The EngineeredInvestingTM Approach 

Key Elements of EngineeredInvestingTM

 

• Understanding and dealing with the “Wave Action” of Economic Cycles, and the pitfalls of EmotionalInvestingTM while using reason, knowledge, and foresight.

 

• Using the Financial Pyramid to help prioritize investments in relation to risk, reward, and investment desires.

 

• Using the InvestmentQuadrantsTM to compare potential investment options within the four investment desires.

      • Liquidity:                                    The amount of liquidity desired

      • Income:                                      The amount of Income desired

      • Growth:                                      The amount of Growth desired

      • Shelter* (Tax Advantaged) :       The amount of Shelter* desired

                                                   *tax-deferment or tax-exempt appreciation and income

Key Factors of Your

Personalized InvestmentDesires ProfileTM

 

      • Family member ages

      • True investment objectives

      • Actual income tax bracket

      • True tolerance to investment risk

      • The amount and types of both investable and non-investable assets available

      • Income generated from non-investment sources

 

Combining these Investment Planning Concepts and Tools with reason, knowledge and foresight can help cut away EmotionalInvestingTM from your decision-making process.

The InvestmentQuadrantsTM
 The Four Basic Investment Desires

 

Reason - Knowledge - Foresight

LIQUIDITY

INCOME

Investments which satisfy this desire include:

 

Ö   Money Market Funds

Ö   Checking

Ö   Savings

Investments which satisfy this desire include:

 

Ö    Individual Bonds

Ö    Bond Funds

Ö    Treasuries

Ö    Unit Investment

Ö    Fixed Annuities

Ö    Certificates of Deposit

GROWTH

SHELTER

*(Tax Advantaged)

Investments which satisfy this desire include:

 

Ö    Individual Stocks

Ö    Stock Mutual Funds

Ö    Real Estate Mutual Funds

Ö    Variable Annuities

Ö    Individual Real Estate Ownership

Investments which satisfy this desire include:

 

Ö    Fixed Annuities

Ö    Tax-Exempt Municipal Bond Funds

Ö    Unit Investment Trusts

Ö    Variable Annuities

Ö    Variable Life Insurance

* Tax Deferred or Tax Exempt Income and Growth. Tax Exempt Investments are not  appropriate to hold in a retirement account as all amounts in such accounts are generally  taxed upon withdrawal. 

The “Wave Action” of

the U.S. Economic Cycle

 

Typical “Wave Action” Stages

EmotionalInvestingTM

within the U.S. Economic Cycle

 

AN ALTERNATIVE TO EmotionalInvestingTM

REASON       KNOWLEDGE       FORESIGHT

These charts are for illustrative purposes only. There is no correlation between these charts and past or future movement of economic cycles or how investments should be made.

THE FINANCIAL PYRAMID
 With Respect to Protection and Investment Concerns

 

 

* Tax Advantaged:  Tax Deferred or Tax Exempt Income and Growth

 

This pyramid is intended solely to illustrate a concept;  it is not a promise of investment performance. Investors may differ on the risk level to which a particular asset is assigned.  Before making any investment in mutual funds or variable annuities, be sure to read the appropriate prospectus or offering documents for a complete discussion of the fees and risks involved.