Wall = Income

In the fiscal home strategy, the walls provide a source of income through distribution1 and offer an attractive characteristic that provides low volatility compared to the stock market. They are typically a non-correlated, non-traded asset. These investments are used by investors across the globe, particularly those with substantial capital and sophisticated portfolio strategies. Examples of these investments are:

  • REIT
  • BDC
  • Private Equity
  • Commodities
  • ​Oil & Gas
  • ​Structured Notes

Foundation = Principle Protected

In the fiscal home strategy, the foundation represents investments or contractually guaranteed products offered through banks and insurance companies. Foundational assets need to meet certain criteria. First, the asset needs to be principle protected. Second, it needs to be regular and predictable enough to provide lifetime income for both spouses. Examples of these investments are:

  • Money Market
  • Social Security
  • Pension
  • Fixed Indexed Annuity
  • ​Index Universal Life
  • ​CDs/Equity Linked CDs

The Fiscal Home Portfolio Strategy

Protection in the worst case scenario is the philosophy behind the fiscal home strategy. The fiscal home provides three levels to manage risk; focusing on measuring, managing and reducing risk. Structure provides the core behind the fiscal house. The home provides a solid foundation, protection and growth. We take those ideals and mirror them in a portfolio.

Fiscal HOME

1) Distribution payments are not guaranteed and may be modified. Further, they may include a return of principal or may be paid from borrowings, which may result in lower returns due to less money to invest or unsustainable distribution rates, respectively.

Roof = Growth

In the fiscal home strategy, the roof represents investments that provide growth. Growth assets are typically taxable or tax deferred, mostly liquid and have a potential of high growth. Though these investments offer the prospect of higher returns, they also carry a high risk of losing some or all of the money invested. Examples of these investments are:

  • Stocks
  • Bonds
  • Options
  • ETFs​
  • ​Warrants
  • ​Futures