Goldstone Portfolios has been
in business as a registered in-
vestment adviser since April 8,
1993. Initially operated as a sole
proprietorship, the business was
incorporated under the laws of
New York State in the following
year. The firm is wholly owned and
controlled by Eric J. Goldstone.
As of December 31, 2023, Gold-
stone Portfolios had $26,564,172
in assets under management,
of which $24,101,419 was man-
aged on a discretionary basis and
$2,462,753 was managed on a
non-discretionary/supervisory
basis. The firm solely provides in-
vestment management services.
Prior to engaging the firm, clients
are required to enter into one or
more written agreements setting
forth the terms and conditions
under which services are to be
rendered (collectively the “Agree-
ments”). Neither Goldstone Port-
folios nor clients may assign the
Agreements without written con-
sent of the other party. (Changes
to Goldstone Portfolios’ business
structure resulting in no change
of firm control or management
do not constitute assignments.)
This disclosure brochure seeks
to accurately describe the busi-
ness of Goldstone Portfolios
Incorporated. Certain sections
of the document reference the
activities of Supervised Persons.
Supervised Persons refers to the
firm’s officers, partners, direc-
tors (or other persons occupying
a similar status or performing
similar functions), employees, or
any other person who provides
investment advice on Goldstone
Portfolios’ behalf and is subject to
the firm’s supervision or control.
Investment Management Services
Goldstone Portfolios generally
provides the above mentioned
services on a discretionary basis,
meaning that the firm accepts re-
sponsibility for choosing the securi-
ties that it believes will help clients
to meet their respective objectives
allowing for only the appropriate
amount of risk. Discretionary au-
thority facilitates the firm acting on
clients’ behalves without specific
permission to buy or sell a particu-
lar security. In limited instances,
the firm may agree to provide in-
vestment management services on
a non-discretionary basis. Under
non-discretionary arrangements,
Goldstone Portfolios will offer in-
vestment guidance, but is not au-
thorized to buy or sell securities for
the client’s account without prior
approval. Additionally, clients may
from time to time impose—and
the firm will abide by—reasonable
restrictions on the management
of their accounts (e.g., requiring
avoidance of or exposure to cer-
tain types of investments or al-
locating a portion of the portfolio
to “socially responsible” funds.)
Clients’ managed accounts are typ-
ically allocated by the firm among
equities (stocks), fixed income
securities, and exchange-traded
funds (“ETFs”). Occasionally, mu-
tual funds, options contracts, as
well as securities components of
variable annuities and variable
life insurance contracts are also
utilized—all in accordance with
respective clients’ investment ob-
jectives. When appropriate and
desirable, Goldstone Portfolios
will also research and offer advice
pertaining to other types of invest-
ments held in client portfolios.
The firm is sometimes called upon
to render investment manage-
ment services to clients relative to
their variable life/annuity product
holdings, the self-directed seg-
ments of their individual employer-
sponsored retirement plans, their
education savings accounts (i.e.,
529 plans) and/or other savings
and investment vehicles. Such
assets are often held in accounts
not located at the client’s primary
custodian. In these instances,
Goldstone Portfolios will either
direct or recommend the alloca-
tion of said assets among the
specific investment options made
available through the respec-
tive plan, product, or offering.
In all cases, Goldstone Portfolios
seeks to tailor its advisory services
to the individual client, endeavor-
ing to properly match asset alloca-
tion decisions with each client’s
respective longer-term investment
objectives and risk tolerance.
While certain common positions
may be held across many of the
firm’s client portfolios, each client’s
Goldstone Portfolios Incorporated ADV Part 2A | 2024 6
specific circumstances (appropri-
ate asset allocation, tax status,
suitability, etc.) are continually
taken into consideration prior to
purchasing or selling securities for
their specific account. Accordingly,
clients are urged to promptly notify
Goldstone Portfolios regarding any
relevant changes in their financial
situation or investment objectives,
and if they wish to alter or impose
additional restrictions upon the
firm’s management services.
Additions to and Withdrawals
from Accounts
The firm imposes no restrictions on
the timing of client additions to or
withdrawals from their accounts.
Clients may freely add to or with-
draw account assets (preferably
upon advance notice to Goldstone
Portfolios), subject to usual and
customary securities settlement
procedures that are out of the
firm’s control. Additions may be
in the form of cash or as delivered
securities. Goldstone Portfolios
reserves the right to liquidate any
transferred securities or to decline
to accept particular securities
into a client’s account. The firm
will discuss with clients the pos-
sible ramifications associated with
transferring securities rather than
cash such as transaction costs,
mutual fund fees (i.e., contingent
deferred sales charges), and/or
taxes that may apply upon liquida-
tion of said transferred securities.
Clients are advised that Goldstone
Portfolios designs and manages
portfolios intended to serve as
long-term investment vehicles.
Significant and/or unanticipated
inflows or outflows to or from
managed portfolios can either
benefit or penalize near-term per-
formance results, depending on
the timing of said transactions and
on concurrent market volatility.