Investing your hard-earned money can feel overwhelming with countless options available in the market, and confusing financial terms only add to the frustration.

For example, portfolio and wealth management are distinct services that are often misunderstood as being the same. In this article, we’ll explain the distinctions between wealth management and portfolio management.

At Sage Advisors, we understand your concerns and want to help. As a leading wealth management firm in Sarasota, Florida, we take pride in our exceptional wealth management approach, customized for your specific needs, using rules-based data to help make smart, informed decisions.

We use a unique strategy that combines Dynamic Asset Level Investing (DALI) with the Nasdaq Dorsey Wright* framework, it uses a time-tested approach which is designed to catch the long-term trends of both the market and strong asset classes.   Of course, investing always involves risk and past performance does not guarantee future results.

Before delving into the details of our services, let’s explore how wealth management and portfolio management differ.

Understanding Wealth Management

Wealth management is a comprehensive set of financial services tailored to meet your specific needs and goals. It goes beyond portfolio management by considering all aspects of your financial life.

Comprehensive wealth management services typically include:

• • Financial planning: Crafting personalized financial strategies that serve as a roadmap throughout various stages of your life.

• • Retirement planning: Strategies to help ensure your wealth outlives you so you can experience a secure and comfortable retirement.

• • Tax planning strategies: No one wants to pay more taxes than they must.

• • Estate planning: Helping ensure the orderly transfer of assets to beneficiaries while protecting your heirs from steep taxes once you pass.

• • Risk management: Mitigating financial risks and protecting what you’ve worked hard to accumulate.

If you are nearing retirement or have already retired and have accumulated substantial assets, you should strongly consider the services of a wealth management advisor who can handle all aspects of your financial needs today and tomorrow.

Wealth management advisors can help create strategic plans based on your financial situation, goals, and risk tolerance. They should periodically update and review these plans, adjusting their strategies based on significant life events or accounting for market conditions.

Sage Advisors Insights: As a prominent Sarasota wealth management firm, we understand everyone has unique financial objectives and requirements.  Our core wealth management services are personalized to address your priorities.

What is Portfolio Management?

Portfolio management centers on effectively managing investments and assets to meet specific financial goals. It entails creating a blend of investments that aligns with your financial objectives, risk tolerance, and time horizon.

For instance, a portfolio manager may allocate funds across different asset classes, such as stocks, bonds, mutual funds, exchange-traded funds, real estate, and fixed income.

The overarching goal of effective portfolio management is to maximize your returns while reducing potential risks.

Critical components of portfolio management include:

• • Asset allocation involves distributing investments across various asset classes, such as stocks, bonds, and cash equivalents, to meet your goals, risk tolerance, and investment horizon.

• • Diversification is used to reduce your risk by spreading investments across various financial instruments, industries, and other categories to help mitigate the impact of poor performance in one area on the overall portfolio.

• • Consider rebalancing your portfolio periodically to ensure your allocations are aligned with your goals and needs. This may involve buying or selling assets to return to the original asset allocation or to move to a new asset allocation strategy.

• • Your portfolio should be monitored regularly to ensure it performs based on your needs and goals.

• • Tax efficiency is also critical to minimizing your tax liabilities. This can involve strategies such as asset location, tax-loss harvesting, and being mindful of short-term vs. long-term capital gains.

There are two main ways your portfolio can be managed:

Active Portfolio Management entails analyzing market trends to decide on buying, selling, or rebalancing a portfolio. The objective is to outperform the market or achieve specific returns.

Passive Portfolio Management adopts a “set it and forget it” approach, focusing on the hopes of long-term growth over time, often utilizing index funds or ETFs for this hands-off strategy.

Sage Advisor Insights: Our portfolio management philosophy veers from the traditional 60/40 stock-bond split and the typical quarterly rebalancing.

We believe in a more dynamic approach tailored to your evolving needs and objectives.

The Sage Advisors Difference: Incorporating DALI in Portfolio Management Strategies

One of the cornerstones of our unique approach is the integration of DALI (Dynamic Asset Level Investing) offered within the Nasdaq Dorsey Wright *framework.

DALI is designed to catch the long-term trends of the market and strong asset classes.

For example, the DALI Tool utilizes relative strength analysis across six asset classes (U.S. equities, commodities, international equities, global currencies, fixed income, and cash) to identify leadership and to guide tactical asset allocation.

Three features of this time-tested strategy:

1. 1. Adaptability: Instead of sticking to a set asset allocation, DALI allows us to adjust the portfolio based on market trends.

1. 1. Strategic asset allocation: By focusing on specific asset classes, we have the  potential to achieve better returns.

1. 1. Performance optimization: Our unique approach is designed to capture long-term trends while limiting downside risk.

It is a historical fact that asset classes go through bull and bear markets.

Rather than take a passive approach to asset class exposure, DALI can help you tactically allocate among these asset classes.

DALI empowers us to make more informed, data-driven decisions that traditional methods cannot match.

Of course, as a reminder, investing always involves risk and past performance is not indicative of future results.

Why Choose Sage Advisors for Wealth Management

In a market full of uncertainties, a customized investment strategy planning service is beneficial and necessary.

At Sage Advisors, your financial well-being is our paramount concern.

With our team’s extensive knowledge in wealth management in Sarasota, we strive to be the top choice for individuals seeking personalized investment management in Florida.

We feel that our integration of sophisticated strategies, including DALI, and our commitment to personalized service set us apart.

Let us show you how our tailored wealth management services can breathe new life into your investment experience.

Contact us today! It’s time your portfolio found its own Sage advisor.

*Sage Advisors reserves the right to make independent investment decisions that they deem appropriate that is outside of Dorsey Wright’s research. Sage advisors is not affiliated with Dorsey Wright. Dorsey Wright provides research to Sage advisors under a subscription agreement but does not provide personalized advisory services or portfolio management services to Sage advisors or its clients. All trading is performed by Sage and its personnel at their discretion.

This material is educational and is not advice or a recommendation for any specific investment product, strategy, or service. The views and opinions expressed are those of Sage Advisors only. Any examples used are generic, hypothetical and for illustration purposes only. Investing involves risks, and past performance is not indicative of future results.

Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC (www.SIPC.org). Sage Advisors is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies.
One Penn Plaza, Suite 2035 | New York, New York 10119 (646) 473-4159. Neither MML Investors Services, LLC nor any of its subsidiaries, employees or representatives are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters.

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