Investment Choices

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WHICH OPTION WILL TAKE YOU HIGHER?

Our job is to make sure your money lasts as long as you do. When you retire, we want you to enjoy your retirement and stay retired. That may sound simple. It’s not.

You wouldn’t hire a pilot fresh out of flight school to fly you across the ocean. Likewise, it doesn’t make sense to hire a rookie financial advisor. Why would you use low quality, mass-marketed investments to move toward your goals?

The availability of good, solid investment choices is critical to the success of your investment plan. After all, if your account isn’t moving toward your goals in a consistent manner, the rest of your plan is meaningless. The advisor you select should have investment options that range from conservative to aggressive. Their options should exploit both the public and private markets. They should have been in the business long enough to have experienced bad markets — and still prospered. They should have at least a 10-year track record you can evaluate that shows their previous performance. Their strategies should incorporate the latest research and technology.

In order to optimize returns, it is important to keep costs down. To accomplish that, it is best to work with a “Fiduciary” whose compensation is based on a “Fee Only” model. The less you pay in costs, all things being equal, the more earnings you will keep.

Your advisor should be invested in the same investments you are. They should not just be “telling” you what to invest in. They should have skin in the game. It is surprising how few actually do.

At Paragon, with 28 years of experience and an exceptional track record, our money is invested right beside yours.

PORTFOLIOS

Paragon Wealth Management’s approach to investing is unique and cutting edge. We develop and use complex, sophisticated quantitative models to determine both investment strategies and which styles, sectors, and markets we invest in. Our portfolio allocations are based around short-term, intermediate, and long-term models. We never base investment decisions on popular trends, emotions or feelings.

Paragon manages three primary portfolios. Most clients use a combination of these portfolios to build a customized portfolio that matches investments with their comfort level and goals.

Managed Income and Top Flight primarily invest in exchange traded funds (ETFs). Our experience shows that investing in ETFs provides the portfolio with the lowest costs, highest tax efficiency and best flexibility.

Managed Income, a Conservative Portfolio

This portfolio’s primary objective is to preserve capital. The second objective is to generate returns superior to bank CDs or traditional bond portfolios without the level of volatility of the stock market. It is managed using some of the same techniques originally pioneered by Top Flight, Paragon’s growth portfolio, but with a much more conservative approach.

The principal asset classes Managed Income rotates between include:

  • Treasury, High-yield and Emerging Market Bonds
  • Real Estate Investment Trusts (International and Domestic)
  • Utility Stocks
  • Bank Loan, Convertible, Preferred and Dividend Income Stocks
  • Alternative Strategy Options
  • Low Volatility Funds
  • Money Market Instruments

Neither of Managed Income’s objectives is guaranteed, and in the past there have been times when the portfolio has declined. Historically, this portfolio has experienced significantly less volatility than Top Flight, Paragon’s growth portfolio. For an overview of the portfolio’s long-term performance, please review the long term Managed Income Track Record.

Top Flight, a Growth Portfolio

Designed as a complete solution for the growth-oriented investor, Top Flight provides exposure to the best performing styles and sectors within the global stock markets. Top Flight is actively managed, and it primarily moves between a mix of ETFs that meet the requirements of our quantitative trend following and seasonality models. In addition, to reduce volatility, another group of quantitative models determine how much market exposure the Top Flight Portfolio will have at any point in time.

The proactive set of Paragon models is designed to identify trends and measure velocity within the universe of available market styles, sectors and industries. When trends are identified, the portfolio stays invested in those positions until certain exit criteria are met, at which point the funds are rotated into other areas that currently meet the model’s recommendations. This rotation is ongoing, and the models are constantly adapting to current market conditions.

The protective set of models is designed to reduce risk. These models determine how much of the portfolio will be invested in the market. This percentage is based on how much risk the model measures at that point in time. When the model shows there are high levels of risk in the markets, the portfolio holds more cash. When the model shows there are low levels of risk in the markets, the portfolio becomes fully invested. The equity exposure in the portfolio changes depending on market conditions and will range anywhere between 0 percent and 100 percent net long.

The primary objective of this portfolio is to generate superior risk-adjusted returns. The secondary objective is to protect against downside volatility.

While we can’t guarantee Top Flight will always meet these objectives, Paragon actively manages this growth portfolio with these goals in mind. Historically, this portfolio has experienced greater volatility than our conservative Managed Income Portfolio and has generated higher returns. For an overview of the portfolio’s long-term performance, please review the Top Flight Track Record.

Paragon Private Strategies Fund

Paragon Wealth Management manages the Paragon Private Strategies Fund, L.P. This is a highly diversified private markets investment vehicle. This fund and the advertising of it are limited to accredited investors. For investors who meet the qualification requirements, we may recommend an investment in this fund be included in your custom portfolio mix. If you would like additional information, please contact us directly.

What kind of investments are right for you?

The questionnaire below can help determine your personal investment comfort level. When you invest within your comfort level, you are much more likely to stay invested for the long term. Research shows if you follow a strategy that allows you to stay invested over the long term — through the ups and downs of the market — you will significantly increase your return.

Investor Questionnaire

AWARDS & RECOGNITION