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Stay Ahead Of The Curve By Investing In Next Generation Internet

Do you remember life before the internet? Back when you had to look up businesses in the Yellow Pages and call your out-of-state relatives to know what was going on in their lives? It really wasn’t that long ago. So much has changed in such a short period of time. Think of how many companies […]

Stress Testing Your Portfolio

August 13, 2018/in Uncategorized /by Kevin Manzo

2007 was a landmark year as the 9th of October marked the peak of the stock market (Dow Jones). Crunchy leaves weren’t the only thing beginning to fall in October, though. This time also marked the beginning of a significant decline. Backtrack a few years to 2001. Following 9/11, the U.S. stock market experienced a […]

Stay Ahead Of The Curve By Investing In Next Generation Internet

October 1, 2018/in Kevin Manzo, News /by Kevin Manzo

Stress Testing Your Portfolio

August 13, 2018/in Uncategorized /by Kevin Manzo

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Stay Ahead Of The Curve By Investing In Next Generation Internet

October 1, 2018/in Kevin Manzo, News /by Kevin Manzo

Think of how many companies exist today that couldn’t have existed before the internet. Think of how many jobs the internet has created, how it has fueled the economy, and how much money investors have made by investing wisely in the emerging technology and various ways of doing business.

Though the internet may seem like last century’s news, it is still morphing and growing, allowing investors to get in on the ground floor for this century’s technological and business innovation.

Web x.0: Next Generation Internet

What does this century’s internet look like? Not AOL, that’s for sure!

Today we are seeing a change in infrastructure to cloud-based models and mobile technology. Gone are the days of desktop computers and installing expensive software. Today’s generation wants the freedom to both work and play wherever and whenever they like. The rising use of shared technology and internet-based products and services represents a shift that could prove very profitable to investors who recognize it.

We have moved from accessing the internet through our computers to using our cell phones and smartwatches. And we are not the only ones connecting to the internet. Our cars, appliances, even our thermostats now connect and exchange data electronically. This is called the Internet of Things, a network of physical devices embedded with electronics, software, sensors, actuators, and connectivity that integrate the physical world into our computer-based systems in order to make our lives easier. This is the internet of tomorrow.

We are living in the Information Age, and information is only getting more important. In fact, we have so much of it at our fingertips that it has led to the rise of big data, where advanced data analytics are used to extract value from the vast stores of data now available to us. Big data has turned internet marketing upside down and is also used to recognize business trends, fight crime, and even prevent disease. All of this information has also led to the rise of artificial intelligence, where our technology is continuously learning and improving, carrying us further into the future.

Investing In The Future

The future of the internet, data, and technology is very exciting. And you can become a part of it without being an IT specialist or a data analyst. As an investor, you can help fund today’s innovations to make tomorrow a better place.

At Axxcess Wealth Management, we have access to the ARK Web x.0 ETF. This is an electronically traded fund that focuses on the internet of the future, investing in companies that develop, produce, and enable:

Cloud computing
Cybersecurity
E-commerce
Big data
Artificial intelligence
Mobile technology
Internet of Things
Social platforms
Blockchain
P2P, or peer-to-peer computing

If you would like more information about investing in Web x.0 and how this ETF might fit into your portfolio, call us at 858.217.5347 today.

About Kevin

Kevin Manzo is a Financial Advisor with Axxcess Wealth Management. Kevin’s services are especially valuable to business owners, high-income and high net-worth professionals and their families. After 12 successful years as a portfolio manager and advisor, Kevin has the knowledge and experience to help clients protect what they’ve worked for, enjoy a comfortable retirement, and leave the legacy they choose for their heirs. Along with his Bachelor’s of Business Administration degree in Finance from Chapman University, he also holds the Accredited Investment Fiduciary® credential, signifying his commitment to upholding a high level of fiduciary care for his clients. Based in Fullerton, California, he serves families and business owners throughout North Orange County and Los Angeles. Learn more by connecting with Kevin on LinkedIn.

Stress Testing Your Portfolio

August 13, 2018/in Uncategorized /by Kevin Manzo

Backtrack a few years to 2001. Following 9/11, the U.S. stock market experienced a bull market from 2002-2007. Then in March 9th, 2009, the market bottomed out with the Dow down 54% since October 2007. Maybe people lost their jobs. Others lost their retirement savings.

