Our Insights

Summary: The scale of the upcoming mega IPOs is unlike anything we’ve seen before. Some index providers have rewritten rules to fast-track their inclusion. In contrast, certain systematic investment strategies intentionally exclude recent IPOs until lockup periods have expired and data is reliable; this approach helps avoid a drag on returns as newly listed stocks…

We build multi-decade financial projections for each of our clients to help quantify the long-term impact of near-term decisions. Doing so requires us to make long-term assumptions for equities, fixed income, and inflation. There are numerous methodologies for calculating return assumptions; each carries its own trade-offs. Some use forward-looking market prices to develop short to medium-term forecasts, which…

Nobody enjoys writing a check to the IRS or state tax authority when filing their annual tax return, but having to do so isn’t necessarily a bad thing. In fact, when viewed from a purely financial perspective, it’s typically a good thing. First, an over-simplified primer on the US tax process: during each calendar year, a…

I am excited to announce that John Morrison has joined Geometric as our Chief Investment Officer (CIO). As Geometric has grown, the need for a dedicated CIO has become apparent – our clients and team deserve a full-time, talented leader in this seat. That said, replacing myself in this role was difficult. To say I hold our…

With the U.S. stock market dramatically outperforming the rest of the world over the past 16 years, it would be understandable to question whether one should invest internationally at all, let alone allocate a significant portion of their portfolio to international stocks. First, the data on that (rather dramatic) outperformance: July 2008 – October 2024 Annualized…

By managing all of a client’s accounts as a single, holistic portfolio, we’re able to implement a strategy of tax-efficient fund placement (also known as “asset location”). This technique is especially valuable for high-earners in high marginal tax brackets. Because certain asset classes are more tax-efficient than others, two portfolios with identical pre-tax returns can experience…

We recommend that everyone have a specific plan to manage the cash balances in their bank accounts (“cash plan”). At Geometric, we work with our clients to create such a plan at the start of every new engagement. A good cash plan both (a) ensures that clients maintain enough cash and (b) creates a discipline for…

Earlier this year, Gerard O’Reilly (former rocket scientist and current co-CEO of Dimensional Fund Advisors) was interviewed on our favorite investing podcast, Rational Reminder.  Gerard is obviously brilliant, but he’s also one of the best communicators in the investment world. For those interested in a deep dive into Dimensional’s methodology, the evidence supporting it, and why we…

With inflation in the headlines, some might be wondering about its impact on their portfolio or overall financial situation. First, we shouldn’t accept the assumption that “high inflation is here to stay,” despite how prevalent that assertion seems to be these days. We at Geometric don’t make predictions about inflation (or anything else), but the market…

We are thrilled to introduce two new members of Geometric’s team, Trevor Sarif-Killea and Julie Higgins. Trevor Sarif-Killea joins us as a Wealth Advisor. With prior experience at BCG Los Angeles (2016-2018) and in strategy for the Mount Sinai Health System, Trevor is familiar with the careers and needs of our clients. Based in NYC, Trevor and his…

We are pleased to introduce the newest member of Geometric’s team, Tracy Johnson. As a Wealth Advisor, Tracy will focus on helping us to grow our practice area serving Partners and other senior professionals at top-tier consulting firms. She is uniquely qualified to understand this audience. In her most recent role, Tracy worked in corporate strategy and analytics…

We previously provided our thoughts on Bitcoin in 2017, but we’ve felt compelled to expand on those perspectives given the cryptocurrency’s recent buzz and eye-popping price appreciation. We don’t have a horse in this race and aren’t incentivized to hold Bitcoin any more or less than we are to hold other investments/asset classes for our clients, but the…

Two weeks ago, we emailed our clients to address the story of GameStop. Figuring that others might appreciate our viewpoint, below is the entirety of that email. To our clients, With GameStop dominating the headlines this week, we wanted to quickly address the topic and discuss what, if anything, you should be doing about it. For…

Last week, we emailed our clients to address anxiety over the upcoming election and its potential impact on their portfolios. Figuring that others might appreciate our viewpoint, below is the entirety of that email. To our clients, With the presidential election a little over a month away, we know that anxiety may be running high. The…

Earlier this week, we emailed our clients to review the lessons learned from the unprecedented market volatility of the past few months. Figuring that others might appreciate our viewpoint, below is the entirety of that email. To our clients, The past few months have been among the most volatile in the history of the stock market.…

