The Secret to Steady Withdrawals? Steady Returns
Volatility management of portfolios is especially important in the context of generating income through withdrawals. This need for steady withdrawals is challenging today and is expected to be for the foreseeable future since rates and yields are low and prices for yield-providing securities appear high. In this paper, 55ip discusses…
Smart Insurance: How, Why and for Whom?
This paper highlights the importance of downside protection in portfolios and helps shed light on the promise of protection on the downside through dynamic risk management using volatility timing.
Volatility is not Risk and VIX is of Limited Use
To an investor, risk is the possibility of facing losses. This likelihood of loss exists because of future uncertainty. The most widely used measure to capture this uncertainty is VIX. It represents the market’s expectation of stock market volatility over the next 30-day period. VIX, however, is a faulty measure…
This paper highlights an alternative approach of improving portfolio performance over a buy-and-hold portfolio by attempting to predict the volatility of future market returns rather than the magnitude of future market returns.
Higher Returns & Lower Costs Using the 55ip Lower-Fee Overlay
Volatility management of portfolios is especially important in the context of generating income through withdrawals. This need for steady withdrawals is challenging today and is expected to be so for the foreseeable future since rates and yields are low and prices for yield-providing securities appear high. Investors can learn from…
Tax Loss Harvesting: A Framework for Optimal Timing
Tax management of investment strategies relies on harvesting unrealized losses to decrease short term gains. The level of loss at which one should harvest the loss is an important decision in this process. This decision should account for a broad set of factors. This paper provides detail on these factors…
Harvesting Tax Losses to Minimize Substitution Errors
Tax management of investment strategies relies on harvesting unrealized losses to decrease short term gains. The industry standard for tax management has much room for improvement. 55ip’s proprietary machine learning based algorithm achieves this improvement through an approach that jointly optimizes for substitution error, complexity and trading costs, while adjusting…
55ip’s Approach to Active Tax Management
In a world where returns are low, taxes matter to advisors. At 55ip, we believe in applying a research-driven and rules-based approach to help the taxable investor thoughtfully generate after-tax returns.
ETF Tax Overlay Overview
This one pager explores 55ip’s ETF Overlay Approach and the 55ip/Advisor Engagement Model. Ongoing tax-loss harvesting can enhance overall returns for the taxable investor by minimizing current year tax liabilities and by deferring tax liabilities (leveraging compounding and potential changes in tax rates).