Secondary Forms of Wealth Leakage
Age Appropriate Investing - the right use of the "rule of 100"
Many “financial advisors” do nothing more than help you structure a well-diversified portfolio of RISK while ignoring the importance of Age Appropriate Investing. If the right questions are not being asked, the answers are irrelevant!
By taking an approach which starts with True Asset Class Allocation, innovative planning, financial structures and investment strategies, we help our clients achieve a peace of mind that was previously beyond their grasp. To learn more, please visit our introductory E-Seminar “The March of a Different Drumbeat” for a primer on concepts and strategies that are being used by some of the country's largest educational endowments to preserve and grow wealth. The result for our clients has been a reduction of overall portfolio volatility and equities risk while achieving higher, stable total returns.
Understanding the Cost of Uninformed Investing
From 1985 to 2006, the Dalbar study, which rates average investor's performance against the S&P 500 under a “buy and hold” scenario, indicated that the average investor lagged the S&P 500 by 8% - 11.9% vs. 3.9%. Understanding the FOUR FACTORS (Greed, Fear, Taxes and Fees) which are at the root of this immense is at the leading edge of our discussions with clients.
Reduction of Expenses vs. Increasing Returns
Consider this - if you had $100,000 earning 6% per year, yielding $6,000 per year (less after taxes), and you wanted it to work harder, say 12% or $12,000 per year, how would you do it? Of course, you would have to take more risk!
However, if you can find a way to reduce certain areas of financial expenditures by $6,000 per year, what is the result? You end up with the same total return, while not taking any more risk at all! There is an added bonus - the $6,000 of improved cash flow as a result of expense reduction had ZERO tax impact. THINK ABOUT IT!
Practicing the Definition of Insanity
"The definition of insanity is doing the same thing over and over and expecting different results." While this quote has been attributed to Albert Einstein, it originally was coined by Benjamin Franklin! If you keep handling your finances and investments the same way, and are continually disappointed by emotional decisions resulting in losses and miserable results over time, then maybe it is time to “seek wise counsel”.
In today’s quickly changing financial environment, the modern day definition is important to understand that “ignoring the reality of your surroundings to such a degree that it is sure to result in DISASTROUS OUTCOMES”
Most of our clients have a copy of “America’s Financial Demise – Approaching the Point of No Return”, which highlights eight inevitable conclusions for the economic path our country is on. To request a complimentary copy, please click the image of the book to the left.
Procrastination
Once confronted with the changes they need to make, many people are resistant to act and fail to make the decision to change. As a result, by the time they finally decide to act, it is much too late. This is seen over and over again, in many areas of financial, investment and estate planning.
The drastic economic consequences that have taken place since Ross Perot’s 1992 presidential campaign, where his economic flip charts predicting the consequences our country is now facing is a perfect example of the cost of procrastination.
We do our best to help our clients gain a higher level of awareness, sooner rather than later, of the consequences they may face in order to help them overcome this obstacle.
