Wealth Management

Catering to complexity

At Able Wealth Management, we offer a suite of interconnected services tailored to your unique financial objectives. Our comprehensive approach includes personalized planning, wealth growth strategies, legacy planning, philanthropic guidance, and tax optimization. Our team of experts crafts an integrated strategy to help you navigate your financial journey with confidence, no matter your life stage. Let us put our knowledge and dedication to work for you as you plan for the future, grow your wealth, create a lasting legacy, and make a meaningful impact.

 

Wealth Management catering to complexity

It is a specialized and comprehensive approach to managing one's financial assets, focusing on growth, preservation, and efficient wealth transfer. It typically encompasses a wide array of services, such as investment management, estate planning, tax planning, and risk management, and is targeted at high-net-worth individuals and families who require a more sophisticated level of financial expertise and personalized attention.

While both wealth management and financial planning aim to help individuals achieve their financial goals, wealth management is a more specialized and comprehensive approach that focuses on high-net-worth individuals and families. Financial planning is broader in scope and can be applicable to individuals and families with varying levels of wealth and financial complexity.

WM services are best suited for high-net-worth individuals and families who have complex financial needs and require a more sophisticated level of financial expertise and personalized attention. If you have a significant amount of assets, multiple income streams, or complex estate planning needs, wealth management services may be more appropriate for you.

Yes, you can benefit from both financial planning and wealth management services. Financial planning can help you create a roadmap to achieve your financial goals, while wealth management can provide specialized expertise to manage and grow your wealth. Depending on your financial situation and needs, you may choose to work with a financial planner who also offers wealth management services or engage separate professionals for each service.

Financial Management for Artists and Galleries
Artists and art galleries require specialized financial management services to handle the unique financial aspects of the art world. These services may include managing art inventories, valuations, sales, acquisitions, and consignments. Firms specializing in art-related financial services can provide guidance on pricing artworks, portfolio diversification, art market trends, and managing the financial aspects of art collections.

Financial Services for Socially Conscious Clients
Wealth management firms are increasingly offering services for clients who prioritize social and environmental impact in their investment decisions. These services, often referred to as sustainable or impact investing, help clients align their financial goals with their values. Wealth managers in this space provide guidance on socially responsible investing, integrating environmental, social, and governance (ESG) factors into investment strategies, and measuring the impact of investments.

Alternative Investment Strategies
Some niche wealth management services cater to clients with a preference for alternative investments. This includes investments in sectors like real estate, private equity, venture capital, hedge funds, and commodities. Wealth managers specializing in alternative investments provide expertise in evaluating, selecting, and managing these non-traditional asset classes, which can help diversify portfolios and potentially enhance returns.

Retirement and Succession Planning for Business Owners
Business owners require specialized wealth management services to plan for retirement and succession. These services assist clients in developing strategies to transition their businesses, maximize the value of their assets, and ensure a smooth succession process. Wealth management provide guidance on business valuation, exit strategies, and wealth transfer to the next generation.

Lifestyle Management Services
Wealthy clients with demanding careers, such as professional athletes or artists, often require assistance in managing their day-to-day personal affairs. Lifestyle management services offered by wealth management firms can handle tasks such as travel arrangements, event planning, concierge services, and household staff management. These services aim to alleviate the administrative burdens and allow clients to focus on their careers and personal lives.

Individuals with Significant Equity Compensation
Equity Compensation Wealth Management is a niche service tailored to clients who receive a significant portion of their income or net worth through equity compensation, such as stock options, restricted stock units (RSUs), employee stock purchase plans (ESPPs), or other forms of equity-based incentives. This specialized service focuses on addressing the unique financial planning and wealth management needs of individuals with equity compensation

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Volatility Drag

Volatility drag, often unnoticed by many investors, plays a significant role in the performance of investment portfolios, especially in markets characterized by high volatility. Understanding volatility drag is crucial for making informed investment decisions and managing long-term investment performance.

Understanding Volatility Drag

Volatility drag refers to the negative effect of investment volatility on compound returns over time. It occurs because losses have a more significant impact on portfolio value than gains of the same magnitude. For example, if an investment loses 10% one year and gains 10% the next, the investment will not return to its starting value due to the mathematical asymmetry between gains and losses. This phenomenon underscores the importance of minimizing large fluctuations in investment value to protect long-term returns.

The Mathematics Behind Volatility Drag

The mathematical principle underlying volatility drag is relatively straightforward but profound in its implications for investors. The key concept is that percentage gains and losses are not symmetrical. A 50% loss requires a 100% gain to break even, not a 50% gain. This asymmetry means that volatility (up and down movements in price) can erode the compound growth rate of an investment, even if the arithmetic mean of the returns seems healthy.

Example of Volatility Drag

Consider an investment with the following annual returns: +20%, -15%, +10%, and -5%. While the arithmetic mean of these returns might suggest a modest positive performance, the compound annual growth rate (CAGR) would tell a different story, factoring in the volatility drag and showing a lower effective return than the arithmetic mean would suggest.

Implications for Investors

  • Risk Management: Understanding volatility drag emphasizes the importance of risk management strategies, such as diversification and the use of derivatives for hedging, to minimize significant downturns in portfolio value.
  • Investment Strategy: Investors might consider investment strategies that aim for steady, consistent returns over those with potentially higher but more volatile returns. Such strategies might include investing in low-volatility stocks, index funds, or using dollar-cost averaging to mitigate the impact of market fluctuations.
  • Psychological Aspects: Volatility drag also highlights the psychological challenge for investors who may overreact to short-term market movements. A long-term perspective is crucial for successful investing, as frequent trading in response to volatility can exacerbate the drag on returns.
  • Performance Evaluation: When assessing investment performance, considering both the arithmetic mean return and the compound annual growth rate (CAGR) can provide a more comprehensive view of an investment’s performance, factoring in the effect of volatility.

Financial Planning Fees

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Total Fee: $0
  • Fees can be paid monthly, quarterly or semi annually
  • Actual fee will be determined on complexity and scope after an initial consultation
Investment Advisory Fees


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  • Fee charged on a percentage-tiered rate
  • Fee based on total assets managed
  • Fee covers services such as portfolio design, continuous monitoring, rebalancing, and personalized guidance

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