How Claro Advisors and Fidelity Institutional ™ have been solving Investor's biggest problems
We offer strategies that can produce POSITIVE returns during steep market declines
Despite the worst year for US Bonds and the 7th worst stock market since 1926,1 our market-linked note investors received 9-15% annual returns with 100% of their principal protection during these limited market declines.2 My blogs, newsletters, and videos have highlighted the benefits of market-linked notes. These ideas have worked so well that I launched www.structurednotes.com last year to educate investors regarding these protective investments. Meanwhile, we continue to implement these ideas which can generate 10% plus annual returns even if the markets decline up to 30%.
For growth investors looking recovering losses quicker, we have been utilizing strategies offer enhanced (160+%) upside of growth stock index returns while also protecting principal from limited market declines. Watch our case study video here.
We also offer investment portfolios that are built upon risk tolerance objectives and managed to drawdown risk. Investors decide upon the maximum amount they are willing to lose on an annual basis and we have their portfolios managed within this risk bucket. Learn more about Risk-engineered Portfolios here.
Fee Savings
Fees are one of the most manageable variables to control when creating an investment plan or selecting a financial advisor. Fees all have one thing in common; if the money is going somewhere else, it is not going to you. While paying for an advisor for professional advisory services can be worth the cost, working with a Fiduciary advisor with lower fees is to your advantage.
The current low investment return and high inflation environment make managing fees more critical to achieving your investment goals. As an independent Registered Investment Advisor (RIA), Claro Advisors does not have the high overhead of a larger, traditional bank. We pass these cost savings on to clients through lower fees.
|
Portfolio Value |
Estimated Annual Fee Savings |
Estimated Three Year Savings* |
Three Year Total Fee Savings |
|
$250,000 |
$1,250 |
$3750 |
$4138 |
|
$500,000 |
$1,750 |
$5,250 |
$5,793 |
|
$1,000,000 |
$3,000 |
$9,000 |
$9,930 |
|
$2,000,000 |
$5,000 |
$15,000 |
$16,551 |
|
$3,000,000 |
$9,000 |
$27,000 |
$29,791 |
|
$4,000,000 |
$12,000 |
$36,000 |
$39,722 |
|
$5,000,000 |
$15,000 |
$45,000 |
$49,652 |
|
$6,000,000 |
$18,000 |
$54,000 |
$59,582 |
|
$7,000,000 |
$21,000 |
$63,000 |
$69,513 |
* Assumes 5% fee savings reinvestment growth Savings does not include sales charge savings on 529 plans. Claro does not charge fees on 529 plan contributions or balances.
Tax Savings
Your investment portfolio should be managed for tax efficiency to maximize the growth of your wealth. While 2022 was a brutal year for the financial markets, the opportunity to harvest losses was a silver lining. Investors can use these losses to offset future taxable gains. My blog highlights this strategy in more detail.
If your 1099B tax form shows net realized capital gains and capital gains distributions, then it’s likely your advisor is not doing their job and is costing you money. THIS IS A RED FLAG THAT YOU MAY NEED A NEW ADVISOR.
We offer tax planning as part of our comprehensive financial planning. If you provide us a copy of your tax return we'll produce a report with tax mitigation recommendations.
1 Source: Morningstar as of 12/31/22
2 Claro acts as agent for market-linked structured notes. Market-linked notes can offer 100% principal protection up to 30-50% stock market index declines. Dual directional notes offer absolute positive returns up to 20-40% market declines. Please see the completed offering documents for full risks and disclosures.