If you could be confident about your future, while compromising little of, perhaps improving today’s lifestyle, why would you wait? A better course awaits you at Beacon Wealthcare. We exist to ensure you will accomplish or exceed every goal you value, while enjoying more of life today. No one knows the future, yet many risk much of their  wealth as though they did. By recognizing and planning for what we cannot know, we address the single greatest risk you face in investing – the chance that markets will misbehave when you need money. We plan for an unknowable future.

Other parts of the investment process are knowable. Here we manage your wealth with a level of discipline and control we believe is unrivaled in the industry. Applying strict daily procedures to the management process, we protect your wealth by minimizing taxes, expenses, and market under-performance.

Better Planning – Better Life

We strive to understand your important goals, aspirations, and priorities to develop a plan that reflects them. But your plan is only as good as it is current. Life and circumstances change so we like to meet as often as change requires to ensure we understand where you are and where you want to go.

Testing your plan frequently using Monte Carlo analysis, which ‘virtually lives’ your lifetime plan through thousands of actual and simulated market conditions, we continually ensure you will confidently meet and exceed your important goals to live the best life possible.

Planning Helps Avoid Costly Mistakes

Confidence can be a powerful force in our lives and there are two kinds. There’s the emotional kind that drives us to action or stay the course when those around are doing the opposite. But as we know, emotions, particularly in investing can trick us when the going gets really tough or really exciting. Studies show that most of us fall prey to our emotions at the extremes, causing expensive mistakes. Investor experts, Dalbar Inc.’s latest annual study reveals that investors in publicly traded funds lagged the index by more than 4 percentage points per year from 1993 to 2012.

Then there’s objective confidence. This kind of confidence, can be proven through the use of probability analysis in robust systems known as Monte Carlo.

Our clients have plans that define their goals and priorities as well as what steps they wish to take when market opportunities or threats significantly impact their plan. Our process of disciplined ongoing testing and management provides clients with objective statistical confidence their plan remains on track despite the noise and chaos in the media.

Discover, Prioritize, and Optimize Your Goals

With a little investment of time and commitment, you can design a future closer to your dreams, with confidence. We can help you develop and refine a plan that reflects your important life’s goals and priorities, both for today and for your future. Our unique process optimizes your goals, often borrowing from unimportant or low-priority goals to maximize higher priority goals. This kind of optimization planning is difficult to do on your own. And returns-based plans miss these huge benefits entirely.

Here’s how it works. Say for instance, you are a saver, preferring to save more rather than work longer or take more market risk to accomplish your same goals. After some time we experience exceptionally good markets and our testing reveals that your plan confidently meets or exceeds all of your goals at their ideal levels, except savings. We call to let you know that you can reduce your savings and enjoy spending more today. If our plan truly reflects your ideals, your will gladly agree and enjoy today an opportunity that might otherwise elude you for years.

A Recommend Goal Package

Once you agree your plan adequately represents your important goals and priorities, your recommended plan becomes the guiding document for how we invest your money, how you will save and spend, and ultimately, the ideal timing and sizes of your important goals. It also helps us prioritize our advice when we discover opportunities or threats relative to your plan.

Regular Meetings

Life changes, and so do your dreams, goals, and circumstances. Unless we understand these shifts and discuss their impact on your plan, we are left to steer an outdated course, missing opportunities and threats along the way. Life-improving discoveries are made around our planning table that, quite frankly, could go unrealized otherwise.

Ongoing Monte Carlo Analysis


Between meetings we continually test your plan, using probability analysis known as Monte Carlo, to ensure adequate confidence of meeting or exceeding all of your important goals. When your plan becomes over- or under-funded due to market or goal changes, we will contact you with new advice to get back on course. You will find that our advice honors your priorities to the letter, because we listened.

Better Management – More Wealth

Efficiency is everything. Reduce your car’s drag and leaks, and it will take you further on fewer resources. Reduce the drag on your investments (taxes, expenses, and under-performance) and you will do more of the things you want in life and for longer.

We control costly leaks and drags in the investment process that most, quite frankly, ignore. Our discipline results in improved returns and greater savings – both translating into more wealth.

Market Returns

The capital markets (stocks and bonds) provide excellent returns for lifetime wealth accumulation. We offer efficient portfolios, comprised of Exchange Traded Funds (ETFs) that are designed to efficiently capture these returns.

Index Investing:

Index investing is like the “V”-shaped flight of geese. Working together they fly faster and farther than a single bird could. When the leader tires, he falls back and is replaced by a fresh new leader.

Market indexes behave similarly. As they plow steadily ahead, their leaders and laggards change continually. Picking winners, or active investing is fraught with pitfalls. A recent study demonstrated that index investing outperformed active investing over a 15-year period 83% of the time and by 1.25%. A Vanguard study over a similar time frame showed that only 6% of 1,540 funds studied, outperformed and avoided three consecutive years of underperformance.

Diversification

We believe stocks provide the surest way to preserve purchasing power from the continuing threat of inflation. But stocks alone can be volatile and throw you off-course, shaking your confidence enough to abandon them altogether. So we smooth the ride with shock absorbing high grade bonds. We also include a broadly diversified international stock ETF to offset the declining spending power of the US dollar.

Exchange Traded Funds:

ETFs are like mutual funds in one way alone: They provide a convenient way to own a large and diverse basket of stocks or bonds. In all other respects ETFs are superior to mutual funds. They are cheaper – between .25% to 2% cheaper, provide more liquidity – trading throughout the day on exchanges, offer complete transparency of what you own – holdings on their websites whereas mutual funds report infrequently, and ETFs do not under-perform the indexes to which they are benchmarked – most actively-managed mutual funds do. Here’s an example of one of our holdings – VTI.

Optimal Allocation:

Our portfolios are elegantly simple, yet brilliantly designed to optimally balance risk and return in each of our model portfolios. An 8-year Morningstar® study of the  ETFs we use in our Balanced” Portfolio (60% stock/40% bond) surpassed an industry-standard 60% S&P 500 / 40% Barclay’s Aggregate Bond Fund by 0.50% .

Rebalancing:

If you put too many sails up on your boat, you risk capsizing when a storm blows up. Allow your stocks or your bonds to grow unchecked relative to the other assets in your portfolio and you take on a riskier profile than desired. Eventually, the over-sized asset will collapse in value, and your portfolio will behave more erratically than a properly balanced one.

Common practice is to rebalance all your accounts to the same model, but this method exposes your taxable accounts to needless gains taxes. Our household approach considers all of your accounts as ONE portfolio, allowing us to minimize the trades required to rebalance, reducing commission costs. And by focusing the sales that would otherwise be taxable into your qualified accounts, like IRAs, 401Ks, and Roths, we can often eliminate gains that might occur in the rebalancing process.

Grow Tax-Friendly Buckets

401K and IRAs are not tax-friendly spending buckets in retirement. Concentrating the growth potential of stocks in your taxable and Roth accounts allows for more tax-beneficial spending during your retirement years. Bonds are vital to your portfolio, but they grow more slowly. To the extent possible, we focus them in your IRA and 401Ks to protect interest from taxes and to maximize growth assets in more tax-friendly buckets.

Tax Loss Harvesting

When markets decline some positions in your portfolio may suffer temporary losses. These losses represent opportunities to reduce your taxes, if managed properly. If your circumstances indicate, we will ‘harvest’ losses that may occur for use later in reducing other gains and/or  ordinary income. When an ETF position is sold at a loss, we immediately replace it with a similar index ETF to maintain your exposure to the asset class (domestic, international, or bond). When tax requirements are met, we will subsequently replace the substitution with our preferred ETF.