Broker Check

Investment Vehicles To Guide Your Destination

We at Carr Wealth Management believe that compounded growth is the most powerful investment strategy to build wealth - earnings on earnings, interest on interest. However, high fees, higher taxes, and engaging in transaction-oriented strategies can prevent investors from experiencing the powerful effect of long-term compounded growth.

 Once the decision is made to take advantage of the market's ability to accumulate long-term growth, the next decision is to decide what type of investment vehicles will be used to guide you to your long-term objectives. Below is some information on the type of investments used, who provides the investments, and where the investments are located. 


Publicly Traded Investments

We manage investments or assets that are traded exclusively on national exchanges (i.e., N.Y. Stock Exchange, American Stock Exchange, etc.). Stocks or bonds traded on public exchanges have the following benefits:

  • Liquidity-describes the degree to which an asset or security can be quickly bought or sold in the market without impacting the asset's price. Typically, a security that is sold on a public exchange requires approximately three days to settle. Private equity investments such as private real estate ventures, private stock ownership, hedge funds, or various business partnerships may require notice and additional time to liquidate (sell) holdings of the respective investment. We feel that for most investors, the risk of not having quick access to funds outweigh the potential expected returns of private equity investments.
  • Transparency - The investment strategies guiding the path to your financial objectives should be clear, distinct, and built around answering the who, what, where, and why. We believe long-term returns are based on the level of risk you accept, and properly managing risk requires a thorough understanding of each asset in your portfolio. The strict requirements to publicly register an investment and the rigid oversight of the markets requires investment transparency that is typically greater than that of private equity markets.

  • Diversification - A major benefit of engaging in publicly traded markets is the ability to achieve what is probably the most important requirement of a successful investing experience – Diversification! The act of combining different asset classes together does not assure investment success, but it certainly improves the chances of reducing total portfolio risk without sacrificing returns. Private equity investments, on the other hand, typically invest in assets that are narrower in scope (i.e., one company, real estate only, sectors, etc.).



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Types of Accounts

How an investment is titled can effect the rules on contributions, distributions, eligibility, and income taxes. Carr Wealth Management can help consolidate the various types of investments you may have.

See Types of Accounts

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Where are my Investments?

There are over 9,500 mutual funds offered in the United States by approximately 80 mutual fund companies. We at Carr Wealth Management believe that achieving positive long-term investment results is better accomplished through low-cost investment vehicles that are designed to capture the long-term market returns that have been historically available. We feel that the investment vehicles should be efficiently allocated to asset classes  that have historically rewarded investors with risk adjusted returns. Then we feel the main difference between mutual funds would be the fund expenses. For that reason, Anthony Carr, the owner, has only used investments from two companies over the past two years – Vanguard and Dimensional Fund Advisers (DFA).

Both DFA and Vanguard share our investment philosophy of providing clients investment solutions based on academic research and a commitment to disciplined investing. Some of the major characteristics of the investments used by Carr Wealth Management:

  • Low-Costs
  • Liquid
  • Diversified
  • Transparent
  • Built to Capture Long-Term Appreciation

Dimensional Fund Advisors (DFA)

Applying academic research to practical investing since 1981.

See DFA Investment Videos

Vanguard

The well-known leading provider of low-cost investment solutions for the investing public.

Visit Vanguard's Website

TD Ameritrade Institutional - Third Party Custodian

 The Third Party Custodian where client funds are held is the institutional division of TD Ameritrade, Inc. They neither offer proprietary products nor services to the general public. They make available to independent Registered Investment Advisers, like Carr Wealth Management, to provide independent advice that is legally required to be in the client's best interests. Their online access is user friendly and they support clients and advisers alike with state-of-the-art technology.



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