Description: The article is about fidelity login. The author is an investment portfolio manager who built the winter strategy and hopes to provide customers with world-class investment strategies that will save investors from market declines and crashes and allows them to still participate in market gains during the good times.
Do you want to maximize your fidelity retirement investment account? It could be a fidelity 401K 403B 457 account you have through work. Do you want to protect your fidelity retirement account if there’s a market crash? I’m going to show you how you can accomplish this quickly.
I’m Ken Prather,investment portfolio manager and creator of the winter strategy and fixed income strategy who specializes in fidelity foreign K plans. Foreign key investors are one of the most important groups of people in the world to me. I’ve worked for years to hone my investment strategies to earn the opportunity to be an advocate for the foreign K investor.
Ultimately my goal is to provide them with world-class investment strategies that will save investors from market declines and crashes and allows them to still participate in market gains during the good times. My solutions better be good. I’ve spent the last eight years of my life developing them. So if you’re wondering what to do with your foreign K let’s get started.
The single greatest drawback of foreign K accounts is the limited number of choices available in them. On top of limited choices most plans offer could cookie cutter options that offer little protection during market declines. Investors have few places to turn to protect their portfolio and are too often clobbered during market declines.
I specialize in the fidelity retirement plans because fidelity isn’t an industry leader in terms of offering quality investment choices and feature-rich technology. They’re a private company who avoids many of the conflicts of interest other companies get seduced by. Their plans are relatively clear and straightforward with good support. Fidelity is also a leader in what they call brokerage linked accounts.
The brokerage link account attaches to a 401 K. Why are these brokerage accounts important? In a typical foreign key account there may be 10 to 30 investment choices available in a plan. Fidelity takes this much further with a brokerage linked account which takes the number of choices available into the thousands. A massive number of choices is crucial for us to get close to running our winter strategy and our fixed income strategy in employer-provided retirement accounts. So what’s so special about winter strategy?
When I mentioned in the beginning that our solution better be good because I’ve been working on it for eight years. This is it. Winter strategy along with fixed income strategy. Winter strategy is the flagship strategy and its goal is to provide foreign key investors with an opportunity, a chance but no guarantee to make money in both up and down markets. In up markets it keeps the portfolio constantly weighted in leadership areas.
On the downside it’s a strategy that provides far greater protection during market declines than traditional investment strategies. It is so timely to talk about winter strategy as we’re probably at the tail end of a bull market. Our video shrewd investor gives historical perspective on the current bull market,how long bull markets last and what happens after them. History shows that a bear market is likely after a huge bull market like this.
It pains me to hear more common stories about investors diligently building up large retirement account balances then a major market decline happens and wipes out 20%,30%,40%,50 % of all their hard work. I will do anything I can to stop this continuum. A big run ups during bull market only to see gains quickly evaporate during market declines. We are potentially on the cusp of this happening again and we saw in 2000,2002 and 2008.
For those that went through those times many would say I cannot afford to go through that again. It has been nearly a decade since the last major market decline and investors may have forgotten that pain or may have never experienced it because they did not have a retirement account then.
Today we’re living through the good times with not enough attention being paid to preparing for the tough times. Winter strategy and the fidelity brokerage linked account are the answers for being prepared for market decline as well as continuing to participate in the bull market. Returns stated for winter strategy are historically back tested meaning they are not actual portfolio returns.
We want to be clear about that. Back tested returns are not actual returns and past performance is no guarantee of future results. On top of that we cannot fully run winter strategy or fixed income strategy in most foreign key account settings. We state the returns to demonstrate how different these strategies are than traditional portfolio returns.
It gives credibility to the winning strategy that it can protect portfolios during difficult market conditions. But it also provides credibility that it is not a pie-in-the-sky strategy. It has its weaknesses. For example in shopping market conditions like 2011 and 2015,the strategy could produce negative returns. For those that remember 2008 wouldn’t have been nice if someone told you to move away from stocks before the big declines occurred?
