Complete Investment Solutions for Every Phase of Life

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For The Future

Early/Mid Career Stage

I have good job and income. I want to pursue aggressive growth for next 10 years.

Portion of your investment should be in a mix of broad market mix like SPX, NDX and RUT. You can dollar-cost-average into these broad sectors.

Some portion can take advantage of Sectors that are expected to perform better over next 12-18 months. Some limited portion can be deployed in "speculative" thematic stocks or ETFs. All of these exposures should have a known and low loss floor.

An illustrative portfolio can be as follows :

- Cash in Treasuries or Treasury equivalents; steady compoundable yield.

- Exposure to broad market indices through MAREX Overlay strategy with more exposure % allocated to Nasdaq 100 stocks (ex QQQ or VGT ETF).

- Yield Engine DISC strategy Overlay dialed-in for compounded growth.

- Exposure to selective sectors through MAREX Strategy. These sectors should be actively monitored.

- Some allocation to thematic or "speculative" stocks/ETFs with a hedge.

My spouse and I have good jobs and good vested stocks Portfolio. We are buying our starter home. Mortgage rates are too high. We don't want to sell our stocks for down-payment.

This is a common obstacle for getting into your first home. If you get good mortgage rate for longer duration, it is good to lock that in. However, if that is not possible, you can borrow against your stock Portfolio at a very low cost (comparable to SOFR rate), using our POCASH strategy.

You don't have to pay any principal or interest until borrowing term expires. The cost of borrowing is treated as Capital Loss. IRS code 1256 allows the Capital Loss to be treated as 60% Long Term Loss and 40% Short Term Loss.

Soman Advisors will automatically refinance if SOFR rate comes down. Term can be extended too.

We have a concentrated Portfolio. We want to diversify without liquidation and tax burden.

As a first step, you can protect your Portfolio using HEDG strategy.

On this protected Portfolio, use MAREX overlay strategy achieving Virtual Diversification. Exposure to various sectors and broad market is selectable.

This approach can create the effect "AS IF" you sold say some % of your portfolio and invested the proceeds into broad market, without actually selling the concentrated portfolio. Your concentrated Portfolio grows in a hedged manner on its own track. The MAREX Overlay has its own independent performance track. Composite performance is stacking of these two tracks.

As an example, assume your concentrated portfolio grew by 20%. You had used MAREX overlay with say 50% exposure to S&P 500. Let us say S&P 500 grew by 15%, then your composite return will be :

20% PLUS (50% of 15%) i.e. a total of 27.5%

You have not sold a single share of your concentrated Portfolio and got the diversified exposure to broad market.

Preserve what you have

Mid/Late Career Stage

We are happy with our Portfolio, but not with its volatility. We want to hedge it and avoid “lost decade” scenarios.

This is a very common concern. HEDG Strategy is designed to address this issue. This strategy locks in most of the gains you already have in the portfolio (governed by the long PUT strike price). To pay for this long PUT, the strategy forgoes upside beyond a point. Thus it creates a Zero-Cost or Low-Cost "Collar" around your portfolio positions. The collar is periodically monitored and adjusted according to market conditions and client preferences. Attempt is made to make sure that the stock is not "called away".

Many clients choose this strategy as a foundational aspect of their Portfolio. This strategy is many times called "SWAN in BLACK SWAN". Sleep-well-at-night during Black Swan period/events!

Overall, we are happy with our Portfolio. We want more exposure to broad market without liquidation. We would like bounded risk.

This is similar to the concentrated position scenario. You should use combination of HEDG and MAREX strategy.

As a first step, you can protect your Portfolio using HEDG strategy.

On this protected Portfolio, use MAREX overlay strategy achieving Virtual Diversification. Exposure to various sectors and broad market is selectable.

This approach can create the effect "AS IF" you sold say some % of your portfolio and invested the proceeds into broad market, without actually selling the concentrated portfolio. Your concentrated Portfolio grows in a hedged manner on its own track. The MAREX Overlay has its own independent performance track. Composite performance is stacking of these two tracks.

As an example, assume your concentrated portfolio grew by 20%. You had used MAREX overlay with say 50% exposure to S&P 500. Let us say S&P 500 grew by 15%, then your composite return will be :

20% PLUS (50% of 15%) i.e. a total of 27.5%

You have not sold a single share of your concentrated Portfolio and got the diversified exposure to broad market.

