Comprehensive Portfolio Investment & Personalized Financial Advice for Santa Barbara & Los Angeles
The firm's approach to providing its fiduciary investment advisory services emphasizes a thorough understanding of our client financial profiles. This close advisor-client relationship enables deeper understanding to charter the best financial pathway for their unique circumstances. We integrate retirement and estate planning, portfolio management, tax strategies and risk management to help clients reach specific milestones. It starts with responsiveness & accessibility but ends with exceptional results.
• Awarded 12 Best Financial Advisors in Santa Barbara for 2023 by Expertise.com
• Forbes Ranked 10 Most Dependable Wealth Managers Southern California by Goldline 2008
• Rated Top 25 Financial Advisors out of 903 Advisors in Los Angeles for 2022 by Expertise.com
Our relationship objective is to meet the client’s investment and financial goals by providing direction, eliminating dangers, focusing on opportunities and implementing effective strategies. We provide the greatest value when translating complex matters into the simple, while also mapping potential solutions to those issues. For example, clients who research online their investment, tax and financial questions may get confusing or conflicting views. If we don’t know the answer, we will use our knowledge and resources to help sift through the vast amounts of data and information to focus in on the relevant issues and solutions.
We often advise clients that there can be plenty to worry about, but the fact that they have decided to visit a professional advisor on any financial matter, then this in effect is taking a risk management step. As a result of risk being inherent in what advisors do we therefore employ a myriad of risk reduction tools. One primary function of an advisor is to evaluate what the client's risks are, and what their capacity is, and then find the right balance between risk and uncertainty. More specifically, how much risk do you need to take in order to achieve your portfolio required return-driven goals relative to how much can you afford to take before the potential of risk failure becomes too excessive to withstand (risk capacity).
Tactical Measurement Services:
• Wealth Planning Timeline
• Cash Flow and Balance Sheet Analysis (Liquidity and income sources/needs)
• Negative Health Care Wealth Event Stress Test
• Lifestyle Goals I Retirement Timeline Analysis
• Other Negative Wealth Event Stress Tests
• Financial Planning: IRA Withdrawals, Estate Plans, Giving, Income Calculations, etc.
Strategic Outcome Services:
• Portfolio Asset Allocation Analysis
• Customized Performance Reporting & Review
• Investment Diversification Strategies
• Tax-Efficient Investing Strategies
• Risk Tolerance Driven Strategies
Then we integrate all facets of a client's financial life into the overall picture to best map out the strategic pathway that will render the best outcome.
• Awarded 12 Best Financial Advisors in Santa Barbara for 2023 by Expertise.com
• Forbes Ranked 10 Most Dependable Wealth Managers Southern California by Goldline 2008
• Rated Top 25 Financial Advisors out of 903 Advisors in Los Angeles for 2022 by Expertise.com
Our relationship objective is to meet the client’s investment and financial goals by providing direction, eliminating dangers, focusing on opportunities and implementing effective strategies. We provide the greatest value when translating complex matters into the simple, while also mapping potential solutions to those issues. For example, clients who research online their investment, tax and financial questions may get confusing or conflicting views. If we don’t know the answer, we will use our knowledge and resources to help sift through the vast amounts of data and information to focus in on the relevant issues and solutions.
We often advise clients that there can be plenty to worry about, but the fact that they have decided to visit a professional advisor on any financial matter, then this in effect is taking a risk management step. As a result of risk being inherent in what advisors do we therefore employ a myriad of risk reduction tools. One primary function of an advisor is to evaluate what the client's risks are, and what their capacity is, and then find the right balance between risk and uncertainty. More specifically, how much risk do you need to take in order to achieve your portfolio required return-driven goals relative to how much can you afford to take before the potential of risk failure becomes too excessive to withstand (risk capacity).
Tactical Measurement Services:
• Wealth Planning Timeline
• Cash Flow and Balance Sheet Analysis (Liquidity and income sources/needs)
• Negative Health Care Wealth Event Stress Test
• Lifestyle Goals I Retirement Timeline Analysis
• Other Negative Wealth Event Stress Tests
• Financial Planning: IRA Withdrawals, Estate Plans, Giving, Income Calculations, etc.
Strategic Outcome Services:
• Portfolio Asset Allocation Analysis
• Customized Performance Reporting & Review
• Investment Diversification Strategies
• Tax-Efficient Investing Strategies
• Risk Tolerance Driven Strategies
Then we integrate all facets of a client's financial life into the overall picture to best map out the strategic pathway that will render the best outcome.
It is unfortunate to hear that the average investor typically lacks basic critical financial literacy to proficiently invest, according to the Financial Industry Regulatory Authority (FINRA). According to this study by the brokerage industry's self regulated body, the average U.S. adult only answered 2.9 out of five basic questions about topics like risk, inflation, interest rates and mortgages and only 14% answered all five questions correctly.
