Many people start their savings with a “buy and hold” retirement strategy, where you “ride out” any bad markets. This often works for you when you are young and have time to recover from big losses. But many retirees find that they can’t afford to wait years for the market to come back when they’re living on that money, or plan to do so soon.
That’s why our Invest and Protect strategy includes a third component. We buy investments, hold them when the market trends upward, and protect them when the market is dropping. Our objective mathematical strategy sounds an alarm to get out of the market when it starts to fall. The Invest and Protect strategy is a form of “Stop-Loss,” an approach that provides an objective point at which investments should be sold.
Our strategy sounded an alert in November 2007, so we counseled our clients, email newsletter subscribers and listeners of the Money Matters with Ken Moraif radio show to get out of the market. We feel proud that our advice may have helped people protect their retirement investments during the crash of 2008.