Helping People Create and Manage Their Own Wealth
In the last twenty years, going from using managed accounts with large retail brokerage houses to trading my own account, I have been exposed to what “the markets” can and will do, along with slowly learning that, for all the promotional hype, the traditional institutions have little expertise or interest in managing your wealth to successfully overcome the many risks inherent in the markets — some people are still recovering from the 2000-2009 market turmoil.
I think it was around 2005, after I had been looking for professional managers who were able to trade with the fluctuating markets and employed some sort of risk management, that I came to realize that no such utopia existed.
The best the institutions could do, according to these professionals, was beat the market.
The Market they were referring to is the S&P 500 Index. If the index went down 20% and the manager only lost 19% of your money, the manager was happy and probably got a bonus. But I wasn’t happy and began looking for alternatives, still within the institutional arena, until the 2008 crash when it became clear:
- Even with professional financial planning and investment advice, the risk to your financial health can be devastating. How does anyone get started building their wealth in that environment?
- Timing is everything, but the odds of being in the right place (asset class) at the right time is very low. How many people put all their liquid assets into good high-yielding bonds in early 2000 just before the “.com” bubble burst?
- The greater risk in the marketplace to the individual is “investing” with the institutions and adhering to their “Buy and Hold for the long-term” approach. People fully invested in the market took a financial bath as everything the institutions were doing collapsed around them.
A better way had to be found
How can people live in a world where their finances are in jeopardy every day? I was convinced that management techniques could be developed to not only survive financially but be able to grow one’s assets through any market condition and provide the opportunity to start building wealth without the risk of being in the wrong place at the wrong time. My next question was:
Where do I look for that better way to manage one’s financial destiny?
I had been gathering information on individual programs that sounded like they could help, but I hadn’t yet formed any conclusions. After 2008, my quest became a mission. I saw a financial advisor that I had been working with go under as a result of the institutional mindset and dedicated myself to finding that better way.
An overriding principle I found, as you can imagine, is that you have to take control of your own destiny and actively manage your financial well-being. By “managing” I mean determining your wealth building plan and then choosing the different trading Styles to use to make the plan work and taking the responsibility to put the plan into action by using the right Methods.
I’ll go into this concept more in Manage Your Own Money – Don’t Invest It, but it involves finding the right expertise for each part of your plan and managing those entities, rather than having to trade the market on your own. From everything I’ve learned, the direction I’ll be taking here to grow and protect your wealth will be towards getting you involved in the management process. By changing your mindset and graduating from passive investing to embrace active management and every level of involvement in between, the active ingredient will be You.
The Rest of My Mission Then Became to:
- Provide a platform to enable anyone to build and personally manage a Wealth Building Plan specific to their needs, with the inspiration and knowledge to form a mindset centered on taking control on one’s financial well-being.
- Help reduce the failure rate among retail traders and investors who try to find that path to success on their own, by providing a framework for making better wealth management decisions with the proper structure.
- Eliminate the painstaking work of trying to find the right wealth building path through trial and error and save everyone from the process of jumping from one system or program to another in search of a very elusive financial dream.
- Help people understand the difference between what the financial services industry is selling and what’s really in their best interest, so they can learn how to manage their financial destiny with knowledge and direction.
- Research and develop the best prescription for everyone’s Wealth Building Plan and recommend the best expertise in the marketplace to make all the plans work and meet everyone’s goals.
- Create a forum for judging the effectiveness of wealth building plans, and provide an independent evaluation for adjusting strategies while providing support as market or personal situation changes dictate.
You might say, I want The Diversified Trader to be your “Independent Wealth Building Agency” in that I want you to have a place where you can find the best path to wealth building success for your specific needs with the odds of achieving your goals stacked in your favor. The confusing maze of choices in the marketplace make finding the path to your financial future very elusive; so, having an “independent agency” that specializes in the process puts you on the right path to financial success.
My overall mission is to use my experience to help you develop a solid wealth building plan and then recommend the best expertise I can find to get you to your goals, so you don’t end up wandering through the maze and only finding dead ends.
Changing Your Mindset Will Change Your Financial Future
See where it leads by starting to Manage Your Own Money – your next step in this journey.
To Finding the Best Path to Success,
Your Research & Development Coordinator
- If you’re not already in the loop, have a look at Education – The Path to Independent Wealth Management to get the basis of the education you need to start your wealth building journey. I then lay out how to navigate your journey in The Diversified Trader – An Overview to put you on the right path to success.