Perhaps this is why 92% of Americans working with a financial advisor say that person is helping them reach their financial goals and 86% say their advisor relieves the pressure of trying to plan their family’s financial future by themselves (Allianz study). We are large enough to provide knowledge, technology and depth to exceed client expectations, while small enough to deliver a personal touch. As seasoned advisors, we continually advise and direct clients on the different considerations and actions being employed to help them reach their goals. We also understand the market for financial advisors is highly competitive and you have choices, therefore we strive to distinguish ourselves by meeting our clients' needs at every level of financial complexity.
Watch Our Introductory Video
Since clients generally are impacted by a distinct set of circumstances, we work to customize a client's portfolio to meet their unique tolerance for risk, return requirement and any individual constraints. We seek to create a well-diversified portfolio with exposure to a wide variety of asset classes. It is our belief that portfolio diversity of asset classes can improve overall risk-adjusted returns for clients. A diverse portfolio ensures that at least some of your investments will be in the capital market's top performing category at any given time -- regardless of what's hot and what's not. And you will never be fully invested in the year's losers. Different securities perform differently at any point of time and with a diverse mix of assets, a portfolio will be less likely to suffer extreme losses that would impact concentrated portfolios. It really is just the simple practice of not putting all your eggs in one basket. That does not suggest, however, that we are not adjusting the portfolios to benefit from changing circumstances, as we actively take tactical portfolio adjustments to enable the portfolio to be optimally positioned for different economic, Federal Reserve (central bank), inflationary or interest rate environments.
The single biggest component of investing is understanding the incredible value of having your investments compound (particularly in tax deferred accounts). For example, would you rather have $1 million now or have a penny double very day for a month? Well, most people tend to take the money upfront, but that one cent doubling ultimately compounds to a whopping $5.4 million. Yes, 100% daily return is an extreme example but the principle of compounding holds for realistic returns if you start early, make regular investments and are patient. For example, if you saved $846 dollars every month for 40 years and only had a 4% return, you would still have over a million dollars. Another important consideration as to whether or not you will achieve retirement success isn't what the markets will do, but instead what you do and how you react to the markets - simply put, having an advisor elevates your chances of success when it comes to these critical decisions.
Many of our client portfolios hold the world's assets, such as stocks, traditional bonds, convertible bonds, preferred stock, REITs, etc. as core holdings. Then, depending on the client's unique circumstances, we may layer in low-correlation asset classes as a smaller allocation for the satellite portion. We typically adjust allocation based on inflation, interest rate expectations, yield curve, credit spreads, corporate profit by sector groups, GDP growth trends at the macro level, etc. For example, with the impending rising rate environment, many bonds will lose value and we adjust strategies to other income alternatives, shorter maturities, laddered maturities and a preference toward individual bonds.
Gradually, well-performing asset categories will come to represent a larger percentage of your overall portfolio than originally planned - which can increase your overall risk. To counteract this, we periodically rebalance our non-discretionary client portfolios to bring investments back to the target allocation and to assure that portfolios remain well-diversified. Any rebalancing of your portfolio is done in a way that's designed to minimize taxes and transaction costs.
Three principles of preserving and growing capital deserve our attention at this juncture in financial markets: never own too much of any one investment, keep only those investments that offer the prospect of a reasonable return, and accept that financial markets will behave in a way that confounds the majority of people. These first principles speak to the importance of portfolio diversification, maintaining reasonable expectations and avoiding the latest fads.
We find that by making investments that include non-equity asset classes, investors can achieve true diversification – and expect more consistent performance across the spectrum of potential economic environments. Traditional diversification focuses on dollar allocation; but because equities have disproportionate risk, a traditional portfolio’s overall risk is often dominated by its equity portion. Hence, the we focus more on risk parity diversification or risk allocation. For example, let’s say a portfolio’s allocations to equities is typically 60% or higher. Because equities have approximately three to four times the risk (volatility) of bonds, this allocation leads to a portfolio that has roughly 90% of its risk budge dedicated to equities. In other words, when viewed through the lens of risk, traditional asset allocations are highly concentrated in the equity markets — and not actually diversified at all.
The importance of diversify across asset classes that behave differently during economic stage cycles or changing environments remains critical. In general, equities do well in high growth and low inflation environments, bonds do well in deflationary or recessionary environments, and hard assets (REITs, precious metals, commodities, etc.) tend to perform best during inflationary environments. We focus on having a balanced exposure to these three main asset classes, among others, in order to produce more consistent long-term positive results.
Click to read more here: Advanced Portfolio Management & Asset Allocation
As an Institutional custody affiliate of Charles Schwab, our services provide for full transparency, 24/7 client access, safe asset custody, third-party statement reporting and a low fee-oriented platform. We pride ourselves on integrity, client relationships and an exceptional level of personalized advisory services.
The single biggest component of investing is understanding the incredible value of having your investments compound (particularly in tax deferred accounts). For example, would you rather have $1 million now or have a penny double very day for a month? Well, most people tend to take the money upfront, but that one cent doubling ultimately compounds to a whopping $5.4 million. Yes, 100% daily return is an extreme example but the principle of compounding holds for realistic returns if you start early, make regular investments and are patient. For example, if you saved $846 dollars every month for 40 years and only had a 4% return, you would still have over a million dollars. Another important consideration as to whether or not you will achieve retirement success isn't what the markets will do, but instead what you do and how you react to the markets - simply put, having an advisor elevates your chances of success when it comes to these critical decisions.
