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BENEFITS OF SEPARATELY MANAGED ACCOUNTS (SMA'S) CUSTOMIZATION: SMAs offer a high degree of personalization. Investors can work with portfolio managers to create a tailored investment strategy that aligns with their specific financial goals, and risk tolerance etc. is customization can be especially beneficial for high-net-worth individuals. TRANSPARENCY: SMAs provide investors with direct ownership of individual securities, allowing for greater transparency. Investors can see exactly what they own and how their portfolio is performing. Also, it is easier to coordinate managers with other components of your overall strategic objectives. TAX EFFICIENCY: With SMAs, investors can employ tax-loss harvesting strategies and have more control over when to realize gains or losses, potentially leading to more favorable tax treatment. FEES: While the manager charges fees for the service there are oen less hidden fees. Having a better understanding of what you are paying makes it easier to examine whether you are receiving value. DRAWBACKS OF SEPARATELY MANAGED ACCOUNTS (SMA'S) HIGHER MINIMUM INVESTMENTS: SMAs oen require a higher minimum investment compared to mutual funds. is can limit access for smaller investors and may not be feasible for everyone. FEES: While SMAs can be more tax-efficient, they may also have higher management fees compared to mutual funds. The costs associated with personalized management can add up, impacting overall returns. LESS DIVERSIFICATION: Although SMAs can be customized and provide direct ownership of securities they may lack the same level of diversification as mutual funds, especially if the investor has a smaller portfolio. is can increase risk if the portfolio is concentrated in a few securities. However, the opposite result may also be true. CONCLUSION Both mutual funds and separately managed accounts offer unique benefits and drawbacks, making them suitable for different types of investors. Mutual funds provide an accessible way for individuals with smaller portfolios to diversify and receive professional management, while SMAs offer customization, transparency, and potential tax advantages. Ultimately, the choice between these investment vehicles depends on an investor's financial goals, risk tolerance, and investment preferences. Understanding the differences between the two is crucial when it comes to making informed investment decisions that align with your financial objectives. Your financial professional can help you navigate which vehicle or combination of both, is most appropriate for you, and can help navigate the literally thousands mutual funds and SMA managers. We have an entire department of analysts and professionals dedicated to research and due diligence on the performance of, and appropriateness of, available funds and managers. As always, remember my golden rules of investing. Have a plan and stick to it. Buy quality, legitimate investments with quantifiable returns and track records. Diversify your holdings. Invest for the long term or to your appropriate timeline. VUE ON | FINANCE 96 VUENJ.COM

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