Passion. Planning. Performance.

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What is your strategy for investing in volatile times?

Every market, every economy can and should create opportunity. One potential costly mistake investors make is to not seek opportunity through chaos. Chaotic periods, historically, are some of the best periods to invest. If the markets are uncertain today, find the macro trend or path of growth. What will 10 million more middle class consumers do for fast food restaurants or companies that make toothpaste and shampoo, housing and technology?

The second biggest mistake is holding on to old axioms. Buy and hold forever may not be akin to buy and hope. The rule that people could diversify to maximize risk-adjusted returns may also be an antiquated concept. Today, many investment classes that used to have low correlation are highly correlated. This means many markets move up and down together. At Ken Stern & Associates we have adopted Core, Tactical and Uncorrelated strategies for each portfolio. As we see it, this three-pronged approach is a "best of all worlds" approach. Core holdings for macro trends, Tactical investing for taking advantage of short-term opportunities, and Uncorrelated investments to find strategies that, by design, will not move up and down with the market. Learn more…

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What specifics should I incorporate into my plan? How should it be administered?

Without proper planning, inevitable life events become issues which can be potentially life-altering. The ability to forward plan may reduce costly and often minimally effective crisis management. At best, having no plan could result in missed opportunities. At worst, the result could be any number of issues including, but not limited to: loss of assets, control, and/or potential for higher taxes.
Think some of the life events through: How did you maximize your 401 (k), IRA and other accounts to take advantage of the economic volatility? If your child inherits your assets and then divorces, how can you be sure certain assets will not be lost in their divorce? What steps have you taken to reduce risk if and when the market crashes again? What have you done to insulate yourself from higher taxes and unexpected uncovered medical expenses? You may not think this applies to you but think again. It is not uncommon for UNCOVERED (uninsured) medical expenses to cost hundreds of thousands of dollars. What steps have you taken to protect from litigation?
Prudent forward planning is the best start at addressing questions and issues before they arise, planning for the unforeseen. Devise a system that maximizes your ability to implement the plan and modify as needed. Work with a knowledgeable, experienced team that understands the unforeseen hurdles. Communicate the plan to the important people in your life.
At Ken Stern & Associates we created an actual Alpha Vault. In it are the monthly action items, follow-up steps, and documents that help ensure your plan is maximized and executed. Learn more…

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What considerations and steps should you take when creating and maximizing a legacy?

The unfortunate truth is although we know our legacy is important, often we have, at best, an incomplete plan for our legacy. If you get sick what would you want to happen? If you died, how would you want your legacy defined? Would what you wish to happen actually happen? Here are four steps to consider:

1. Create a family values statement and/or a personal values statement. Include your morale code, lessons learned, and values you wish to be passed down a generation.

2. Complete a document locator and a letter of instruction. Your trusted advisers should have immediate, clear and ready access to an accounting of assets and liabilities, where financial data can be found, and whom to call. Passwords and important documents such as birth certificates should also be included (and this is just the start) in your complete document locator. Also, few people know your affairs as well as well as you. Write a letter telling us about certain situations and what you propose your team and beneficiary do with your legacy.

3. Talk to your team and to your family about the important, non-financial issues. Do you have a moral will? While a non-legal document, it's an important outline of what you want your heirs to know about you and your life: Would you like to tell stories to your family about special memories and fond recollections? Does everyone in your family know how you feel about them? How you met your spouse and what you thought seeing your children grow and mature?

4. Meet with advisers and discuss contingency plans: where will the funds come from if you should get sick? How will the funds work should you die? Who would be in charge if either of these situations occurs and what knowledge should they be provided to do their job?