Services

We focus on doing four primary things with excellence: Advising clients on financial and other matters, Investing client capital, Administering client accounts, and Communicating clearly and effectively with clients. If any one of these is lacking, the client experience will be compromised.

Financial Planning

Your relationship with New Capital begins with financial planning, the critical process in which we get acquainted and develop a working relationship, establish your financial details, and then, working together, develop a set of financial “blueprints” that include plans of action and investments.

One of the key results of our financial planning process is a probability of success measure that will help predict how well your current financial picture will stand up to the needs of your future. While this measure in itself is important, even more important is the work we do and decisions we take together in order to strengthen your probability of success measure so that you can confidently go forward.

Planning Meetings

Financial planning and advisory is a collaborative effort centered around meetings between an advisor and a client. Here we detail New Capital’s meeting process for local, out of town, and video conference clients.

  • 1. Discovery

    Our work together begins with an extensive free-flowing discussion about your financial goals, details, history, and more.

  • 2. Planning

    Using the details discovered in our first meeting, we collaboratively create your financial plan with the assistance of our top-rated MoneyGuide Pro technology, and produce a printed version for your records.

  • 3. Investments

    We present a detailed analysis of your current portfolio, an overview of best practices and theories in investment management, and discuss potential changes to your investments.

  • 4. Mutual Commitment

    If we both decide that we enjoy working together, we may formally enter into an advisor/client relationship by executing an Investment Management Agreement and custodial account forms.

  • 5. 30 Day Follow-Up

    We discuss our investment trading proposal, your other service professionals (CPA, estate attorney, etc.), technology training, and any other open items.

  • 6. Annual Review

    Each year, we meet to discuss the changes in your life and financial picture, your investments, and to update your financial plan. This meeting offers us the chance to make any mutually agreeable changes to your plan elements.

Investments

Managing investments is often the primary reason one hires a financial advisor.  At New Capital, our investment experience is extensive, our academic training is from top institutions, and our professional certifications are recognized around the world.  Most of all, though, we strive to guide you to a positive investment experience and help you better understand the sound principles and ideas that underpin modern investing.

Our Investment Approach

Our approach to investing is built on decades of academic and scientific research that has resulted in proven theories and accolades, including multiple Nobel Prizes, for their developers.

  • Diversification

    Diversification of assets is at the heart of modern portfolio management, and moreover is a legal requirement of a fiduciary advisor. New Capital’s global portfolios are diversified by geography, industry, security type, issuer size, and additional important characteristics.

  • Factor Betas

    Scientific and academic data researchers, especially those affiliated with our business partner Dimensional, have determined with statistical evidence that certain “factors” - company size, low market price to book value, high profitability - have persistently outperformed the general market. New Capital incorporates these factors into our portfolios.

  • Passive (Index) Funds

    Modern academic and scientific research is conclusive that market pricing for assets is efficient, and it is therefore exceedingly difficult, especially net of manager fees, to outperform market returns. Accordingly, New Capital’s portfolios make extensive use of passive mutual funds (also known as “index funds”).

  • Benchmark Reporting

    New Capital generates detailed internal and client reports using our Morningstar analytics system to understand how our portfolios perform against appropriate benchmarks. We use this approach to constantly fine tune our clients’ model and custom portfolios.

  • Concentrated Custom Holdings

    New Capital has extensive experience helping clients diversify, hedge, or preserve concentrated holdings, including low cost basis/highly appreciated holdings where tax consequences are substantial. We are also adept at building diversified portfolio around custom holdings that you value and wish to retain.

  • ESG

    Environmental, Social & Governance investments attempt to align investor values with portfolios. From the beginning New Capital has provided ESG portfolios to clients who want them, and we continue to expand our research and offerings in this area of growing interest.

  • Model Portfolios

    Our eight model portfolios deliver efficiency and oversight for our clients and range from Conservative (25% stocks/75% bonds) to Aggressive (95% stocks/5% bonds). We implement, monitor, and trade our models using sophisticated rebalancing software provided to us by Morningstar.

