Comprehensive Portfolio Investment &
Personalized Financial Advice
As an independent, boutique wealth advisory firm, Montecito Capital Management is built on a singular mission: to elevate each client’s financial life through disciplined strategy, sophisticated insight, and unwavering fiduciary care. Backed by more than two decades of award-winning industry recognition, and thought-leadership, we blend institutional-level investment rigor with the personalization and discretion of a private family wealth office. We serve successful individuals, families, and business owners who value clarity, deep experience, and long-term partnership—ensuring their financial decisions are informed, intentional, and aligned with the life they want to build.
Our fiduciary-driven financial advisory practice is comprehensive, covering portfolio management, financial planning, retirement income solutions, tax-efficient investing, estate planning, philanthropy, education savings plans, and private assets such as real estate, business matters, and private transactions. We keep clients fully informed at every stage of their financial journey, ensuring they understand all factors influencing their wealth. Our steadfast commitment to integrity and personalized advice goes beyond core values—it establishes trust as the foundation of every client relationship.
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Tailored Strategies for Individual Goals
We focus on understanding each client’s unique financial goals, challenges, and aspirations before offering tailored strategies. We integrate a deep understanding of each client’s financial landscape with continuous, forward-looking planning to ensure every decision supports both present priorities and long-term goals. This coordinated approach allows us to synchronize strategic planning, disciplined investing, and proactive adjustments as life and markets evolve. By combining deep market knowledge with a long-term perspective, we provide investment recommendations that align with both immediate needs and future objectives.
We emphasize transparency in every step of the process, ensuring clients feel confident in their decisions. Rather than relying on one-size-fits-all solutions, we deliver thoughtful, research-driven advice designed to balance growth, stability, and risk management. Indeed, our fiduciary advisory approach is built on trust, clarity, and personalized guidance.
Empowering Clients Through Knowledge
Ultimately, our role as advisors is not only to guide financial choices but to empower clients with the knowledge, clarity, and confidence needed to make decisions that support their broader life goals. Through a close advisor-client relationship built on trust, open communication, and true accessibility, we gain the insight necessary to understand each client’s priorities, concerns, and aspirations at a deeper level. This relationship-driven approach allows us to anticipate needs, identify opportunities, and provide guidance that is both proactive and highly relevant to their evolving circumstances.
We integrate retirement and estate planning, portfolio management, tax strategies, and risk management into a cohesive plan designed to reach specific milestones while adapting to changing markets and life events. Every recommendation is grounded in research, long-term discipline, and an understanding of how each component influences overall financial health. Our commitment begins with responsiveness and attentive service—but it ultimately culminates in delivering superior outcomes, helping clients build a secure, prosperous, and well-structured financial future.
Industry Awards & Recognition
Building on the recognition and awards that Montecito Capital Management and its founder have earned, we aim to bring that same level of excellence to every client relationship. Our objective is to help clients achieve their investment and financial goals by providing clear direction, identifying and mitigating risks, uncovering opportunities, and implementing effective strategies. The accolades we have received reflect not only our commitment to professional excellence but also the trust and confidence clients place in our guidance.
We provide the greatest value when we take complex financial matters and make them understandable and actionable. Clients who research investments, taxes, and financial strategies online often encounter conflicting or confusing information. When answers are not immediately apparent, we leverage our expertise, resources, and disciplined approach to cut through the noise, focus on what truly matters, and identify practical solutions tailored to each client’s unique situation.
Risk Management & Strategic Advisory
We often advise clients that while there is plenty in the financial world to be concerned about, the very act of meeting with a professional advisor is itself a meaningful step toward managing risk. Risk is inherent in every financial decision—from market exposure to tax strategies to longevity planning—which is why we employ a wide range of risk-reduction tools, analytical frameworks, and scenario-testing methods. One of our core responsibilities is to evaluate a client’s true risks, measure their tolerance and capacity, and then align those factors with their long-term objectives. By clarifying what can be controlled and what cannot, we help clients replace uncertainty with informed decision-making and a greater sense of confidence.
