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"Safe" Money

By Dan Turner, Principal Advisor Akamai Wealth Management, LLC Copyright 2023 All rights reserved

As the registered Investment Advisor Representative (IAR) for Akamai, my focus is to help people who would rather live their lives and be free of the responsibility that comes with managing their own wealth vs. those who still insist upon doing it themselves.
This may raise the question, “Why shouldn’t I continue doing it on my own; look how well “I’ve done over the past 30-45 years”?
Well, that’s because your premise is deeply flawed. You haven’t managed your own wealth over the past 3-4 decades as much as you’ve WITNESSED it, and seen the importance of “Dollar Cost Averaging” (DCA).
Here’s the proof of my assertion: From 2020 through the present day, we’ve had no less than 4 market corrections that reduced the indexes by at least 25% or MORE. Where was your money when these corrections hit?
99% of you were still in the market and you lost substantial ‘paper’ wealth.
Not to worry! You continued to (unconsciously) invest the same sums at the same times in these down markets and rode them back to even higher values than before.
But you had nothing to do with it; you were caught in the market, and you benefitted by staying the course. It wasn’t YOU or YOUR “management” abilities that regained your value; it was the Certified Financial Analysts and Wealth managers who did the heavy lifting. You were a participant. Your job was to continue believing in the proven skills of management to restore value. You paid them fees for the work they do, and you benefitted from DCA and professional management, and diversification.
“But, Dan! I had great returns after these crashes! I did that!
Respectfully, no. You didn’t. You continued to make contributions which bought low priced shares, but make no mistake – the nice double digit returns you made after a market correction were “recovery” not growth. It became growth after the account share value reached the high mark price before the correction.
I know this may seem awkward for you, but I’m doing this exercise with you for two reasons:
1.     To show that you should not manage your wealth; hire someone (me0 to do it; and
2.     Things have changed since you retired, and they started changing in the years before you retired.
-You know very little about investing.
-You really don’t have an investment philosophy because you’ve limited yourself to the aggressive nature of investing from your youth to now. That is to be expected, but you’re still investing like a 30 yr old. This leads to tragic investment results, and it leaves you with only yourself to blame. IF you do something dumb and lose thousands of dollars? Who will you complain to? Will the ultimate solution of your inevitable catastrophe be “Wal-Mart” (the employment, not the stock)?
You’re 55 or older. You’re not a darned kid anymore but you’re still investing your money like one. You’ve lost the advantage of DCA in benefiting from market corrections...and you may have already learned the painful lesson that “Losses HURT more than gains can HELP”. That’s a rule. You want gains, but you cannot afford uncertainty. How do you cover this?
Safe Money Investing is the answer.
Many people are wrong when they see the term “Safe Money” and immediately think “Oh. He’s just trying to sell me annuities”. Well, annuities are safe money with great returns and no losses. My happiest Clients are annuity owners.
But that is not the only solution to safe money. There are now many programs that are earning index rates that can help you reduce your standard deviation risk to below 10 (ideal) without sacrificing growth.
Dr. Moshe Milevsky is the Professor of Finance at the University of Toronto, Canada. In July of 2021 he wrote one of his most famous papers on safe money investing titled “IN DEFENSE OF ANNUITIES”. Dr. Moshe is a well-known (in my circles) authority on risk management and investing with 17 + published papers during his past 23+ year career. He is also an “Adjunct” professor for the famous “American College of Financial Services” in Bryn Mawr, PA; He has proctored a couple of my courses, and I was deeply impressed with his granular understanding of risk management, and his ability to express it in ways that you might use to talk with your Irish Setter or Golden Retriever.
I would URGE you to google this and read it for yourself, but the general premise is this: “If you invested a single dollar in January 1, 1970 in the S&P 500 index and reinvested any dividends, in 50 yrs ending with December 31, 2020 that “Dollar” would have doubled 180 times to the value of $181.00 (which I thought was pretty remarkable).
His analysis used to derive this conclusion also pointed out that considering each month as a measurement of the 50 year term, the 600 monthly periods (12 x 50 yrs) could be classified as such:
-15% of the 600 months had negative returns of 2% or less with the greatest loss being over -22% in one month;
-70% of the months returned positive gains between -2% and 6%;
-15% were gains above 6% with the largest gain 16% in 1 month.
Dr. Moshe posited the following argument:
“There are two camps. One camp says, “I want to take the risk of higher returns and I’m willing to take the risks of loss as well. These people earned $181.00 over the invested sum ($1.00) and they occupy the two 15% marginal camps.
The other camp says, “I am willing to forego high value monthly gains if I can also eliminate losses greater than 2%. These folks occupy the 70% middle category. It is remarkable to point out that they performed quite differently than the risk takers.
Their $1.00 invested in January 1 of 1970 through December 31, 2020 yielded a STUNNING $531.00 growth!
This exposes three fundamental facts:
2.     By ELIMINATING RISK to the greatest extent possible, one can actually IMPROVE the portfolio growth over fully invested accounts!
3.   This assumption uses a cap of 5%. Imagine if the cap was 7%? 9%? 12%???

