Smarter portfolios for individuals and advisors

You receive a complete, personalized portfolio optimization report that tells you exactly how to allocate your investable assets between a curated and globally diversified portfolio of ETFs, representing the Empirical Global Market Portfolio, and a risk-free asset. You get exact ETF allocations, with dollar amounts. The report incorporates Social Security, Medicare, pensions, real estate, human capital, and more. You also receive a Household Economic Balance Sheet and a Household Income & Expense Summary showing your complete financial position within the optimization framework, plus a set of wealth-building and wealth-preserving strategies commonly used by individuals and households in wealth and income brackets similar to yours, each with rationale, risk factors, and IRS citations.

Ocelot℠ Core is built on the Merton continuous-time portfolio framework, a foundational result in financial economics. Unlike rule-of-thumb methods or questionnaire-based risk profiles, it derives your optimal allocation mathematically from your actual financial data and a precisely measured risk tolerance. Advisory API Systems LLC is a California-registered investment advisor (CRD #330083).

It’s a mathematical result called the two-fund separation theorem, one of the foundational findings in modern portfolio theory. Under standard assumptions, every investor—regardless of wealth, age, or risk tolerance—should hold the same portfolio of risky assets, namely the Empirical Global Market Portfolio; what varies between investors is only how much of their allocatable wealth goes into that risky portfolio versus a risk-free asset. In equilibrium, the global market portfolio is the unique risky portfolio that delivers the highest expected return per unit of risk; any other mix—individual stock picking, sector bets, alternative investments, market timing—is provably inferior to some combination of the market portfolio and a risk-free asset. Your risk aversion, measured by the coefficient of relative risk aversion, determines the weight on the market portfolio; your background wealth—Social Security, pensions, real estate, human capital—adjusts that weight further, because those non-tradeable assets already carry implicit market and bond exposures that Ocelot℠ Core accounts for in the optimization.

This is a common and reasonable question because conventional advice—and most target-date funds—make horizon look central. Under standard assumptions (CRRA preferences and approximately i.i.d. market returns), the optimal portfolio rule is myopic: it depends only on the current state—your allocatable wealth, your background wealth (Social Security, pensions, real estate, human capital), your risk aversion, and the market parameters—but not separately on the investment horizon or your subjective discount rate. This is the continuous-time analog of classical discrete-time results by Mossin (1968) and Samuelson (1969). Age effects do appear, but as a consequence of how state evolves: human capital depreciates with age, pension and Social Security wealth front-load and then unwind, and the ratio of total to allocatable wealth therefore changes through the life cycle. Target-date fund glide paths are best understood as proxies for this changing balance-sheet composition, not as a primitive horizon effect on the portfolio rule. The popular “stocks for the long run” intuition survives only as a state-dependence claim: a 25-year-old should typically hold a high equity allocation, but because of her large bond-like human capital relative to allocatable wealth, not because she has 40 years until retirement.

Run it again. Each optimization is a standalone analysis based on your current data. Major life events—a new job, retirement, an inheritance, buying a home—change your background wealth and risk capacity. A fresh optimization captures those changes and gives you an updated recommendation.

Yes. The web form's JSON tab includes Save Snapshot to File and Load Snapshot from Clipboard buttons. Save downloads everything you have entered as a small JSON file you can keep on your own computer alongside your tax records or financial documents. The next time you run Ocelot℠ Core—at your annual rebalance, after a major life event, or whenever your situation changes—copy the file's contents to your clipboard and Load to restore everything in seconds, then update only the fields that have changed and re‑run without re‑entering anything from scratch. Advisors can keep one snapshot file per client alongside their other client records, making annual reviews substantially faster.

No. The web interface walks you through clear, organized forms—income, assets, Social Security, pensions—and handles all the math. You enter what you know about your own finances; Ocelot℠ Core does the rest.

Your data is transmitted over encrypted connections and is stored securely after your optimization completes. We do not sell or share personal financial information. As a registered investment advisor, we are subject to regulatory requirements governing client data protection.

Individual investors and heads of households who want a rigorous, data-driven answer to "how should I invest?" rather than relying on generic rules of thumb. Also registered investment advisors who want to bring academically grounded optimization to their clients. You must be a California resident, or an advisor with your principal place of business in California, to use the service directly.