we offer two ways to climb for your protection.

 

Even the most experienced climbers fall. Likewise, the most experienced investors loose money on occasion. That's why we offer two basic approaches to grow your money while minimizing or completely eliminating market losses depending on your unique risk tolerance, time horizon and tax structure.

Climbers use ropes and anchors to prevent falls.  Savvy investors use active money management, stop losses and indexing (not to be confused with indexed funds) to prevent free fall drops in their investments. Sure, the market is likely to recover from losses, but how long will it take to recover from those losses? Traditional thought says to hold on and ride it out. Ironically, the longer you are in the market, the more likely you will experience several market corrections during your investment lifetime. Even worse, you have no control over when the markets decline.  Since we know the stock market will inevitably loose value on occasion, doesn't it make sense to proactively plan  and protect your assets from those losses? Diversification alone cannot protect your assets from losses. In addition, you may simply not have enough time to recover from untimely losses before retirement.          

Why play roulette with your life savings? 

ARE YOU CLIMBING WITHOUT PROTECTION?  

 


HOW WE MINIMIZE OR ELIMINATE MARKET LOSSES:


       ACTIVE MONEY MANAGEMENT/                           INDEXING                           Dynamic risk management                                     

                 (LEAD CLIMBING)                                   (TOP ROPING)

 

active money management & dYNAMIC rISK MANAGEMENT--minimizing market losses

With LEAD CLIMBING a climber makes their way higher and higher on the rock wall and places rope anchors every few feet to keep from falling to the bottom.  The climber decides how far apart to place the anchors--keeping in mind when they fall they will fall twice the distance they are above the last anchor.  The rope and anchors prevent the climber from falling to the ground and suffering major injury.

Unlike traditional passive money management (a buy and hold strategy) ACTIVE MONEY MANAGEMENT and DYNAMIC MONEY MANAGEMENT uses several mechanisms such as stop-losses, dynamic re-balancing and others to quickly react to changing market conditions--particularly in a declining market.  Just as a climber uses ropes and anchors to prevent severe and dangerous falls, active money management and dynamic money management minimizes severe market losses and free-fall declines in an investor's portfolio.  

 

                                              

Indexing--eliminating market losses

You don't have to fall at all...neither does your money.  There's a proven way to safely grow your money without the nail-biting ups and downs of the stock market--it's called INDEXING*. 

Indexing  your nest egg can be compared to top rope climbing. A rope is securely fastened to an anchor at the top of the climb.  The other end is securely fastened to a harness attached to the climber.  Even if the climber loses his grip the tight rope anchored at the top prevents the climber from falling--even a little bit.  It's safer than lead climbing.

Indexing your nest egg eliminates unnecessary financial risks by preventing all market losses, yet it can safely and strategically grow your money.  Both the original principal and  all interest credited to your account are locked in and protected from future market losses as well.  The interest credited is sometimes capped and is determined by a positive movement of a market index such as the S & P 500.  Additionally, because your money is never directly invested into the S & P 500, and your account values are locked in, when the market moves down your account doesn't.

 

*indexing is not to be confused with indexed mutual funds which mimic a particular index in both gains and losses.   

 


Losses may be more difficult to recover from than you think.


DIVERSIFICATION CANNOT--DOES NOT PREVENT MARKET LOSSES.

 
Definition of "Systematic Risk":
The risk inherent to the entire market or an entire market segment. Systematic risk, also known as “undiversifiable risk,” “volatility” or “market risk,” affects the overall market, not just a particular stock or industry. This type of risk is both unpredictable and impossible to completely avoid. It cannot be mitigated through diversification, only through hedging or by using the right asset allocation strategy.
--Investopedia--
Read more: http://www.investopedia.com/terms/s/systematicrisk.asp#ixzz3dLRQmW00