  • Tax Efficiency

    Most of our clients are taxable investors, and we make great effort to deliver tax efficiency in our clients’ portfolio using techniques like asset location, specific lot sale accounting, tax loss harvesting, deferred gains, and more.

  • Private Equity

    Whether you own closely held businesses or invest in private equity, New Capital has experience and skills in helping you analyze and maintain these important holdings in the contact of your entire portfolio.

  • Real Estate

    Real estate, whether it is residential, vacation, commercial, farm and ranch, or private equity, plays a role in almost every portfolio. We take full account of your real estate assets, goals, and timing, and help you optimize your decision making for them.

Our Investment Process

Our investment process is a careful and reliable step-by-step sequence in which we patiently build a mutual understanding of your current portfolio and how it might best change to meet your needs and goals.

  • 1. Portfolio Analysis

    Using specialized analytics software made by Morningstar, we present a clear and detailed analysis of your current portfolio and recommendations for changes.

  • 2. Risk Tolerance

    We test your risk tolerance using Riskalyze’s industry-leading risk profiling assessment tool.

  • 3. Risk Capacity

    Relying on our financial planning work with you, we develop a risk capacity rating to determine how much risk you can reasonably afford to take in your portfolio.

  • 4. Investments Education

    We present the theoretical foundations of our investment approach so that you can get complete answers to your questions and concerns.

  • 5. Model Portfolio Selection

    We use our proprietary portfolio selection grid to assign you to the most appropriate model portfolio given all the information that we have developed about you and your finances.

  • 6. Investment Policy Statement

    To complete our initial investment work, we create a custom investment policy statement (IPS) to document your investment plan and ensure mutual agreement to proceed with portfolio changes.

Administration

Administration of client accounts is one of the most important services that a financial advisor provides. Every day at New Capital and with an eye for detail and accuracy, we help clients execute and accomplish a wide variety of tasks that, without us, would otherwise be time-consuming, annoying, or even impossible. We are greatly aided in our efforts by the strong relationships we have with our custodians' institutional service desks, to which we have quick and direct access.

To keep careful track of client tasks, we utilize a new generation of task logging software that allows us to communicate as a team both in and out of the office.  In a world where customer service often means struggling through a computerized phone tree only to reach someone who is unable or unhelpful, New Capital takes great pride in delighting its clients with our personal administrative services.

Account Administration

We assist clients with all aspects of their accounts, making it easy to maintain an organized and stress-free financial life.

Money Movement

Moving money between accounts, between different banks, to third parties, or in large or small quantities can be nerve-wracking. Our deep experience helps clients rest assured that their funds will arrive where, when, and how much intended.

Technology

We provide technology assistance to our clients in several different areas including basic and advanced application use, security implementation, and device assistance.

General Administration

Maintaining a smooth client relationship requires efficient scheduling of meetings, exchange of forms and paperwork, contacting account custodians and transfer agents, working with other professional service providers, and much more.

Communications

At New Capital we believe it is vital to communicate clearly, regularly, consistently, and compellingly with our clients, partners, each other, and the community at large. To meet this goal, we produce and distribute a wide range of electronic, print, and other communications to ensure that what we convey our thoughts, beliefs, and actions across all pertinent areas of our business.

  • Printed Materials

    We produce a variety of printed materials including company brochures, investment white papers, financial planning articles, and more.

  • Journal

    The New Capital Journal publishes real-time company news, investments and market views, financial planning advice, educational content, and much more.

  • Social Media

    Connect with us on LinkedIn, Facebook, and/or Twitter to stay in touch and to keep up-to-date with our latest news, events, and content.

  • New Capital Retreat

    New Capital Retreat offers our proven client Discovery, Planning, and Education process over a two-day focused retreat and is especially beneficial for out-of-town prospective clients.

  • Webinar

    Our quarterly webinars help keep our clients informed of market and economic events and conditions.