How agile is your financial plan in bear markets?

Robert Phelan, CFA, GARP |

If you are interested in an actively managed financial plan and want to be involved in how those assets are managed and have more than $1 million to invest, give Concierge Financial Advisor, LLC a call at 813-436-3600.

According to historical research, the return of an investment portfolio is dominated by the asset class allocation and not the security selection within asset classes.  While we may minimize expenses in the investment portfolio by replacing a portion of an ETF allocation with representative individual stock holdings, what matters most is the percentage of exposure allocated to the various asset classes.

“Asset allocation is a very important part of creating and balancing your investment portfolio.  After all, it is one of the main factors that leads to your overall returns—even more than choosing individual stocks.  An appropriate asset mix of stocks, bonds, cash, and real estate in your portfolio is a dynamic process."(1)

Every registered investment advisor provides a long-term asset allocation plan for investors.  Fidelity calls this the “Planning Effect” because having a long-term plan is the core of what one needs to achieve your goals. However, Concierge Financial Advisor, LLC is different because it offers plans that are actively managed with Strategic assets (Long-Term), Tactical Assets (Medium Term) and Bolster Assets (Short Term revenue opportunities and hedges).

When I was with American Express, I was involved in firm-wide goal setting, but what was key for the success of the company and what mattered most for compensation was how well you executed and delivered toward your goals. Long-Term asset allocation is the core of a financial plan, but these strategic asset allocations will account for roughly 70% of what is needed to hit your goals within your time horizon.  As such, the asset mix may need to change to reflect the forward-looking risk/reward opportunities in the market at any point in time.  We offer strategic & tactical asset allocation with periodic adjustments and manage accounts actively through market momentum inflection points.

Our next blog will discuss why you may need strategic, tactical, and bolster assets in your plans to handle different investment environments.

Asset Allocation Basics:

One of the formulas from the late 1900s for investing was to create a diversified stock portfolio equal to a percentage = (100 – client’s age) with the remainder in fixed income.  While this simplified approach is outdated, it still beats the performance of underinvested clients.  We have seen many leaders in business that do not have time to oversee their investments and have inappropriate asset allocations.  At Concierge Financial Advisor, LLC, we have the time to oversee your investments, monitor the risks, and look for opportunities.  We manage your investments and financial plan with a conservative portfolio approach.  We may use hedges or actively adjust exposure to reduce stock market volatility based on the risk tolerance in the client’s investment policy statement that the client creates with us.

We build customized portfolios for families, businesses, individuals, and their children.  We manage the needs of the elderly as well as retirement planning.  We can assist families in growing tax-advantaged assets, especially for children with educational expenses.  We care for our clients’ families like we care for and manage our family's money.  Because we are focused on every client, we listen to feedback and engage them when significant adjustments in their financial plan should be considered.  The client has full access and transparency of their assets and investments held at our custodian, Charles Schwab & Company.  Clients call us whenever they have any questions or concerns.  We only add a client if we have the time to actively manage their assets in accordance with their investment policy and financial plan.

What Is the 90/10 Rule in Investing?

The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation.  The rule stipulates investing 90% of one's investment capital towards low-cost stock-based index funds and the remainder 10% to short-term government bonds.  The strategy comes from Buffett stating that upon his passing, his wife's trust would be allocated in this method.

What Is a 70/30 Portfolio?

A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.  Any portfolio can be broken down into different percentages this way, such as 80/20 or 60/40.  The ideal allocation will depend on the investor's age, risk tolerance, and financial goals. (2)



  1. Team, The Investopedia. “6 Asset Allocation Strategies That Work.” Investopedia, Investopedia, 28 July 2022,
  2. Kurt, Daniel. “Is 100 Minus Your Age Outdated?” Investopedia, Investopedia, 12 July 2022,