Many of our clients need to accumulate a substantial amount of wealth in order to live the life they want to live upon retirement. We rely, to a large degree, on future stock market returns to generate growth on investment assets. The problem any investor encounters are the inevitable market downturns that occur as the economy ebbs and flows.

A Better Way To Invest

We hear frequently from new clients that their previous advisors never did anything to help them avoid bad years such as 2000-2002 when the dot-com bubble burst or even worse, the crash of 2008.

The fact is that traditional advisors at large brokerage firms are simply not equipped, and may not even be allowed, to help their clients protect their portfolios from losing 30%, 40%, or 50%. In contrast, our investment philosophy is centered on the idea that we always need to invest in a way that is best for our clients. And we firmly believe it is our duty to help our clients avoid losing substantial sums of money when markets decline.

Hedging Techniques To Manage Downside

We believe that providing hedging techniques is not only critical, but also a necessary function of any investment advisor. Nobody can time the markets perfectly to always know when to buy into the markets, when to sell out, and when to get back in.

The best solution available is to combine investments in growth-oriented assets with three simple hedging mechanisms:

  1. Trailing stop-loss orders that sell out losing positions and holds on to the winners as long as they continue to go up. When the winners start to lose, a sell order is triggered and the gain is protected.
  2. Slightly out-of-the-money Put Options for broad market index funds during abnormally high peaks and during historically volatile seasons.
  3. Exposure to alternative assets such as Volatility Futures that correlate inversely with market downside.

Is your current advisor doing this for you? We will do this for you for no extra fee. It’s simply built in to our system.

Low Expense Funds

We favor investing the core of your portfolio in broad index funds that capture the general upside of a given set of stocks. We use exchange-traded funds (ETF) to minimize costs that ultimately come out of your investment portfolio. Our system will combine broad index exposure with ETFs that specifically target areas within the broad market, including foreign funds, which are growing faster than the overall market. As this is done, we’ll implement hedging techniques on all equity exposure.

Our objective is to deliver to our clients a higher than average growth rate with lower than average volatility. Do not assume that we are always successful with every investment strategy.

 To Learn More
Contact Larson Wealth Management

Fee-Based Service

We charge a fee based upon the level of assets you provide to our firm to be managed. Our fee structure is straightforward, easy to understand, and is competitive with other advisory firms. We believe the value to you is the reduction of downside volatility that we provide to you at no additional cost.

Our fee also include regular meetings and consultations during the year to discuss changes that may be happening in your life. During this time, we’ll offer advise and provide all the ongoing support you need to reach your most critical financial goals.

Limited Number of Clients

Our ideal client-to-advisor ratio is no more than 100 clients to one advisor. We want our advisors to spend the bulk of their time serving clients rather than focusing on selling to new ones.

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