We are not happy with our Portfolio. We want to move to a different Portfolio meeting our Growth, Income, Safety, Liquidity and Tax efficiency goals.

This is an important critical step in your financial journey. You can work with Soman Advisors to structure your Portfolio as follows.

Treasuries (or Treasury Equivalents) + MAREX + DISC

1) Have your cash always invested in Treasury or Treasury equivalents. This creates a steady safe return on its own track. Soman Advisors Treasury Equivalents method achieve Tax Efficiency too. These investments are fully liquid.

2) Using MAREX Overlay strategy, get exposure to S&P 500, Nasdaq, Small caps and selected Sectors. Soman Advisors can work with you to make this decision.

3) Create an additional DISC overlay which would act as additional kicker to your Portfolio. Most of your income needs would probably be met by the DISC overlay. If you don't need the income, re-invest the yield for compounding.

Building a Portfolio along above lines is unique to Soman Advisors. This migration can be done in a Tax Efficient way.

Please contact Soman Advisors for a detailed discussion.

We want to park some cash, but want better than CD or Treasury yields with Tax advantages.

Invest Cash in Treasuries or Treasury Equivalents. Use DISC Strategy to get stacked performance with low, known risk. We will dial DISC strategy to low end of income spectrum.

Your emergency cash can be parked in this way. You always have access to your cash at short notice.

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Preserve and utilize

Near/In Retirement

We are happy with our Portfolio. We want Portfolio protection and predictable income.

Very common request from many families in this category.

You can use HEDG strategy to protect your Portfolio. This creates "SWAN in BLACK SWAN" effect. You sleep-well-at-night during Black Swan events or periods.

You can then use DISC strategy to generate income at acceptable risk.

HEDG PLUS DISC is a very popular choice among our clients.

Overall, we are happy with our Portfolio. We would like a conservative growth kicker with bounded risk.

Many families have very conservative income-oriented Portfolios. Many times there is need to get additional Growth component without incurring significant additional risk.

MAREX strategy is ideal in this scenario. Your base conservative Portfolio continues to provide income. MAREX gives a Stacked Growth component in a hedged way.

So both your Income + Growth goals can be met without any liquidation or margin borrowing.

We want to borrow cash at a low rate for our child’s condo payment without liquidating assets in our Portfolio.

You can borrow against your stock Portfolio at a very low cost comparable to SOFR rate, using our POCASH strategy.

You don't have to pay any principal or interest until the borrowing term expires. The cost of borrowing is treated as Capital Loss. IRS code 1256 allows the Capital Loss to be treated as 60% Long Term Loss and 40% Short Term.

Soman Advisors will automatically refinance if SOFR rate comes down. Term can be extended too.

We are not happy with our Portfolio. we want to migrate to a Portfolio meeting Growth, Income, Safety, Liquidity and Tax efficiency goals.

This is an important critical step in your financial journey. Even at late stage in your journey, you can always make corrections and steer your Portfolio to meet you goals. You can work with Soman Advisors to structure your Portfolio as follows.

Treasuries (or Treasury Equivalents) + MAREX + DISC

1) Have your cash always invested in Treasury or Treasury equivalents. This creates a steady safe return on its own track. Soman Advisors Treasury Equivalents method achieve Tax Efficiency too. These investments are fully liquid.

2) Using MAREX Overlay strategy, get exposure to S&P 500, Nasdaq, Small caps and selected Sectors. Soman Advisors can work with you to make this decision.

3) Create an additional DISC overlay which would act as additional kicker to your Portfolio. Most of your income needs would probably be met by the DISC overlay. If you don't need the income, re-invest the yield for compounding.

Building a Portfolio along above lines is unique to Soman Advisors. This migration can be done in a Tax Efficient way.

Please contact Soman Advisors for a detailed discussion..

Model Portfolios Slideshow

Disclaimer and important information

The strategies listed are for Illustration and Education purposes only
There is no explicit or implicit guarantee of future performance of these strategies
All investments involve risk of loss of Principal
These strategies rely on Options instruments which are derivative products and have their own risks
Contact Soman Advisors for further discussion of these strategies

Soman Advisors, LLC is a California-registered investment adviser. Information is for educational purposes only and does not constitute investment advice.

All investments involve risk, including loss of principal. Options and derivatives strategies involve additional risks and may not be suitable for all investors.