Advance And Protect

One cannot accomplish any of their goals without the prudent management of their money. There are some people who believe that the best investment strategy is to simply buy a diversified portfolio and hang on to it for dear life through the roller-coaster markets. For some of these investors their investments are still underwater that they’ve held for more than a decade. We believe that buy, hold, and hope for the best in not an investment strategy. It’s a train wreck. (see diagram below).

Billionaire investor George Soros said, “It’s not whether you’re right or wrong that important, but how much money you make when you are right and how much you lose when you’re wrong.” Nobody can predict the future, but there are sensible proactive risk management strategies that investors can implement to help limit their exposure to these massive market meltdowns. Remember, a 50% loss means you need a 100% return to get back to break even. That’s a tall order in any environment.

The key to any successful investment portfolio is the ability to manage the risk that is inherent in the stock market. Cash is considered an asset class which helps to reduce the overall volatility. By utilizing the following models in combination- risk has been substantially reduced.

• Capital Preservation with an offensive strategy- Utilize multiple quantitative analysis tools to improve our buy/sell decision-making process. It's design to capture 80% of the upside and only about 35% of the downside. Create portfolios based on asset and sector classes believed to be in a long-term uptrend. As Warren Buffet says, “Find a trend; throw yourself in front of it.”
  
• Safe Money – Insurance based product that provides guarantees to the principal, but still allows the upside appreciation that is linked to the performance of the S&P 500. This product can provide up to 6% lifetime income without the fear of outliving your money and should you require nursing home care while taking income, this amount will double to help preserve your assets. It also an provides an optional benefit for a small fee that will guarantee the income bucket to grow at 8% a year.
  
• Long-Short – The ability to capitalize on tracking positive or negative trends in the market. This model tracks 6 sectors: Agriculture, Currencies, Energy, Indices, Interest Rates, and Metals.
  

Prior to investing our client’s cash, their FAMILY INDEX NUMBER is calculated which is the average annual return that the client needs to earn to make sure they can spend what they want in order to maintain their lifestyle without the fear of running out of money.

By understanding our clients FAMILY INDEX NUMBER and then investing our clients cash into the appropriate model(s), we can minimize the roller coaster scenario that is shown in the above diagram…thus resulting in peace of mind for our clients.