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The "One Thing" that matters most to long-term wealth building and is very rarely addressed

The "One Thing" that matters most to long-term wealth building and is very rarely addressed

Managing the downside risk can have an amazing and meaningful impact to your portfolio.  Watch the video to see some of our research and how Agile approaches investments and dispells a few common myths.  

Click the image to download a copy of the presentation

Limiting your exposure to downside risk can make the difference between success and failure.

At Agile, we talk a lot about risk and limiting your exposure to extreme market events.  While you will hear a lot about returns, often the concept of risk management is completely ignored.

Unicorns and Rainbows


"Just keep your money invested, markets always go up in the long run".


Sound familiar? The graph below of a 50/50 blend of S&P 500 and PIMCO Total Return Bond Fund is something you may see advertising long-term portfolio growth. If you invested and left it for 20 years it will be there when you need it. Or will it?

What isn't advertised here is the understated risk associated with drawdown and withdrawals.

Large Corrections Happen Often

Examining corrections in the S&P 500 greater than 20% we see that between 1965 and 2014 they have occurred at least twice every decade.  Since December 2014 the S&P 500 has not seen any significant correction. The average loss to the S&P 500 was -31.84% and the average peak to recovery was 1084 days (2.9 years). The best and worst case since 1964 was a loss of -19.34% and -56.39% respectively.   

Markets Don't Always Go Up

Sometimes it's not about how much you gain but how much you keep. How your portfolio responds to a market downturn is just as important if not more so than how much it gains.


Ask yourself: Could you wait 12 years to get your money back to break even?

Consider: Is there a possibility that you may need some of it during this time?  How much longer would it take to get your money back if you had to make withdraws in down markets?

You Can Do Better!

Our research and active risk management approach shows between a 66% and 80% less drawdown and volatility to your portfolio.  This means you have a greater probability of reaching your goals.

Even Accounting for Withdraws!

Portfolios that require withdraws for college, retirement or other real-life needs demonstrate a "double negative" effect in down markets.

One Last Thing

Below is a quick list of critical questions about risk you should ask any professional you talk to.  

  1. How often do your rebalance the portfolio?

  2. How do you manage risk?

  3. What has been the worst drawdown of a portfolio with moderate risk?

  4. If the U.S. went into a recession, what actions would you take or have taken in the past?

  5. If the stock market lost 10%, 15%, or 20% what actions would you take?

After watching the video you should have an understanding of why these questions are important to you and what answers you may want to look for based on your own expectations.

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