Saturday, September 24, 2011

Today's Advice Model

MW/AlphaMartrix Wealth Management(SM) - Fixing Broken Plans -

The Next Level....

Behind every investment portfolio is a Human Being......

Therin lies the purpose (the first Law of the Matrix - Unity of Purpose) - And the Role and Responsibility of MAIN Street in Our Model-

The Role of Financial Planning is often misunderstood by both clients and the profession itself,
nor is it limited to the retail or unsophisticated investor. The Story of the Harvard endowment fund provides an excellent example....

The First Step -  Clearly Defined Roles and Responsibilities....

Traditionally, Financial planning and investment management are provided as two distinct and separate services. With financial planning, advisors help clients assess their financial situations and set goals. With Investment management, advisors help clients set an investment strategy and choose specific, suitable investment products for a client's portfolio. Of course the investment strategy must be responsive to the client's goals, and the goals can't be set in isolation from the investment strategy.

Without the right tools, advisors aren't able to effectively combine their financial planning and investment management services in an efficient way that reflects the personal situation of every client. The result is often a disjointed advice process that may increase risks for investors and may fail to help them reach their financial goals, such as a secure retirement or funding their childrens college education.


Often the effectiveness of investment advice isn't determined for years, perhaps for decades. Accordingly active methodologies cannot be compared on the basis of recommendations. Instead, one must look to the breath and depth of analysis behind the advice to decide which recommendation is more credible. How can an advisor illustrate to an investor depth of analysis? While there is no foolproof measuring stick, the advice that is more personalized - incorporates and is reflective of more household information - is often better. Consider these common limitations of the traditional investment advice model.

* Investment selection considered in isolation from other resources, such as real estate holdings, current       income, social security, etc

* Investment risk determined from a risk tolerance questionaire, or from an age- determined time horizon, not from an analysis of the house hold financial picture.

* Performance defined as a return against a benchmark, independent of progress against goals.

Risk capacity driving investment recommendations:
The household balance sheet can be a far more personal driver of advice, more so than age, time horizon, or a psychological assessment of risk . We use a comparison of a client's financial resources versus goals and liabilities to determine a household's capacity to bear risk as the basis for investment risk.

Tax Managed at the household level
Tax driven asset location accross accounts will help your advice stand apart from the single account tax management approach so prevalent today in separately managed account or unified managed account structures. Clients have multiple accounts with different tax structures that need advice to be coordinated - ignoring all but one account may result in inefficient advice at best, inapppropiately risky advice at worst.

Sunday, June 19, 2011

A Man Who views the World the same at fifty as he did at twenty has wasted Thirty Years of Life.

Mohammad Ali

Life Is (Modular ) Complex and Emergent not Linear And Stationary....

Modular Finance assumes Emergence not Stationarity.....

Sunday, May 22, 2011

Theory and Practice:

In Theory there is no Difference between Theory and Practice - In Practice There Is...

 - Yogi

Planning and Investing - One often Dominates the Other ....Instead of Working in Unison...

Saturday, May 14, 2011

Financial Planning - The Failure to Evolve as a Profession and it submission to and assililation into the Wall Street Model...

As a Sales Tool for Financial Products....

Its Inability to Finance itself ( Charge for its Value added) Led to its inability to grow into a legitimate profession and claim its own domain....

Wednesday, April 13, 2011

A Plan and A Strategy are Two Different Things......

A Plan is a blue print, a photo........A strategy Adapts to Change...a motion picture....

Fortunes have been Lost mistaking One for the Other.....

The Lords of Finance.....

Saturday, April 9, 2011

Emergence and financial Planning vs Linear

A protein will appear - Adaptive Organic Systems "find" proteins - Teachers

Thursday, April 7, 2011

The Realm of Financial Planning

Financial Strategy vs Financial Planning

Adding Value with Insight -

The Lords of Strategy - Stop getting Nickel and Dimed

TaxEfficient Investing - Filancial Planner sace 33.000
Fees 35,000.

The Use and Abuse / Evolution and devolution of Financial Planning

Micro Finance and ability to make your Financial Life More Productive

Future of investing - Alpha Matrix - Process Macro Information as well as Micro

Process Information - AlphaMatrix Financial Management / Dynamically

When you go Outside your Realm you are Often  Over your Head...

