How we think about the work.
Two guiding methodologies and a fee-only structure. Every Index Gurus engagement is shaped by the same underlying framework, whether the work is planning, investment management, or specialized advice.
The financial decisions of high-net-worth life are too important and too connected to handle in isolation. Index Gurus is built around a consistent framework for this work: two methodologies that guide the substance of our advice, and a fee-only structure that shapes how we are paid. Together, they inform the recommendations we make.
Two methodologies, one practice.
We provide both financial planning and investment management, coordinated with each other, with a methodology guiding each.
Foundation first.
Every Index Gurus plan starts with what matters to the client, organized into a structured goals hierarchy: Needs, Wants, and Wishes. Investment strategy, withdrawal sequencing, and tax planning all serve this hierarchy, not the other way around.
Our planning software runs many simulated market paths against your goals. We generally look for a result in the Confidence Zone, roughly 70% to 90% of simulations funding your goals, and treat it as one input among several rather than a score to be raised.
See the planning methodology in practice →The Innovation Moat.
Our research focuses on the large-cap companies that account for much of the major indexes' value: profitable companies with durable competitive advantages such as proprietary data, control of energy and infrastructure, deep R&D budgets, and strong free cash flow.
The approach is both strategic (a long-term view of structural advantages) and tactical (adjusting how that view is expressed as market conditions change), with a quality tilt and attention to valuation. It involves risks, including concentration in large-cap growth companies.
See the investment philosophy and its risks →The planning methodology in one view.
Foundation-first planning means we establish the client's goals hierarchy before designing any specific strategy. Every household's hierarchy is different, but the structure is consistent.
This hierarchy feeds a Monte Carlo analysis that reports the percentage of simulated market scenarios in which the goals are funded. We generally look for a result in the Confidence Zone. A result above 90% may mean the client is giving up more today than necessary; below 70% may leave more uncertainty than the client wants. Simulation results are hypothetical, change as assumptions change, and are not guarantees.
The investment philosophy in four moats.
An Innovation Moat is a competitive advantage that rivals would find difficult to replicate. We focus on four categories that we consider most relevant to today's market leaders.
Proprietary data and network effects
Companies whose products may improve with scale in ways that are hard for competitors to match.
Energy and infrastructure control
Companies with secured access to energy and vertically integrated supply chains.
Deep R&D budgets and patent walls
Companies that invest heavily and consistently in research and development.
Free cash flow and balance sheets
Companies that can fund their own growth and are generally better positioned to weather downturns.
We favor companies that combine several of these characteristics: profitable today and investing for the future. Competitive advantages can erode, and companies that appear well positioned can still underperform, so we reassess holdings on an ongoing basis.
We model major decisions side by side.
One technique runs through every Index Gurus engagement, regardless of service area: side-by-side scenario modeling. For a major decision such as a home purchase, a Roth conversion, an ISO exercise, a withdrawal strategy, or a retirement plan design, we build two or three alternative paths and compare them.
The comparison estimates the tax impact, cash flow implications, effect on long-term portfolio sustainability, and the trade-offs the household would otherwise have to guess at. Estimates depend on assumptions and are not guarantees.
Three withdrawal strategies
Tax-smart blend versus IRA-first versus a measured 4% withdrawal, for the current tax year.
Three ISO exercise paths
Exercise-and-sell versus exercise-and-hold versus staged exercises over several years.
Three home-purchase fundings
Sell equity comp versus a larger mortgage versus blended funding with staged sales.
The model makes the trade-offs visible. The client's judgment, informed by the model, makes the decision.
Fee-only, by design.
Two methodologies guide the substance of the work. The way we are paid shapes the incentives behind it. Index Gurus is a fee-only registered investment adviser.
Fee-only. We are paid by our clients. We accept no commissions, referral fees, or product-placement payments. Other economic benefits, such as services made available through our custodian, are described in our Form ADV Part 2A.
Fiduciary. When we provide investment advice to clients, we are required to act in their best interest within the scope of the advisory relationship.
By design. We chose the fee-only model because it removes the conflicts that come with selling commission-paying products. It does not remove every conflict: for example, an asset-based fee means we earn more when more assets are under our management. We disclose conflicts like this in Form ADV Part 2A and manage them in clients' interest.
How the approach shows up across services.
The same framework (foundation-first planning, the Innovation Moat research framework, side-by-side scenario modeling, and a fee-only structure) appears in different forms across our six service areas.
Financial Planning for HNW Households
Comprehensive planning for households in their peak-earning years: real estate, equity compensation, college, charitable giving, and estate foundations, modeled side by side.
Learn more →Retirement Income Planning
Foundation-first planning with the Needs, Wants, and Wishes hierarchy and the Confidence Zone framework, including tax-aware withdrawal modeling in DrawDownIQ.
Learn more →Active Investment Management
Non-discretionary, strategic and tactical portfolio management for $1M+ households, guided by the Innovation Moat research framework.
Learn more →Equity Compensation Planning
Side-by-side scenario modeling applied to ISO, NQSO, RSU, and ESPP decisions, with exercise and sale timing evaluated against the household's full tax picture.
Learn more →Concentrated Stock & NUA Planning
Approaches for reducing a large single-stock position, including Net Unrealized Appreciation analysis for employer stock in a 401(k), compared with a standard rollover.
Learn more →Retirement Plans for Business Owners
Defined Benefit, Cash Balance, and combined plans for high-income owners, which can allow larger deductible contributions, coordinated with the household's full tax picture.
Learn more →Want to know who is behind the work? Read Faruk Jaffer's story →
Want to see how this applies to your situation?
Schedule a complimentary 30-minute discovery call. We will listen, ask focused questions, and tell you honestly whether an engagement is a fit. No sales pressure, no obligation.
Index Gurus, Inc. is an investment adviser registered with the California Department of Financial Protection and Innovation. Registration does not imply a certain level of skill or training, nor does it imply endorsement by the State of California. Information on this page describes the firm's general approach and does not constitute personalized investment, financial, tax, or legal advice. Personalized advice is provided only after entering into a written advisory agreement, and recommendations depend on each client's circumstances.
The Confidence Zone is a general planning range; targets for each client are set with the client based on age, risk tolerance, and other factors. Monte Carlo simulations and scenario models are hypothetical, do not reflect actual investment results, and are not guarantees of future results. The Innovation Moat philosophy reflects the firm's opinions as of publication and is subject to change; there is no assurance any investment strategy will achieve its objectives. All investments involve risk, including possible loss of principal. Diversification does not guarantee a profit or protect against loss. Past performance is not indicative of future results.
Please review our Form ADV Part 2A for information on services, fees, and conflicts of interest; it is available on request and through the SEC's Investment Adviser Public Disclosure website. See our Disclosures page for full risk disclosures and privacy policy. CFP Board owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER® in the U.S.