Tax loss harvesting (TLH) refers to selling investments that are worth less than their original purchase price in order to realize (or “harvest”) the capital loss.  The realized losses can be used to offset certain income, resulting in a lower tax bill. This strategy can be especially valuable for high-earners in the highest federal and state…

Each of our clients has a specific allocation target for every asset class and category in which we invest. An example might be the following: Asset Class Target Allocation U.S. Equities 38.0 % International Equities 28.0 % Global REITs (Real Estate) 4.0 %       Total Category: Growth Assets 70.0 % Nominal Bonds 26.0 % Inflation-Protected Bonds 4.0…

In most situations, we discourage clients from Dollar-Cost Averaging (DCA; also referred to as “averaging in”) lump sums of excess cash that are available for long-term investing. To first define the term, DCA refers to dividing up the total amount to be invested across periodic purchases that are usually the same dollar size. This technique…

As the market continued to swing wildly — mostly downward — at levels not seen since the financial crisis, we sent updated thoughts to clients on March 12th. Below is the entirety of that email. To our clients, With the headlines genuinely frightening and global markets in freefall, we wanted to reach out again, even if…

There have only been a handful of truly monumental “discoveries” in the history of investment theory. The three-factor model, developed in 1992 by Nobel Laureate Eugene Fama (University of Chicago) and Professor Kenneth French (Tuck School of Business, Dartmouth College), is on that short list. Prior to the three-factor model, accepted wisdom was that any…

Earlier this week, we emailed our clients to discuss the recent stock market decline. Figuring that others might appreciate our viewpoint, below is the entirety of that email. Esteemed clients, In August we authored a post about how you will (probably) feel when the market (eventually) crashes. The piece discussed some of the emotions we inevitably experience during…

Nobody can predict the short-term direction of the stock market, and it is not something we would attempt. Still, we can be confident that the stock market will crash again at some point in the future. For those of us in our 30s and 40s, we are all but certain to experience several more crashes in our…

The majority of our clients are at least a decade away from retirement, and most are still 20+ years out. Yet all of our clients have at least a small portion of their portfolios allocated to bonds (via low-cost, passively-managed, diversified bond mutual funds or ETFs). A reasonable question to ask – and one we hear frequently…

With Bitcoin (and other “cryptocurrencies”) in the news on a daily basis, we wanted to provide our quick thoughts on whether or not it belongs in your portfolio. In May we detailed our process for evaluating an asset class. In that post we describe our criteria, starting with: …Does the asset class represent an “investment” or…

If you make all of your charitable donations using your credit card, you are almost certainly leaving money on the table. Whenever possible, you should donate appreciated securities, typically stocks, mutual funds, or ETFs that have increased in value since you purchased them (and that you have held for at least a year). You receive a…

We are excited to announce a partnership with Bank of America Private Bank that provides Geometric’s clients with discounted mortgage rates and flexibility in loan structure. Geometric’s client base is a uniquely-successful group of high-earning professionals. Individually, each would be a desirable customer for just about any lender.  Pooled together, they are even more so. We have…

We recently came across two charts that provide valuable lessons from past stock market crashes. The first chart uses data from Dimensional Fund Advisors and shows the 1-year, 3-year, and 5-year returns of a balanced portfolio (60% stock / 40% bond) in the years following recent market crises: The point being, if you don’t allow a…

Geometric Wealth Advisors’ client portal is now available as a mobile app for Apple and Android devices. Our portal allows clients to see all of their investment accounts in one place – regardless of where they are held – and to view the asset allocation and performance across the holistic portfolio. While not identical, the mobile version…

When evaluating an asset class for inclusion in client portfolios (and our own), we consider three things: First, does the asset class represent an “investment” or a “speculation?” People often conflate the terms, but an “investment,” by definition, is expected to produce a future stream of income, while a “speculation” is a zero-sum bet between the buyer…

The Department of Labor’s “Fiduciary Rule” is a welcome change. It will require all financial advisors who manage retirement assets to put their clients’ interests ahead of their own. We strongly support this standard, but as Jason Zweig of the WSJ points out, simply serving as a fiduciary does not eliminate all conflicts of interest. Zweig suggests that advisors be…