflation, etc.) on your portfolio and other investments.  Everett Wealth Solutions, Inc. provides independent analysis using big data to measure millions of relationships between the economy and investments.

How it Works

Our research team creates scenarios to model recessions, crises, and other economic events, using historical research and analysis on how economic indicators are correlated. We measure how oil prices impact Exxon, how home sales impact Lowe’s, and millions of similar relationships between the economy and investments.  We create what-if scenarios to model recessions and other economic events.

For example:  What if oil hits $20 a barrel?  What if the 2008 Recession happens again?  In a stress test, EWS uses the relationship between an investment and an economic indicator to project possible performance. For instance: If Exxon usually falls 3% when oil falls 10%, then Exxon would lose 15% if oil fell 50%


DO YOUR INVESTMENT RETURNS AND VOLATILITY MATCH YOUR FINANCIAL NEEDS?

You either invest your money to increase its value or generate income, and sometimes a mixture of both.  Although your investment goals may be achievable over the long-term, short-term volatility can have a profoundly negative effect on your financial position and peace of mind.  Investments and investment managers that rarely change investment allocation and produce returns that fluctuate broadly in line with stock markets may no longer sit well with you as an investor. 

A truly diversified and dynamic approach that adapts to market change may be more suitable.  An approach that has the flexibility to actively invest across diverse asset classes seeking the highest probability of positive returns while attempting to avoid areas of increasing potential for loss of principal may be warranted.  The time might be right for a sophisticated investment approach with the ability to add value in both up and down markets.
 

Conservative Income

An Approach that Actively Responds to Economic Changes.  A flexible alternative to traditional bond portfolios. Income with principal stability is your primary goal.  You want little or no involvement in stocks.

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Conservative Income with Growth

A more diversified alternative to traditional bond portfolios. You are looking for income with some potential for capital growth and low volatility throughout most economic cycles. You have strong desire to protect your assets and are comfortable with a limited exposure to stocks.

Moderate Growth with Income

A balanced, core investment foundation in changing markets. Although growth of principal is your primary goal, you are not comfortable with “stock-like” volatility.  You seek a balance between asset appreciation and security.

 

Focused Growth

A broader, more dynamic option to traditional stock-based portfolios. You are comfortable with higher risk investments, providing this exposes you to higher growth potential.


investor choice and Risk Potential

We utilize a range of actively managed investment portfolios offering you a choice of investment returns in a simple to understand, openly communicated,  cost-efficient account structure.  This provides you with the choice to select suitable investment options while providing  flexibility when your needs or market characteristics change.  You choose the portfolio option that best matches your investment goals.

Each portfolio starts with a broadly diversified base allocation of assets selected to match your stated risk tolerance.  This base allocation may vary within pre-determined limits.  As economic and market conditions change, each portfolio allocation is modified according to a dynamic investment methodology and your risk tolerance.  Why not gradually reduce your exposure to stocks when stock market indicators continually suggest a coming fall?  

Because one size rarely fits all.


DYNAMIC and DIVERSIFIED INVESTMENT ALLOCATION

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A disciplined methodology which analyzes asset  quality and seeks to balance risk and reward potential will actively manage all the pieces of the investment puzzle.

It offers the opportunity to own a range of asset types, sectors, styles and regions in a single, actively managed account.

These widely used and accepted investments are selected primarily for their high diversification, low  cost, high credit quality and trading liquidity.

It dynamically adapts to changing market conditions by allocating capital to a range of diverse, widely accepted asset classes and regions which provide attractive opportunities for capital appreciation, principal protection and/or income.

Providing Personalized Investment Solutions

Core portfolios are available with a range of investment options that you can mix and match according to your specific investment needs and goals.

  •  Worried about Inflation?
  •  Need More Income?
  •  Concerned about Taxation?
  •  Need to Diversify a large Stock Holding?
  •  Want to Manage your Own Portfolio?