This is what winter strategy does. It warns and moves investors away from market dangers. Let’s look at how traditional strategies build portfolios and how they handle a bull or up market and bear or down market and how that contrasts with the winter strategy. In a traditional foreign k portfolio investors build portfolios around strategic asset allocation in style box conventional wisdom.
They have little choice. The foreign key choices are selected by companies and advisers that believe in this conventional thinking and the advice investors get revolves around strategic asset allocation and style box conventional mantras.There are a lot of different pots across all the style boxes in the name of diversification and reducing risk. But it accomplishes neither. Leading investments which stick out their wings through superior performance are clipped by being sold and rebalancing and that conditions us to sell winners and set good money after bad by buying more losers. This whole situation describes strategic asset allocation.
Winner strategy immediately looks different from a traditionally built portfolio by accessing thousands of mutual funds and in some cases exchange-traded funds in a foreign key setting. There are not only the core investments available in the 401 K. It uses a quantitative computer model to sort and rank the mutual funds and exchange-traded funds available. The top investments in the ranking system are selected for the portfolio. The selections are reviewed regularly to make sure the portfolio stays in the top ranked names. Winners are allowed to run and losers are sold quickly it is the exact opposite of strategic asset allocation.
This winter strategy thinking is completely in line with some of the world’s most successful investors. When there is a bull market the tide is lifting all boats so the return differences between winner strategy and strategic asset allocation are not that striking. The return differences can be very striking when comparing traditional investment strategies like strategic asset allocation versus winter strategy during a declining or bear market.
During a declining stock market like 2008,a typical 10 to 30 choice foreign k plan may have very few options that are earning positive returns. When the market declines,whether you’re in large-cap mid-cap, small cap,value,blend growth the plane is going down. All these style boxes generally all go down during serious market declines.
There’s little protection in this form of diversification since most investors are too busy to make changes or condition to stay in the market even during the Kleins. They are on a plane going down incurring devastating losses. They may even rebalance the portfolio and buy more stocks in the name of buying all the market is on sale or averaging down. Only through the second-largest bull market in history where investors are able to climb out of the 2008 hole and even that took years to achieve.
Winner strategy has a sensitive risk management system that quickly moves away from positions that they did not meet the system criteria. The system quickly moves away from stocks during market declines. As an example in 2008 the strategy had no US stock exposure as a beginning of 2008.
It has International stock exposure which equivalent quickly moved out of in January 2008. For investors that experienced 2008 wouldn’t have been nice if something or someone told you to move away from stocks before the majority of the losses occurred? This is what winter strategy does.
When the current boom stock market ends,winter strategy will quickly move away from stocks while traditional investment strategies will stay in stocks and maybe buy more. The historical back-tested returns of winter strategy demonstrate its benefits during market declines like 2008. Winter strategy generated positive returns in 2008 while the stock market was down 37 percent. What if your plan doesn’t have a brokerage link as an option?
It’s worth investigating with your benefits department if brokerage link can be added. For those interested in pursuing our services we’d be happy to explore that option with you as well as other options including in-service rollovers,post employment rollovers and non prototype plans.
In short,foreign key investors have the opportunity of a lifetime to lock in the gains of this historical bull market and move to a strategy better equipped to handle the future. Investors can keep their gains. They don’t have to be like the majority of investors who will quickly give back huge gains if a bear market occurs.
They can truly do something that can benefit their family for generations and do what we all want to do take care of our family. You are minutes away from protecting your fidelity 401K from a market crash and taking advantage of an opportunity of a lifetime. Here are the steps to learn more and take action.
Don’t be like most investors who will delay action and take 10 20 30 percent losses before they admit they have a problem. If you’re interested in moving for as a client please email me at info@Pratherinv.com. Please screenshot or attach your retirement plan or investment account statements. That could be your fidelity retirement plan accounts or other investment accounts such as brokerage accounts or IRAs.