Many of our client portfolios hold the world's assets, such as stocks, traditional bonds, convertible bonds, preferred stock, REITs, etc. as core holdings. Then, depending on the client's unique circumstances, we may layer in low-correlation asset classes as a smaller allocation for the satellite portion. We typically adjust allocation based on inflation, interest rate expectations, yield curve, credit spreads, corporate profit by sector groups, GDP growth trends at the macro level, etc. For example, with the impending rising rate environment, many bonds will lose value and we adjust strategies to other income alternatives, shorter maturities, laddered maturities and a preference toward individual bonds.
Gradually, well-performing asset categories will come to represent a larger percentage of your overall portfolio than originally planned - which can increase your overall risk. To counteract this, we periodically rebalance our non-discretionary client portfolios to bring investments back to the target allocation and to assure that portfolios remain well-diversified. Any rebalancing of your portfolio is done in a way that's designed to minimize taxes and transaction costs.
Three principles of preserving and growing capital deserve our attention at this juncture in financial markets: never own too much of any one investment, keep only those investments that offer the prospect of a reasonable return, and accept that financial markets will behave in a way that confounds the majority of people. These first principles speak to the importance of portfolio diversification, maintaining reasonable expectations and avoiding the latest fads.
We find that by making investments that include non-equity asset classes, investors can achieve true diversification – and expect more consistent performance across the spectrum of potential economic environments. Traditional diversification focuses on dollar allocation; but because equities have disproportionate risk, a traditional portfolio’s overall risk is often dominated by its equity portion. Hence, the we focus more on risk parity diversification or risk allocation. For example, let’s say a portfolio’s allocations to equities is typically 60% or higher. Because equities have approximately three to four times the risk (volatility) of bonds, this allocation leads to a portfolio that has roughly 90% of its risk budge dedicated to equities. In other words, when viewed through the lens of risk, traditional asset allocations are highly concentrated in the equity markets — and not actually diversified at all.
The importance of diversify across asset classes that behave differently during economic stage cycles or changing environments remains critical. In general, equities do well in high growth and low inflation environments, bonds do well in deflationary or recessionary environments, and hard assets (REITs, precious metals, commodities, etc.) tend to perform best during inflationary environments. We focus on having a balanced exposure to these three main asset classes, among others, in order to produce more consistent long-term positive results.
Click to read more here: Advanced Portfolio Management & Asset Allocation
As an Institutional custody affiliate of Charles Schwab, our services provide for full transparency, 24/7 client access, safe asset custody, third-party statement reporting and a low fee-oriented platform. We pride ourselves on integrity, client relationships and an exceptional level of personalized advisory services.
Wealth Management Team Leader
Kip Lytel, CFA®, MBA
Contact us for a complimentary initial consultation & portfolio review: (805) 965-7955 | Email: [email protected]
Investment Firm Offices serve San Luis Obispo County, Santa Barbara County, Ventura County, Los Angeles County & Orange County
Disclaimer: The website provides general information regarding our business along with access to additional investment related information. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. The intent is to provide helpful information, which should NOT be construed as investment advice. We do not guarantee its accuracy, nor completeness, and it is not intended to be the primary basis for investment decisions. We do not make personal investment recommendations to people or entities except to those who have engaged us expressly for the purpose of providing professional investment advisory services. Investing involves risk and possible loss of principal capital. Montecito Capital Management Group’s ADV filing is available online at http://www.adviserinfo.sec.gov and current FORM ADV Part 2, which describes the services offered, fees charged and detailed company information, among other things, is available upon request free of charge. To a certain degree we are limited in our fiduciary capacity by the firm's non-discretionary client relationship, whereby the client dictates the investment parameters and contractually agrees to accept sole responsibility for their choices.
Kip Lytel, CFA®, MBA
Contact us for a complimentary initial consultation & portfolio review: (805) 965-7955 | Email: [email protected]
Investment Firm Offices serve San Luis Obispo County, Santa Barbara County, Ventura County, Los Angeles County & Orange County
Disclaimer: The website provides general information regarding our business along with access to additional investment related information. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. The intent is to provide helpful information, which should NOT be construed as investment advice. We do not guarantee its accuracy, nor completeness, and it is not intended to be the primary basis for investment decisions. We do not make personal investment recommendations to people or entities except to those who have engaged us expressly for the purpose of providing professional investment advisory services. Investing involves risk and possible loss of principal capital. Montecito Capital Management Group’s ADV filing is available online at http://www.adviserinfo.sec.gov and current FORM ADV Part 2, which describes the services offered, fees charged and detailed company information, among other things, is available upon request free of charge. To a certain degree we are limited in our fiduciary capacity by the firm's non-discretionary client relationship, whereby the client dictates the investment parameters and contractually agrees to accept sole responsibility for their choices.