More specifically, our process identifies how much risk a client needs to take to achieve their required returns, how much risk they can afford to take without jeopardizing their long-term security, and how much risk they are emotionally comfortable taking throughout market cycles. This distinction—between risk need, risk capacity, and risk tolerance—forms the foundation of a portfolio strategy that is both realistic and durable. Through ongoing monitoring, stress-testing, and regular conversations, we ensure that risk remains calibrated to evolving goals and conditions rather than static assumptions. The result is a disciplined, resilient approach that helps protect clients from downside shocks while still positioning them for meaningful long-term growth.
Wealth: Tactical Steps & Measurement
A complimentary financial planning meeting provides a unique opportunity to evaluate how well your current financial habits support your retirement and lifestyle goals. With professional guidance, you can review your savings plan, assess whether your retirement strategy fits your timeline, and identify adjustments that could improve your long-term outlook. This one-on-one session helps you move beyond guesswork—offering personalized insights to help you make confident, informed decisions for your future.
- Wealth Planning Timeline
- Cash Flow and Balance Sheet Analysis (Liquidity and income sources/needs)
- Negative Health Care Wealth Event Stress Test
- Lifestyle Goals / Retirement Timeline Analysis
- Other Negative Wealth Event Stress Tests
- Financial Planning: IRA Withdrawals, Estate Plans, Giving, Income Calculations, etc.
Strategic Planning Considerations
We integrate all facets of a client’s financial life into the overall picture to best map out the strategic pathway that will render the best financial outcome.
- Portfolio Asset Allocation Analysis
- Customized Performance Reporting & Review
- Investment Diversification Strategies
- Tax-Efficient Investing Strategies
- Risk Tolerance Driven Strategies
Financial Literacy & Financial Advisor Impact
It is unfortunate to hear that the average investor typically lacks basic critical financial literacy to proficiently invest, according to the Financial Industry Regulatory Authority (FINRA). According to this study, the average U.S. adult only answered 2.9 out of five basic questions about topics like risk, inflation, interest rates and mortgages and only 14% answered all five questions correctly.
Perhaps this is why 92% of Americans working with a financial advisor say that person is helping them reach their financial goals and 86% say their advisor relieves the pressure of trying to plan their family’s financial future by themselves (Allianz study). We are large enough to provide knowledge, technology and depth to exceed client expectations, while small enough to deliver a personal touch. As seasoned advisors, we continually advise and direct clients on the different considerations and actions being employed to help them reach their goals. We also understand the market for financial advisors is highly competitive and you have choices, therefore we strive to distinguish ourselves by meeting our clients’ needs at every level of financial complexity.
Customized Portfolio Management & Diversification
Since clients generally are impacted by a distinct set of circumstances, we work to customize a client’s portfolio to meet their unique tolerance for risk, return requirement and any individual constraints. We seek to create a well-diversified portfolio with exposure to a wide variety of asset classes. It is our belief that portfolio diversity of asset classes can improve overall risk-adjusted returns for clients. A diverse portfolio ensures that at least some of your investments will be in the capital market’s top performing category at any given time — regardless of what’s hot and what’s not. And you will never be fully invested in the year’s losers.
Different securities perform differently at any point of time and with a diverse mix of assets, a portfolio will be less likely to suffer extreme losses that would impact concentrated portfolios. It really is just the simple practice of not putting all your eggs in one basket. That does not suggest, however, that we are not adjusting the portfolios to benefit from changing circumstances, as we actively take tactical portfolio adjustments to enable the portfolio to be optimally positioned for different economic, Federal Reserve (central bank), inflationary or interest rate environments.
The single biggest component of investing is understanding the incredible value of having your investments compound (particularly in tax deferred accounts). For example, would you rather have $1 million now or have a penny double very day for a month? Well, most people tend to take the money upfront, but that one cent doubling ultimately compounds to a whopping $5.4 million. Yes, 100% daily return is an extreme example but the principle of compounding holds for realistic returns if you start early, make regular investments and are patient. For example, if you saved $846 dollars every month for 40 years and only had a 4% return, you would still have over a million dollars. Another important consideration as to whether or not you will achieve retirement success isn’t what the markets will do, but instead what you do and how you react to the markets – simply put, having an advisor elevates your chances of success when it comes to these critical decisions.
