Tactical & Risk-Managed Investing

What is tactical, risk-managed investing?

Tactical, risk-managed investing is an active approach that adjusts your portfolio based on market conditions with the goal of reducing downside risk while still participating in growth.

How is tactical investing different from passive investing?

Passive investing stays fully invested through all market conditions. Tactical investing adjusts market exposure to manage risk during periods of volatility.
Passive strategies can work well in long bull markets, but they do not protect against major drawdowns. Tactical strategies are specifically designed to respond to changing conditions, helping reduce financial stress and improve long-term consistency.

Can tactical investing reduce losses in a market downturn?

Tactical investing aims to reduce losses by decreasing exposure during sustained market weakness, unlike static portfolios that remain fully invested, even in a downturn. However, Shadowridge Asset Management cannot guarantee any performance. Past returns are not indicative of future performance.

Does tactical investing mean timing the market?

No. Tactical investing is a rules-based, data-driven process—not emotional market timing. Our approach relies on data, trends, and research – not speculation or gut feelings.

Is a tactical strategy appropriate for retirement investors?

Potentially. Reducing drawdowns can help protect retirement income stability and longevity.

Do you use tactical strategies for all clients?

Yes. Tactical, risk-managed investing is the foundation of our philosophy, tailored to each client’s goals and risk tolerance.

Why do static portfolios struggle during volatility?

Static portfolios remain fully invested, which can amplify losses during turbulent periods.

Why does a tactical strategy sometimes hold cash?

Cash is used tactically as a temporary defensive position until market conditions improve.

Does tactical investing outperform passive investing every year?

No. Tactical strategies aim to potentially reduce risk and drawdowns, not beating the market every year.

Do tactical strategies eliminate risk?

No strategy eliminates risk completely, but tactical approaches can potentially manage and reduce it.

Financial Planning

What does financial planning include?

Long-term goal setting, cash flow and debt analysis, retirement planning including employee benefits recommendations, social security and tax strategies, investment alignment and risk assessment, insurance and beneficiary review. It looks at your entire financial picture and how each piece effects the whole rather than isolated decisions.

Do I still need a financial plan if I already have investments?

Yes. Investments are only one part of a complete financial picture. See above.

How often should I update my financial plan?

Annually, or after major life changes like retirement, inheritance, marriage, divorce, or other changes to family dynamics like adding children or losing a loved one.

Do you help with tax-efficient retirement strategies?

Yes. We integrate tax awareness into investment and withdrawal decisions. Our advisors counsel clients about efficiently managing Required Minimum Distributions (RMDs), Qualified Charitable Contributions (QCDs), and Roth IRAs. We also manage investments with tax awareness including using tax loss harvesting, municipal bonds, ETFs, and other strategies to maximize tax efficiency.

How do you help clients understand risk?

We evaluate clients’ investments, goals, and comfort level to align investing strategies with your personal risk profile. Risk is not based on your age or a “target date” but rather is customized for you. We explain risk in context with appropriate benchmarks so clients get a real sense of how they are progressing.

What is net worth and why does it matter?

Net worth is your total assets (cash, investments, home equity, etc.) minus total liabilities (debts like mortgages, loans, and credit cards). It matters because it provides a clear snapshot of your financial health, tracks progress toward goals like retirement or debt freedom, and provides an order of operations to guide decisions such as whether to invest more aggressively or pay down high-interest debt first.

Do you provide Social Security guidance?

Yes. We help you analyze your Social Security options based on all of your income sources, current situation, and your overall long-term goals.

Do you help minimize taxes in retirement?

We help clients create efficient withdrawal strategies across all account types. We also keep up to date on changing tax rules and opportunities and communicate those to clients.

Can you work with my CPA?

Absolutely. Collaboration ensures better tax and financial outcomes.

What is the best way to build an emergency fund?

Open a high-yield savings account or money market fund for liquidity and FDIC protection. Automate small weekly transfers from checking to build it steadily. First, aim for $1,000. Then 3 months worth of essential expenses. Then ultimately 6-12 months worth of expenses. Treat your emergency fund as untouchable except for true emergencies to avoid derailing long-term goals.

