Why Choose Us?

• We can show you options to defer capital gains taxes.

Through the use of advanced planning strategies most often you maybe able to defer capital gains taxes and provide options for lifetime income for the rest of your life.

• We don't believe in the "one size fits all" approach to investing.

Structuring a portfolio with a certain percentage of stocks and bonds and holding those percentages forever may make sense to someone or entity that can afford to take a substantial loss in capital, but it certainly won't do for everyone

The problem with "stocks for the long run" is that risk is not properly defined. Risk has two dimensions - not only the probability of a bad thing happening, but also how bad it will be when it happens.

• We think the application of diversification with investing is commonly misunderstood.

Having different types of stocks and bonds in your portfolio is not diversification. In times of financial stress (which is exactly when you need the benefits of diversification), sectors of the stock market may be highly correlated and all go down together. (Please refer to our Investment Advisory Services section for more on this topic.)

• We don't believe "average" returns tell the story.*

For instance the S & P 500 Index had an average return of approximately 8.9% over the ten years ending March 31, 2005. However, if you invested in the S & P 500 Index in early 2000, you would have sustained an immediate loss of approximately 50% and your annual return through March 31, 2005, would have been -5.0%. What's important is not always the average return, but what has been the largest drop from peak to trough over the history of the investment. If it happened once, it may happen again. Most important is the fact that you never know when it’s going to happen.

• We know that investor returns can be much lower than investment returns.**

The reason that's true is that investors tend to buy near the top and sell near the bottom.

• We think that comparing an investment return to a benchmark may be misleading.

Bruno Giordano attended a meeting of a couple of years ago where the presenter was comparing the results of their investment strategy to the S & P 500 Index. He was actually "bragging" that, while the S&P 500 Index was down 24% for the year, his strategy was down "only" 20%. Imagine!

The only thing harder than getting a new idea into the mind, is getting an old one out.

Our advisors believe in working with you to select and agree on a specific, expected returns goal. That return goal is dependent on whether you select a conservative, moderate or aggressive portfolio. Our goals are always positive!

• Our advisors attempt to achieve acceptable returns without incurring major loss to your portfolio. We want to help you meet your objectives.

 

* S&P 500 Index returns taken from FASTTRACK Investment and Graphic Service. Individuals cannot invest directly into the S&P 500 index. The Index is made up of 500 stocks that are meant to be representative of the overall stock market. The Index is typically used for comparison purposes.

** July 15, 2003 Dalbar release "Update to the Quantitative analysis of investing behavior over the last 19 years".







* Securities offered through Sorrento Pacific Financial, LLC Member FINRA / SIPC
Office of Supervisory Jurisdiction:
10455 Sorrento Valley Road, Suite 101 · San Diego, CA 92121
Investment Advisory Services provided through Partnervest Advisory Services, LLC.
A registered Investment Advisor
Insurance services provided through Partnervest Insurance Services, LLC