Our Investment Planning Process

Step 1 – Calculate your personal Risk Score

Before any investment is made you should know how much your investments can lose in value before you throw in the towel.  We utilize a software developed by a company called Riskalyze to help you calculate your personal risk score.  This is one of the best resources that I have seen in my 25 year career.  No longer will your tolerance to risk be subjective, but rather a more relevant, mathematically specific score tied to how much or little you can emotionally afford to lose.

Start HERE to calculate your RISK SCORE

Step 2 – Calculate Your Portfolio’s Risk Score

Most investors have more risk in their portfolio(s) then they realize, desire or possibly even need.  By combining Nobel prize winning economics with cutting edge technology we next use the Riskalyze software to help us determine with a 95% probability how much your current portfolio(s) can either gain or lose under normal market conditions.  Then we also apply a Stress Test to see how your portfolio would perform under both bull and bear market conditions.

Step 3 – Build a Financial Road Map

At this point we know your personal and portfolio risk scores so we know the risk you can tolerate.  What we don’t know is what rate of return you NEED so our next step is to build you a financial road map that includes all areas of your life from your investments, to your real estate, your personal properties, your incomes, your expenses, your goals and dreams, etc.

Whether you are retired or heading towards a future retirement, we want to make sure that you earn what you need to earn while managing for unnecessary risks.  The plan is not static based upon an assumed rate of return.  Markets never return the average.  They are always in flux and so your plan must be built to analyze for varying rates of return.  In this way, you can then plan for the appropriate rate of return AND the appropriate level of risk.

Step 4 – Lower The Risk, Not The Return

Now that we have a financial road map built we know three things – your personal risk score, your current portfolio(s) risk score and the rate of return necessary for you to realistically meet all of your lifetime, financial objectives.

In traditional, buy and hold portfolios to reduce risk most portfolios are then adjusted to invest in lower risk securities such as bonds.  When you do this, however, you also reduce the expected rate of return.  Our goal is to not compromise the potential in your portfolio.  We look to Lower The Risk, Not The Return.

We do this by identifying two primary factors – WHERE to invest and WHEN to invest (see menu for SERVICES above).



The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs.  Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.  Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”).  However, such information has not been verified by Carlson Wealth Management (CWM), Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA, CWM and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein.  CWM, DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded).  Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.  Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products.  This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made. 

Unless otherwise stated, performance numbers are based on pure price returns, not inclusive of dividends, fees, or other expenses.  Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.   You should consider this strategy’s investment objectives, risks, charges and expenses before investing.  The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs. 

The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.  Performance information presented is the result of back-tested performance.  Back-tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to illustrate the effects of the CWM strategy during a specific period.  The CWM strategy is NOT a guarantee.  There may be times where all investments and strategies are unfavorable and depreciate in value.  The CWM strategy is not predictive. 

Back-tested performance results have certain limitations.  Such results do not represent the impact of material economic and market factors might have on an investment advisor’s decision making process if the advisor were actually managing client money.  Back-testing performance also differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight.  CWM believes the data used in the testing to be from credible, reliable sources, however, CWM makes no representation or warranties of any kind as to the accuracy of such data.