Portfolios

  • Heritage (Conservative)
  • Acumulator (Moderate)
  • Explorer (Aggressive)

Heritage Portfolio

Objectives

Adam Anderson

Portfolio Manager

Blake Anderson

Analyst & Trade Desk

Jamie Cardwell

Administrator

Overview

The holy grail of investing is finding the maximum amount of return for the least amount of risk. In our quest to find this perfect balance, the Heritage Portfolio was born. We use United States treasury notes with laddered maturities to provide protection of your principal with a small amount of long-term S&P 500 options for capturing market growth.

The portfolio is rebalanced quarterly to move profits from stock options to treasuries in up markets. Periodically your assets may be reinvested from treasuries to stock options during down markets. These strategies are designed to help capitalize on opportunities in the market with the objective of providing modest growth in your portfolio.

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S&P 500 Options

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U.S. T-Bills

How We Manage Risk

We aim to minimize interest rate risk and volatility by utilizing Treasury bills with short terms. We continuously stagger investments in treasury bills over several maturity dates so that only a portion is being reinvested per time period. U.S. Treasury bills are backed by the federal government and are subject to their credit risk. In addition, any fixed income security not held to maturity may be worth more or less than the purchase price due to inflation and interest rate risks.

Although options contracts are inherently risky, we help to mitigate this risk by reserving only 10% of your assets in this asset class. An option contract gives the purchaser the right to buy or sell a stock or index at an agreed upon price and future date. The value of an option can vary dramatically, even becoming worthless. Depending on the expected price of the underlying asset at the agreed maturity date, we may have to sell options positions at a loss. With this in mind, we buy and sell in the portfolio continuously in an effort to keep losses at a minimum.

How We Use Options

An option is a right to buy or sell a stock at a future date. Option contracts can be
risky, and under certain circumstances can have unlimited risk, meaning you can lose
more than the principal invested. When used properly and prudently options can bring
more value to a portfolio. The two main strategies we employ are:

  1. Buying call options to enter a position to define risk.
  2. Selling covered options to generate income.

If we identify a stock that meets our criteria and has active option trading we may buy a long-dated option for a fraction of the amount of money we had planned to use to buy the stock outright. This strategy allows us to define the amount of money that is risked when buying a stock. If the price of the stock is above the option contract value at maturity, we can exercise the option to buy the full value of the stock or sell the options. If we like a stock but feel it is expensive, we can sell an option that allows the holder of the stock to sell it to us if it goes down to our buy price or lower. Covering these positions allows us to limit the risk to your portfolio while also allowing us to potentially buy the stock at a lower price and collect the option premium. Sometimes we will close an option position prior to maturity to take profit or limit losses.

Acumulator Portfolio

Objectives

Adam Anderson

Portfolio Manager

Blake Anderson

Analyst & Trade Desk

Jamie Cardwell

Administrator

Overview

Move beyond the typical moderate growth portfolio with the WealthGuard Accumulator Portfolio. Using strategies similar to those employed by multi-billion dollar hedge funds, our team has combined our experience in bond selection and equities trading with option strategies to provide investors with a higher return potential. If you are in the wealth accumulation phase of your financial life with an intermediate to long-term time horizon, and a moderately aggressive risk tolerance, the Accumulator Portfolio can be a great fit for your financial goals.

Stocks
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Bonds
0%
Options
0%

Our Stock Strategy

We have been buying and selling stocks for our clients for more than 20 years and are consistently scanning the markets for quality companies with earnings that are growing then waiting to buy at a reasonable price. Companies with consistently growing quarterly sales and earnings are our ideal target. Our team then follows the stock price movement relative to their value to identify desirable entry levels. Not every stock trade goes as expected, so we use a stop-loss strategy to sell the stock if the price falls below the purchase price to help limit losses and protect your principal.