Many of our client portfolios hold the world’s assets, such as stocks, traditional bonds, convertible bonds, preferred stock, REITs, etc. as core holdings. Then, depending on the client’s unique circumstances, we may layer in low-correlation asset classes as a smaller allocation for the satellite portion. We typically adjust allocation based on inflation, interest rate expectations, yield curve, credit spreads, corporate profit by sector groups, GDP growth trends at the macro level, etc. For example, with the impending rising rate environment, many bonds will lose value and we adjust strategies to other income alternatives, shorter maturities, laddered maturities and a preference toward individual bonds.
Portfolio Rebalancing & Risk Allocation
Gradually, well-performing asset categories will come to represent a larger percentage of your overall portfolio than originally planned – which can increase your overall risk. To counteract this, we periodically rebalance our non-discretionary client portfolios to bring investments back to the target allocation and to assure that portfolios remain well-diversified. Rebalancing is done to minimize taxes and transaction costs.
Three principles of preserving and growing capital deserve attention: never own too much of any one investment, keep only those investments that offer the prospect of a reasonable return, and accept that financial markets will behave in a way that confounds the majority of people.
Diversification Across Asset Classes
We find that by making investments that include non-equity asset classes, investors can achieve true diversification – and expect more consistent performance across the spectrum of potential economic environments. Traditional diversification focuses on dollar allocation; but because equities have disproportionate risk, a traditional portfolio’s overall risk is often dominated by its equity portion. Hence, the we focus more on risk parity diversification or risk allocation. For example, let’s say a portfolio’s allocations to equities is typically 60% or higher. Because equities have approximately three to four times the risk (volatility) of bonds, this allocation leads to a portfolio that has roughly 90% of its risk budge dedicated to equities. In other words, when viewed through the lens of risk, traditional asset allocations are highly concentrated in the equity markets — and not actually diversified at all.
The importance of diversify across asset classes that behave differently during economic stage cycles or changing environments remains critical. In general, equities do well in high growth and low inflation environments, bonds do well in deflationary or recessionary environments, and hard assets (REITs, precious metals, commodities, etc.) tend to perform best during inflationary environments. We focus on having a balanced exposure to these three main asset classes, among others, in order to produce more consistent long-term positive results.
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World-Class Custody & Transparency with Charles Schwab
As an Institutional custody affiliate of Charles Schwab, our services provide for full transparency, 24/7 client access, safe asset custody, third-party statement reporting and a low fee-oriented platform (no commissions on stock/ETF trades). We pride ourselves on integrity, client relationships and an exceptional level of personalized advisory services.
Wealth Management Team Leader
Kip Lytel, CFA®, MBA
Contact us for a complimentary initial consultation & portfolio review:
(805) 965-7955 | Email: ContactUs@McapitalMgt.Com
Investment Firm Offices serve San Luis Obispo County, Santa Barbara County, Ventura County, Los Angeles County & Orange County
Disclaimer: The website provides general information regarding our business along with access to additional investment related information. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. The intent is to provide helpful information, which should NOT be construed as investment advice. We do not guarantee its accuracy, nor completeness, and it is not intended to be the primary basis for investment decisions. We do not make personal investment recommendations to people or entities except to those who have engaged us expressly for the purpose of providing professional investment advisory services. Investing involves risk and possible loss of principal capital. Montecito Capital Management Group’s ADV filing is available online at http://www.adviserinfo.sec.gov and current FORM ADV Part 2, which describes the services offered, fees charged and detailed company information, among other things, is available upon request free of charge. To a certain degree we are limited in our fiduciary capacity by the firm’s non-discretionary client relationship, whereby the client dictates the investment parameters and contractually agrees to accept sole responsibility for their choices.