Investment Management – Evidence-Driven Investing

One common thread in Capital Associates’ history is the consistent, systematic application of financial theory and empirical research in managing strategies.

Investment Management

A financial future structured using empirical evidence instead of guesswork

The Value of Evidence-Driven Investing

The Evidence-Driven Investing strategy is backed by more than 80 years of peer-reviewed financial research and market studies. Not only should you be in the best position to achieve your goals, but also your advisor aims to develop an investment plan you can feel fully confident in during the inevitable ups and downs of the market. Your advisor will use an approach rooted in smart diversification, low investment costs, and minimizing risks.

Your investment strategy will be tailored to meet your specific goals. And once the initial strategy is put in place, your advisor will work continually to ensure your investment portfolio is finely tuned through active monitoring, rebalancing and optimization when necessary.

Criteria for Investment Selections

Capital Associates Systematic Approach​

One common thread in Capital Associates history is the consistent, systematic application of financial theory and empirical research in managing strategies. Our flexible approach goes beyond indexing to pursue better outcomes than available from tracking benchmarks. We do this by focusing on some fundamental goals. ​

Criteria for Investment Selections

Is your portfolio heading for the iceberg?

Often times many investors have performed similar to the benchmarks for the last 20+ years without recognizing the market has pulled them along. However, using academics and historical data we can show you that when investors switch to the distribution phase at retirement there is a significant negative consequence which most are unaware of.

Using the same portfolios over the same time period (2000-2019), let’s consider a newly retired 65-year-old couple with a $500,000 portfolio. At the start of every year, they withdraw 5% of the initial value ($25,000 of initial $500,000 starting value). This withdrawal is increased 3% each year to help the couple’s income keep pace with inflation. 

By 2019, the 65% stocks/35% bonds portfolio would be worth $215,721 (and this is after withdrawing $671,759 in income). 

Meanwhile, the S&P 500 portfolio ran out of money.

How Withdrawals Impact a Portfolio

IMPACT OF A 5% WITHDRAWAL

OUR INVESTMENT PHILOSOPHY

A Customized Portfolio for Every Client​

Your portfolio is no doubt an important driver of your overall financial plan. In response, we start and end with evidence. Our approach is guided by decades of objective, peer-reviewed research on how markets work.

We help you control what you can in your investments: taxes, fees and risk.

Ready to talk about how we manage your investments?

For more information about NYLIFE Securities LLC and its investment professionals, click here.

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