You can't control returns, but you can provide a leaner range outcomes. Allocate assets with our three portfolios, categorized by risk and objective.
The goal of Core Portfolio is to earn a fair return, aiming to compound our money over time. The name Core represents the center and majority of your investment portfolio and is based on the Tangency Portfolio in the Nobel Prize-Winning Theory "Modern Portfolio Theory."
Fundamental to Core's goal is global diversification. If done properly, diversification should reduce risk but not reduce return. We believe in taking no more risk than is necessary.
The Conservative Portfolio aims to preserve purchasing power over time, and match or beat inflation.
When in retirement, we advise 2-3 years of projected withdrawals be allocated to merely preserve purchasing power. This way, when a market crash occurs, your clients conservative money will hopefully remain intact. This provides a way to fund one’s life without having to “sell low” during market turmoil.
The Aggressive Portfolio still uses the DataDriven Process but is over-allocated to the world's risky assets and is more aggressive in overweighting and underweighting investments based on valuation.
Type 1 has more than enough money to meet their needs and merely wants some money in riskier investments. Type 2 doesn’t have the asset base to likely meet their long term needs and they have to take on risk somewhere in their life.
Note that due to the power of diversification, our Aggressive Portfolio is often lower risk than the S&P 500. Given this, our Aggressive Portfolio should not be used to meet the needs of a client who wants an extremely high risk option.