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Invest with Confidence
through changing markets
All About Carlson Wealth Management
Confidence begins with KNOWING YOUR RISK SCORE
One of the most common portfolios recommended by advisors, trust departments and fiduciaries especially if you are age 50 or older is some form of a traditional portfolio typically 60% stocks and 40% bonds. It’s termed as a Moderate Risk portfolio and will have a Risk Score* typically between 50-55 out of 100, however, just being diversified is NOT necessarily a serious defense against large market drops. This same portfolio is vulnerable to 20-30% losses in a bad market. Would you call that moderate?
Besides showing you the downside risk a Risk Score will also show you the upside potential.
This is equally important in determining if your portfolio is designed to help provide you with the growth and income you require particularly in retirement.
And that’s the Investment Catch-22.
If your risk is too high then you should reduce it, but if you reduce it don’t you also reduce the potential for growth that you need?
INCREASE Potential by DECREASING Risk
Carlson Wealth Management will demonstrate this by providing you with 3 Complimentary Services:
Calculate Your Personal Risk Score.
This is your personal tolerance to losing investment money as it relates to your need for growth.
Calculate Your Portfolio’s Risk Score.
This will show you how closely your portfolio matches your preference for risk and your need for growth.
Explore strategies designed for the Catch 22 by helping Reduce Your Portfolio’s Risk Score (ideally equal to or below your personal score) while potentially Increasing (not decreasing) your potential for growth and income.
PRESERVING YOUR WEALTH MATTERS
When markets drop what will help preserve what you have invested? Just being diversified may not be enough.
It starts with a solid defense.
Carlson Wealth Management uses a defensive trend analysis tool (“The Defense”) with the objective of helping to manage losses, aiming to limit them even when markets are down significantly. Actual results may vary based on market conditions.
Most of us cannot afford to lose money especially when it’s significant to our life. Unfortunately, many believe that just being diversified will be enough to help them from bad markets, but history has shown us otherwise. Carlson Wealth Management is a full service, independent fiduciary specializing in helping investors preserve their wealth from destructive markets.
How could a bad market affect your portfolio? Don’t assume you’re ok. Now it’s easy to check for yourself.
CHECK MY PORTFOLIO
Surprisingly many investors have never had this calculation done.
Before the next large market drop there are two things you should know: How much could my portfolio lose in value? How much could limiting those losses help me in the long run?
The answer starts with a check-up. What a tune up is to your car, a check-up is to your investment portfolio.
The check-up helps to answer 4 key points:
The first is your potential rate of return in good market conditions while the second, and possibly more important one, is the amount of potential loss in bad market conditions. Combined both are important to help determine how well your investments might earn what you need. Additionally it calculates the income potential and the expected lifespan of your portfolio. In other words, will my money provide me what I need for as long as I need it?
As part of the complimentary check-up, you will learn strategies designed to help manage risk, potentially enhance returns, and support the longevity of your investments.
To help achieve that Carlson Wealth Management utilizes a defensive analysis tool to help preserve what you’ve spent years accumulating. The objective is a portfolio that can improve your potential growth and income by helping to limit losses and stress.
Because life is more than just a financial plan. It’s something special to enjoy and not to be spent worrying about your money.
HOW MUCH AT RISK ARE YOU?
CALCULATE IT HERE
How much could you lose in a market downturn?
Here is a complimentary service that helps you answer this question.
HELP REDUCE YOUR PORTFOLIO RISK
PRESERVE WEALTH
When markets drop just being diversified may not be enough.
Learn about The Defense tool which aims for a 5% Maximum Loss Objective (this is a target and not guaranteed).
HOW STRONG IS MY STRATEGY?
CHECK IT HERE
When can I retire?
Will my plan last my entire lifetime?
Complimentary financial plan to help answer your retirement questions.
Frequently Asked Questions
Why do you use Point and Figure?
Point and Figure charts provide a road map that more clearly depicts that battle between supply and demand. It is a method for tracking the price of a security that has been around for over 100 years. The first person to record stock price movement was Charles Dow (Dow Jones Industrial Average) in the late 1800’s. At the start of the 20th century some astute investors noticed many of Dow’s chart patterns had a tendency to repeat themselves. The Point and Figure method of charting was developed as a logical, organized way of recording supply and demand.
Why is following Supply and Demand so important?
When it is all said and done, if there are more buyers in a particular security than there are sellers willing to sell, the price will rise. On the other hand, if there are more sellers than there are buyers willing to buy, then the price will decline. If buying and selling are equal, the price will remain the same. This is the irrefutable law of supply and demand. The same reasons that cause price fluctuations in tomatoes in the grocery store cause price fluctuations in securities. The premise of Point and Figure charting is to provide a logical, organized and sensible way of recording the supply and demand relationship in any particular security or sector. For your portfolio to make money it needs to own securities that are being controlled by demand.
What is Relative Strength?
Relative strength measures the price movement of one security vs. another security or group of securities.
Why is it so important?
One of the most important tools in a Point and Figure toolbox is the relative strength chart. Historical research validates that owning securities that are demonstrating greater strength relative to others can lead to out performance over time.
How does Carlson Wealth Management use these tools to manage portfolios?
The knowledge required to effectively use the tools of Point and Figure analysis including Relative Strength involves years of experience to implement as a market practitioner. Point and Figure is not the end all. It does not guarantee any results. What it does though is to stack the odds of success in the favor of the practitioner disciplined enough to follow the analysis through all market conditions over time and unwavering.
What is the company’s defense method?
The defense was designed to help identify changes in market trends. It was created and developed by John Carlson, President of Carlson Wealth Management. It combines multiple calculations based on changes in market prices including the Point and Figure methodology all designed with an objective of being responsive to changes in market trends.
How does CWM use this tool to manage portfolios?
Preserving investor’s principal is paramount. Losses are inevitable when investing in the markets, however, preventing large losses is key to not only managing risk and allowing investors to sleep at night, but mathematically important to providing the chance to outperform market averages over time. If you lose less in a market decline then you have more working for you in a subsequent market rise.
