Actavest Balanced Plus Allocation Solution

If you are considering investing, or currently have your retirement account (401K, IRA) in a traditional balanced portfolio (60/40 or Target Date Fund), learn how this solution may improve your outcome.

Enhanced performance over traditional Balanced Funds with less volatility

   Low Fees 

Total solution cost is about 0.33% per year and includes our advisory fee of 0.25% per year.

 

  Your Own Account

Implemented in your own separately managed account. You have 24/7 visibility. 

 

 Flexible Risk Levels 

One strategy, four risk models. Easily transition as your goals or risk preferences change.

 

A simple rule-based strategy for investing your money

Conventional balanced funds (60/40 or Target Date) divide the portfolio between stocks (higher return, higher risk) and bonds (lower return, lower risk). They are either static allocations, in the case of a 60/40 Strategy, or adjust based on your age, in the case of a Target Date Strategy, with the proportion allocated to bonds increasing as you approach retirement.

We have developed an asset allocation model with the same basic starting framework as the traditional balanced fund, but make evidence and rule-based allocation adjustments for business-cycle conditions, based on our proprietary, real-time, recession probability model. 

If the probability of being in a recession is very low, we increase exposure to stocks and reduce exposure to bonds. As the recession probability increases, we increase our exposure to bonds and reduce our exposure to stocks. These adjustments result in a meaningful increase in returns and a reduction in risk, and with time and compounding, make a significant difference to the value of your retirement savings.

Watch our PowerPoint presentation and/or download our White Paper for a detailed explanation of how it works. They are educational and include a few allocation ideas you can implement on your own.

Download our white paper

 

View our PowerPoint presentation

The 15-minute presentation will walk you through the logic and evidence behind this solution.  

Choose a risk level that's right for you.  Easily transition as your goals change.

 

Our goal for this strategy 

Our target goal for this strategy is to outperform a traditional balanced 60/40 benchmark by 1.0% - 2.0% per year (depending upon the risk level chosen) with lower volatility than the benchmark and with a large part of the outperformance occurring in years when the equity market is declining.¹


1. Legal Disclaimer: This target goal and the example results shown in the chart are based upon the results obtained by testing our rules-based process over a 30-year period starting in 1986 (see our White Paper for our process and detailed performance data by year and risk level), however, there can be no assurance that this strategy will be able to achieve its objectives or similar returns in the future.

 

 

1.5% extra per year.  Is that meaningful?

 

 

We'll meet you where you already are

The competitive landscape for ETFs has changed rapidly and the major custodians now offer commission-free trading on select ETFs. Depending on your custodian* of choice we select the ETF lineup that captures our desired exposure without you having to incur trading commissions.

* Also available on Interactive Brokers (monthly account fee & low commissions, but not free)

 


What do you think? 

Still have questions, concerns or want to ponder on it? Feel free to contact us and let us know what you are thinking, or click the box to let us know you are interested and we'll follow up with you.