Our Investment Process

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At Di Bello Financial, we build and actively manage customized investment portfolios designed around each client’s goals, risk tolerance, investment objectives, liquidity needs, and tax situation. Rather than relying on third-party model portfolios, we conduct our own investment research and actively manage portfolios using individual stocks, customized bond ladders, and carefully selected low-cost ETFs.

Annette Di Bello, as a CPA, PFS, and CFP® professional, integrates investment management with tax strategy and comprehensive financial planning to help clients pursue stronger after-tax outcomes over time.

Our portfolio construction process is designed to seek attractive risk-adjusted returns over full market cycles. We evaluate results using measures such as alpha, beta, standard deviation, and Sharpe ratio as part of our ongoing portfolio management process. Rather than assuming greater market risk to pursue higher returns, we strive to add value through disciplined security selection, thoughtful portfolio construction, tax-efficient management, and ongoing research while maintaining an appropriate level of risk for each client.

Independent Research

Every investment decision begins with research.

Our process includes analyzing:

• Company financial statements and SEC filings
• Quarterly earnings calls and management commentary
• Wall Street analyst research
• Company news and business developments
• Industry and sector trends
• Economic and market data
• Statistical analysis
• Geopolitical developments that may influence markets

We continually evaluate long-term investment themes driven by technological innovation, demographic shifts, economic conditions, and geopolitical developments while seeking high-quality companies with attractive valuations, strong fundamentals, and long-term growth potential.

Customized Portfolio Construction

No two clients receive identical portfolios.

Every portfolio is customized around the client’s financial goals, tax situation, investment objectives, income needs, liquidity requirements, and risk tolerance.

For new clients transferring appreciated securities, we carefully evaluate embedded unrealized capital gains before making investment changes. Rather than immediately liquidating existing holdings, we often develop a customized transition strategy that balances diversification, investment risk, tax consequences, and long-term objectives. This allows us to improve portfolio positioning while helping manage unnecessary capital gains taxes.

Individual stocks represent the majority of the equity allocation in all client portfolios and form the foundation of our investment philosophy. Our equity portfolios typically include approximately 70 to 80 companies diversified across multiple industries and sectors, providing broad diversification while allowing greater customization, transparency, and tax-efficient portfolio management.

Strategic Use of ETFs

While individual securities form the core of our investment philosophy, low-cost ETFs generally represent approximately 25% to 30% of client portfolios and provide efficient exposure to:

• International equities
• Small-cap equities
• REITs
• Commodities
• Gold and precious metals
• Short-term fixed income and cash management

Combining individual securities with low-cost ETFs helps maintain a cost-efficient portfolio while allowing us to remain nimble as opportunities arise. Direct ownership also provides greater flexibility for tax-loss harvesting, capital gain management, portfolio rebalancing, and customized investment decisions throughout the year.

Custom Bond Management

For clients requiring fixed-income investments, we frequently construct customized bond ladders using investment-grade corporate bonds, U.S. Treasury securities, and municipal bonds when tax-efficient and appropriate.

Each ladder is designed around the client’s income needs, tax situation, liquidity requirements, and our outlook for interest rates, duration, and credit quality. By using individual bonds rather than relying solely on bond funds, we can better customize cash flows, manage interest-rate risk, and improve tax efficiency.

Active Portfolio Management

Investment management is an ongoing process.

We continuously monitor company fundamentals, earnings results, valuations, competitive positioning, industry developments, economic conditions, and geopolitical events. If our investment thesis changes because of deteriorating fundamentals, management execution, competitive pressures, valuation concerns, or changing industry trends, we may reduce or eliminate a position.

When appropriate, we may also trim appreciated positions to manage risk, rebalance allocations, lock in gains, and maintain appropriate diversification while continuing to participate in a company’s long-term potential.

Measuring Results

Portfolio management extends well beyond selecting investments.

We continually monitor portfolio performance, diversification, asset allocation, tax efficiency, and risk characteristics while comparing results with appropriate market benchmarks. Our analysis includes risk-adjusted measures such as alpha, beta, standard deviation, and Sharpe ratio to evaluate performance relative to the risks assumed.

Clients receive comprehensive monthly and quarterly reporting and enjoy secure online access to the Black Diamond® Client Portal, where they can view portfolio performance, holdings, transactions, asset allocation, realized and unrealized gains, statements, and other portfolio information at any time.

Integrating Tax Strategy

Because Annette Di Bello, is a CPA, PFS, and CFP® professional, tax considerations are integrated into our 

investment decisions whenever appropriate.

Portfolio management involves more than selecting investments—it also requires managing after-tax outcomes. Our process incorporates tax-loss harvesting, capital gain management, asset location, municipal bond analysis, and customized transition strategies for appreciated securities to help improve long-term after-tax results.

A Long-Term Investment Philosophy

Successful investing requires discipline, independent research, thoughtful risk management, and the flexibility to adapt as markets, businesses, and tax laws evolve.

By combining independent investment research, customized portfolio construction, active portfolio management, integrated tax strategy, and comprehensive financial planning, we seek to help clients build, preserve, and transfer wealth while pursuing attractive risk-adjusted returns over the long term.

Related Resources:

Why We Use Individual Stocks Instead of Mutual Funds

Tax Strategy

Wealth Planning

Investment Management Planning Scenarios

Investment objectives, portfolio allocations, securities, and results vary by client. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives or generate positive alpha.

About the Author

Annette Di Bello, CPA/PFS, CFP® is the Founder and President of Di Bello Financial, an independent, fee-only Registered Investment Advisor based in Mission Viejo, California. With nearly four decades of experience in accounting, taxation, investment management, and financial planning, she specializes in helping high-net-worth individuals, business owners, executives, and retirees integrate sophisticated investment strategies with proactive tax planning.

Unlike firms that rely primarily on model portfolios or mutual funds, Annette personally designs and actively manages customized portfolios using individual stocks, custom bond ladders, and strategic ETF allocations. Every investment decision is guided by independent research, disciplined risk management, and tax-efficient portfolio construction tailored to each client’s unique financial objectives.

Annette is both a Certified Public Accountant (CPA) and a Personal Financial Specialist (PFS)—the American Institute of CPAs’ advanced financial planning credential—as well as a CERTIFIED FINANCIAL PLANNER® (CFP®) professional. This combination of credentials allows her to integrate investment management, tax strategy, retirement planning, and comprehensive wealth planning into a coordinated financial strategy.

Through Di Bello Financial, she is committed to providing objective, fiduciary advice with transparency, disciplined portfolio management, and personalized service designed to help clients pursue their long-term financial goals.

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