• Segment Wealth Management Dictionary and Glasses
Segment Wealth Management Gold

Segment’s client strategies are founded on a few fundamental beliefs.

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CLARITY

We make it easy to do business with us by communicating clearly and concisely.

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RELIABILITY

We are available and responsive to our clients. We are focused, precise, and consistent in our strategies and their implementation.

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PERFORMANCE

We are dedicated to achievement and performing to the highest professional standards. We are prepared, and will always strive to deliver superior service and execution.

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TRUTH

We behave with respect, integrity, and character. We are accurate, realistic, and accountable. We always act fairly and comply with all laws.

MARKETS ARE EFFICIENT

Markets accurately price all known information virtually instantaneously and also very quickly and accurately provide a “handicapped” consensus view about expectations for the future.

INVESTORS ARE IRRATIONAL

Investors tend to go with the crowd, despite the crowd’s miserable track record. The group-think tendency to buy what has already risen and sell what has already fallen has been a precursor to every financial disaster. Awareness of these trends can create exploitable opportunities for investors with boldness, vision, and perspective.

TAXES AND COSTS MATTER

Managing taxes and investment management expenses are two of the easiest ways to enhance performance. Controlling these two known variables provides a low-risk means to maximize the impact of a client’s investments. Segment’s preference for low-cost and tax-efficient vehicles like Exchange Traded Funds (ETFs) allows us to assist clients in avoiding the hidden costs and tax pitfalls of certain financial products.

RISK BUDGETING

The stock market can be unpredictable. While there are periodic instances in which stocks offer less than average prospects, we have no doubt that the stock market presents the best opportunities for long term wealth building. We believe that as long as stocks at some point rise in value in the future, the only investor who loses is the one who sells impatiently, or in fear, and thus gives away his chance at recovery.

In order to help our clients prepare for the periodic losses that are certain to occur, Segment emphasizes risk budgeting.Staying power is often the determinant of success, and we advise our clients and construct their portfolios so that both are prepared for changes in the market.

CONSUMPTION BUDGETING

We have found over the decades that, for many clients, investment decision making and consumption patterns are linked, and clients with high expectations for returns tend to make worse decisions. Clients who withdraw excessively from their accounts also tend to make rash decisions at the first sign of trouble, because market-induced risk is viewed as an immediate threat to their consumption patterns and lifestyles.

Often, these investors experience the worst of what the market has to offer because they have a hard time contextualizing risks, expectations, and time. An experienced investment advocate can steer clients in the direction that they need to go but fear to tread. It’s especially important for that advocate to not be compensated for investment activity because this arrangement creates a situation in which agreeing with client bias generates commissions for the advisor. Avoiding this conflict of interest ensures the client has a trusted advisor with clear vision and unbiased perspective.

FEE BUDGETING

Segment is somewhat unique in our approach to managing client investments. Unlike most wealth management firms that subcontract security selection via mutual funds and separate accounts, we often build the entire portfolio ourselves using a multi-dimensional approach. We also use inexpensive and tax efficient exchange-traded funds (ETFs) as “building blocks” for many situations. These approaches tend to cut client overall fees in half as compared to most other alternatives. These approaches also give clients better compounded returns by deferring taxes on unrealized gain, which has estate planning benefits as well. Additionally, this approach also plays well with client charitable giving activity, where securities with a large gain are held specifically as “currency” for gifts to charity.

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  • Fax 713.800.7066

Segment Wealth Management