Become a Client Service Advisor!

May is National Preservation Month. To some, ‘preservation’ may address the thought or act of conserving personal, family, or community heritage such as art, jewelry, land, papers, etc. In the financial world, we look more closely into ‘capital preservation.’

Money word of the month: Preservation of Capital (ok, so it’s more than one word)    

Simply put, preservation of capital is avoiding loss and minimizing risk in order to keep what you have.  Having the financial wealth that you desire begins with a solid foundation and a capital preservation mindset.  You want to preserve what you have regardless of your financial position.  Once your money starts growing, you want to keep it safe.  And then in retirement, you don’t want to lose what you have built.   Capital preservation is a mindset common to all stages of life.

What’s in your wallet cookie jar..?

Short of storing money under the mattress, there is no guarantee to keeping it safe. While safety is a primary concern for many, most want or need it to grow so that it can meet their long term goals, thus introducing risk.  There is risk in almost everything we do.  More people die in car accidents every year than anything else.  How do you manage that risk?  Do you take less traveled roads, not drive at all, or become a better driver?  Now let’s bring it to personal finance. You’ve spent time and money and maybe your entire life building assets.  While it is highly unlikely that you will retire with less than what you saved, that is exactly what happened to many people in 2008/2009.  There is a range of solutions for managing this risk.  We help you determine what makes sense for you.

This bitcoin investment will make me rich!

Umm, probably not.  You know what mama says about things seeming too good to be true.  There are no guarantees in life.  Based on history, we are pretty sure that the market will go up and it will go down.  You can spend your energy and time chasing the next scheme or fearing what may happen OR you can enjoy the day knowing that you have a solid investment strategy for your life.  At Allgen, we want to set you up for success.  By reducing debt, setting up proper emergency funds, and investing in a way that is customized for you, you will have peace of mind knowing that we have considered how best to grow and preserve your assets.

Remember when credit card companies were all over college campuses?

Not sure that was the best way to get kids on their feet.  We have collectively been through a period where we were trying to preserve jobs, incomes, homes, retirement buckets, etc.   Another way to preserve assets is not to have to tap into them when the economy goes south.  Those who had less debt fared better during the tough times.  It was easier for them to weather the storm and recover.  This can be accomplished by minimizing debt payments and having substantial emergency funds to get you through a downturn.  Not only does this help during difficult times, but the most successful self-made millionaires say that debt is the number 1 impediment to creating/preserving wealth.

The gym again?  But I just went last week.

Yep, finances need constant revisiting and monitoring.  That is where we come in.  Our investment philosophy is to seek long-term capital appreciation and asset protection in down markets by managing risk first in order to avoid major loss.  Risk and uncertainty can cause loss. While no one can eliminate risk, we can reduce it.  By understanding your risk tolerance along with what you need the money to do for you (growth, income, etc.), we can tailor a portfolio that is right for you.  Preservation is avoiding large losses, and in doing so, allows you to use the most powerful force in building a portfolio: compounding interest.

Investments are only one piece in preserving capital.  Building a solid foundation and properly navigating the roadmap is just as important.  In life we rarely get where we want without having a plan or map to follow.  That’s why determining and implementing an appropriate individualized plan will help preserve capital for you and your family for generations to come.

Ask us how you can get started on your plan today!