in Money & Stuff

The Three Core Principles of Investment, Financial, & Benefit Planning

  1. Begin by protecting what you most need and value:
    1. Define your “ruin.”
    2. Identify risk of ruin factors.
    3. Utilize reasonable risk containment measures.
    4. Through appropriate risk transfer planning, reduce risk of ruin to as near 0 as possible.
  2. Going forward, when making any decision regarding product or strategy:
    1. Determine potential and likelihood for loss.
    2. Determine upside potential and likelihood.
    3. Determine the expected value of your decision.
    4. Confirm the decision doesn’t affect your risk of ruin calculation.
    5. Focus on the real rate of return.
  3. Integrate assets to maximize both upside potential and downside protections as well as (if possible) reducing the cost of your risk of ruin protection, always with a focus on real rates of return.
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