About Our Money Managers
Historically 80% of all significant market corrections have happened in the Summer and Fall, so you'd think that it would be prudent to pull your money out of the markets during those times, correct? When was the last time your stock broker ever told you to pull out of the markets? Probably never. You've probably switched stocks, moved your money around...but protect it from known volatility? Never.
When we interview potential money managers here are some of the questions we ask them:
1) Do You Have a Sound Exit Strategy?
80% of Bear Markets occur during the months of June, July, August, September and most of October*. One of our main criteria when looking for fund managers for our clients was to make sure they had a sound strategy for exiting the markets both during times of volatility as well as throughout the year.
It is important to make sure that your fund managers can go to cash or to lower risk investments during the summer and fall months when we know historically the market take a turn. By exiting the market during these times of volatility we are able to continually grow our assets without worrying about first "getting back to even." This can translate into significant returns over the long haul.
2) Can You Go To Cash During Market Volatility?
Did you ever wonder why during the 2008 market crash all these mutual funds lost a ton of money? They weren't all bad mutual funds, however in an effort to prevent our economy from crashing every time there was a market correction certain types of funds aren't allowed to go to cash. After all if billions of dollars' worth of stocks were suddenly dumped large swaths of the economy would probably go bankrupt overnight.
So one of the big questions we ask is "can and will you go to cash during times of market volatility." You need to make sure that your money has the flexibility to be there for you, and not serve as a cushion for the national economy. Click here to learn more.
3) How Did Your Perform in 2008 & 2002?
One of the real test of any money manager is to ask the critical question, what was your performance in 2002 & 2008, did your strategy work - or was it a bust like everyone else's? In order to work with us, our low risk money managers need to have NOT lost during the years of 2002 & 2008, while our moderate-risk, and high-return money managers need to not have lost more than 6% over 2 consecutive years. We have one standard here at Coastal Financial Planning Group and that's a low risk, low volatility successful investment solution. And our definition of success for a low risk money manager is to have had a "ZERO LOSS" during the years of 2002 & 2008.
4) If I Invested In 2000, Will I Have Increased My Assets Significantly?
Finally the real test for every fund manager we work with, the ultimate question is "If I invested $$$$ in 2000, before the last 2 market corrections - how much money would I have today." At the end of the day that's really the only question that matters.
Security. Value. Peace of Mind
At Coastal Financial Planning Group, we only engage high quality, independent wealth managers who specialize in significantly reducing risk during times of volatility, while capturing a large majority of the gains on the upside. This strategy helps our clients to secure a better, and worry-free financial future. You deserve better. Request a free portfolio analysis and discover how your portfolio compares to ours.