Polley Wealth Management offers discretionary investment management tailored for high-net-worth families, successful professionals, and business owners in Orlando and across the United States, emphasizing fiduciary financial advice.  

Portfolios are developed on an institutional platform, stored with third-party custodians such as Charles Schwab, Fidelity, and Altruist, and are managed under a fiduciary standard with an asset-based fee.  

What does institutional-grade portfolio management mean?  

It signifies the disciplined construction methodology applied to endowment and family office capital, adapted for private households. Four main elements define this approach.  

A documented investment process dictates how capital is allocated, ensuring decisions follow a structured framework rather than a market opinion formed that very day.  

Allocation spans the full spectrum of opportunities available to investors, including asset classes that most retail advisory accounts overlook.  

Outside managers are thoroughly vetted prior to engagement and are continuously monitored thereafter.  

Assets are safeguarded with an independent custodian, guaranteeing that your ownership records come from an agency that the firm does not control.  

Access to private markets and certain alternative strategies is contingent upon meeting accredited investor or qualified purchaser status as per federal securities regulations.  

What is the investment philosophy?  

Capital allocation is driven by anticipated spending timelines. This fundamental decision influences long-term outcomes more than mere security selection.  

Funds required within three years are not exposed to equity risk, thus eliminating the chance of a forced sale at unfavorable prices. Capital designated for a twenty-year horizon takes on greater growth potential, utilizing time as the resource that resolves volatility favorably.  

Diversification is viewed as a source of return rather than merely a defensive stance. Holdings that respond differently under various market conditions enhance rebalancing across full cycles.  

Cost and tax drag are managed with as much rigor as allocation since both are guaranteed, while returns remain uncertain.  

How is a portfolio constructed?  

Portfolio construction starts with establishing a liquidity framework. Immediate expenditures, known capital commitments, and reserve requirements are prioritized first with cash and short-duration fixed income. The remaining capital is then allocated for growth.  

From this foundation, portfolios are comprised of the following investment strategies:  

Cash management and liquidity reserves. Treasury funds, high-yield cash, and laddered short-duration instruments.  

Fixed income. Individual bonds and bond ladders, municipal exposure as necessary, and credit or duration positions aligned with the equity allocation.  

Domestic equity. Core holdings supplemented by separately managed accounts that contain individual securities.  

International and emerging market equity. Developed and emerging exposures sized to fit within the overall risk budget.  

Alternative strategies. Investments chosen for their distinct behavior compared to public market beta.  

Private equity and private credit. Open to accredited investors and qualified purchasers, allocated against a liquidity strategy considering capital calls and lockup durations.  

Hedged strategies. Utilized when the mandate and cost justify the associated drag.  

Real estate and real assets. Public REITs and, where appropriate, private real asset exposure.  

Each position is assigned a specific role before funding, and any holdings that no longer fulfill that role are divested.  

What investment vehicles are used?  

Selecting investment vehicles is a crucial decision separate from allocation, carrying significant implications for both tax and costs.  

Separately managed accounts are held in your name, allowing you ownership of the underlying securities. This structure facilitates tax-loss harvesting at the security level and permits restrictions on desired exclusions, unlike pooled funds.  

Individual bonds offer a defined maturity date and fixed cash flow, which are particularly relevant when funding specific liabilities with fixed income.  

Funds and exchange-traded products are utilized when the asset class can be efficiently accessed this way and when it is cost-effective.  

Private placements are designated for allocations that are unavailable in a daily-liquidity format, with subscription documents, capital call schedules, and lockup terms thoroughly reviewed with you prior to commitment.  

How are outside money managers selected and monitored?  

The selection of outside managers involves systematic due diligence. Evaluations consider results over complete market cycles rather than just recent quarters, the stability and tenure of strategy managers, overall fee structure including underlying expenses, tax characteristics of the mandate, capacity limits, and how the strategy is anticipated to behave alongside the current portfolio holdings.  

Monitoring is ongoing for as long as the manager is retained. Changes within portfolio management personnel, deviations from the stated mandate, unexpected shifts in risk profile, or increases in fees prompt a reevaluation. Managers are replaced once the conditions for their initial hiring are no longer valid.  

How is the portfolio rebalanced?  

Portfolio rebalancing adheres to written tolerance bands, rather than following a calendar schedule. When an asset class surpasses its designated limit, the portfolio is adjusted back toward its target allocation.  

The mechanics are managed in the most cost-effective manner. New contributions and dividends are allocated to underweight positions before executing trades. Trades in tax-deferred accounts take precedence over those in taxable accounts. Realized gains in taxable accounts are carefully budgeted, weighing the tax implications against the necessary adjustments.  

How is tax efficiency built into the portfolio?  

Asset location is determined prior to any purchase, deciding which holdings belong in taxable accounts, which in an IRA, and which in Roth accounts based on tax implications and growth projections.  

Losses are opportunistically harvested throughout the year, with wash sale regulations monitored across all household accounts. Separately managed accounts enhance this capability at the individual security level, creating opportunities for harvesting even in positive index years.  

Realized gains are pre-budgeted ahead of year-end to prevent unexpected surprises at tax filing time. Concentrated employer stock is unwound following a timeline designed around tax liabilities and trading windows. Coordination with your CPA ensures alignment between the portfolio plan and your tax return.  

How is risk managed?  

Risk is assessed as the likelihood of capital failing to meet its intended purpose. The standard deviation is only significant to the extent that it poses a threat.  

Position sizing is crucial to prevent any single investment from jeopardizing the overall plan. Portfolio volatility aligns with the time horizon available before funds are needed. Concentration in employer stock or a single sector is systematically reviewed and adjusted according to a predetermined schedule. Liquidity is maintained at a level sufficient to prevent illiquid holdings from forcing decisions. When employing downside protection, its costs are carefully evaluated against the exposures mitigated.  

Who holds my assets?  

Your assets are held with Charles Schwab, Fidelity, and Altruist. They manage securities, generate your statements, and handle all transactions. Polley Wealth Management retains trading authority and is responsible for billing the disclosed advisory fee.  

By separating custody from management, you receive an independent record of your holdings and can verify every transaction with institutions that the firm does not control. Account access remains directly yours, independent from the firm.  

How are fees charged?  

A single asset-based advisory fee is clearly disclosed in writing before your account's establishment and is billed from your account. There are no transaction-based commissions associated with the advisory relationship, and underlying fund and manager expenses are separately itemized.  

What reporting will I receive?  

Custodial statements are sent directly from Schwab, Fidelity, or Altruist. Portfolio review meetings will discuss allocation, any manager changes, and recommendations for adjustments.