The Old Rules of Portfolio Construction Are Dead — New Playbook for RIAs in 2026

In this episode of Lead-Lag Live, a panel of top RIAs—Chris Coolidge of Brooklyn Investment Group, Ed Seapris of Southeast Financial Group, and David Reedy of First Growth Capital—discuss the fundamental transformation of portfolio construction in the post-2022 era. They argue that the traditional 60-40 model is obsolete due to broken correlations, rising interest rates, and structural weaknesses in fixed income. The panel emphasizes that modern portfolio management must be dynamic, outcome-oriented, and built on transparency, scalability, and differentiated return streams. Key innovations include using ETFs as building blocks for access to alternatives, real assets, and tactical strategies like daily options overlays. The shift is driven by changing client expectations: demand for higher income, faster responsiveness, and deeper understanding of portfolio mechanics. The panel also highlights how these changes have improved client retention, AUM growth, and advisor differentiation in a crowded market. Ultimately, the consensus is that the industry is undergoing a structural shift—not a cyclical blip—and advisors must adapt by thinking like institutional allocators, embracing innovation, and focusing on long-term client outcomes over benchmark chasing. The episode concludes with actionable advice for advisors: move from static allocations to dynamic, multi-strategy portfolios using liquid ETFs; leverage tools like options overlays to generate income and reduce volatility; diversify globally and across asset classes; and use proactive communication to manage client expectations during market turbulence. The panel underscores that differentiation through innovation and transparency is the key to combating fee compression and building sustainable, high-growth RIA practices. The conversation is anchored by Sai Katara of TapAlpha, who presents his firm’s growth-plus-income ETFs as a scalable, tax-efficient solution enabling advisors to deliver institutional-grade strategies in a retail format.