Broker Check

The Back 9 Game Plan

Your Back9 is the distribution phase of investing. It is the stage in your financial life when your investments need to help supply an adequate income. At this stage, downside volatility can be debilitating. In the 2008-2009 downturn, it appeared as though there were no safe havens for investors. It was as though all of your clubs were faced with a mighty headwind.  The average investor felt as though the breadth of their portfolio was not serving the purpose and they were ‘carrying too many clubs’ for no reason. Unfortunately, the solution many chose was to go to cash too late, incurring losses in the process or to narrow their focus to perhaps one asset class or commodity that seemed to be bucking the trend.

For your Back9 to work you must remember a few important things:
In investing, bad things hurt more than good things help. In other words, exposing yourself to extreme downdrafts in the market can take years off the longevity of your portfolio’s effectiveness. This is true during accumulation, but critical in the Back9 distribution phase.

Finding a reasonable withdrawal rate will be critical to the sustainability of income your portfolio generates.  Too much withdrawal too soon can cause an obvious lack of funds later in life, or an inordinately aggressive allocation to make up for a shortfall can lead to excessive volatility when it is least needed.

Everyone loves volatility when it is on the upside. It is the exposure to downside risk that can cause financial ruin. We aim to provide a portfolio that matches your objectives and financial personality, while maintaining a level of risk with which you are comfortable.  We work with a number of the world’s leading money managers to construct synergistic portfolios.

Our unique approach to building a Back9 portfolio seeks to reduce risk while capturing reasonable upside.  We can suggest strategies and solutions to help limit the extent of potential losses, as well as safeguards against the loss of future income streams.

Go to our Risk Tolerance Quiz to see if your current portfolio suits your personal risk tolerance.

Request an appointment or a copy of the “CFP Guide to Financial Planning” by emailing us: