The management of Retirement, Trust, Custodial and other portfolios continues long after investors answer the Important Questions in the following Financial Planning section.
The financial planning process often ends up with the planner recommending 3rd party investment accounts because these programs pay High Fees Every Year and don’t take up the salesperson’s time after the initial sale. Since these programs are a Huge Source of Ongoing Profits investment firms typically want their salespeople to focus on selling these programs not spending time working for investors to manage individual portfolios.
If financial planners, brokers, and insurance salespeople were not Paid Much More for selling these 3rd party managed accounts and didn’t have Pressure From Their Firms to increase fees every year, what would they recommend to their Family and Friends for their Conservative, Long-Term investments?
PTI believes the answer would be Diversified, Low-Cost portfolios of No-Load and Exchange Traded Funds.
With all of the choices easily available the obvious problem is Finding The Best Funds. Every month PTI tracks over 2000 No-Load or Exchange Traded funds (ETF’s) that specialize in one of 49 Sectors of the worldwide stock and bond markets. Each fund is graded based on their Performance For Investors over different time periods, their annual Dividend Yield, and their Management Expenses. PT Portfolios are diversified (as much as practical based on the size of the portfolio) between funds with PT Grades of either “A or B”. Funds are considered for exchange if the PT Grade drops to “D or F”.
All changes in PT Grades are updated and fully disclosed to each investor in their Monthly Performance Tracking Updates described in the following “After Investing” section.
Past performance does not predict future results, but it can absolutely show how the fund has performed in different economic conditions and over different market cycles. There is no guarantee that currently strong funds will continue to deliver superior returns, but it makes sense to build a portfolio with investments that have Low Expenses and a Proven Record of Better Performance over different time periods compared to other funds in their sector. The Performance Tracking research process is a Disciplined and Unbiased Investment Strategy that makes it easy for investors to see how their portfolio is being managed.
Performance Tracking Inc. (PTI) does not receive any up-front or trailing commissions, prizes, trips, bonuses, awards or any other incentive from a parent company or individual fund family to recommend specific investments. All decisions on what to buy and when to sell are based solely on the changes in the fully disclosed PT Grades.
PTI has Absolutely No Incentive to invest into any fund.
Many investors in PT Portfolios also own Individual Stock Positions they select and manage themselves. There is no reason these investors need to have two accounts with exactly the same registration. PT Portfolios are unique from other investment firms because both self-directed and managed fund positions can be held in the same Discount Brokerage Account.
PT Portfolios are designed to provide conservative Growth and Income over time. No advisor can time the Short-Term Swings in the securities markets so funds that will be needed within a year should be invested in liquid, short term income funds or the money market.
Growth Funds that invest into a wide range of individual companies are less volatile than individual stock positions, but they can be more volatile than Income Funds that invest into long-and short-term bonds. Since every investors tolerance for fluctuations in the securities markets is different and can change over time PTI can’t appropriately diversify portfolios without input from the investor. This is why every investor receives a Monthly Update, for each account, in addition to their brokerage statements. These updates show the accounts diversification and the performance of each position. Investors should contact PTI if they want to change their Growth to Income Allocation.
Since PT Portfolios are Individually Managed investors can request changes in their specific investment allocations at any time. They can reduce market risk by requesting that a Fixed Minimum Percent of their account be invested in Shorter-Term Bond Funds or the Money Market. For more opportunity for growth over time they can request that Growth Funds make up at least a Fixed Minimum Percent.
Without any Fixed Minimum Allocation Instructions PT Managed Portfolios will be broadly diversified between Growth and Income funds and managed based on changes in each fund’s current PT Grade.