Any long-term goal must be based on a solid premise. For True Wealth Management, the goal is for investors to live the one life they have with confidence. Its premise is a seemingly obvious metaphysical fact – the only thing that can go out of existence is that which lives. For this reason, every living thing has one primary purpose – to live, and every element of its being is designed for living.
Because we believe our postmodern culture ignores this, investors can have difficulty taking ownership of their futures. Making decisions about the life they aspire to, and taking the necessary action, is not easy. To help solve this problem, the advisors at Affluent Capital have created an investment advice and service model that meets our client’s need, is easy to use and understand, and is reliable.
For the 2002 Oakland Athletics, the solution was Moneyball. Their need was to become profitable by winning games, their easy-to-use system was SABRmetrics and inexpensive talent, and its reliability was proven by winning the division over a long season. By controlling what they could control, and integrating their spending goals, the A’s achieved the lowest cost per win.
For our investors, the process is identical. Our advisors begin by establishing the values and aspirations that define lives of purpose. Next, we examine current and future resources, identify potential hazards, and implement a strategy. This last step is the strategy designed to increase the probability of success and low cost in terms of risk exposure and fees.
While the SABR stands for Society of American Baseball Research, in the world of finance, we rely on the Nobel Prize winning research of Harry Markowitz’ Efficient Market Theory. This is supported by Austrian School economist Ludwig von Mises’ preeminent work on market economies, price theory, and purposeful human action.
Accordingly, our advisors do not select talent using the common metrics of many traditional investment advisors. While “On Base Percentage” is the Moneyball metric, in our case, it is maximum correlation percentage to the asset classes we want to own.
In addition, our advisors avoid faulty risk tolerance questionnaires, their arbitrary asset allocation strategies, and its potential costly tactical rebalancing. In our opinion, these merely generate activity and unnecessary risk, not dollars of future wealth. In its place, we engage in strategic rebalancing when our client’s confidence level becomes overfunded or underfunded.
In other words, we are flexible with strategy, and will reduce or increase risk exposure when warranted - objectively. This helps avoid unnecessary sacrifice and risk, and it may allow the clients of Affluent Capital to anticipate the possibility of extreme market events – before they occur. Think about that. How useful would it be, and rare, to have a fallback plan in the event of a severe market downturn?
Unlike market forecasters, we do not predict the future. Instead, our advisors respect its uncertainty and strive to anticipate the possibility of severe market volatility or other life events. This helps give our client’s cash flow, investment strategy, and lives newly discovered meaning - as an integrated unit.
CONTACT USto set up a complimentary consultation to discuss any questions you may have. We’ll help you get your finances in order so you can focus on your life.
Live the one life you have with confidence.
The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Capital Analysts or Lincoln Investment. As with all investments, past performance is no guarantee of future results. No person or system can predict the market. There is no guarantee that any strategies discussed will result in a positive outcome. All investments are subject to risk, including the risk of principal loss.