strategies by theretirement guys...

Specializing in the income stage of retirement, The Retirement Guys can assist you with distribution and reallocation of your retirement savings in the most tax efficient manner, reduce or eliminate unnecessary fees, helping you keep more of your money and plan for income throughout your retirement years.

Protection – making sure that your plan can withstand the unexpected.

  • Review and analyze your financial position.
  • Identify any risk exposures and recommend solutions.

The Retirement Guys have developed a number of proprietary ranking systems to determine investments that should produce the best combination of risk and return, rather than rely on luck. By using a specific formula to rank all investments available in our markets we are able to eliminate human emotion and create specific rules for when it's appropriate to buy, hold and sell.

Our ranking methodologies are built from years of quantitative fundamental analysis (QFA). QFA is a way of determining the factors that have produced the best results on a historical basis. The theory behind fundamental analysis is that intrinsic in every stock is a "fair value". The fair value isn't always easy to calculate; but in a nutshell, the fair price to pay for a company is based on the company's financial statements. If a company's value (stock price x shares) is high, relative to the revenue, cash flow, assets, etc., it would be a bad value. On the contrary, if a company value is low, relative to the financial statement, then it's a good value. If you can imagine a company that is steadily increasing its sales, reducing its debt; but the share price hasn't increased - then you potentially have a good value. This is the primary method The Retirement Specialists use to determine when they should buy, hold or sell an investment.

Here's the "Good" about Fundamental Analysis:

  • Widely accepted as a determinant for investment
  • Information is readily available for free
  • Information is generally accurate

Here's the "Bad" about Fundamental Analysis:

  • Financial statements can be difficult for the average investor to understand
  • Valuation methods vary for each industry or market segment
  • Information is often old, as many companies report quarterly
  • Information used for valuations can change quickly and with little warning

There are literally thousands of potential factors that could be used for QFA. The Retirement Specialists have analyzed many of these to create the most desirable combinations for each particular investment category. There are 3 distinctive components we are currently using:

Freedom Formula:

Finding the right mix of investments is a key factor to successful investing. Because different investments often react differently to economic and market changes, diversifying doesn’t guarantee against loss, but can help to reduce volatility and also has the potential to enhance your returns. The Freedom Formula has been developed for this purpose.

The Formula invests in a fixed portfolio of stocks which are selected by applying predetermined screens and factors and then we rerun the screen and filter every 90 days.

Here's the "Good" on the Freedom Formula:

  • Know your portfolio. We offer complete transparency from the stock selection process to portfolio holdings and individual stock weightings.
  • Automated buy and sell decisions helping to eliminate unwanted emotions from the investment process.
  • No embedded capital gains. Capital gains taxes are paid only if there is a profit.
  • No style drift from manager-driven trading.
  • Low cash positions so more of your money is put to work.
  • Diversification, discipline, and a periodic rebalancing help to decrease volatility and potentially increases returns.
  • Complete liquidity

Here’s the “Bad” on the Freedom Formula:

  • In a declining stock market, buying and holding stocks still can increase the risk level.
  • Using screens and factors to narrow the stock holdings can increase the risk level.

Circuit Breaker Protection:

In light of the current economic environment we have incorporated an additional safety net to the accounts. On the first trading day of the month if the S&P 500 Index is trading below the 50 Day Simple Moving Average (SMA) 50% of the money is moved or kept in cash. If the S&P 500 Index is trading below the 200 Day Simple Moving Average (SMA) 100% of the money is moved / kept in cash. This is designed to protect investments from significant losses that can occur in declining stock markets.

Retirement Guys Radio

100% Invested
Updated January 2010

Due to compliance regulations, we currently cannot post our list of stocks. We would be happy to personally discuss our formula in more depth with you on a one on one basis. To find out more about the Freedom Formula, simply contact our office.




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