Tactical Money Management – our philosophy


There is great debate about what investment strategy performs best – active vs passive, tactical vs strategic. It is generally agreed that strategic asset allocation with rebalancing delivers better long term performance due in part to lower trading costs and the ability to capture the long term historic average return. This “buy and hold” works particularly well when investors are investing regularly by dollar cost averaging into their 401(k), IRA etc. throughout their working lives. The key words here are the “long term”.

We believe that when you are at or near retirement the “rules” change. You are no longer investing for the long term, you are no longer dollar cost averaging into your retirement accounts every 2 weeks and stock market dips are no longer “buying opportunities”. In fact the reverse happens: retirees need to start withdrawing funds to generate retirement income, stock market dips are worrying and lead to dollar cost ravaging: withdrawals compound investment losses, leading to accelerated depletion of retirement assets.

Tactical money management we believe is a better investment strategy for Clients at or near retirement. Tactical money management is not about trying to beat the Market but seeks to maximize portfolio returns while keeping market risks to a minimum. The Dot Com crash in 2000-2002 and the Financial Crisis 2008- 2009 saw Market losses of more than 50%. If you are at or close to retirement how would another Market crash affect your situation?

The good news is that we have proprietary tactically managed portfolios that have been designed to be nimble to maximize the risk/reward trade off. These portfolios have the ability to liquidate up to 100% of equity positions.

In the words of Lao Tzu “He who knows when he can fight and when he cannot, will be victorious”