Investment Management

We believe the best way to build wealth is to protect it.

Our invest management approach is designed to minimize risk and provide upside potential of investing in capital markets. Many investors approach investing by trying to outsmart the market and pick the next big winner. This is often an exercise in futility and is generally unsuccessful. 

Our investment process respects the efficiency of markets and acknowledges elements of the investment process we cannot control. We focus on elements we can control to bring value to our clients as we help achieve their goals: Fees and Expenses, Taxation Minimization, Risk Management, and Behavioral Finance.

Fees and Expenses

 

Our approach to minimizing fees and expenses lowers the hurdle to generate investment returns.

 

  • Competitive Advisory Fees
  • Direct indexing: we have the ability to buy individual stocks and bonds to replicate common benchmarks to avoid expenses associated with mutual funds and other managed products

Tax Minimization

 

Tax efficiency is critical to maximizing returns.

 

  • Avoid short term capital gains when possible
  • Attempt to minimize capital gains by holding stocks long-term
  • Strategic use of ROTH and Traditional IRAs to reduce tax liability
  • Pursue dividend income as a tax-preferred form of return
  • Utilize tax-free municipal bonds when advantageous
  • Tax loss harvesting: strategic use of losses to offset current and future gains

Risk Management

 

All investments carry risk. By understanding potential risks and implementing mitigation strategies we provide peace of mind to our clients and add value to their portfolios.

 

  • Focus on investing in high-quality companies
  • Minimize exposure to risky mid-size and small companies
  • Minimize exposure to potentially volatile international companies
  • Use options to hedge downside risk of individual stocks or ETFs, and generate income by selling covered calls
  • Minimize currency risk: strategic use of international bonds and precious metals to offset US Dollar volatility
  • Inflation risk: strategic use of inflation linked bonds; exposure to commodities and natural resources

Behavioral Finance

 

We believe in adhering to our long-term strategies while actively managing investment portfolios designed for an optimal outcome.

 

  • Proactive portfolio rebalancing
  • Creating customized, quality investment portfolios
  • Selling covered calls to generate additional income while owning long stock positions and select ETFs, when possible

Learn More About Customized Wealth Management

(630) 219-3441 ~ donald.heatherly@hkprivateclient.com

Main Office

  • 1776 Legacy Circle Ste. 111
  • Naperville, Illinois
    60563

Phone

  • 630.219.3441


Email

No client or potential client should assume that any information presented or made available on or through this website should be construed as personalized financial planning or investment advice. Personalized financial planning and investment advice can only be rendered after engagement of the firm for services, execution of the required documentation, and receipt of required disclosures. Please contact the firm for further information.