Why We're Different

#10  SectorFolios

 A SectorFolio Strategy For All Investors

When we meet with clients we often see that they have no strategy at all or they simply checked off a box on some papers that their employer gave them when they set up their 401(k).  They have no idea what the strategy is, if any. Although there are many different investment strategies out there, our favorite is the “Strategic Sector Asset Allocation” strategy.   

Any good marketing company will tell you that in order for a particular business to  do well, they need to market to the demographics of the people who buy their  products.  Any good investor is going to know the demographics of the investment they are putting money into.  One of the biggest mistakes people make when picking out investments is that they go off of past performance.  The demographics that made them do well in the past may not help them do well in the future.  In large numbers, such as the Baby Boom demographic, we see how predictable people are.  Harry Dent likened the Baby Boom generation to a snake that ate a pig.  He said, "Studying the spending and investing habits of this current "Baby Boomer" bulge that is rapidly changing our society, is like a snake that swallowed a pig.  You can easily see the progress of the snake's meal as it moves through the snake.  

Wayne Gretzky was once asked how come he was such a great hockey player.  He said, “I skate to where the puck will be, not to where it’s at.”  Understanding the demographics of your investments will help you to know where the potential will be and not to invest where it is at. 

The Vision

Harry S. Dent, Jr.

Harry S. Dent, Jr. is the chairman and founder of H.S. Dent Investment Management.  His mission is simple:  helping people understand change.  He graduated from the Harvard Business School as a Baker Scholar.  Mr. Dent has put his ideas to the test with a variety of companies ranging in size, market and business focus.  He has acted as a strategic consultant for Fortune 100 corporations and also has managed several small growth businesses.  He has addressed top corporations, major investment firms, and business conferences around the world.  

Mr. Dent has published 6 books, of which the three most recent have been bestsellers.  These include Our Power to Predict (1989), The Great Boom Ahead (1993), The Great Jobs Ahead (1995), The Roaring 2000s (1998), which appeared on the New York Times bestseller list, The Roaring 2000s Investor (1999), and The Next Great Bubble Boom (2005).  

Mr. Dent is one of the world’s most prescient economic prognosticators.  He stood practically alone in forecasting a new age of prosperity emerging in the 1990s and extending into the new century.  Dent foresaw a booming stock market, falling mortgage rates, and the resurgence of America as the premier global economic super power. All of his predictions have come to fruition.  

Now, in his new book The Next Great Bubble Boom, Dent focuses his visionary eye on the full spectrum of the changes that will follow in the wake of the burgeoning turn-of-the-century economy.  According to Dent, how and where we work and live is about to change more drastically than at any time in our history due to the convergence of the mainstreaming of the Internet and other technologies and the peak spending years of the aging baby boomers.  This will result in nothing less than the greatest boom in history and an unprecedented opportunity for individuals, investors, and business people.

The Implementation

Mark K. Lund, CRFA

Mark K. Lund, In 1999, Mark was brought on with the Principal Financial Group, a financial planning firm focusing on 401(k) retirement plans.  Mark spent his time managing investment portfolios for private investors. 

#9  Tax-wise Investing

Pay taxes on the seed or the harvest?

We pay considerable attention to how investment accounts will or are being taxed.  You spend a lifetime building assets in your 401(k), IRA, or other retirement plans.  However, under current tax law, the IRS threatens the comfort and financial security you’re looking forward to in your retirement years.  Fortunately, with proper planning, there are congressionally approved methods that will allow you to receive retirement funds tax-free.

In retirement, as in sports, it's the final score that counts, not the score at halftime or even after three quarters.  The real clincher is the fact that with qualified plans one must pay taxes on the entire amount taken at retirement, including the growth.  The growth accounts for the largest portion.  Whereas on non-qualified programs, one pays no taxes on the growth at all.  In other words, one can be taxed either on the seed or the harvest.  With qualified plans, one pays on the harvest, while on the non-qualified programs, one pays on the seed.  One does not receive the tax deduction now but he or she can receive a far greater benefit by not having to pay taxes on the amount received at retirement. 

#8  Portfolio Management

We start with a general view that most people only have a 10, 15, or 30 year time horizon in which they want to be investing.  Most strategies out there, following modern portfolio theory, assume a 70 or 80 year time horizon. In addition to alternative investment strategies, we also offer performance based accounts where the fund manager only gets paid if he performs.  In order to maximize returns we have to look at two main fundamentals.  First, the actual life of your portfolio and second, actively rebalancing and allocation monitoring. 

