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Strategic Investment Management

About the Program

The Strategic Investment Management Program (SIM) employs a traditional “buy and hold” approach to investing.

The purpose of SIM is:

  1. Reduce fees by using low cost exchange traded funds (ETFs) that will mirror the performance of their related index.
  2. Eliminate 12b-1 fees and commissions altogether.
  3. Use ETFs, based upon very broad indexes, which are properly allocated for the investor’s risk/reward preference.
  4. Provide liquidity.  ETFs can be sold anytime during regular trading hours and proceeds will be delivered within 3 business days.

Who Should Use this Program

If you are a young, first time investor and want to have some help setting up the right investment plan, but can’t afford tactical asset management, this may be for you.  It’s also for more seasoned investors that simply prefer a low cost, “buy and hold” approach.  SIM clients can switch into the more actively managed Tactical Investment Management program at any time.

What to Expect

During the initial meeting, you will meet with an Investment Consultant who will ask you many detailed questions to help determine your personal investment goals and risk tolerance level. This will help determine which investment portfolio(s) will be most appropriate for you. Then your consultant will recommend one of the SIM portfolios that match your goals, but the final decision is yours. The basic portfolio categories by risk level that you may choose from are:

100% Fixed Income Portfolio

25% Equity/75% Fixed Income Portfolio

40% Equity/60% Fixed Income Portfolio

60% Equity/40% Fixed Income Portfolio

80% Equity/20% Fixed Income Portfolio

100% Equity Portfolio

Bagby Wealth Management will manage the equity and bond portion of your portfolio with exchange-traded funds. Your investment mix will be rebalanced as necessary to keep the portfolio within your selected risk tolerance. 

There are also variations to these six basic portfolios based on the tax sensitivity of your personal situation. Tax-free investments can be used for the fixed income portion of your portfolio – it’s tailored just for you.           

After you have chosen the portfolio that is right for you, you will meet with your Client Service Representative who will help complete the necessary forms.  This person will be your contact in the future to answer any questions or concerns relating to your account. 

Keep in mind that this is a brief summary of our program. If you are interested in this program, please feel free to ask us for the details. We will be happy to answer your questions and provide you with more information.

To participate in the SIM program, you must also be enrolled in the Comprehensive Investment Advisory or Basic Investment Advisory programs.