Tis’ the season for all the media types to bring us the ‘big stories” of 2010. I don’t know about you, but I have no interest in revisiting all the disasters, disappointments, deaths and distractions of this year.
What’s the point? I suppose all the network execs want you to believe that “your most trusted source of news” was there. Humbug! I believe reviewing events of the past year are as productive as driving your car by looking in the rearview mirror.
There certainly are a lot of positive things we can review regarding your experience with us this past year- but that’s what I consider “ancient history” at this point. So what would be more fun than reviewing the past? Predicting the future! So, let me dust off my crystal ball and tell you what’s in store for you in 2011!
#1 If you are an investor with us, you will not be whipsawed by the market. The reason is that you are widely diversified in both equities and fixed investments and invested both in the US & globally.
#2 If the Fed decides to raise interest rates, your fixed investments will remain stable due to the fact you have short-term, not long-term, investments (less than 10 year maturities).
#3 You will not have to worry about missing out on the market. Because each position you have is benchmarked to a particular asset class, you will get market returns for each of these holdings.
#4 You will not have to worry if our nation shows high unemployment, high inflation, goofy government policies or unbridled spending. If you are a “free market” investor, you know that there is money to be made and you are already positioned to capture those market premiums. (Note: We all hope the above conditions do not persist because it may eventually become a “quality of life” issue)
#5 You should not have to worry about missing out on the latest, greatest, hottest investment for 2011 because you already hold it as part of your portfolio.
#6 You won’t need to be jumping from stock to cash this year because your portfolio is perfectly in line with your risk tolerance and constructed based upon a strong, academically-proven method known as “Modern Portfolio Theory”.
#7 You will achieve all the potential returns for the amount of risk you will undertake due to the fact that you sit on the “Markowitz Efficient Frontier.”
#8 If one particular asset class does better than others and you are totally out of whack as a percentage of your holdings- don’t worry, you will be automatically “rebalanced.”
#9 You will not be gambling or speculating with your money this year because you are no longer stock-picking, market-timing or using “track records” for investing.
#10 You will have a “peace of mind” experience in investing this year because we as investment coaches are helping you to answer “yes” to all or most of the “20 Must Answer Questions” for your journey toward peace of mind. And here is a bonus fact for you. You will not worry about markets, volatility, cash flow or running out of money due to the fact that you determined “Your True Purpose for Money” –that which is more important than the money itself. Now go have a great year!
Philip W. Guske