Chapter 9. Embracing Independence

For good reason, big brokerage firms do not want us to think that we can do it ourselves, but we can. In fact, not only can we embrace the process, but we can do a better job, too. All it takes is structure. That will be our focus from here.

Understandably, many people are not accustomed to structure, and they have never been taught the discipline of risk control. This usually differentiates my new clients from my grandfathered clients. After all, the brackish investment vehicles that big brokers offer don't incorporate these integral components by rule, so prior to 2008 only a select few felt the need to learn. However, that disinterest dissolves fast when they see the results. Structure, discipline, and risk controls are clearly defined in direct correlation to performance. This relationship usually starts the ball rolling. Understandably, most investors have questions and concerns as they learn the process. Therefore, because I recognize that most investors are not accustomed to controlling risk, I have also taken steps to accelerate their learning curve by incorporating educational tools into my models. Doing so allows them to begin using these strategies proficiently, and much sooner than they would otherwise be able to. Not only does this help them immediately stabilize their portfolios, but it also adds value in the realm of contemporary Darwinism because it provides them with tools necessary to adapt to the ever-changing environment. This ...

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