The 2002 Oakland Athletics were not supposed to be very good. Their payroll was one of the lowest in baseball and they were losing their top players in free agency. Nevertheless, they went on to win 103 games that season and went to the playoffs! They accomplished this feat by going back to the drawing board before the season and rebuilding their team with players that were right for their system. Players that might not have fit on other teams, but they had just the right skills to contribute in just the right ways for Oakland. The team’s general manager began looking at the lesser known data and statistics to find a way to put together a winner! By studying the data and having the discipline to hold true to the plan through the ups and downs of a baseball season, they found success!

At Sound Financial, we believe some of these principles fit into our investment strategy that we call our “Rules Based Strategy.” We use the knowledge and data from our investment managers to find the investments that are just the right fit for each client. Every one of our clients have different needs and different levels of risk aversion. We take this information for each client and build a customized plan with built in rules to help withstand the ups and downs the market will inevitably create. These “rules” are limits built into each client’s investment plan to help create discipline in investing. Disciplined investors use tested rules as a guide through the ups and downs of the market and this protects them from the emotions of fear, greed and the ever-present “expert opinions” they see on the news or at the local coffee shop.

We firmly believe in this Rules Based Strategy and employ it with our current clients for a successful, winning retirement. We’ve seen that having custom rules in place with each client provides the structure necessary to help manage emotions when there is volatility in the market or in the news. If you are not a current client, we’d love the opportunity to sit down with you and see how our Rules Based Strategy could help you win in retirement. Call one of our advisors today!

Financial Planning

Don’t wait any longer. Schedule your conversation today!