How we can help
In an era flooded with advice on what to buy, the crucial question is often overlooked: When and what should you sell from your investment portfolio? Considering the daily retirement of 10,000 individuals and a growing reliance on investments for income, understanding the dynamics of selling becomes vital.
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Whether it’s generating a monthly income of $5,000 from your investments, raising $20,000 for a new car, or securing $100,000 for a house down payment, life brings various financial needs.
Wythdrawl is designed to enhance your portfolio's performance, focusing on smart, data-driven selling strategies. Just plug in your portfolio details, and our proprietary system will optimize your security distributions, ensuring you meet your financial goals effectively.
Our approach
We look at the following analyses and data in making decisions on what to sell
Trading Ranges
Historical highs and lows are evaluated in determining where a particular security is trading within its range. Preference is taken to securities at the higher end of that range to sell over those who are at the lower end of the range. The aim of this is to “sell high” given a securities’ historical trading prices.
Fundamentals
Several factors of fundamentals are reviewed by our system, including Price to Book, Price to Cash Flow Price to Sales and Price to Earnings. These traditional valuation factors are used to determine what in your portfolio may be undervalued versus what may be overvalued. We preference selling securities that are deemed overvalued in relation to these metrics.
Earnings
Earnings matter, as companies make more money they become more desirable to hold. Our process prefers companies with solid earnings over those with weaker earnings and/or higher cost to each dollar of earnings (also known as Price to Earnings multiples).
Growth
An emphasis on intermediate growth is part of our process, looking at both top-line revenue growth and bottom-line net income growth. We prefer NOT to sell securities that experience sustainable growth over multiple-year cycles. Companies with more flat-line revenue and net income growth are more likely to be sold by our processes.
Dividends & Interest
When your assets become your employer and you are taking regular distributions from your account, the dividend received and interest (from bonds) are important factors in your portfolio construction. The more you get paid in dividends and interest, the less capital appreciation you need in your account. Recognizing this factor, we do preference NOT to sell securities with higher dividend and interest payments.
Proprietary Methods
We also use other proprietary techniques that we deem rational and prudent with the objective of maximizing portfolio longevity.
PUTTING IT ALL TOGETHER
We take what we feel to be a holistic approach in determining what are prudent sells to make in your portfolio versus what securities you probably should keep for another day. Our process looks at Trading Ranges, Dividends, Fundamentals, Earnings, and Growth in order to most prudently determine what should be sold for current distributions of income.
