The Flexible Investing Playbook: Asset Allocation Strategies for Long-Term Success

Chapter 7. Hybrid Investing

THE RATIONALE FOR HYBRID INVESTING

When investing the wealth you have worked so hard to achieve, you have many choices. It can be quite confusing. With all of the investment strategies out there, from the most simplistic to the utterly complex, why am I such a believer in the approach I call "hybrid investing"?

During the course of over two decades in the investment advisory business, I have had the privilege of learning about many different investment strategies. One conclusion I've reached is that there is something for everyone. The problem is that by the time many people find out what fits their investment "comfort zone," one of the following has occurred:

• They have lost a lot of money.

• They have not made enough money.

• They experienced something they didn't expect from the investment.

Very often, it is a lack of flexibility in the investment approach that caused this comfort zone to be disrupted. My hope in managing these strategies is that the investor has an easier time staying in their risk-reward "comfort zone."

As with any task in business, you have to know what outcome you seek before you can figure out how to work your way toward that outcome. Up until now this book has set the background, defined the objectives, and identified the hurdles you are likely to face on the way there. From here on, we get more "granular" as I describe the three different investment asset allocation strategies I have created and used for the benefit of investors and their ...