Current Allocation
100% equity$507,745
8 holdings
Strategic Target
diversified$507,745
254 holdings
Prospect Proposal
Portfolio Proposal
Sample Prospect · Taxable Brokerage · Prepared April 15, 2026
Current Portfolio Value
$507,745
Taxable Brokerage · as of 4/14/2026
Current Holdings
8
Concentrated · 3 of 12 sectors
Tax-Loss Opportunity
~$50K
▲ Available to offset gains
Point 01 · Risk
Page 23
Current risk metrics sit well above a diversified portfolio. Current vs. strategic target:
Std. Deviation
Beta
Tracking Error
Current
Strategic Target
Point 02 · Tax Loss Pool
Page 24
Five losing positions hold $136K of unrealized losses. Selling realizes them as a tax asset.
ACHR
−$55,560
LASE
−$44,775
SLI
−$24,506
IBIO
−$6,405
TOGI
−$5,228
Point 03 · Diversification
Pages 25–26
Current exposure is concentrated in 3 sectors. Target spreads across all 12.
Current
3 of 12 sectors · 100% crowded
Strategic Target
12 of 12 sectors · balanced
Why This Matters
Executive SummaryPortfolio Characteristics
side-by-side| Metric | Current | Strategic Target | Change |
|---|
Benchmark:
75% SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), 15% iShares Core MSCI EAFE ETF (IEFA), 10% iShares Core MSCI Emerging Markets ETF (IEMG).
2 Winners
$90,470
Unrealized gains across 2 positions
5 Losers
−$136,474
Unrealized losses across 5 positions
All Current Positions
ranked by weight| Ticker | Company | Market Value | Weight | Unrealized G/L |
|---|
Top Winners
2 positions · 41.7%| Ticker | Company | G/L |
|---|
Biggest Losses
5 positions · 58.3%| Ticker | Company | G/L |
|---|
Advisor Commentary
The current account sits in a handful of speculative small-cap positions that, while they offer high potential upside, carry volatility and concentration risk well outside what I would recommend for long-term compounding. The portfolio is nearly all equity, with zero fixed income and zero tax diversification.
The good news: the current drawdown across five of the positions creates a meaningful tax-loss harvest opportunity. Selling those names realizes roughly $50,000 in capital losses that can offset gains in other accounts, carry forward against future gains, or reduce ordinary income. Done correctly, the same rebalance transitions the portfolio into a diversified 254-holding strategy and generates tax value.
Net effect: we reduce portfolio standard deviation by roughly 80%, bring Beta back in line with the broad market, add roughly $7,600 in annual dividend income, and create a tax asset worth more than $15,000 at typical short-term rates.
No action required today. My recommendation is we meet to discuss the transition structure and which positions, if any, you would like to set aside as active trading positions outside the managed allocation.
TB
Toby Brazzel
Brazzel Wealth Management
Key Takeaways
- Current portfolio: 8 holdings, 3 of 12 sectors represented
- Proposed transition: 254 holdings, all 12 sectors
- Standard deviation drops from 59% to 12%
- Beta drops from 2.03 to 0.97
- Adds ~$7,600 in projected annual income
- Harvests ~$50K in existing losses for tax value
Implementation Plan
Important Disclosures
This proposal is for informational purposes only and does not constitute a recommendation or solicitation to buy or sell any security. Past performance is no guarantee of future results. All portfolio characteristics, risk metrics, and projections shown are based on data as of April 14, 2026, and may change materially with market conditions.
Asset allocation and diversification do not assure a profit or protect against loss. The tax management techniques discussed are not intended as tax advice. Each investor's tax situation is unique; consult a qualified tax professional before acting on loss-harvesting strategies.
Brazzel Wealth Management is a registered investment adviser. Investment advisory services are provided subject to the terms of the engagement agreement.
The current portfolio carries meaningful concentration risk across just eight holdings, almost all in speculative small-cap names. That structure produced volatility well above diversified portfolios of similar size and left material tax value on the table.
The strategic target rebuilds around 254 holdings spread across all 12 sectors, targeting a Beta near 0.97, standard deviation near 11.69%, and annual yield of roughly 1.5%. The transition can be executed in a single rebalance that also harvests the existing losses, turning the current drawdown into a future tax shield.