Will you give me advice as to which investments are best for me?
Fortunately for you and unfortunately for us we are not giving personalized advice. You’re fortunate since you will learn about one of the most consistent and profitable investing strategies without having to pay hefty asset management fees. We are unfortunate since we will not be collecting those hefty fees. Keep in mind we don't know your financial situation so nothing we say, write about or imply should be taken as investment advice or a solicitation to buy or sell securities. We don't know your financial situation and the information we provide is general in nature.
That said, we are simply giving individuals the means to evaluate and monitor the investment signals generated by one of the best investing strategies, one that, historically outperformed the majority of professional money managers. If you think the strategy fits your investment needs it’s up to you what you do with the information.
That said, we are simply giving individuals the means to evaluate and monitor the investment signals generated by one of the best investing strategies, one that, historically outperformed the majority of professional money managers. If you think the strategy fits your investment needs it’s up to you what you do with the information.
Can we all expect the strategy to perform the same or better as your backtested results?
Nobody knows it the strategy will perform better or worse in the future. What we do know is the strategy dynamically adapts to changing markets. Sometimes the timing is impeccable and other times it is not, but we strongly believe the benefits of a dynamic adaptive system far outweigh the benefits of not using one. Backtests are not a guarantee of future returns or investment performance.
Why the 401k?
The 401k, when used properly, was designed to become an individuals largest asset, an asset that is supposed to provide the income necessary for our retirement years. And, unfortunately, according to recent data, the 401k account is failing to meet Americans' retirement needs and will likely continue to do so unless investors become better educated and make more informed investment decisions. We've posted numerous times about the failing pension system and the potential cracks in the social security system. Review our blog posts to learn more about these risks.
How do you know what investment choices are available in everyone's 401k? Are not all plans different?
We do not know the exact investment choices available in any one 401k, and that is why the information we share is general in nature. But, we do know that most 401k plans have investments that seek exposure to the major stock market indices. Therefore, we designed the strategy with investment choices that track the most popular choices within most 401k plans.
You see, the majority of 401k plans allow participants to gain exposure to the domestic equity market, domestic bond market, foreign markets, large and small capitalization companies along with investments that function as cash for times when an investor should not be invested.
You see, the majority of 401k plans allow participants to gain exposure to the domestic equity market, domestic bond market, foreign markets, large and small capitalization companies along with investments that function as cash for times when an investor should not be invested.
We use a handful of investments indexed to the major asset classes that correlate with the 401k plan investment choices. Because of the correlation relationship, our readers may not get the exact performance as our strategy, but it should be quite similar.
All 401k programs vary in investment choices and the majority of them have enough options to achieve a similar end result. For example, not every 401k has the same “large cap” mutual fund option, but most likely, they all have an investment option that provides the opportunity to invest in the large capitalization stocks. So, theoretically, the returns of large cap investment choices in many different 401k plans or IRA accounts should have a positive “correlation” or be similar.
Because of the correlation effect we have the ability to look at different types of investments, the current market environment and quantitative investment data to establish an educated opinion about what we deem is the optimal investment asset allocation.
Additionally, the correlation relationship created the opportunity for the average 401k investor to apply our index rotation strategy to nearly any 401k or investment account.
Are you just sharing ideas about 401k investing?
No, not necessarily. We share personal finance metrics most people want to know, but are afraid to ask. For example, the average income for U.S. citizens, average American’s debt levels, housing values etc. all of which help individuals gain a better understanding of their own financial situations so they can work on improvement.
There is a saying, “if you don’t measure it you can’t manage it”. We truly believe this helps avoid complacency and provides additional motivation to improve all of our financial situations.
It’s easy for people to get off track and hopefully we can help you stay on target.
There is a saying, “if you don’t measure it you can’t manage it”. We truly believe this helps avoid complacency and provides additional motivation to improve all of our financial situations.
It’s easy for people to get off track and hopefully we can help you stay on target.
How and why would your 401k Newsletter benefit me?
Education, ultimately, you are responsible for your 401k, therefore we think it is in everyone’s best interest to educate themselves by subscribing to our 401k Newsletter. The newsletter is educational in nature and readers will learn about a 401k investing strategy that has backtested well and hopefully pick up a few good money management skills along the way.
Additionally, we intend to showcase money saving ideas, products and services. Some free and some low cost, but ultimately they all should enhance our lives and help our bottom line.
Click here to see our methodology and backtested performance.
Why doesn’t my financial advisor care about my 401k as much as they care about me opening a new brokerage account, or IRA?
Generally, a 401k is domiciled at an institution other than where an advisor is employed. Therefore, compliance departments prefer advisors not speak about investments their firm does not directly control. Additionally, since some advisors are compensated based on the amount of assets they manage, and most can’t directly manage a 401k, there is little financial incentive for the advisor to provide specific advice regarding the options within a 401k.
Keep in mind, they may incorporate the value of assets in your 401k into a financial plan, but for the most part they will not make "suitability" recommendations about 401k plan investments they do not directly control.
Keep in mind, they may incorporate the value of assets in your 401k into a financial plan, but for the most part they will not make "suitability" recommendations about 401k plan investments they do not directly control.
Do you provide specific investment recommendations for my needs?
Nothing on this site is specific for any one person’s needs. Everyone makes their own decision if they want to employ the strategy or not. We are not responsible for anyone’s investment success or failures.
Only you can determine your risk tolerance and suitable investment decisions.
To sum it all up, we’ve created a cost effective process for individuals to utilize a top performing investment strategy within their own 401k, IRA or investment account.
Who are you?
Sometimes we ask ourselves that too!
But seriously, We write under the pseudonym "John Galt".
John Galt is a character in Ayn Rand's novel Atlas Shrugged (1957). Not identified by name until the last third of the novel, he is the object of its often-repeated question "Who is John Galt?" Wiki Link
In Atlas Shrugged , the hero, John Galt, makes a radio speech to the nation revealing the strike of the country's CEOs, producers and other business leaders while explaining its rationale. It is the revolutionary leader's manifesto and challenge to a corrupt society.
Here is a video of John Galt's speech. If your interested in a more detailed explanation click here.
I was inspired by the character, the circumstances he faced and I relate them to the issues and headwinds people come across during the quest of becoming financially independent.
Many people cannot become financially independent because they are being oppressed by individuals in the financial industry and commercial companies that do not have our best interests. "They", prefer leading us to believe, investing is difficult and that becoming financially independent is only achieved by paying them, the "financial expert" outrageously high fees for advice. Adding insult to injury, corporations are constantly working on mastering how to reach into our pockets and extract our money.
Because of these two situations, we believe it hinders society's ability to become financially independent.
If you don't agree with what we're saying just compare the performance a low cost S&P 500 index fund to the range of actively managed mutual funds. Historically, the "sophisticated" active manager has underperformed and created a higher tax liability for the investor.
Don't get us started on taxes, but stay tuned, we're seeking the best ways to share tax saving ideas.
We strongly believe if help direct people towards good financial habits can show us the way or give a push in the right direction the sky is the limit for our financial goals and achievements.
We're hoping through our writings we can an show you, my friends and family a path towards financial freedom.
Our Credibility?
You may have heard about the "FIRE" (Financially Independent Retire Early) movement. We have been fortunate enough to reach financial independence in our mid 40's through diligent investing and living below our means, yet still spending a little money to enjoy what life has to offer.
We hope to help people such as yourself achieve the same result.by sharing money saving ideas, products and services to help get to you your financial equilibrium.
We hope to help people such as yourself achieve the same result.by sharing money saving ideas, products and services to help get to you your financial equilibrium.