There is NO REASON to take market exposures if accepting less risk (even with substantially lower returns) yields higher account values. In fact, increasing the draw income becomes safer and can reduce “Sequence of Returns” risk which is the greatest destroyer of retirement income even more than a crackhead grandchild.
How does “SAFE MONEY INVESTING” Differ from what I do now?
“Safe Money” investing (to the greatest extent possible) uses market tools that can reduce standard deviation in a portfolio and stabilize the basic capital from market corrections, and thereby improve overall accumulation. This surplus created by a lac of market correction losses can be used to enhance income, yield, or both.

Hawaii residents schedule a free consultation for acquiring and managing wealth, retirement and debt reduction. Questions? Text or call 808-464-5292

Wealth Management/AUM - Charitable Trust (CRUT, CRAT, LEAD/REMAINDER) Advisory Services are offered by Akamai Wealth Management, LLC an Investment Advisor in the State of Hawai'i.

Insurance products and services are offered through Akamai Retirement Concepts, LLC, an affiliated company. Mortgages and Equity Sharing/Equity Release programs (where allowed by State Statute) are originated and funded through Akamai Equity Concepts, LLC. Akamai Wealth Management, LLC and Akamai Retirement Concepts, LLC and Akamai Equity Concepts, LLC are also affiliated with AWM, but are not affiliated with or endorsed by the Social Security Administration or any government agency, and are not engaged in the practice of law.

Daniel J Turner, Principal Advisor
Akamai Wealth Management, LLC
1088 Bishop St. Executive Centre Ste 3007
Honolulu, HI 96813
808-691-9200 office
808-464-5292 direct

Advisory services are offered through “Akamai Wealth Management, LLC”. (AWM) a registered Investment Advisor registered in the State of Hawaii.

​All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current of future performance or indication of future results. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons.

Investing always involves risk and possible loss of capital.

AWM and Dan Turner ( Principal) are not attorneys or accountants and do not provide comprehensive legal or tax advice. For full disclosure of all relationships associations, affiliations, fees, charges, and capacities please request the ADV 2 A&B from Dan Turner.

Mr. Daniel J. Turner is now helping the following cities on Oahu in Hawaii with financial advice: Aiea, Ewa Beach, Hale'iwa, Hau'ula, Hawaii Kai, Honolulu, Ka'a'awa, Kahala, Kahuku, Kailua, Kaneohe, Kapolei, La'ie, Lanikai, Ma'ili, Makaha, Manoa, Mililani, Nanakuli, Pearl City, Wahiawa, Waialua, Wai'anae, Waikiki, Waimanalo, Waipahu along with all the Hawaiian islands. Text or call 808-464-5292