What We Do

Our Strategy

“After 33 years of wall street experience, academic and professional study, and extensive financial market research, I strongly believe that successful retirement investing comes down to 3 must-haves.”

Paul Sebetic, Founder Sebetic Advisors


Investment portfolio should have a large allocation to stocks

Throughout history, long-term investing in high quality U.S. dividend stocks has substantially outperformed bonds, cash, and inflation.
For each $100 moved from Long-term Government Bonds to Large Company Stocks, the expected return over a 30-year retirement will result in $81 more after-tax income to spend during retirement and a $261 higher ending balance to pass onto heirs.

For each $100 moved from bonds to stocks, the expected return over a 30-year retirement will result in $81 more after-tax income to spend during retirement and a $261 higher ending balance to pass onto heirs.


Historically, disciplined stock investing with long term holding periods has completely eliminated the risk of loss from investing in stocks.

Since 1926, U.S. large company stocks have never had a fifteen-year period with a negative return.

Investing in a lower cost /tax efficient manner over a 30-year period makes a significant difference in the ending investment balance.

A long term buy and hold strategy, coupled with lower costs, can dramatically increase after tax returns. A lower cost tax efficient stock strategy over a 30-year retirement can result in a 72% higher ending balance compared to a typical stock mutual fund.

The Math Behind the Must-Haves

In the example below, we assume that three brothers each have one million dollars to invest over a thirty-year period. Behold the power of the “Three Must Haves”.

Brother 1
Invests 100% in BONDS

Cumulative Income Received


Portfolio Ending Value

Total Value
Brother 2

Invests 100% in STOCKS

Cumulative Income Received


Portfolio Ending Value

Total Value
Brother 3

Cumulative Income Received


Portfolio Ending Value

Total Value

Our Offering

Our Offering

An equity portfolio specifically designed for retirement investing

  • A comprehensive retirement investing strategy OR an excellent complement to an investor’s existing retirement program
  • Pays monthly distributions which in the first year will total 4% of the opening capital balance and targets annual increases thereafter equal to inflation

A highly diversified portfolio

  • Target 100 companies
  • Diversify by sector, industry, country, company size and style
  • During periods of elevated equity valuations, may invest in money market funds and or short-term fixed income instruments

Invest in high quality companies

  • Strong history of profitability & growth with prospects for continuation in the future
  • Strong balance sheets, with either net cash or low levels of debt
  • Selling at reasonable valuation levels

Identify potential investment opportunities through:

  • Market Research
  • Investment Periodicals
  • Numerous stock filter and screening tools
  • 13F Reviews
  • Mutual Fund / ETF holdings analyses
  • Other

Analyze stocks using Sebetic Advisors Proprietary Valuation Model and 10-Year Return estimating tool

  • Tool enables us to quickly screen a large number of stocks
  • Only those companies that pass the four qualifiers - rate of growth, rate of profitability, balance sheet strength, and current valuation are reviewed further

Comprehensive review – during this phase we:

  • Analyze 20 years of financial statements (or inception to date)
  • Review Company’s latest filings on the SEC website
  • Review Corporate governance policies
  • Review Board and senior management
  • Analyze versus competitors and the industry
  • Evaluate future prospects and other items

Finally, we select the high quality investments that we want to own “forever”

Focus on tax efficiency

  • Very long-term holding periods defer taxes
  • Dividends / long term capital gains taxed at an advantageous rate
  • If clients invest with us in both IRA and taxable accounts, we will seek to locate assets in the most tax efficient vehicle

Continuously monitor valuations

  • We will sell a company if share price increases substantially and we believe there are better alternative investment opportunities (after accounting for taxes on gains)
  • We will sell if the company fails to keep up with the conservative forecast created upon investment - either operating income growth or balance sheet strength
  • If a company declines substantially in value, but we do not believe the company fundamentals have deteriorated, will look to take a short-term tax loss while maintaining exposure to the company

Diversification - will manage portfolio to diversification targets (sector, industry, country, company size and style)

Safeguarding of Assets

  • Client opens a brokerage account at Interactive Brokers, where only the client can deposit and withdraw funds out of the account
    • Interactive Brokers’ technology enables the efficient and cost effective replication of our strategy across client accounts
  • Client enters into an agreement hiring Sebetic Advisors to manage the portfolio

Low Fees

  • Management fee of 0.5% per year
    • Fee is approximately 50% lower than the average Financial Advisor fee for clients with a $1 million investment (source: Investopedia)
  • A second fee option for qualified investors (investable net worth $2.1 million or more) is available
    • Management fee of 0.1% per year and an annual performance fee equal to 1/3 of the excess performance over the S&P 500

Account Size

  • Clients typically invest $150,000 or more


  • We will send a preliminary questionnaire so that the client may gather the necessary data and begin thinking about their short and long term goals
  • Any data sent will be reviewed and analyzed prior to our meeting

Assess / Recommend

  • We will perform a confidential, no obligation retirement financial analysis (either in-person or via video conference)
  • Based on our review we will make any recommendations that may be appropriate. Clients typically find this discussion extremely valuable


  • We will then discuss the Sebetic Advisors Strategy and Portfolio
  • We will provide specifics on investments, investment selection, portfolio management, etc. and answer any remaining questions


  • Together we will explore whether our strategy and portfolio is right for you
  • This is NOT a high pressure sales pitch. If our offering makes sense for you, we can explain our onboarding process