These personalized options can be added to your core portfolios, where suitable and following consultation with an experienced, qualified investment adviser.

We utilize the investment methods of many large institutions and endowments and make them available to retail investors through our select group of money managers.

Meet Your Financial and Emotional Needs

the Investment Emotional Rollercoaster

The Ups and Downs of investing in Volatile Markets are rarely matched to the needs of most investors.  The emotions often drive individual investment decisions.  Euphoria at the top of cycles can lead to buying too high – Dejection at the bottom of cycles can lead to selling too low.  A more disciplined, less emotional investment management approach is needed.

Portfolio Reallocation

Proactively monitoring many factors which may indicate market cycle position and dynamically adapting to changing conditions.  Seeking to actively allocate capital across assets classes in search of reduced risk and positive returns.  An active management process and team determining which asset classes are in favor and which are out of favor.


WHAT IS A CUSTODIAN?

A custodian is a financial institution that has certain regulatory responsibilities for assets in a customer's brokerage account.  EWS as a registered investment advisor, is required to have a custodian.  Investments that you entrust to our firm are placed in custody with Fidelity's clearing firm, National Financial Services LLC (NFS) - one of the largest clearing providers in the industry.  A clearing firm is an organization that, among other things, handles the execution, clearance, and settlements of transactions.  When you're selecting your financial advisor, considering who your advisor uses to custody your investments can be critical.  EWS also provides an alternative to the large clearing house money manager experience through Betterment Institutional - an online automated platform where clients use one login to access and manage multiple portfolios with Betterment's intuitive dashboard.  With Fidelity and Betterment, EWS is able to offer the flexibility to invest in variety of ways.

How does Fidelity work for you?

An experience, reputable firm helping to protect your assets and privacy.  For more than 65 years, Fidelity has built a reputation of integrity and financial management expertise.  As a leader in the financial services field, Fidelity has a thorough understanding of the products and services we need to help best serve you, and how to deliver them to you in the most efficient and convenient ways.

Additional Protection For Your Investments
Fidelity has arranged for insurance protection beyond the coverage through the Securities Investor Protection Corporation (SIPC).  While your assets are covered by the SIPC up to $500,000, including cash claims limited to $250,000, Fidelity provides supplemental protection that covers your account over and above this SIPC coverage.

Long-Term with You in Mind
Because the firm is privately owned, Fidelity is able to make decisions based on long-term benefits - not short-term gains - for the investor it serves.  For example, Fidelity has a history of reinvesting a large portion of its profits in technology and services, which can help enhance the products we offer you.

Access to an Extensive Range of Products and Services for Your Portfolio
Diversification is important to the job of managing your money for maximum returns and minimal risks.  Working with Fidelity gives EWS access to a wide range of products and services - those offered by Fidelity as well as by other third party firms - that can help us strive to achieve your financial objectives.

HOW DOES BETTERMENT WORK FOR YOU?

Betterment portfolios are designed to achieve optimal returns at every level of risk.  Through diversification, automated rebalancing, better behavior, and lower fees, Betterment customers can expect 4.30% higher returns than a typical DIY investor.

Featuring Tax Loss Harvesting
The Betterment Tax Loss Harvesting+ systematically finds embedded capital losses to lower investment taxes and increase after-tax returns.

Customized Portfolio Allocation
Each investment portfolio is designed to get customers optimal investor returns. The Betterment goal-based investing framework and advice algorithm let customers know if they are on track to reach their investment goals like Retirement or a Safety Net Fund in seconds.

Automation and Passive Investing
We recommend a globally-diversified, passive portfolio of 12 asset classes, tailored for your risk and time horizon.  Years of research and Nobel Prize-winning Modern Portfolio Theory are the foundation of our proven investment method.

Delightful Design
The platform has been called "the Apple of Finance," in part because of their delightful user experience.  Use one login to access and manage multiple portfolios with our intuitive dashboard. We offer the flexibility to invest in taxable accounts, IRAs, and trusts.