Blog & News
Looking Beyond Average Investment Returns
Dave Wilder CFP®, CTFA, MST, AIF®, CEPA
Thursday, April 11, 2019
investors strive to achieve the highest rate of return possible for their
portfolio. It seems that this is the best way of accumulating more for their
goals, such as saving for college or retirement. An investor who achieves a
higher rate of return over time will always have a higher portfolio value
compared to an investor with a lower return. Right? Not really!
is that rate of return is only one tool for measuring success. It is also the
easiest way to measure how one portfolio may be performing compared to another.
However, another important factor is managing the risk associated with a given
set of investments. In the illustration below, you will find that a portfolio
with a lower rate of return actually results in a higher
portfolio value after ten years compared to the portfolio with a higher rate of
At Total Wealth Planning, we structure portfolios so that they “win by not losing”. Your portfolio can be structured with a significant allocation to equities, an asset class proven to provide superior investment returns over time. However, by introducing 15-20 different asset classes, we can also minimize the amount of volatility. The end result is that you may be able to achieve your goals much sooner than you may have anticipated!
If you would like to learn more about our Nobel-Prize winning investment approach, please contact us at firstname.lastname@example.org or call us at our office at (513) 984-6696.