Investment Advisory Services

Daily Portfolio Investment Management

  • Allows for freedom to pursue other interests
  • Provides discipline to follow your investment objectives
  • Identifies value for your portfolio
  • Gives peace of mind - having a team of professionals monitoring your portfolio daily
  • Provides a "backup quarterback" for future needs

Independent Custodian of Assets 

TD AMERITRADE INSTITUTIONAL is a member of the Securities Investor Protection Corporation (SIPC).

The account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments.

Dividend Growth Portfolio: A Balanced Portfolio

This portfolio adapts a simple strategy that blends the best aspects of both growth and value investing together into one strategy that can provide substantial long term capital gains and significant annual income.  This involves investing in companies that pay dividends and the potential to increase those dividends and trade at favorable valuations (Value Investing).The companies that the Dividend Growth Portfolio invest in should be able to grow earnings rapidly enough to maintain and grow the current dividend (Income Investing) without burdening the operations of the company.  If the company is able to grow it's earnings the portfolio should benefit from share price appreciation over the lifetime of the investment (Growth Investing). 

Increasing Dividend Portfolio: Sleep at Night Portfolio "SWAN"

A simple but uncommon strategy for investors seeking a higher income and lower volatility.  We seek out companies that should keep on increasing their dividends over the years.  Due to inflation the purchasing power of the dollar is decreasing each year.  The importance of companies that have the potential of increasing their dividend payments is to maintain the purchasing power of your income.   When this is realized the client can live off the dividends in retirement while not invading their capital.  The portfolio seeks to generate an income stream that maintains purchasing power of their income while potentially developing capital gains that maintain the purchasing power of their principal.  Investments normally consist of a mix of equity investments and debt securities.  Conservatively managed with lower levels of risk than the Dividend Growth Portfolio.

Why Dividends are Important in a Retirement Portfolio

We believe that over the long term, the return from dividends has been a significant contributor to the total returns produced by equity investments. There is an abundance of evidence which suggests that portfolios consisting of higher dividend yielding securities produce returns that are attractive relative to lower yielding portfolios.

Stocks with high and apparent sustainable dividend yields that are competitive with high quality bond yields may be more resistant to a decline in price than lower yielding securities because the security is in effect "yield supported". The ability to pay cash dividends is a positive factor in assessing the underlying health of a company and the quality of its earnings  

Summary

An important aspect of all of our non-qualified portfolios is the return after taxes. This has become more important than ever with the recently passed capital gains tax cut. With long term capital gains tax rate less than half of the highest rate applied to short term capital gains, holding investments for the required term becomes imperative. Our emphasis in all of our portfolios is intended to take full advantage of this valuable tax reduction. The value of deferring taxes as long as it is prudent is important in increasing after-tax return. This discipline also allows our clients to pass their investments on to their heirs on a tax-free, stepped-up basis.

Estate Planning

First Security Capital Management LLC is available to assist you or your trustee in case of illness, incapacity, or death. These services include the following:

  • Consultations with the successor trustee
  • Assistance with tax preparation
  • Filing for life insurance benefits
  • Obtaining fiduciary identification numbers when needed
  • Assistance in obtaining an attorney
  • Minimizing estate settlement fees
  • Re-registration of assets
  • Preparing an estate inventory and date of death values
  • Assisting with partial and final distributions
  • Contacting pension benefit departments and social security for survivor benefits or the cessation of benefits

Our belief is that in a time of need, let family take care of family, let us take care of the paperwork.