Working With Shadowridge

How long have you been in business?

Shadowridge Asset Management was founded in 2012 and has been serving clients with fiduciary, risk-aware guidance and proactive asset management for more than a decade.

Do you have an account minimum?

No, we want to make what we do accessible to everyone.

How are you compensated?

We are a fee-only fiduciary firm, meaning we are compensated only by our clients – not by commissions or product sales. Our fee is based on a percentage of assets under our management.

Who will I work with?

You’ll work directly with one of our advisors, with the full support of our entire firm.

What happens in the first meeting?

A conversation to learn about your goals, current situation, preferences, and determine whether we’re a good fit – no pressure, no commitments, no charge.

Can you work with clients outside Austin?

Yes. We work with clients nationwide through virtual meetings and secure technology.

How often do we meet?

Typically 1–2 times per year, with ongoing communication as needed.

Do I need to move all my accounts at once?

No. We help you transition accounts at a pace that feels comfortable and strategic.

What custodians do you use?

We use reputable third-party custodians to safeguard client assets. Our custodians include Fidelity, Axos, Altruist, Nationwide, and Security Benefit, to name a few.

How do you communicate during volatile markets?

Our main form of communication is through our regular newsletters and video posts. During exceptional volatility, we also communicate with our clients via email or phone with timely observations and guidance.

Market Volatility & Risk

How do you help clients stay calm during volatility?

By providing steady communication, education, and a disciplined tactical process. Since we have discretionary authority for the assets we manage, we make proactive updates to our strategies on an ongoing basis, with the goal of giving clients peace of mind during volatility.

Why do investors make emotional decisions?

Fear, uncertainty, and media noise often override logic and long-term strategy. Greed or FOMO (fear of missing out), short term focus, comparison to others, and personal past experience or “money stories” can also be factors that overtake sound financial plans with emotional reactions.

What should I do when markets drop suddenly?

Avoid emotional reactions. Step back and find perspective. Talk to your advisor. We monitor conditions and make prudent adjustments when needed.

What is drawdown risk?

Drawdown risk is the risk of your investment portfolio falling from a peak value down to a lower “valley” before it recovers, and how deep that fall could be. It focuses on the size and impact of declines, not just long-term averages.

How does tactical management potentially help during volatility?

By reducing exposure during periods of weakness and adding exposure during periods of strength.

Retirement & Income Planning

How much money do I need to retire comfortably?

You need enough to cover essential expenses, lifestyle wants, and healthcare needs. A common starting rule is to aim for a portfolio that can support about 4-5% in annual withdrawals, then adjust based on your expected spending, risk tolerance, and health.

How do you build retirement income plans?

We coordinate withdrawals, taxes, investments, and risk probability with long-term goals to create stable income.

Should my investment strategy change in retirement?

Often yes – income needs and market risk require thoughtful recalibration when you move from the contribution phase to the distribution phase of retirement planning.

When should I start Social Security?

It depends on longevity, taxes, employment, income needs, marriage status, and other retirement assets.

How do I create a sustainable retirement income plan from my investments and savings?

Estimate your retirement spending needs, subtract guaranteed income sources like Social Security or pensions, then build a dynamic portfolio with cash/income buckets for near-term needs and growth assets for later years. We do this for clients, using flexible spending guardrails (e.g., cut back 10% if markets drop sharply, increase if they surge) and tactical rebalancing to adjust withdrawals based on current conditions, ensuring the plan adapts to volatility rather than relying on the “4% rule.”

Robo-Advisors & Big Firms

How is Shadowridge different from big brokerage firms?

We provide personalized, fiduciary advice and tactical management-not one-size-fits-all models. We are fee-only, independent fiduciaries. We offer Integrated Financial Planning and plain-English communication, not the scripted sales of massive brokerages. We prioritize client education and genuine relationships over mass-market products.