Stress Testing For Declines

Understanding the past declines in the stock market can certainly help you temper expectations and stress test your portfolio. Stress testing is a method for exploring how your portfolio will perform during a financial crisis. This is widely used by the banking industry and finance professionals.

The banking, credit, and real estate industries were to blame in the 2008-2009 decline in the market, but there are measures that could have been taken to prevent a crash. Many analysts admit that the lack of proper asset allocation and stress testing contributed to bigger losses for individual portfolios.

Stress Testing With The Monte Carlo Simulation

The Monte Carlo Simulation (or Monte Carlo Method) is a popular simulation to stress test and guess certain outcomes in a portfolio, used in the finance industry. This method helps you see the possible outcomes of your decisions and assesses the impact of risk. In retirement, the Monte Carlo Simulation is valuable in determining the probability of running out of money, based on various asset allocations.

Let’s look at a stress test example for a retirement portfolio. When planning for retirement, the first step, although an obvious one, is to determine how much savings you’ll need to live comfortably in retirement. Most people don’t realize that the accumulated amount isn’t the important number, but rather the income it will generate in retirement.

Example Of Stress Testing Your Portfolio

As an example, an investor saves $1 million and plans to retire in five years. Let’s assume a 5 percent withdrawal rate at retirement, giving this investor $50,000 annually of income. Now let’s also project (or stress test) a 25 percent loss in the portfolio. The new accumulated asset will be $750,000, which will now generate $37,500 annually. This is a loss of more than $1,000 of retirement income every month! Utilizing a Monte Carlo Simulation or other method of stress testing, one could plan with possible ways to minimize loss and risk.

Perhaps if a simulation shows the portfolio increasing in a certain asset class, and reducing in another asset class, the portfolio may lose only 15 percent of value rather than the 25 percent previously suggested. This might be increasing or decreasing in a sector or industry, such as oil or real estate. Rather than a sector, it may be changing the allocation for equities, bonds, hedge funds, or options. We also utilize tactical managers in addition to our own internal approach.

Prepare With Stress Testing

There is no way to predict with certain what the stock market may do in the future, but through stress testing your portfolio with simulations you can certainly be prepared. We can show you a snapshot of your current portfolio and the probability of reaching your goals, therefore allowing you to make changes to improve your chances of success. You can call me direct at Axxcess Wealth Management at 858.217.5347 and we’d love to help you. Click here to take a risk survey to see how financially prepared you are.

About Kevin

Kevin Manzo is a Financial Advisor with Axxcess Wealth Management. Kevin’s services are especially valuable to business owners, high-income and high-net-worth professionals and their families. After 12 successful years as a portfolio manager and advisor Kevin has the knowledge and experience to help clients protect what they’ve worked for, enjoy a comfortable retirement, and leave the legacy they choose for their heirs. Along with his Bachelor’s of Business Administration degree in Finance from Chapman University, he also holds the Accredited Investment Fiduciary® credential, signifying his commitment to upholding a high level of fiduciary care for his clients. Based in Fullerton, California, he serves families and business owners throughout North Orange County and Los Angeles. Learn more by connecting with Kevin on LinkedIn.

Important Information

Advisory services provided by Axxcess Wealth Management, LLC (AWM), an Investment Adviser registered with the SEC. Advisory services are only offered to clients or prospective clients where Axxcess Wealth Management, LLC and its Investment Advisor Representatives are properly licensed or exempt from registration.Securities are offered by Arete Wealth Management, LLC member FINRA, SIPC, NFA.

Axxcess offers advisory services independent of Arete. Neither firm is affiliated.

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Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

Stay Ahead Of The Curve By Investing In Next Generation Internet

Stress Testing Your Portfolio

Stay Ahead Of The Curve By Investing In Next Generation Internet

Stress Testing Your Portfolio

Full Sized Blog Element (Big Preview Pic)

Stay Ahead Of The Curve By Investing In Next Generation Internet

Web x.0: Next Generation Internet

Investing In The Future

About Kevin

Stress Testing Your Portfolio

Stress Testing For Declines

Stress Testing With The Monte Carlo Simulation

Example Of Stress Testing Your Portfolio

Prepare With Stress Testing

About Kevin

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