Vermont Financial Advisor

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Frank Koster, Financial Advisor

frank@onedayinjuly.com | (802) 777-9768


Experience

As mentioned in one of my articles below, the college reading that sparked my interest in the capital markets was Burton Malkiel’s “A Random Walk Down Wall Street.” (If anyone is interested, we keep several copies here in our Shelburne office.) The book highlights the inability of most investors to beat the overall market returns on a risk adjusted basis, over the long term, and after fees. I spent much of my 40 year career in the capital markets combatting that notion, gradually capitulating over the last 10-15 years. As a convert who has lived and worked on both sides of the fence, I can tell you with conviction that indexed products deliver much more than just lower fees (Active vs. Passive Investment Management). But I digress…

During the aforementioned 40 year career, I had the privilege of directly managing or overseeing the management of roughly $150 billion dollars of other people’s money, always as a fiduciary. During that span I worked as an analyst, trader, portfolio manager, and ultimately Chief Investment Officer. I worked for several well-known financial institutions and alongside some of the best and brightest the industry has known, learning, and hopefully teaching a bit as we went along. I am so excited to be able to bring those years of experience to our clients here in Shelburne!

Investment Thoughts

When investing, simple is generally better than complex for several reasons. Complexity obscures costs, performance, and the overall understanding of the client, and frequently necessitates legal and/or accounting opinion, adding more costs. Further, complexity tends to impair liquidity, or the ability to convert the investment to cash. These factors, in combination with the performance characteristics described here, are why we are so excited to be building the practice we are here in Shelburne, Vermont.

Hometown, etc.

I grew up in Cincinnati, have since lived in Chicago, NYC, Milwaukee, and Baltimore, but have called Vermont home since 2009 when I took the CIO job at Dwight Asset Management in Burlington. My wife tells me we have moved too much, but we have generally enjoyed the ride.

I enjoy serving the Lake Champlain Maritime Museum as Board Treasurer.

Education

College of Wooster, Wooster, OH BA in Economics


Investment Risk vs Investment Return

Investing entails several inherent risks. In the case of equities, investors generally think of risk as the possibility of losing money relative to the initial investment. Bond investors have many commensurate risks to consider, but most will be thinking about the interest payments relative to the risk of default or an adverse movement (increase) in interest rates.

Using U.S. Treasury Bonds to Reduce Risk

Historically, bonds have played two primary roles in balanced investment portfolios. They have generally paid a higher level of current income than stocks, making them the go-to vehicle for those in need of current income.

Active vs. Passive Investment Management

The advent of the ETF market makes passive, or indexed, investing available to all investors. Each ETF owns every stock in the corresponding index, in the same proportion as the index, so the investor gets a highly diversified portfolio with one vehicle.

Risk Management

We utilize our fixed-income allocation to dampen volatility and provide an element of stability in down equity markets.

Frank Koster, Financial Advisor

frank@onedayinjuly.com | (802) 777-9768


Experience

As mentioned in one of my articles below, the college reading that sparked my interest in the capital markets was Burton Malkiel’s “A Random Walk Down Wall Street.” (If anyone is interested, we keep several copies here in our Shelburne office.) The book highlights the inability of most investors to beat the overall market returns on a risk adjusted basis, over the long term, and after fees. I spent much of my 40 year career in the capital markets combatting that notion, gradually capitulating over the last 10-15 years. As a convert who has lived and worked on both sides of the fence, I can tell you with conviction that indexed products deliver much more than just lower fees (Active vs. Passive Investment Management). But I digress…

During the aforementioned 40 year career, I had the privilege of directly managing or overseeing the management of roughly $150 billion dollars of other people’s money, always as a fiduciary. During that span I worked as an analyst, trader, portfolio manager, and ultimately Chief Investment Officer. I worked for several well-known financial institutions and alongside some of the best and brightest the industry has known, learning, and hopefully teaching a bit as we went along. I am so excited to be able to bring those years of experience to our clients here in Shelburne!

Investment Thoughts

When investing, simple is generally better than complex for several reasons. Complexity obscures costs, performance, and the overall understanding of the client, and frequently necessitates legal and/or accounting opinion, adding more costs. Further, complexity tends to impair liquidity, or the ability to convert the investment to cash. These factors, in combination with the performance characteristics described here, are why we are so excited to be building the practice we are here in Shelburne, Vermont.

Hometown, etc.

I grew up in Cincinnati, have since lived in Chicago, NYC, Milwaukee, and Baltimore, but have called Vermont home since 2009 when I took the CIO job at Dwight Asset Management in Burlington. My wife tells me we have moved too much, but we have generally enjoyed the ride.

I enjoy serving the Lake Champlain Maritime Museum as Board Treasurer.

Education

College of Wooster, Wooster, OH BA in Economics







Risk Management
Identify, monitor, and manage risk.
Index Funds
Broad market exposure, low expense.
Accounts We Manage
We manage a wide variety of accounts.
Our Fees
Consistently low fees.
Environmental Investing
Focused, sustainable investing options.
Environmental Articles
Sustainable, environmental insights by financial advisor Josh Kruk.
Philosophy
Prioritizing and planning for the future.
Mutual Funds vs ETFs
Clarifying the difference.
Frequently Asked Questions
Good questions, real answers.
Portfolio Construction
Construction & strategy
Timing the Market in 2020
2020 - a case study in the futility of market timing.
Active vs Passive Investing
We believe there is a winner in this debate.

Shelburne, VT Financial Advisor

Frank Koster | Josh Kruk | Keith McCarthy

5247 Shelburne Rd, Suite #101

Shelburne, VT 05482

(802) 777-9768

Darien, CT Financial Advisor

Available for meetings in Darien.

Keith McCarthy

(203) 554-9466


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