Dr. Guy Baker, MBA, MSFS, CFP, AEP, founder of WTA observed, “RIAs face the same challenges clients face when the markets get choppy. Clients ask, ‘How do you protect my portfolio?’ These market challenges and choices can cause RIAs to question their management philosophy and abilities.” Baker says, “RIAs have only two choices – stay the course or try to outguess the market. We believe in staying the course.”
WTA invests in markets, not stocks. WTA also believes markets are like the ocean. There are a lot of subcurrents under the surface of the ocean. The stock market is made up of submarkets. But not all submarkets are created equal. They perform differently overtime. Some submarkets even outperform the overall market as a whole. By identifying the expected return of a submarket, WTA can build the optimum portfolio using hypothesis testing. Over the long run, markets will usually outperform any given stock. To manage these cycles, WTA correlates the submarkets to minimize volatility while optimizing return based on research gleaned from six Nobel Prizes.
When the market goes up, any investment strategy appears adequate. But real value can take years before it becomes evident.
For retirees, WTA has developed a unique income solution using a liability-driven investing method to protect retirees against inflation, unpredictable markets, and longevity. This method utilizes income-centric, fixed-income instruments to provide a stable and consistent income for a fixed number of years. Studies have shown a retiree should limit annual withdrawals to 3% of the portfolio. Using science, the WTA method can deliver 6% income distributions with a high degree of confidence.
WTA will not vary from a proven method for establishing an efficient frontier based allocation and then staying the course, despite the market movement
“This is our value proposition. WTA will continue to use an evidence-based investing methodology and provide guardrails to help clients from having to pull out the market at the wrong time. We use the efficient frontier-based allocation method and then stay the course, despite market volatility,” says Dr. Baker.