An Early Warning System for Your Investments

An Early Warning System for Your Investments

August 6, 2016

Retirees and pre-retirees face a number of concerns as they plan for their Golden Years. Will Social Security still be around in the future? How low will interest rates drop? Will market volatility improve? How will the European economic changes and our upcoming election impact the stock market?

While it’s impossible to predict the future, there are tools that can help investors prepare for potential highs and lows, and at Point Wealth, we pride ourselves on the diverse systems and programs we have available at our fingertips. Using these technologies, we can help our clients feel more confident in their investments and know we’re looking out for economic developments or personal milestones that may impact their retirement strategies.

One of these programs is WealthGuard.

Improving the Protection of Your Investments

In the simplest of terms, WealthGuard is an early warning system for your investments. Available to investors through Pershing, Charles Schwab, Fidelity, TD Ameritrade, Folio Institutional, and Scottrade, this program monitors more than 38 million assets for 25,000 investors. This portfolio protection system strives to help investors accomplish three things:

  1. Gain Clarity. Using this system, we help you determine your WealthGuard number, which serves as a single point of reference for protecting your net worth and where you stand. The WealthGuard Number represents the maximum loss you are comfortable with from the highest value your accounts have reached. It’s also the number used to give you an early warning when your account may need attention in order to prevent further losses.
  2. Take Control. Working together, we can determine your risk tolerance, set your exposure to market conditions, and automatically trigger processes to adjust to the market.
  3. Increase Confidence. WealthGuard monitors your investments automatically, 24/7 all year-round to help you lock in your gains and limit losses. This helps instill greater peace of mind.

Using the System to Your Advantage

Remember when you, as a child, had to run through a fire escape drill with your parents or school? This plan was created in advance so you’d know exactly what to do and where to go if there was a fire. We use the WealthGuard system for similar reasons: to design a plan that lays out the steps to take with your assets when the market shifts. The system is made to set limits on your exposure to market losses depending on your risk. While no one wishes for disaster to strike, we all know that it can happen at any time. By putting a plan in place ahead of time, you’ll be prepared if something happens.

To start, we guide you through a simple 10-question risk questionnaire to help you understand how much risk you should be taking with your investments, your ideal asset allocation, and your WealthGuard Number.

Once WealthGuard is set up and knows your risk tolerance and WealthGuard Number, it will automatically monitor all of your accounts based on the closing value each day. If your accounts ever start to decline in value, WealthGuard will give you an early warning if the decline is 75% of your WealthGuard Number. It also tracks your asset allocation and the overall performance of all your accounts every single day.

Not only can you monitor and track changes in your overall net worth, but you can feel confident knowing that your portfolio will automatically adjust to remain within your comfortable risk range.

How WealthGuard Connects with Our Other Strategies

In all that we do, we want to help you invest confidently in the markets and know that you have a plan in place should a setback in the markets occur. Along with using WealthGuard, we tactically manage your strategies in an effort to reduce risk, and use other advanced financial technology platforms, such as AssetLock. This system helps connect the relationship between the investor, the advisor, and the money manager to improve communication and help protect your assets. This is just one of the many other ways strive to safeguard your investments and emphasize protection.

Create a Protection Plan for Your Investments

Do you have a fire drill designed for your portfolio? We’d be happy to help you implement your personal warning system for your investments. The first step starts with taking a brief risk tolerance questionnaire. Contact us today to discover your WealthGuard number and how to start using WealthGuard. We can answer any questions you have and help you calculate the amount of risk you’re comfortable taking. Contact our office today by calling 715-870-2450.

About Jere Smith

Jere Smith is a financial advisor at Point Wealth Management, an independent financial planning and investment management firm. Serving individuals, families, and privately-owned businesses, he helps great people create great financial success through his services, including financial planning, retirement planning, estate planning, charitable giving strategies, and portfolio management. Along with nearly a decade of experience, he is a CERTIFIED FINANCIAL PLANNER™ professional and Chartered Life Underwriter, two of the most esteemed designations in the industry. He is passionate about education, whether it’s providing it to clients or adding to his own knowledge, and has written an article that appeared on FORTUNE.com. Based in Wausau, Wisconsin, Jere serves clients in multiple states. To learn more, visit http://pointwealthmanagement.com or connect with Jere on LinkedIn.

Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Point Wealth Management and RWA are not affiliated.

Ask us a question

  • This field is for validation purposes and should be left unchanged.