The SmarterCurve Investment Strategy is like a seasoning that you put on your existing investments to change how they act as the market moves.
In 1989, Charles Stoll and Doug Alden (investment advisors) met in San Francisco at an industry conference and shortly thereafter began working together in South Florida where they resided. They both experienced and learned the concept of money in motion, otherwise called the velocity of money multiplier theory. By using dividends and interest from bank and investment accounts, they could demonstrate how to add additional money supply and benefits for the client.
Since the financial industry is built on the concepts of accumulation and deferral, this was “upstream” if you will, from the whole industry. We used terms like the “interest move” or the “dividend move” that used the cash flow from dividends and interest to add additional benefits, to help pay for estate plans and improve various areas of protection for the client. What slowly evolved was a covered call writing system that, when carefully monitored, added additional cash flow. However, the underlying securities were still subject to market returns.
Fast forward to 2009. After suffering through two very serious bear markets, Stoll/Alden were frustrated having to nurse clients through very traumatic times, trying to keep clients invested.
The mantra of broker or advisor was, “stay the course, stocks always recover and move upward. The problem was and is that most investors are older and don’t have time on their side. In other words, the buy, hold and wait strategy didn’t give some clients the time to recover. Either the daily lifestyle needs, or emergency spending were greater than the ability of their investment accounts to keep up without going deep into principle.
Through trial and error, the current strategy evolved. By combining every day, off the shelf financial products, the “Smarter Curve” evolved and is now in place.
While nothing is guaranteed, this strategy creates additional cash flow, over and above the dividends and interest of the underlying portfolio while providing the downside protection from a fast and serious market decline. The only downside is that, in a declining market that doesn’t reach that which was experienced after the 9/11 event, will cause the underlying portfolio to trail market returns. Most long-term investors are capable of weathering that squall, knowing that if the big drop comes fast and furious, their portfolio will recover most if not all the losses.
Therefore, The Winning Points team works so hard and cares so much about its clients. Again, while it’s not guaranteed, the “Smarter Curve” helps protect the lifestyle and retirement dreams of our clients.