How We Use Options

An option is a right to buy or sell a stock at a future date. Option contracts can be
risky, and under certain circumstances can have unlimited risk, meaning you can lose
more than the principal invested. When used properly and prudently, options can bring
more value to a portfolio. The two main strategies we employ are:

  1. Buying call options to enter a position to define risk.
  2. Selling covered options to generate income.

If we identify a stock that meets our criteria and has active option trading, we may buy a long-dated option for a fraction of the amount of money we had planned to use to buy the stock outright. This strategy allows us to define the amount of money that is risked when buying a stock. If the price of the stock is above the option contract value at maturity, we can exercise the option to buy the full value of the stock or sell the options. If we like a stock but feel it is expensive, we can sell an option that allows the holder of the stock to sell it to us if it goes down to our buy price or lower. Covering these positions allows us to limit the risk to your portfolio while also allowing us to potentially buy the stock at a lower price and collect the option premium. Sometimes we will close an option position prior to maturity to take profit or limit losses.

Bond Selection

We minimize costs and protect against inflation by carefully selecting high quality, short term bonds and holding them to maturity. By holding bonds to maturity, the volatility in bond prices can be ignored when interest rates go up. With interest rates at historic lows we feel this is the best way to defend portfolios against rising interest rates and help protect the value of your portfolio.

Explorer Portfolio

Objectives

Adam Anderson

Portfolio Manager

Blake Anderson

Analyst & Trade Desk

Jamie Cardwell

Administrator

Overview

Looking for more growth potential in your investment portfolio? We have combined our experience in stock selection with option strategies used by most hedge funds to offset potential risks and create new opportunities for investors. The WealthGuard Explorer portfolio is an aggressive portfolio for people in the wealth building phase of their financial life with long time horizons and a high-risk tolerance. Maybe now is the time to try an actively managed investment approach with the added element of stock options.

Stocks
0%
Options
0%

Our Stock Strategy

We have been buying and selling stocks for our clients for more than 20 years and are consistently scanning the markets for quality companies with earnings that are growing, then waiting to buy at a reasonable price. Companies with consistently growing quarterly sales and earnings are our ideal target. Our team then follows the stock price movement relative to their value to identify desirable entry levels. Not every stock trade goes as expected so we use a stop-loss strategy to sell the stock if the price falls below the purchase price to help limit losses and protect your principal.

How We Use Options

An option is a right to buy or sell a stock at a future date. Option contracts can be
risky, and under certain circumstances can have unlimited risk, meaning you can lose
more than the principal invested. When used properly and prudently, options can bring
more value to a portfolio. The two main strategies we employ are:

  1. Buying call options to enter a position to define risk.
  2. Selling covered options to generate income.

If we identify a stock that meets our criteria and has active option trading, we may buy a long-dated option for a fraction of the amount of money we had planned to use to buy the stock outright. This strategy allows us to define the amount of money that is risked when buying a stock. If the price of the stock is above the option contract value at maturity, we can exercise the option to buy the full value of the stock or sell the options. If we like a stock but feel it is expensive, we can sell an option that allows the holder of the stock to sell it to us if it goes down to our buy price or lower. Covering these positions allows us to limit the risk to your portfolio while also allowing us to potentially buy the stock at a lower price and collect the option premium. Sometimes we will close an option position prior to maturity to take profit or limit losses.

Disclosures

*$100,000 minimum investment required. There is no guarantee that investment objectives will be achieved.
Investment advisory services are offered through WealthGuard Advisors, Inc., a Registered Investment Advisor. The firm and Investment Advisor Representatives of WealthGuard Advisors, Inc. may only conduct business where they are properly registered or are exempt from registration requirements. Registration with the United States Securities and Exchange Commission (SEC) or any state authorities does not imply a certain level of skill or training. The firm is not engaged in the practice of law or accounting. All investment strategies have the potential for profit or loss and nothing is guaranteed. A copy of WealthGuard Advisors, Inc.’s current written disclosure brochure filed with the SEC (which discusses among other things WealthGuard Advisors, Inc.’s business practices, services, and fees) is available through the SEC’s website www.adviserinfo.sec.gov.

WealthGuard Advisors, Inc. is a Registered Investment Adviser.  California Life Insurance license numbers: Casey Murdock #0F01130.

This website is a publication of WealthGuard Advisors, Inc. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Blog articles and certain content were prepared by a third-party provider. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities discussed. A professional advisor should be consulted before implementing any of the strategies presented. Hyperlinks on this website are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto.WealthGuard Advisors, Inc. is registered as an investment advisor with the Securities and Exchange Commission and only do business in states we have notice filed. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators nor does it indicate that the advisor has attained a particular level of skill or ability. All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s investment portfolio. Our Client Privacy PolicyForm CRS.

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