01  How we invest Managed by Aaron Randak, CFP®, EA

Investment management in Scottsdale, AZInvestments with a job to do

Low-cost, globally diversified portfolios, with each part matched to when you’ll need the money. Aaron Randak, a CFP® professional and Enrolled Agent, manages them around your taxes. Fee-only fiduciary, no commissions.

Book a free call Take the 60-second quiz or call (480) 916-9554
02The approachWhat the portfolio isn’t built on

Investing should be the quiet part of your plan.

We own the world’s markets through low-cost funds, place each fund where it tends to be taxed less and rebalance when your mix drifts. Your portfolio isn’t built on these.

  • 01Stock picking
  • 02Market timing
  • 03Products that pay us
  • 04Trading for the sake of it

Fee-only: you are the only one who pays us

03Asset locationHow each account taxes what you earn

Same return, different tax bill.

Interest, dividends and long-term growth are each taxed differently depending on the account that holds them. We place each where it tends to be taxed less.

What you earn
Taxable accountTaxed as you go
Traditional IRATaxed at withdrawal
Roth IRATax-free if qualified
InterestTaxed at ordinary income rates
TaxableUsually taxed every year at income rates
Traditional IRASheltered until you withdraw it Tends to fit here
Roth IRATax-free if qualified, but uses scarce Roth room
Qualified dividends and long-term gainsEligible for lower federal rates
TaxableTaxed at lower rates, and losses can be harvested Tends to fit here
Traditional IRATaxed as income later, so the lower rate is lost
Roth IRATax-free if qualified
Decades of growthYour fastest-growing money, when Roth room is limited
TaxableTaxed when you sell
Traditional IRAAll of it taxed as income later
Roth IRAGrows and comes out tax-free if qualified Tends to fit here

General rules of thumb, shown for illustration, not a recommended allocation. Your accounts, brackets and withdrawal plan set the real placement.

04Tax managementManaged with your taxes in view

Four ways we manage around your taxes

Aaron is also an Enrolled Agent, admitted to practice before the IRS, so trades are weighed against your tax picture for the year before they’re placed.

  1. 01

    Tax-loss harvesting

    When a fund drops below what you paid, we can sell it, book the loss and buy a similar fund so your mix stays put. Losses offset gains and up to $3,000 a year of ordinary income. We follow the wash-sale rules so the loss counts.

  2. 02

    Tax-aware rebalancing

    We rebalance with new deposits, dividends and withdrawals first, and inside IRAs where trades aren’t taxed, before selling anything that triggers a gain.

  3. 03

    Withdrawals from the right account

    When you start drawing income, we choose which account to sell from each year so your bracket stays where the plan needs it. See retirement income planning.

  4. 04

    Gains managed on purpose

    In a low-income year you may be able to realize long-term gains at the 0% federal rate (Arizona still taxes them). In a high-income year, giving appreciated shares to charity instead of cash means the gain is never taxed. We plan for both ahead of time.

05What it costsOne fee, five services

One fee that steps down as your accounts grow.

The same advisory fee covers investment management and the other four services.

Blended: each rate applies only to the dollars in its tier. Billed quarterly in advance, negotiable, no account minimum. Tax return preparation is a separate flat fee. Fund expenses and any trading costs are separate and are not paid to us.

See the full fee schedule Check our public record (IAPD), CRD #337930
06QuestionsFive common questions

Five questions before you book

Do you have an account minimum?
No. If the fit is right, account size doesn’t matter, and the fee is negotiable.
Will you try to beat the market?
No. We focus on what you can control: costs, diversification, taxes and staying invested through the rough years.
What will my portfolio hold?
Mainly low-cost, globally diversified funds, allocated to your plan: when you’ll draw income, how much, and how much risk you can carry. Portfolios aren’t built around stock picks, and we sell no products.
What does it cost?
One blended advisory fee: 1.50% on the first $250,000, 1.25% up to $500,000, 1.00% up to $2 million and 0.75% above that, billed quarterly in advance. Retirement, tax, estate and inheritance planning are included. Tax return preparation is a separate flat fee.
Can I leave if it’s not working?
Yes, any time, with 30 days’ written notice. Fees are billed quarterly in advance, so you’d get a prorated refund of anything prepaid and unearned.

What is your money supposed to do?

Bring your statements to a free call with Aaron. We’ll look at what each account is doing today. No pitch.

Your first callNo. 001
Format
30 minutes on Zoom
With
Aaron Randak, CFP®, EA
Cost
Free
Bring
Your latest statements
Dec 31
Last day to book losses for this tax year
Book a free call
Take the 60-second quizor call (480) 916-9554