Unique Low-Risk Money Management Platform

            What do clients want with actively managed money? Lower risk and possibly higher yields over 5, 10, 15+ years. That’s exactly why POM Planning was created. To offer clients a different type of money management platform that reaches for satisfactory rates of return without the risk typically associated with a portfolio made up of stocks, mutual funds, and bonds.

           The previous chart indicated that over the last five years our tactical manager #1 only slightly outperformed the bond index while substantially outperforming it over the last ten years. While this is interesting, what we believe is more interesting is their Beta. The tactically managed strategy is 65% less volatile than the bond index. Again, we believe in managing risk first and for advisors looking to offer low Beta tactical managers, we believe we have a platform that is certainly worth researching.

          Mitigating Drawdown

          The tactical money managers we use have strategies that seek to avoid large drawdowns. We further enhance the ability to avoid large drawdowns by recommending what we call "sleeves" investments. What is a sleeve? It's simply using multiple tactical managers together to mitigate drawdown. Let's look at a moderate growth sleeve made up of six strategies and compare that to a typical 60/40 asset allocation blend (60% VTSMX/40% VBMFX). 

  Moderate Growth Sleeve  
   60% VTSMX/40% VBMFX   Difference
Last 12 months (July 2017-July 2018)               16.45%*                         6.79%     9.66%
3-year               13.69%*                         6.24%     7.45%
5-year               14.93%*                         7.54%     7.39%
7-year               15.00%*                         7.91%     7.09%
10-year               17.09%*                         7.18%     9.91%
Average Beta (10-Years)                 0.31                         0.62

           What's interesting about the above spreadsheet? Two things should jump off the page: 1) the Beta is 89% less for the moderate risk sleeve (50% less volatile than the 60/40 blended portfolio); 2) the rate of return is better. While past performance is no guarantee of future performance, we believe that many people would prefer lower risk with the opportunity to achieve similar or better rates of return when comparing ways to build wealth.

          Drawdown Chart

          The following is a drawdown chart with three lines. The black line is the POM Planning moderate growth sleeve, the blue line is the 60/40 asset allocation blend (60% VTSMX/40% VBMFX), and we also threw in the green line which is the S&P 500. If you were to show this drawdown chart to clients, which one would they perfer?


           For the detailed information on our platform, please e-mail

             No-load Variable Annuity (VA) platform—POM Planning is excited to have the ability to allow clients to use our unique money management platform inside a no-load VA ($20 a month fee).  Using a no-load VA with our actively/conservative money management platform will allow clients to grow significantly more money for retirement because of the avoidance of annual capital gains taxes on the growth inside their account.  To learn more about our no-load VA, please click here.           

             Summary—If you want to put forth a money management platform to your clients that fits in well with the mindset of not going backwards* in down markets and generating acceptable returns in an up market, you should click here to learn more.           

             Sign up NOW to learn more—if you would like to learn more about how you can use POM Planning’s unique money management platform to help you grow your business, earn more income, and provide better services to your clients, please click here to fill out a request-for-more-information form.

*Has loss risk so the portfolio could go down in value.


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