Are robo-advisors a substitute for human advisors?

No. Robo-advisors automate investing but cannot provide planning, strategy, or emotional guidance.

Do robo-advisors use tactical strategies?

Many rely on static formulas and do not adjust exposure based on real market conditions.

Why do some advisors recommend identical portfolios?

Many firms prioritize automation and scalability over personalized strategy. In other words, large firms do this to improve efficiency and profitability for the firm, rather than priortizing clients’ unique needs.

Why is personalization important in investing?

Because every investor’s situation is different. What may be great for your neighbor may be a terrible strategy for you. We believe there are too many variables in your financial life to prescribe a one size fits all investment strategy.

Investor Behavior & Psychology

Why does my portfolio behave differently from the overall market?

Your portfolio reflects your specific investments, risk profile, and tactical adjustments – not the market as a whole.

Why do investors often underperform the market?

Poor timing, emotional decisions, and lack of discipline. Many investors buy after strong performance when optimism is high and sell after declines when fear is highest, effectively “buying high and selling low.” Studies of mutual fund and equity investors repeatedly show a sizable gap between fund returns and what the average investor actually earns because of poor timing of contributions and withdrawals. Frequent trading, high-fee products, and unnecessary tax costs can also quietly drag performance.

What should I do when financial news feels overwhelming?

Step back from the noise and rely on strategy, not headlines. Talk to your advisor for perspective on what is really going on in your investments. Sometimes financial news may not even apply to your situation.

How do you help clients avoid emotional mistakes?

Through education, communication, and a structured investment process. We partner with our clients to empower them to make better financial decisions.

What are the most common psychological biases that affect investment decisions?

Common psychological biases that affect investment decisions include overconfidence, confirmation bias, anchoring, loss aversion, herd mentality, and hindsight/self-attribution bias. These biases push investors to buy high, sell low, under-diversify, and abandon plans during volatility. Recognizing these patterns and using rules-based processes can help reduce their impact and potentially improves long-term outcomes.

Fiduciary Duty, Ethics & Transparency

What does it mean that you are a fiduciary?

We are legally and ethically required to act in your best interest and put clients’ interest first.

How is a fiduciary different from a broker?

A broker traditionally operates under a suitability or “best interest” sales standard, meaning recommendations must be acceptable for the client, but do not have to be the optimal choice for the client over the broker or firm. A fiduciary must act in the client’s best interest at all times when giving advice, even if it reduces the advisor’s own compensation.

Why is fee-only advice more transparent?

Fee-only advice is more transparent because the way the advisor gets paid is simple, direct, and easy to see. There are fewer hidden incentives, so it is clearer to know exactly “what I pay” and “what I get” for it.

What credentials do your advisors hold?

CFP®, CeFT®, BFA (Behavioral Financial Advisor), ChFC®, and CMT® credentials, representing advanced education and ethical standards.
However, please note that the achievement of any professional degree, designation, certification, or license, or any amount of prior experience or success, should not be construed as a guarantee that you will experience a certain level of results or satisfaction.

Where can I find your regulatory filings?

On the SEC’s Investment Adviser Public Disclosure (IAPD) website.

Life Events & Real-World Situations

What should I do if I inherit money?

Pause before acting. Inheritance requires thoughtful planning around taxes, risk, and allocation. Ask lots of questions about what you are going to inherit and how it works.

Should I roll over an old 401(k)?

It depends on fees, investment options, the plan’s features, and your current situation and retirement goals.

How should I invest a large lump sum?

Based on your goals, risk tolerance, taxes, and current market conditions. The core lens is: “What is in your best interest overall?” not “Where can we put this money fastest?”

What should I do with multiple retirement accounts from past jobs?

We evaluate various factors and both pros and cons to determine whether a rollover is in your best interest and whether consolidation can help simplify management and improve financial clarity.

Do you help widowed or newly single clients reorganize finances?

Yes. We help organize income, investments, taxes, and long-term planning during major life transitions. Our advisors have specialized training in these areas.