The starting point
What Is the Purpose of the Portfolio?
Before an investment is chosen, we need to know what the money has to do.
When will you need income? How much? What do your taxes look like now and later? How much risk do you actually need to take? What would a major market disruption mean for the rest of your plan?
Those answers come first.
M. Chad Holland, CFA, CFP®, creates an Investment Policy Statement around your goals, income needs, taxes, time horizon, risk, liquidity needs, existing assets, and other constraints.
The IPS defines what the portfolio must do, what risks are acceptable, and what constraints matter.
An independent investment manager then builds and manages the portfolio within that mandate.
The portfolio is built around you, not the other way around.
And each investment has to earn its place.
What you own
What Should the Portfolio Accomplish?
The objective is straightforward: maximize after tax, risk adjusted returns within the limits of your plan.
No investment gimmicks. No chasing trends. No building a portfolio around whatever product happens to be popular.
The portfolio is built around your actual financial life.
If you own a business, you may already have a large amount of your wealth tied to one company and one source of income.
If you own real estate, concentrated stock, private investments, or other assets that are difficult to sell, those exposures matter too.
We do not pretend the managed portfolio exists by itself.
Those outside assets, liquidity needs, tax considerations, income requirements, and existing concentrations become part of the Investment Policy Statement.
The investment manager then constructs a portfolio around those realities.
Portfolios are built primarily with individual stocks and individual bonds. An ETF may be used when it is the more practical way to own a particular part of the market.
Every investment has to earn its place.
The goal is not to own more things.
The goal is to own investments that fit the risks you already have, the liquidity you need, and what the portfolio is supposed to accomplish.
Risk management
How Do We Think About Risk?
Risk is managed actively.
PRESERVE STRENGTHEN GROW® is the framework.
Preserve means maintaining enough quality and liquidity to stay flexible when markets become stressed.
Strengthen means using that flexibility when better opportunities appear.
What you pay matters. Buy a good asset at the wrong price and you can spend years digging out. Buy well, and the odds can improve.
That is why volatility can be useful.
When prices become more attractive, we want the flexibility to act.
Grow is what can follow when Preserve and Strengthen are done well.
The objective is simple: protect flexibility, improve the portfolio when opportunity appears, and use disciplined buying when opportunities appear.
PRESERVE STRENGTHEN GROW® is a registered trademark of Tannin Capital, LLC, and is used with permission.
Tax management
Why Manage Investments Before Taxes?
We do not.
The objective is to maximize after tax, risk adjusted returns.
A gain that creates an unnecessary tax bill is not automatically a good decision. Neither is holding a bad investment forever just because selling it would create a gain.
Taxes are part of the investment decision from the beginning.
That means considering which assets belong in which accounts, when gains should be realized, when losses can be useful, and whether changing an existing position is worth the tax cost.
The question is not simply, “Did the portfolio make money?”
It is, “How much did you keep after taxes, and how much risk did you take to earn it?”
More on tax-efficient investing.
The process
How Is the Investment Strategy Implemented?
1. Define What the Money Has to Do
Income needs, taxes, time horizon, liquidity, risk, existing assets, and outside concentrations all matter.
2. Create the Investment Policy Statement
M. Chad Holland, CFA, CFP®, creates the Investment Policy Statement.
The IPS defines the objectives, risk parameters, liquidity needs, tax considerations, and other constraints that will govern the portfolio.
It is the bridge between your financial plan and the investment manager.
3. Build Around You
The independent investment manager constructs the portfolio within that mandate.
You are not fitted into a model.
The portfolio is built around your needs, your risks, your taxes, and the assets you already own.
4. Actively Manage Risk and Tax Consequences
The manager handles security selection and day to day portfolio decisions within the IPS.
Risk is managed actively. Tax consequences are considered before trades are made. Liquidity and changing opportunities are evaluated on an ongoing basis.
5. Keep the Portfolio Aligned With Your Life
When your circumstances change, the plan may change.
If the plan changes, the IPS may change.
And the portfolio follows the IPS.
Not the other way around.
More on how we work.
Who does what
Who Is Responsible for What?
M. Chad Holland, CFA, CFP®, is responsible for the financial plan and Investment Policy Statement.
The independent investment manager is responsible for security selection, trading, and day to day portfolio management within that mandate.
The manager does not decide what your financial life requires.
The IPS does.
Before you move anything
Want a Second Opinion First?
You can hire Holland Capital for a fixed fee to review the portfolio you already own.
We will look at how it fits your plan, the risks you are taking, the tax consequences of changing it, and what we would recommend doing differently, if anything.
There is no requirement to move the portfolio to Holland Capital afterward.
The review can stand on its own, or it can be included as part of a broader financial planning engagement.
If you later decide to hire Holland Capital for ongoing investment management, planning updates are included in the advisory relationship.
Borrowing
Can You Borrow Against Your Portfolio Instead of Selling?
Sometimes it makes more sense to borrow against a taxable portfolio than to sell investments and realize gains.
Schwab may provide a pledged asset line of credit against eligible accounts. Schwab is the lender and sets the terms, including the variable interest rate and collateral requirements.
If the pledged investments fall in value, Schwab can require additional collateral or repayment and may sell investments to satisfy the loan.
Holland Capital does not receive compensation from Schwab for the loan.
Fees
How Are We Paid?
If you hire Holland Capital for ongoing investment management, Holland Capital charges an advisory fee based on the assets we manage.
The independent investment manager also charges a separate fee based on assets under management.
Planning updates are included in the advisory relationship.
Holland Capital does not receive commissions from the securities held in managed portfolios.
