When reviewing the portfolios of our potential clients, we often notice the same major issues: 

  1. Balance: If your portfolio is not properly balanced, you are in danger of experiencing sudden major loss.
  2. Risk: If your risk is not precisely calculated, you will most likely get too low a rate of return for the amount of risk you are taking.
  3. Inaccuracy: If your return is being calculated inaccurately, you may think you’re getting higher returns than you actually are, which can lead to a very unpleasant surprise when your retirement approaches and you discover that you are not on track to retire when you want to.

To help correct these problems in your 403(b) accounts, we start by performing a complete analysis of the current risk level, rate of return, balance, and diversification in your portfolio. We then create a comprehensive plan to better protect your money and improve your expected returns. It is our fundamental belief that it’s difficult to predict economic environments beyond a very short time frame. The reason being, there are too many risk factors in the world that simply cannot be modeled for risk. For instance, natural disasters, political instability, war, and terrorism all have major influences on economic direction and these events are hard to predict with accuracy.


So how exactly does one build an efficient portfolio to ward against these unknowns? The ultimate goal is to balance your portfolio so that it will provide more consistent returns across a wide range of economic environments.

In selecting and constructing portfolios, we use several sources of information to vet and implement our ideas. In general, we use a relative strength methodology to guide us in the selection of investment funds and as a tool to measure market strength and performance. Our main source of research and market insight comes from Dorsey, Wright, & Associates, which is a firm that specializes in producing proprietary research into market action and performance. As a compliment to the research produced by Dorsey Wright, we also utilize market and fund research provided by firms such as Morningstar, No-Load Fund X, and The Fidelity Monitor, among others.


We are a fee only advisor, which means that our clients’ best interests are our best interests. We only charge our annual management fee if your account is profitable, which means that if your account has a market value less than the sum of the beginning capital contribution plus subsequent net contributions all measured at the end of each quarter, you will not be charged a management fee for the following quarter.

We do not receive any further compensation or soft dollars from the carrier or fund companies we deal with, so there is never any conflict of interest. We do not custody client assets and will at no point have the rights to access your account other than to enter trading instructions.

Sawtelle Financial Management. 1250 NE Loop 410, Suite 350. San Antonio, TX 78209. Office: 210-822-5252. Fax: 800-615-9059