We saw last year that even the most comprehensive plans can go terribly astray. I have learned from 48 years experience as a financial analyst that there is no single plan strategy or investment that will serve in all circumstances.

That is why as a Strategist, I study economic data constantly and try to apply a Bayesian probability to various possible outcomes and assign payoffs (both positive and negative) to them. Then I apply those ideas to the investment markets to determine strategies that might mitigate loss while allowing for potential profit. This is a diligent, but inexact process because past performance is not a guide to future results. It does allow us to identify the greatest risks and potential rewards.

We call the application of this proprietary methodology Adaptive Value Investing. We use a similar method in seeking viable strategies for income and estate planning strategies. This approach gives recognition to the fact that changes are inevitable and best handled by anticipating their need.

This Strategy Difference sets us apart from most financial advisers who tend to use more rigid methods. Proactive is better than reactive.

Charles D. Vaughan, CFP®
Chief Strategist