Time To Take Control: Informed, Diversified Investors Can Weather Market Storms

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In June 17, 2020
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Robert Riedl, CPA, CFP, AWMA, Managing Member of ETF Model Solutions and CEO and Director of Wealth Management for its affiliate, Endowment Wealth Management, Inc. was recently featured in the article titled Time to Take Control: Informed, Diversified Investors Can Weather Market Storms, which appeared in the most recent issue of Insight Magazine.  Rob’s quotes in the article include:

On Q1 2020 financial market volatility:

“Everyone didn’t even want to see what happened on their statements.” “But you need to open it and know your options.  And the investment options are plentiful, whether it’s equity markets, bond markets and certificates of deposit or something more tangible like gold. The key, is to know your risk tolerance and review investments to see if they match how much risk you are willing to take.

Investing for long-term retirement:

“Most people are working longer and living longer. If they are working longer, they have more time to add to their investment fund.  Some people are living 20 or 30 years after they stopped working. If you are too conservative, you’ll run out of money. Today, I tell clients they need a portfolio with a 50/50 split between stocks and bonds at age 75, not age 65.”

How to build wealth:

“Dollar-cost averaging is the best way to build wealth.  In dollar-cost averaging, investors place a fixed amount of money into an investment program at regular intervals. The strategy is designed to help the investor buy more shares when prices are down and fewer when prices are up, creating an average price per share and theoretically reducing the overall investment cost. If that sounds a lot like a 401(k), you’re right.”

On investing in a 401k:

“The 401(k) is the most common investment vehicle people use to save for retirement, but they often set the allocation levels — for example 70 percent in stocks, 30 percent percent in bonds — and forget about it. 401(k)s are a critical asset.  Investors should not be afraid to take charge of their 401(k) accounts. They are a complicated asset, and if you don’t understand it or what’s happening, then find yourself a fee-only financial adviser.  It’s better to do something rather than nothing.”

On monitoring and rebalancing your portfolio:

“You need to rebalance your portfolio annually.  Pay attention to your accounts. Check on them quarterly to see how they are doing and what you may need to do to adjust.”

On having a diversified portfolio: 

“Diversification, whether it’s stocks, bonds or another investment option, is also an essential part of making sure your funds can handle market volatility.”

You can read the entire article on Insight’s website.

ETF Model Solutions, LLC is a registered investment adviser that constructs 3-dimensional portfolios within the context of the Endowment Investment Philosophy®. The Firm’s diversified, investment models are designed to replicate multi-asset portfolios pioneered by major U.S. Endowments.  The firm’s multi-asset portfolios including equities, bonds, and real assets such as energy investments, real estate, gold, metals and mining, hedge strategies, and private equity using liquid ETFs.  The models are available to 401k plans through Mid-Atlantic’s ModelxChange Platform and Fidelity’s Separate Account Network.  Learn more at www.ETFModelSolutions.com.