As Harry Dent put it, "Would you have wanted to use the same portfolio strategy in the Roaring 20s as you used in the Great Depression of the 1930s? Would the same mix of equities have performed equally well in the inflation and recession of the 1970s versus the disinflation and boom of the 1980s? Will you manage your portfolio the same way in this decade, a boom period with surging productivity and relatively flat inflation, as you will after around 2008 to 2010, when our economy moves into the next depression era? The answer is clearly no."

We have developed an aggressive, growth, and moderate portfolio for our clients that we actively manage based on demographic investment research. 

#7  The Process (The Personal Wealth Optimizer System)

How do you picture retirement?

Click here to learn more about "The Personal Wealth Optimization Orientation"

#6  Independence

An independent investment advisor representative is a professional practitioner who functions in a conflict-free environment. Being an independent practice, we are able to offer a wide range of financial education to our clients, and are able to offer totally unbiased advice on all financial matters. We look at the criteria that will benefit our clients: service, the financial strength of the provider, charges and costs, past performance and so on.

The Benefits of Working With An Independent Investment Advisor Representative

When designing the client’s portfolio, an independent investment advisor representative is free to consider all of the thousands of investment alternatives available today. There are no artificial limitations on which investments we can use.

When building a client’s portfolio, an independent investment advisor representative can weigh the merits of one investment against another, recommending investments only because they will contribute to the success of the client’s investment strategy. There is no pressure, and no incentive, to sell proprietary products.

When assessing a client’s portfolio performance, an independent investment advisor representative can use objective criteria to gauge the performance of each investment. An experienced investment advisor representative can help track the progress of the client’s portfolio towards the financial goals they’ve set, and advise them when it is appropriate to make changes and when it’s time to stay put.

An independent investment advisor representative is a professional practitioner who functions in a conflict-free environment. The benefits of using the services of an independent investment advisor representative occur to the investor throughout the relationship.

We believe independence is essential.

(Investment advisory services offered through Sigma Planning Corporatation, a registered investment advisor).

#5  Monthly Wealth Management Newsletter

The Mark Lund Growth Report

Click on picture to learn how you can receive our monthly Newsletter

We provide a monthly Wealth Management Newsletter entitled "The Mark Lund Growth Report."  Our core belief is that education is the key to making good choices regarding our personal financial lives.  Our goal with our monthly newsletter is simple: to provide high quality financial education.  By offering this type of service, we assist people with developing a better understanding of key issues they may need to confront.  We provide this as a free service to our clients.   

#4  Client Appreciation Events & Dinners

We like to show our clients that we appreciate them.  One way that we do this is by sponsoring client appreciation events.  Our last one was at Jordan Commons, where we rented the entire theater and had a private screening of a movie.  Other events are dinners where we provide continuing education for our clients.  

Our goal is simple: to provide high-quality financial education.  We recognize that planning for financial dreams is a process, not a product.  It is a process that involves discovering your goals and developing a plan to meet those goals.  Financial education is the best way to do this.  We will do everything in our power to bring to our clients the information they need and keep them focused on where they want to go.  We have many different dinner topics designed to educate on a variety of topics, whether it is on 401(k) plans, investing, college funding or retirement planning. 

#3 World Class Service Commitment

#2  You have three ways to open an account

One of the advantages of establishing an account with us is our flexibility.  When you establish your account, you can choose from among several investment alternatives.  You can choose an individual account if you prefer to make your own investment decisions.  You may also choose an investment advisory account if you prefer to make your own investment decisions based on recommendations you receive from our investment professionals.  Or, finally, you may choose an investment managed account where you give us discretionary investment powers over your account.  Many individuals prefer this latter choice because of the freedom it affords them. 

Just as significant, though, is the security that an account established with us affords.  We possess the resources that only an organization with experienced investment professionals can offer.  Our investment professionals have access to information and analytical tools that are simply unavailable to the average investor.  Moreover, we are on the job full-time, an important consideration if you simply don’t want to assume the responsibility for investing. 

Finally, our accounts are easy to implement and simple to maintain.  All we require is a signature on one or two forms in order to establish the account of your choice.  Once your account is funded, we provide quarterly statements concerning the account and file any necessary forms with the government.

#1 Affiliate Network of Professionals/Succession Advisory Committee

We’ve brought together many different financial minds in the country. And call this the “Affiliate Network of Professionals.”  In addition to our expectation that our members achieve the highest level of commitment to their profession, we also demand that same commitment to our client’s objectives.  In addition we also encourage them to become part of, and contribute to, the larger community. 

With access to the assistance and experience of our affiliate partners, you gain a significant advantage to participate and gain from this collective wisdom that one person could never bring to the table alone. 

For a complete biography of each of the members of the "Affiliate Network of Professionals" please visit our “Wealth Advisors” link.

Succession Planning Committee

To learn more about our Affiliate Network click here

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