How I Use Financial Projections to Shape Investment Strategy

“…it’s as if there is 30 seconds left in the game, you have the ball and are up by a field goal. All you have to do is take a knee to win. But, instead, you’re trying to score another touchdown.”


The most important investment decision you can make is how much to allocate between major asset classes: bonds, stocks, commodities and real estate.

This decision alone drives the vast majority of risk and return experienced in a portfolio and, therefore, can have a tremendous impact on financial outcomes for most households.

Therefore, the majority of our time should be spent on this allocation decision. Additionally, this decision needs to be periodically evaluated. Continue reading “How I Use Financial Projections to Shape Investment Strategy”

How Much Volatility Before Your Financial Goals Are Impacted?

Volatility is an unavoidable part of investing. One thing we know for sure with our investments is that nothing is static.

The amount of volatility experienced is the result of portfolio positioning, which can range, at a very basic level, from very aggressive to very conservative. The more aggressive you invest the more volatility you’ll experience over time and vice versa.

My question to you, today, is “Do you know how much volatility you can afford before you must reduce your spending or adjust other financial goals?”

If you, or your advisor, don’t know the answer to this question then how can you/he/she possibly know how to invest your portfolio? Continue reading “How Much Volatility Before Your Financial Goals Are Impacted?”