After-Tax vs. Pre-Tax Returns
ROR vs. IRA’s, 401(k)’s, 457-Plan, 403-B Plan
After-tax returns are more important than pre-tax returns.
At our firm, we have established a tax-minimization procedure for pre-tax retirement accounts, before your RMD comes up at 72 years old.
VAM’s investment approach takes taxes very seriously and we work with several CPA’s to focus on maximization of your after-tax returns, while maintaining a level of risk-tolerance that the client is comfortable with.
When we purchase securities, we are seeking high-quality businesses that are run by capable CEO’s at reasonable valuations. Some examples of high-quality businesses are those which generate high returns on invested capital and achieve consistently high rates of intrinsic growth.
Our individual equity portfolios offer sufficient diversification to minimize risk while still enabling us to use our best ideas to impact your overall returns. We have regular client review meetings to discuss asset allocation, returns, market outlook and any other pertinent items that can affect our clients portfolio composition.
We strive to maintain an open and transparent relationship that focuses on meeting the clients long-term objectives and goals. We utilize a disciplined and thoughtfully constructed process of analysis, with a 25 point proprietary model as our template. We are constantly monitoring the portfolio to make sure that the investment strategy is taking roots and growing. We are striving advocates for staying disciplined through inherent volatile stretches in the stock market. We make portfolio adjustments based upon objective criteria that is measurable and observable over time. We look past short-term volatility to help our clients avoid behavioral biases that could reduce returns and strive to build resilient portfolios that will win over the long-term.