San Antonio-Centric 1900 Wealth Management Offers Holistic Investment Strategies Tailored to Each Client’s Age, Risk Tolerance and Other Unique Circumstances
SAN ANTONIO—September 8, 2021. San Antonio-based investment advisor 1900 Wealth Management (1900 Wealth) today discussed age and risk tolerance as two of the many factors its advisors consider when building clients’ portfolios.
“We take a holistic approach to building our clients’ portfolios, tailoring them to fit each individual’s unique personal preferences and circumstances,” said 1900 Wealth President Todd Brockwell. “We look at their whole financial picture, taking into account their time horizon, ability and willingness to accept risk, liquidity needs, the strength of their current and future income, tax situation, return expectations and other assets on their balance sheet.”
1900 Wealth’s holistic portfolio planning creates investment plans for clients that cover the incremental parts of their financial lives while ensuring they all work together. In essence, it is an investment strategy that regards the whole as greater than the sum of its parts.
Age is not always a determinant factor in the amount of risk someone can accept, but a younger person would tend to have different asset allocations and underlying investments than an older client because they have a longer time horizon and a different life experience. For instance, Brockwell said, most of 1900 Wealth’s younger investors want technology exposure in their portfolios because they have seen that sector do extremely well during their adult lives. Generally, they are more aware of the opportunities presented by emerging technologies and disruptive technologies—innovations that sweep away the systems or habits they replace because they are recognizably superior—than are older investors.
The rule of thumb for considering age in asset allocation is to subtract the investor’s age from 100, and that’s the percentage of their portfolio they should keep in equities. The point is, as you grow older, your asset allocation should move from equity exposure (primarily stocks) toward bonds and other primarily fixed-income investments.
Risk tolerance is a primary consideration when determining the best investment strategy for a client. Specifically, 1900 Wealth’s advisors assess each client’s ability and, equally important, their willingness to accept a certain level of risk in their portfolio.
“Some of our clients have significant assets, but they do not like risk,” Brockwell said. “While a textbook analysis would lead us to build a more aggressive portfolio for them, because of their lower risk tolerance, we manage toward a more conservative allocation.”
Asked about any new trends or shifts in approaching clients’ investment decisions, Brockwell said the firm has observed a recent slight shift toward a “stay rich” strategy that focuses on preserving capital and protecting against inflation. Further, given the high relative valuations on public equity markets and low interest rates in fixed-income asset classes, 1900 Wealth is including some less correlated assets and alternative investments in selected portfolios. However, 1900 Wealth advisors do not embrace a strategy of looking toward market timing to create excess returns.
“1900 Wealth’s overarching long-term investment goal for all our clients is to maximize their return on investment while minimizing volatility,” said Brockwell. “Wealth management is highly complex, but it’s also highly personal. We focus on accomplishing each client’s particular vision for their own unique set of circumstances, priorities and goals.”
