Wealth Advisors in Westlake Village, CA
Serving residents in both Westlake Village and Thousand Oaks, CA.
- 70% of people do not trust banks and mutual funds
- 60% have lost faith in the stock market
- 44% said they are unlikely to ever put money in the stock market again (Forbes, 2011)
“Buy and Hold” is a primary tenet of the Modern Portfolio Theory (MPT). Developed in 1952, its creators won a Nobel Prize in Economic Sciences (Investopedia, 2012). Financial and wealth advisors widely subscribe to the model as a long-term investment strategy – trusting that over time, a portfolio will perform with minimal management. That’s all well and good as long as the financial markets produce a good rate of return, despite small periods of volatility (Brandes Institute).
Until the next financial crisis. BECAUSE WE ALL KNOW THAT ANYTHING CAN HAPPEN.
MPT states that the odds of the Dow falling 7.7% in one day are 1 in 50 billion (Short III, 2009). Let’s put that in perspective:
- That equates to once every 13.7 million years
- Dinosaurs became extinct roughly 65 million years ago
- Man arrived on the scene in his earliest form approximately 5 million years ago
So, essentially, MPT predicts that the devastating Dow plunge of 7.7% in one day would happen once in a world’s existence – yes, only once in all of mankind!
It actually happened 4 times in 2008 alone, for a grand total of 12 times in the last century (Short III, 2009).
Learn more about the timeline of investing in our report, “The 5 Dangers That May Cause You to Lose 50% of Your Net Worth In One Day”. Fill out the form in the top right to gain access to this free report now!
Sorensen Wealth Management takes hope out of the equation for investment solutions. Located in Westlake Village, CA, we are an independent firm dedicated to growing wealth in the new economy. Request your free report to find out why many financial plans are destined to fail, and learn how you can grow your portfolio, even when faced with unpredictable events.
Buy, Hold, and Hope is not a Strategy
Many wealth advisors still recommend a “buy and hold” strategy and hold assets for years to weather the ups and downs of the market. Unfortunately, the underlying assumptions of “buy and hold” have been proven to be false, resulting in underperforming portfolios.
New research indicates that an investor using “buy and hold” may have to wait as much as 40 years for extended long-term averages to be realized (Brown, 2012). Very few investors can wait this long to reap their gains or to begin their retirement.
High-frequency trading now accounts for 70% of market volume on a daily basis. In the 1980s, the average holding period for U.S. stocks was two years. Now it is just 2.8 months (CNBC, 2011). Sorensen Wealth Management’s proactive wealth advisors can recommend investment solutions for today’s financial climate. Request your free report to learn more about the new rules for investing.
Your advisor should be able to provide expert advice and independence in all areas of investment and retirement planning. A true equities expert will follow a clear, step-by-step investment process that identifies trends and top performers while mitigating risk.
2. Integrity and Results
Look for an advisor who is motivated, honest, and keeps commitments. Top wealth advisors provide frequent progress reports and devote the time to fully understand your goals.
Simplifying investment complexity ensures better decisions. Your advisor should be able to clearly explain difficult financial concepts and create clear and simple plans for you.
Transparent advisors provide open access to records and use advanced tools and technology to effectively analyze, design, and maintain your financial plan.
Don’t be kept in the dark. The expert advisors at Sorensen Wealth Management located in Westlake Village, CA, reach out to their clients more than 100 times per year to provide the maximum level of communication.
Avoid the “order taker” and the “trader.” An “order taker” will passively manage your account. A “trader” trades assets in and out of portfolios with no clear reason. Seek an advisor with a proactive approach who uses clearly defined buying and selling criteria and provides true investment solutions.
7. Experience and reputation
Look for a wealth advisor with a solid reputation and a successful track record. Seek an independent, holistic financial advisor who will provide unbiased advice with a local presence.