While the basic principles of asset allocation still work fine over the long term, there are more modern techniques we can use to improve your returns and reduce your downside risk. Technology allows us to use macroeconomic data to determine the types of stocks that are likely to benefit the most from the current economic conditions.
Technology also allows us to exit positions if they drop more than a predetermined amount. We can then construct a portfolio for you that is allocated properly for your risk tolerance, focused on the best performing areas of the market, and controlled for downside risk. Here is an example of the S&P 500 Index exchange traded fund over a six month period from October 2019 – March 2020. Technology allowed this position to be kept in the portfolio while the market was rising, but automatically sold it before a normal-sized drop turned into a huge disaster.
Ask yourself the following questions:
1. When is your ideal retirement date?
2. When are you actually likely to retire?
3. Based on how much you are contributing to your investment portfolio each year, what is your required rate of return?
4. And how much downside can you afford to take without compromising your objective?
These are some basic questions that we use to determine the type of investment portfolio is most appropriate for you. Our objective isn’t simply to maximize the returns on your portfolio, we also want to help you reach your goal as early as possible so you have more time to enjoy your life in retirement or that vacation cabin in the mountains.
Now ask yourself one more question:
• Is your current advisor doing what you expect them to do for you?
If the answer is no, then we hope you’ll schedule a consultation with us so you can learn more about how our system will better accomplish your objectives!
Getting started is easy. The first step is to let us know how we can help you. Just fill out the simple contact form below and we will be in touch with you right away – or just call us at 480-699-5540