I would love to have a conversation with you to answer all your questions! Every client is different and has different investing needs, but this page will give you a brief overview of the types of things we do for clients. Whenever you are ready to chat schedule a call!
What does Tines Capital Do?
Tines Capital (TC) is a fee-only fiduciary that focuses primarily on helping individuals, families, and charitable foundations invest their money inside investment accounts such as Traditional IRA, Roth, SEP, taxable, and foundation. Before we invest any money for clients we do our best to make sure our clients are in an appropriate condition to invest, understand their investments, and have the right types of accounts open.
Are you Ready to invest?
For most people that have debt with an interest rate of 5% or more, we will often recommend that you pay down debt before employing our investment management services. Paying down debt locks in savings and gives you a guaranteed return on your money. There are of course exceptions to this guideline, but in general we like to see clients with very healthy debt levels before they think about investing. This doesn’t mean you can’t have debt. We think debt can be appropriate when used to purchase a home, get a degree, or make certain investments. A situation that would preclude you from investing heavily now would be excessive loans on cars, boats, or high interest rate credit cards. We would love to help you plan a way out of that debt, but we will likely not agree to manage investments for you until your debt is at a healthy level. If you have questions on how to get your debt and finances in order before investing schedule a meeting, ask us questions here, and subscribe to the TC Blog.
Where is the Money Kept?
TC uses Interactive Brokers as a custodian, meaning they have possession of the funds we manage for our clients. Clients receive an online login where they can monitor positions, view performance reports, download tax documents, and transfer funds at their convenience. Before you open your first account, we will work with you to determine what accounts are appropriate and guide you through opening them. The funds are always yours and there are no lockup periods imposed by Tines Capital.
How much do I need to Start?
In addition to the fees TC charges, clients will have to pay commissions and fees to Interactive Brokers. In our opinion the fees at Interactive Brokers are very good, but we typically recommend that people wait to start an account until they have $6,000 to fund it in the first 3 months.
What are the investment options?
TC offers a mix of portfolios and strategies that can suite just about anyone. Depending on your situation and goals we may recommend that you use one or several of our portfolios described below.
|The Leveraged Portfolio||The Tactical Portfolio||The Rotation Portfolio||Custom Passive Portfolios|
|Recommended minimum investment time.||4+ years||4+ years||2+ years||2+ years|
|Approximate aggressiveness vs. S&P500 *1||~3x||~1.6x||~1x||~1x or less|
|Max leverage factor *2||3||1||1||1|
|Uses loans to obtain leverage||No||No||No||No|
|Management style||Active algorithm||Active algorithm||Active algorithm||Passive index investing with regular rebalancing|
|For each portfolio the majority of funds are invested using exchange traded products like ETFs and ETNs.||Leveraged equities, leveraged bonds, volatility, precious metals, and cryptocurrency (optional).||Equities, bonds, volatility, and precious metals||Equities and bonds.||Equities and bonds with fixed rebalancing periods.|
|Tines Capital’s annualized advisory fee for each portfolio.||3% AUM||3% AUM||1% AUM||1% AUM|
|Recommended minimum to start.||$6,000||$6,000||$6,000||$100|
*1 Approximate Aggressiveness Compared to 100% Stock Portfolio: This metric is not a guarantee. It is designed to give a estimate of how much volatility is expected for an average day compared to a typical 100% stock portfolio. For example, assume that a typical 100% stock portfolio has an average daily move between 1% and -1%. A portfolio with ~3x for this metric would be expected to have an averaged daily move of about 3% to -3%. However, this is an approximation and not a guarantee. Real results may be much better or worse. Also, the direction of a strategy on any individual day will often not coincide with the approximation. The strategies will often lose money on days when a 100% stock portfolio has a positive return and make money when a 100% stock portfolio has a negative return.
*2 TC believes it is critical to avoid taking naked or short positions. Furthermore, Tines Capital believes investing with the use of margin or borrowed money is unnecessary and too risky. Instead TC uses long positions in leveraged ETFs/ETNs and options to obtain leverage. Tines Capital believes investing in appreciating asset classes with the use of leveraged ETFs and ETNs tends to produce higher total returns, if the leverage can be obtained at a low cost and reasonable timing is used to reduce drawdowns. It is essential that any position that is taken has a defined risk that is not greater than the original investment value. Tines Capital’s Leveraged Portfolio often has a leverage factor between 1.5 and 3, where a factor of 0 would mean 100% cash, 1 would mean 100% invested without leverage, and 3 would be 100% invested in 3X ETFs. If you want to read up on our investment methods in more detail you can review item 8 and other sections in our firm brochure here. This is a good alert from the SEC discussing some of the risks of leveraged ETFs.
What performance Can be Expected?
It is crucial that clients only invest funds into portfolios with an appropriate investment time horizon as shown in the table above. Tines Capital cannot guarantee any level of returns or protection from loss for any strategy. However, clients will have access to reports from Interactive Brokers that clearly show your account performance over time after fees by Tines Capital and commissions charged by Interactive Brokers. You can view a tutorial accessing these reports here.
I would love to have a conversation with you to answer all your questions! Whenever you are ready to chat schedule a complimentary call!