Model Portfolios
Match your investment goals with model portfolio options built for steady income and targeted growth.
Transitioning from accumulating wealth to drawing retirement income is a complicated pivot. And relying solely on standard government bonds often leaves your portfolio exposed to inflation and market drops. Thatâs why we design every model portfolio with clear performance objectives to safeguard your principal while funding your ongoing lifestyle.
Our Model Portfolios
1. Income Model Portfolio (OET INC 1001)
Protect your principal while generating ongoing cash flow without draining your original investment.
Target Return: 3% to 5%
Built for investors needing reliable yield that standard government bonds can no longer deliver. Non-qualified accounts utilize tax-free municipal bonds to minimize tax drag. Treasury Inflation-Protected Securities (TIPS) shield against inflation, while corporate and special dividends bolster ongoing cash flow.
2. Growth and Income Model Portfolio (OET G&I 2001)
Balance long-term capital expansion with consistent cash flow for investors comfortable with moderate market movement.
Target Return: 6% to 9%
This model portfolio shifts asset allocation away from heavy bond reliance. It increases exposure to dividend-producing equities and growth ETFs to achieve higher yield.
3. Growth Model Portfolio (OET GRO 3001)
Drive dynamic wealth accumulation through high-performing equities and tactical options.
Target Return: 9% to 12%
Combines growth ETFs with high-yield dividend stocks. A 20% allocation uses stock and ETF options to capture market upside. This model portfolio continually adapts to shifting market conditions.
Performance-Based Accounts
4. Aggressive Income and Growth Portfolio (OET AIG 4002)
Pursue high-yield growth with advisory compensation directly tied to reaching target returns.
Target Return: 12% (performance fee applies only after meeting target)
Combines dividend stocks with active ETF transformations alongside a 30% options allocation. Non-qualified money incorporates state and city municipal bonds, alongside inflation-protected bonds for principal defense.
5. Aggressive Derivative Model Portfolio (OET AGD 5002)
Maximize capital growth through a market-neutral strategy engineered to perform regardless of market direction.
Target Return: 30% (performance fee applies only after meeting target)
Uses a non-directional options strategy (purchasing long strangles with puts and calls) during earnings seasons to capitalize on high stock volatility. Capital moves fluidly between cash reserves and defensive bonds or tactical options. Returns are independently tracked by Theta Research, and strict high-water mark rules ensure incentive fees apply strictly to net gains.
Protect More of Your Income from Inflation and Avoidable Taxes
Transition your capital into a tax-smart strategy engineered to protect your underlying principal while generating reliable cash flow.Â
FAQs
Does October Effect, Ltd. in Virginia Beach offer target-return model portfolios?
Yes. October Effect, Ltd. is a Virginia Beach-based registered investment advisory firm providing five distinct model portfolios designed around specific yield, growth, and risk benchmarks.
What are the target return benchmarks for October Effect, Ltd.âs model portfolios?
Our standard strategies target returns of 3% to 5% for Income (OET INC 1001), 6% to 9% for Growth and Income (OET G&I 2001), and 9% to 12% for Growth (OET GRO 3001). Our performance-based accounts target 12% for Aggressive Income and Growth (OET AIG 4002) and 30% for Aggressive Derivatives (OET AGD 5002).
How does the Income Model Portfolio generate steady cash flow without invading principal?
The OET INC 1001 portfolio generates yield by combining corporate dividends with Treasury Inflation-Protected Securities (TIPS) to defend against inflation. For non-qualified accounts, it incorporates state and city municipal bonds to protect income from tax erosion.
What investment strategy is used in the Aggressive Derivative Model Portfolio (OET AGD 5002)?
October Effect, Ltd. uses a market-neutral, non-directional strategy focused on purchasing long strangles (buying both puts and calls) on volatile stocks during earnings season. Assets shift dynamically across cash, equities, municipal bonds, TIPS, and options to pursue a 30% target return.
How is performance verified on performance-based model portfolios at October Effect, Ltd.?
Portfolio performance for incentive-based accounts is independently monitored and verified by Theta Research, a third-party tracking service. Furthermore, high-water mark rules protect investors by ensuring performance fees apply only to net original gains.
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