Investment White Papers
Chasing Your Own Tail (Risk): Five Alternatives to the High Cost of Tail-Hedging
In the wake of 2008, investors are now painfully aware of tail risk ? the risk of unexpectedly large losses. Today many institutional investors are insuring against tail risk directly, often by purchasing puts or structuring collars. Unfortunately, experience and financial theory suggest that the long-term cost of such insurance strategies will be larger than the payouts. No surprise, really. The expected return for perpetual insurance buyers is negative, and conversely... »»
Are You Looking for More Tax Efficiency in Your Portfolio?
Affluent investors often hold the bulk of their liquid investments in taxable accounts, rather than in tax-advantaged vehicles such as 401(k) plans, IRAs, 529s, etc. If this is your situation and you find you are subject to relatively high marginal income tax rates, there's a good chance you could benefit significantly from deferring taxes on any investment that generates large distributions that can be taxed at ordinary income rates, like short-term capital gains and/or certain types of interest and dividends. »»
Rethinking Investment Guidelines: Portfolio Flexibility May Increase Potential for Generating Strong Returns
Today, many stock pickers focus on specific categories of securities, such as small cap growth or large cap value. In theory, this approach may reduce the likelihood of different stock pickers inadvertently holding the same, or similar, securities. Unfortunately, this approach prevents talented managers from searching market wide for the most attractive investments. In other words, managers can no longer... »»
Beyond Stocks and Bonds: Powerful Alternatives for Pre-retirees
Many investors within five to 15 years of retirement are worried. On one hand, they're scared that another sharp market drop could devastate the stocks they're using to grow their portfolios for a comfortable retirement. On the other hand, they see the risk that supposedly safe investments such as Treasuries could fall in value. In this paper we explore how certain alternative investments can reduce this anxiety and boost financial advisors' value in their eyes. »»
Investing (including mutual funds and ETFs) carries risk, including the loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and /or investment strategies described above may not be suitable for all investors. Investors should first consult with an investment advisor before investing. Investment decisions should be made based on the investor’s specific financial needs and objectives, goals, time horizon, tax liability and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products. For a complete description of all fees, costs and expenses, please refer to the Envestnet Form ADV Part 2A or Form ADV Part 2A - Appendix 1 as applicable. Past performance is no guarantee of future results. Neither Envestnet, PMC nor its representatives render tax, accounting or legal advice.
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