Because portfolios are built primarily with individual securities, you are generally not also paying mutual fund expense ratios on top of the advisory and investment management fees.
Fees are agreed in writing before we begin.
Holland Capital is a fiduciary. M. Chad Holland, CFA, CFP®, is also bound by professional standards that require him to put clients’ interests first, regardless of the financial question being discussed.
Areas served
Asheville: Asheville, Fletcher, Hendersonville, Weaverville
Athens: Athens, Bogart, Watkinsville, Winterville
Atlanta: Alpharetta, Atlanta, Decatur, Dunwoody, Johns Creek, Kennesaw, Marietta, Peachtree City, Roswell, Sandy Springs, Smyrna
Augusta: Augusta, Evans, Grovetown, Martinez, North Augusta
Cape Coral: Cape Coral, Estero, Fort Myers, Lehigh Acres, North Fort Myers
Cary: Apex, Cary, Holly Springs, Morrisville
Charleston: Charleston, Goose Creek, Hanahan, Hilton Head, Isle of Palms, James Island, Kiawah Island, Mount Pleasant, North Charleston, Sea Island, Summerville
Chattanooga: Chattanooga, East Ridge, Lookout Mountain, Red Bank, Signal Mountain, Soddy-Daisy
Clarksville: Clarksville, Hopkinsville, Oak Grove, Sango
Columbia: Cayce, Columbia, Forest Acres, Irmo, Lexington, West Columbia
Columbus: Columbus, Fortson, Midland, Phenix City
Daytona Beach: Daytona Beach, New Smyrna Beach, Port Orange
Fort Lauderdale: Davie, Fort Lauderdale, Hollywood, Plantation, Pompano Beach, Sunrise, Weston
Franklin: Franklin, Nolensville, Spring Hill, Thompson's Station
Greensboro: Chapel Hill, Durham, Greensboro, High Point, Hillsborough, Jamestown, Morrisville, Oak Ridge, Reidsville, Summerfield
Greenville: Five Forks, Greenville, Greer, Mauldin, Simpsonville, Taylors, Travelers Rest
Hialeah: Hialeah, Miami Lakes, Opa-locka, Palm Springs North
High Point: Archdale, High Point, Jamestown, Trinity
Jackson: Humboldt, Jackson, Medina, Milan
Jacksonville: Atlantic Beach, Fernandina Beach, Jacksonville, Jacksonville Beach, Orange Park, Ponte Vedra Beach, St. Augustine
Knoxville: Alcoa, Farragut, Knoxville, Lenoir City, Maryville, Oak Ridge
Lancaster: Indian Land
Macon: Byron, Centerville, Gray, Macon, Warner Robins
Melbourne: Cocoa Beach, Fort Pierce, Melbourne, Merritt Island, Palm Bay, Sebastian, Titusville, Viera
Memphis: Arlington, Bartlett, Collierville, Germantown, Lakeland, Memphis, Olive Branch, Southaven
Miami: Aventura, Coral Gables, Doral, Hialeah, Kendall, Miami, Miami Beach, Miami Gardens, North Miami
Mount Pleasant: Daniel Island, Isle of Palms, Mount Pleasant, Sullivan's Island
Murfreesboro: La Vergne, Lascassas, Murfreesboro, Smyrna
Myrtle Beach: Conway, Garden City, Myrtle Beach, North Myrtle Beach, Pawleys Island, Surfside Beach
Nashville: Brentwood, Franklin, Hendersonville, Mount Juliet, Murfreesboro, Nashville, Smyrna, Spring Hill
North Charleston: Goose Creek, Hanahan, Ladson, North Charleston, Summerville
Orlando: Altamonte Springs, Apopka, Heathrow, Kissimmee, Lake Mary, Ocala, Orlando, Oviedo, Sanford, The Villages, Winter Garden, Winter Park
Palm Beach: Boca Raton, Boynton Beach, Coral Springs, Delray Beach, Lake Worth, Palm Beach, West Palm Beach
Port St. Lucie: Fort Pierce, Jensen Beach, Port St. Lucie, Stuart
Raleigh: Apex, Cary, Fuquay-Varina, Garner, Holly Springs, Knightdale, Raleigh, Wake Forest
Rock Hill: Clover, Fort Mill, Rock Hill, Tega Cay, York
Roswell: Alpharetta, Johns Creek, Milton, Roswell
Sandy Springs: Alpharetta, Dunwoody, Roswell, Sandy Springs
Sarasota: Bradenton, Englewood, Longboat Key, North Port, Sarasota, Venice
Savannah: Garden City, Pooler, Port Wentworth, Richmond Hill, Savannah
Spartanburg: Boiling Springs, Duncan, Inman, Lyman, Spartanburg
St. Petersburg: Cape Coral, Captiva Island, Clearwater, Fort Myers, Fort Myers Beach, Gulfport, Largo, Marco Island, Naples, Pinellas Park, Sanibel, Seminole, St. Petersburg, Treasure Island
Summerville: Goose Creek, Ladson, Summerville
Tallahassee: Crawfordville, Havana, Monticello, Tallahassee
Tampa: Brandon, Clearwater, Palm Harbor, Riverview, St. Petersburg, Valrico, Wesley Chapel
Wilmington: Carolina Beach, Leland, Ocean Isle Beach, Sunset Beach, Wilmington, Wrightsville Beach
Winston-Salem: Clemmons, Kernersville, Lewisville, Winston-Salem
Start With One Conversation
Tell us what you are trying to solve.
The first conversation is free. If it makes sense to move forward, we will scope and price the engagement, then adjust it with you as needed before we begin.
