The "pie" or asset allocation model that so many investors have seen was designed to make your portfolio meet a risk level. Many brokers sold the pie as increasing safety to their clients. The theory was put to the last beginning in the fall of 2008 and failed miserably at the expense of investors. All of the assurance of you being properly diversified came crashing down over the last two years. Many of our listeners, and investors like you, watched as your portfolio crashed 30, 40, or 50%. The worse part was there was nowhere to hide (not even cash as we saw one of the largest money market funds break the $1/share mark).
Since you can't diversify your assets to save your future, what can you do? The problem with the theory is just that. It is a theory. People today are aware that they have very little safety in their accounts when they were told (or sold) as being reasonably safe.
After extensive research, we found that over 90% of retirement and investment accounts lack a guarantee of principal. By making safety a cornerstone of our portfolios, we saved our clients millions in wealth during the market slide.
To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)
To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)
