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Comprehensive Guide to Wealth Management in Austin


Welcome to our Comprehensive Guide to Wealth Management in Austin. As one of the fastest-growing cities in the United States, Austin provides diverse economic opportunities, innovative industries, and thriving local businesses that have the potential to produce substantial wealth for its residents.

Navigating the wealth management world can seem daunting, particularly for those who have worked hard to accumulate substantial assets and are now looking for ways to make their wealth work for them – before and after their retirement dates.

Investing your hard-earned wealth should never feel like you are throwing darts at a board. You should be confident that you have a wealth management partner with the specialized knowledge and services to help you achieve your goals now and in the future.

Whether you’re an Austin native, a new resident, or considering relocation to the great State of Texas, this Guide is intended to provide an overview of the services associated with wealth management strategies in our community.  Let’s get started. 

Chapter 1

Investment Advisors in Austin

Investment advisors in Austin are specialized professionals dedicated to guiding individuals and families in their wealth accumulation, preservation, and distribution journey. This expertise is particularly valuable for those individuals and families who have accumulated more than $500,000 of investable assets and are seeking highly personalized financial advice and services.

Austin-based investment advisors understand that each family has its own financial circumstances, risk tolerances, and goals, so they avoid recommending one-size-fits-all solutions. Instead, their advice is based on the unique needs of the individuals and families they serve.  

Consider Beck Capital:  Our team of professional investment advisors in Austin offers a tailored approach to wealth management. Our commitment to proactive planning and careful monitoring ensures your assets are invested based on your personal goals and expectations. 

We serve as your fiduciary partner in your financial journey, providing the knowledge, advice, and services you need to achieve your goals. Unlike big banks and insurance companies, we deliver superior service without exorbitant fees. We value long-term client relationships over quick profits, emphasizing tailored solutions, timely communications, and an exceptional service level that keeps our clients informed and comfortable with their plans and portfolios.


Chapter 2

Retirement Planning in Austin

Austin TX retirement planning

Retirement planning in Austin, Texas for high-achieving individuals demands an approach that blends personalization, proactive wealth management, cost-effectiveness, and tax efficiency. This process goes far beyond one-size-fits-all solutions, requiring unique, tailored strategies that emphasize the achievement of your long-term goals. 

Managing a considerable nest egg of $500,000 or more demands specialized wealth management strategies. At the core of these strategies, is one factor that stands out more than any other – your need for a highly personalized experience that is not based on models and generic solutions.

For example, the following are the primary components that should be included in a sophisticated plan for retirement assets:

1. Having a well-diversified investment portfolio is paramount. This involves an allocation process that includes multiple asset classes that can reduce your risk profile - for example, stocks, bonds, cash equivalents, and various types of alternative investments. The key is constant monitoring to make timely changes that reflect changes in global economies and the volatility of the securities markets.

2. The use of tax-efficient strategies is a fundamental part of your asset accumulation and preservation strategies. Every dollar of tax is one less dollar for your future use. This includes taking advantage of the favorable tax laws in Texas (no state income tax) and utilizing tax-advantaged retirement accounts like 401(k), IRA, and Roth IRA.

3. Understanding the importance of keeping your investment costs low, the right wealth management partner will actively seek low-cost, high-quality investments, moving away from high-fee funds frequently recommended by larger financial institutions.

4. Regular communication and reporting from your Austin wealth manager ensures you fully know what’s happening inside your portfolio, the securities markets, and the economy. Timely communications are an important part of your financial advisor’s job.

Consider Beck Capital: We view ourselves as your financial advocates and partners, particularly when we help you design a plan for your retirement years that could last 30-40 years. This plan is developed during your working years to ensure you retire when you want to and live the way you want for the rest of your life. 

Chapter 3

Investment Management Strategies in Austin

Investment management in Austin, Texas, has evolved from buying mutual funds to building highly personalized portfolios emphasizing lower-cost, tax-efficient solutions. This is far more sophisticated than the old one-size-fits-all solutions that treat all investors equally.

With the aid of technology and innovation, investment management should be focused on customized strategies that are based on your unique financial goals, concerns, tolerance for risk, and the achievement of your long-term objectives. These strategies go far beyond merely allocating assets to stocks and bonds. Ideally, your wealth manager’s recommendations are focused on holistic planning and the net returns of your investments. 

In an uncertain economy, you need a flexible investment management strategy that is disciplined and forward-thinking. It is not reacting to yesterday’s news. Our focus is on the achievement of your long-term goals and not the unpredictable, day-to-day performance of the stock market.

You need an investment management service that is more personalized, cost-effective, tax efficient, and proactive, giving you more control over your financial future.

Consider Beck Capital: If you want a set-it-and-forget style of investment management, also known as passive investing, that is not what we do. Our portfolios are custom-built and actively managed based on your specific needs, risk tolerance, and financial goals.  Our in-house investment committee has decades of experience managing assets and is skilled at building diversified portfolios of investments. Our full-time job is the management and preservation of your wealth.

