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

  1. Begin by protecting what you most need and value:
    1. Define your “risk of ruin”.
    2. Identify the risk of ruin factors.
    3. Utilize reasonable risk containment measures.
    4. Through appropriate risk transfer planning, reduce the risk of ruin to as near 0 as possible.
  2. From now on, when making any decision regarding a product or strategy:
    1. Determine the potential and likelihood of loss.
    2. Determine the upside potential and likelihood.
    3. Determine the expected value of your decision.
    4. Confirm that 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 protection, as well as (if possible) reducing the cost of your risk of ruin protection. Always focus on real rates of return.