The goal of Advanced Planning is to beat the results achieve by the ordinary investor. The background information follows.
Statement of John C. Bogle ( http://www.vanguard.com/bogle_site/sp20031103.html) : Founder and Former Chief Executive of the Vanguard Group and President of the Bogle Financial Markets Research Center.
Before the United States Senate Governmental Affairs Subcommittee on Financial Management, the Budget, and International Security. November 3, 2003.
"During the period 1984-2002, the U.S. stock market, as measured by the S&P 500 Index, provided an annual rate of return of 12.2%. The return on average mutual fund was 9.3%. But during that same period, according to a study of mutual fund data provided by mutual fund data collector Dalbar, the average fund shareholder earned a return just 2.6% a year due to poor market timing on behalf of the investor."
Hence the ordinary investor did not fare well and also had little to no principal protection.
With advanced planning we follow a system. The system incorporates the following...
- 1) Look for principal protected positions, so that you are protected against losses.
- 2) Look for assets with no fees,
- 3) Of the assets that remain, have an actuary back test and research to find the best option and finally,
- 4) Keep your money safe and growing (no market timing).
The goal of the advanced planning system is to produce superior returns and also offer principal protection. Is it possible to produce returns 5 to 6 times that of the ordinary investor?