Chapter 4

Sector Investing in Austin

Austin Texas investing

For discerning individuals with $500,000 or more to invest, custom-tailored sector investing can provide a more sophisticated way to manage portfolios of securities.

Investing in various sectors of the economy can help protect your portfolio against the risk of concentration. For example, you have too much money invested in a sector that is underperforming. Our approach allocates your assets across multiple sectors, reducing the risk of investing too much of your money in one sector. Ideally, when one sector is declining, another produces positive returns. For example, in recent times, Oil & Gas stocks were producing positive returns when Consumer Discretionary stocks were declining.

During recessions, specific sectors, for example, consumer staples, can produce earnings growth when other sectors of the economy are in a general decline.  

Consider Beck Capital: In uncertain economic times, reactive investing is insufficient. We employ predictive analysis and proactive decision-making to navigate potential economic and securities market fluctuations. This approach helps us identify growth opportunities and minimize the risk of significant losses. With our hands-on, sector-specific strategies, your investments are not only positioned for growth, they are diversified in a way that can potentially reduce risk.

Chapter 5

Financial Advisor Compensation and Fees in Austin

It’s also important to understand how financial advisors are compensated and their fees are structured. There are three other related items: who is compensating the financial advisor, are there any potential conflicts of interest, and what are you receiving in return?

Like taxes, every dollar of expense is one less dollar for your future use. 

Financial advisors typically use one of three compensation models. They are compensated with the following: 

  • Commissions paid by third parties
  • Fees paid by their clients
  • Fees and commissions

Some advisors are paid commissions for selling investment and insurance products. For example, they are paid by a mutual fund family or insurance company to sell their products. Then the product companies mark up the fees they charge investors to cover the cost of the commissions. The impact of these commissions on the performance of your assets can be significant.

Also, this can mean any product with high commissions will need to produce higher rates of returns just to break even. This phenomenon could motivate fund managers to take more risk to offset higher fees deducted from your account to cover the cost of the commissions. 

On the other hand, fee-only financial advisors are paid directly by their clients. This is the same way investors pay other professionals (CPAs, attorneys) they rely on for specialized expertise and services. A typical fee is a percentage of assets deducted from client accounts on a pay-as-you-go basis. 

Other types of fees include fixed or subscription and hourly fees. These are typically charged for the advisors’ planning knowledge, advice, and services. Advisors cannot charge more than one source of compensation for the same service.

Then there are the advisors whose licensing and registration allow them to charge fees and commissions. 

Consider Beck Capital: Because we are active investment managers, our fees are fully disclosed and may be substantially less than those charged by other wealth management firms that outsource investing to third-party money management firms.  When you partner with us, you won’t experience a “layering of fees,” such as management, performance, administrative, or distribution/marketing fees (12b-1).  

Chapter 6

How to Find the Right Financial Advisor in Austin

financial advisor Austin TX

Finding the right investment advisor in Austin starts with clearly understanding your financial needs. For example, your most significant risk is not the temporary volatility of the stock market; it is a failure to achieve your financial goals. Whether planning for retirement, saving for a second home, or investing for your retirement years, you need the right partner with the knowledge and skills to help you achieve your goals. 

Your next step is researching a potential advisor's education, experience, certifications, and designations. When someone claims to be a financial expert, they should have the credentials to support that claim.

Are you selecting an advisor or a team of professionals? If the answer is team, you should evaluate the team's credentials. 

Also, review any specializations that the advisors may have. For example, some professionals are focused on research, while others are focused on portfolio management. Still, other professionals may be focused on various types of planning advice and services: financial, retirement, tax, estate, and charitable. 

Check each advisor’s compliance record (firms and professionals). You can use resources like FINRA’s Broker Check or the SEC’s Investment Adviser Public Disclosure (IAPD) website to identify any red flags for past issues.

You should also understand the kinds of reports you will receive and the frequency of meetings. For example, you receive monthly statements and quarterly performance reports. Meetings are face-to-face or virtual and are held quarterly, semi-annually, or annually. 

Consider Beck Capital: As a dynamic investment management firm in Austin, our focus is achieving capital appreciation while minimizing capital market risks. We adhere to a time-proven investment philosophy and a systematic research process rooted in our disciplined valuation models. Our investment approach is driven by our "value for growth" and "model growth" frameworks, facilitating a meticulous, data-oriented, and replicable research process. Our research activities are conducted in-house, leveraging our professional-grade databases and tools.

Our investment strategy starts with a broad macroeconomic perspective - "a 30,000-foot view" - that considers sector-specific trends, long-term patterns, financial flows, monetary policies, and recent news events. Our Macro-economist, Dr. Lewis Spellman, plays a pivotal role in this research. His specializations in Federal Reserve monetary policy, trends in interest rates, foreign currencies, and income and employment statistics provide the direction and insights we need to invest your assets.  

To learn more about our customized investment management solutions, connect with us for an introductory conversation. 


Connect with us to learn more about our in-house investment research and management process.