Measured Risk Portfolios was coined as a DBA of the portfolio strategy conceived by Kingsroad Financial Insurance Services, Inc. in 2007 after the founders determined that the portfolio management strategy they wanted for their clients did not exist. Originally tested on just a few select clients, the firm now manages over $100M in multiple strategies for over 400 families and businesses throughout the United States.
Our firm has fundamental principles that guide our investment decisions:
Why we believe losses are more powerful than gains
When managing a growth portfolio, if we can keep inevitable market losses to a minimum, using a reliable strategy (not tactical timing or research driven stock selection) we will have a better chance to recover and make forward progress on our goals. In most cases, losses from buy and hold or tactical strategies will eventually be recovered… but you’ll never recover the lost years waiting for it to happen.
Retirement is more comfortable with growing income
The fact is, when you look to your portfolio to supplement other retirement income like social security or pensions, it would be great if the income you earn next year is higher than the income you earned this year. The CLIP portfolio is designed to potentially meet that need for growing income. The value of that portfolio is secondary to the income it generates.
Investing for growth requires “dry powder”
If you are fully invested and the market starts to sell off, you’re stuck with holding on for a recovery. You won’t have the capital to invest at exactly the best time to invest. If you have cash on the sidelines, you may miss a substantial part of a market rally waiting for an opportunity to invest during a downturn. Years could go by without a correction that is sufficient to motivate you to buy in. We utilize equity and index options to allow us to use a smaller portion of your capital to capture upside movement if it materializes and simultaneously limit severe losses if they occur. Option strategies may vary and are discussed in more detail in our brochures and disclosures.