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Why have a Rules-Based Strategy?

Have you ever seen a horse drawn plow create perfectly straight lines for a garden or farm? It can be astounding to watch an unpredictable animal like a horse pull a plow in a perfect straight line when there are all kinds of distracting activities going on around it. How does the animal not veer off course? All it would take is a simple turn of the head to change how the row would be plowed, which in turn would impact all the rows! What prevents this from happening? A very important tool called “blinders” keep the horse focused while the driver keeps the horse pointed in a straight line. The blinders prevent the head turns, except when the driver wants it to happen. While it may be a simple analogy, it precisely describes how our Rules-Based strategy (the blinders) works with our Financial Advisors (the driver) to keep your retirement plan on the right course.

If you consider the horse and blinders analogy, the last 2 years have provided plenty of headlines that could have caused a “head turn”:

  • “Greece’s never-ending financial crisis looms large” – July 2015
  • “Dow Plunges 1,000 Points Amid Global Stock Sell-off, China Fears” – August 24, 2015
  • “Euro wipes out month of losses with largest daily move since 2009” – December 3, 2015
  • “Dow plunges 391 points as fear grips markets” – January 15, 2016
  • “Dow closes down 600 after Brexit surprise; financials post worst day…” – June 24, 2016
  • “Stocks surge to end June with best 3-day gain in 4 months…” – June 30, 2016
  • “Down jumps 371 points after FBI says it won’t charge Clinton” – November 7, 2016
  • “Markets plunge worldwide as Trump surges to White House” – November 9, 2016
  • “Dow surges to record on stimulus hopes after Donald Trump victory – November 10, 2016

Imagine if our horse didn’t have it’s Rules-Based “blinders” on! That is why a Rules-Based strategy is a great fit for these volatile times in our market. With all the noise of a never ending news cycle the Rules-Based strategy keeps your retirement plan focused straight ahead! And when there is a need to make an adjustment or “turn the horse”, our experienced financial advisors are there to “drive” your retirement to the next row. One would not work without the other, and together they work towards a successful harvest, meaning YOUR retirement! Don’t wait any longer, contact one of our experienced Financial Advisors at Sound Financial today and start straightening out your retirement with a Rules-Based strategy!

Investment advisory services offered through Sound Financial Strategies Group, Inc.("SFSG"), a Registered Investment Adviser.  Securities offered through Comprehensive Asset Management and Servicing, Inc., ("CAMAS") Member FINRA/SIPC.  SFSG and CAMAS are separate and unrelated companies. The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by CAMAS. There are no guarantees that any managed portfolio will meet its intended objective.

 Dow Jones Industrial Average is an unmanaged index of 30 widely held securities. Indices are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results.

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