Friday, March 25, 2011

Thursday, March 24, 2011

What is MAIN Street Finance - ( - Stationary - Micro Finance?)

It's like hitting a golf ball vs a baseball

It you can first hit the ball off a tee - it's not likely you will be successful hitting the Cutter!

MAIN Street - What it is....What it is Not.....

Main Street is about your World- the World you Live in - the World You aspire to - and the World of Personal (stationary) Finance. Main Street is about maximizing your Cash Flow and protecting your assets. It's about structure and planning.It's about taxes, insurance and narrow banking, setting up a retirement and estate plan. Getting the kids in and out of college, going out to dinner on vacation to the movies, the Opera or the Game. It's about birthdays and holidays. It's about Living in the Moment and Planning for the Future and getting the most out of Life. It's role is not to manage your Capital, that is the Domain of another Realm. This will become more clear as you go forward. That requires a different mindset and toolbox and uses a different "operating System" Trying to Apply the Newtonian Cosmology to commoditize this task is misguided, naive and dangerous and usually produces nothing more than muddy water, migraine headaches and/or financial mishap. It requires applying the knowledge, math, science, and laws that define and are unique to that World. Think about going to a hospital and the radiologist on the second floor and the cardiologist on the forth are the same guy? These are different domain of the MultiVerse.

This Distinction and Duality is the Foundation of Our Approach and ripples through everything we do, including the way we think and the advice we give.

The Role of a MW/Financial Advisor is to Help You With Your Role in the System/Process>>>>>

And Has the Resources of The Modular World to Draw On......

Wednesday, March 23, 2011

Our Job is To get you Re-Wired to Play an Evolutionary Phase....

Get Your Head on Straight - It's your Game

The Job of MAIN Street - Maximize - Maintain and Improve the Situation

The Emerald City

The only Guys still Preaching and Selling That Nonsense are working behind the curtain in the Emerald City or Bagging at the Local Financial Supermarket

Winston Churchill

However Beautiful the Strategy You Should Occasionally Look At The Results...

Monday, February 21, 2011

Understand the PURPOSE

Clearly define Goals and the Time Frame needed to Acheive them

Saturday, February 19, 2011

The Purpose of MAIN Street

The purpose of MAIN Street is to Separate the Financial Planning And Investment Management Worlds

The Financial Planning Indistry often confuses the roles and leads to disaster

Wednesday, February 9, 2011

Wednesday, February 2, 2011

Investing is more ls more like poker than solitare

Strategy  involves what the other participants in the game are doing.

The Idea is simple - Expand your World

The Conventional Model is still about framing your World and selling you theirs (what can make them Money)

The New market requires a different approach -  understand your world - and help you create it......Move to the Buy side of the street....and seek out the products, services and expertise that are needed to build it. if that where you re going this is all you need.. Like a good mechanic - a little common sense - Part of our service is to incorporate Common sense.

Wednesday, January 26, 2011

Cover the Spectrum of Financial Planning Issues

The process Was desinged to cover 6 Parts

1- Cash Flow
2- Taxes
3- Investments
4- Insurance
5- Retirement Planning
6- Estate Planning

All to often the Industry Cuts corners and focuses on the most profitable "product" areas and  forget the rest
Seee side bar

Friday, January 21, 2011

mainstreet is newtonian and euclidian - wall street id fractual and chaotic

That's why economists have such a hard time trying to predict the markets - using the wrong models - models are too limited

Portfolio management is a systems of systems Modular and symmetry

Financial planning is a system of systems

Estate Planning is a systems of systems

Putting these two worlds together is MW/WM

Thursday, January 20, 2011

Get it Right

Your Role - Hire, Fire

Life is Not Linear and deterministic, it evolves - your kids must find themselves the teacher and the student

The Role of Main Street - The role of Financial Planning - The confusion of Wealth Management

Your role in the process the modular world and the ability to evolve instesd of Starting Over

The Role of Main Street - The role of Financial Planning - The confusion of Wealth Management

The purpose of the Main Street Module ......

Define and refine your gane plan....your role in the procedd....everyone id wrong; broken plans the harvard misstep etc expand your world....

Main street the warm blooded side of the street - The Human Side of the Duality

It has nothing to do with Investing - That is the the cold blooded side of the street - wall street - Main street beeds notoriously bad investors ie the odd lot theory the math is asymmetrical and counter intuitive