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Check out this video to learn more about the highly successful model David has infused into his planning process

In the realm of investment strategies, one of the more intriguing approaches is the endowment model, notably employed by large institutions like university endowments. This model, championed by figures like David Swensen of Yale University, offers unique insights for individual investors, especially those planning for retirement.

Understanding the Endowment Model

At its core, an endowment is a financial asset, like a fund, held by institutions such as universities. It’s made up of donations that are invested to generate income for the institution. The principal amount generally remains intact while the income supports various expenses.

The Yale endowment, under Swensen's management, became a hallmark of this approach. Yale’s strategy was not just successful but also revolutionary in how it diversified investments beyond the traditional stock and bond portfolio. This diversification aimed to achieve steady returns while minimizing risks.

Applying Endowment Principles to Retirement Planning

Retirement planning can be akin to managing an endowment. In both cases, the goal is to create a sustainable income stream from a large pool of savings. The typical recommendation for endowment funds is to aim for a 5% annual distribution. This figure interestingly aligns with the retirement income strategies suggested by many financial planners.

However, a critical difference lies in the investment approach. Traditional retirement portfolios often focus heavily on stocks and bonds. In contrast, the endowment model advocates for a more diversified portfolio including alternative investments.

Beyond Stocks and Bonds: Exploring Alternative Investments

The endowment model’s success largely stems from its inclusion of alternative investments. These can range from private equity and hard assets like real estate to even more niche options like annuities. For instance, Yale’s portfolio in 2001 included a significant portion in hard assets, primarily real estate, alongside a smaller proportion in domestic and foreign equities.

This diversification strategy not only reduces reliance on the stock market but also potentially smoothens out returns, reducing volatility. The objective is to create a portfolio that can withstand market downturns better and provide more consistent returns over time.

Real Estate as a Stable Investment Class

Real estate, especially in sectors like student housing, is a prime example of an alternative investment that can offer stable returns. Properties near major universities, such as USC, Notre Dame, or Northwestern University, can provide a steady income stream, often with tax advantages.

Annuities: Another Diversification Tool

Annuities are another diversifier in this model. While not directly linked to stock or bond markets, they can provide a steady income, adding another layer of stability to a retirement portfolio.

The Importance of Non-Correlated Asset Classes

One of the key strengths of the endowment model is its use of non-correlated asset classes. Investments like real estate or annuities don’t necessarily move in tandem with the stock or bond markets. This non-correlation can significantly reduce the portfolio's overall risk.

The Real-World Application and Accessibility

For individual investors, adopting an endowment-like strategy means moving beyond the conventional wisdom of a stock-and-bond-dominated portfolio. It involves exploring and investing in a variety of asset classes. However, this approach requires careful planning and a thorough understanding of each investment type.

Seeking Professional Advice

Given the complexity of this investment strategy, seeking professional advice is prudent. Financial advisors with experience in the endowment model can provide valuable insights and help tailor a portfolio that suits an individual’s retirement goals and risk tolerance.

Conclusion: A Balanced Approach for Long-Term Stability

The endowment model, inspired by the strategies of large institutions like Yale University, presents an innovative approach for individual investors, especially those in retirement planning. 

Its focus on diversification across various asset classes aims to provide a balanced investment portfolio that can weather market volatility and generate sustainable income. While it may require stepping out of the traditional investment comfort zone, the potential for a more stable and robust retirement income is an enticing prospect for those willing to explore beyond stocks and bonds.

Check out this video to get some insight into David's personal story which lends to the purpose in his passion to help his clients achieve retirement success.

The world of retirement planning is deeply influenced by the personal experiences and histories of those who navigate it. One such journey, devoid of specific names but rich in lessons and insights, offers a valuable perspective on how early life experiences and family histories can shape professional philosophies in financial planning.

Early Life Influences and Family Dynamics

The story begins with a young individual, whose life was significantly impacted by their parents' divorce at the age of two. Raised by a single mother with two other children, this person found solace and guidance in the care of their grandparents. These formative years spent with grandparents in a small town provided foundational life lessons and values.

One grandparent, a dedicated employee at a major company like Sears Roebuck, which narrowly escaped bankruptcy, served as an emblem of resilience and adaptability. This grandparent's profession as a television repairman represented a now-obsolete trade, reflecting a bygone era of technological simplicity and hands-on skill.

Financial Lessons from a Grandparent

The grandparent's investment in company stock, such as Sears, showcased the importance of financial involvement and awareness. This early exposure to stock investments and the significance of pension plans left a profound impact on the young individual, instilling a keen interest in financial planning and investment.

Despite modest means, the grandparent exemplified fiscal prudence and the virtue of saving, owning a home outright, and living within one's means. These characteristics were not just survival strategies but were also foundational principles that would later inform a career in financial planning.

The Challenges of Aging and Healthcare Costs

A turning point in this narrative was the grandparent's diagnosis with dementia, leading to significant healthcare expenses that eventually depleted their savings. This transition to relying on Medicaid, a program necessitating minimal personal assets, highlighted the financial vulnerabilities faced in old age.

The family's subsequent struggle with a lien on their property due to Medicaid benefits underscored the complexities and challenges of elder care and its financial implications. This experience, occurring at the onset of the individual’s career in financial planning, was a catalyst for a deeper understanding of elder law and financial protection strategies.

Shaping a Career in Financial Planning

These personal experiences with family financial challenges directly influenced the individual's approach to retirement planning. Observing first-hand the impact of medical expenses and the necessity of financial preparedness in later life, the individual adopted a philosophy emphasizing the protection of capital, its growth, and the generation of sustainable income from it.

This approach was further informed by the mindset of the "depression babies" generation, known for their skepticism towards banks and cautious approach to market investments. This background instilled a sensitivity towards clients who value security and stability in their financial planning.


This narrative, while not tied to a specific individual, illustrates how personal experiences can profoundly shape professional approaches in fields like financial planning. It's a poignant reminder that behind the technical aspects of financial advising are human stories, experiences, and histories that influence and guide the strategies and advice offered by professionals in this field.

In recent times, the financial markets have been characterized by significant volatility and unpredictability, often leading investors to experience what is popularly known as the FOMO (Fear of Missing Out) Market. This term aptly encapsulates the anxiety and urgency that investors feel in the face of rapidly changing market conditions, driven by the fear of missing out on potential gains.

Historical Context and Recent Trends

Historically, October of the previous year marked one of the worst performances since 1931, followed by a nine-week continuous advance in the market post-Christmas. This pattern of a sharp decline followed by a rapid ascent has essentially led to a stagnation in market progress over the past year and a half.

The last quarter of the year saw the market in a precarious position, facing challenges from various fronts. However, the Federal Reserve's intervention played a pivotal role in altering this trajectory. The Fed's decision to halt interest rate increases towards the end of a bull market was an unprecedented move, breaking away from traditional monetary policy patterns. This cessation is particularly notable as the market technically entered a bear phase, with a 20% drop from its peak.

The Role of the Federal Reserve

The Federal Reserve's actions are crucial in understanding market dynamics. Typically, the Fed raises interest rates to curb inflation and stabilizes the economy, but in this case, they chose a different path. By not increasing rates, the Fed essentially signaled a more accommodative monetary stance, which historically tends to boost market confidence and investment.

Global and Domestic Economic Indicators

Globally, Europe exhibited negative earnings growth in the last year, with a decline of about 1%. This is significant as it reflects broader economic challenges beyond the United States. In the domestic context, nearly all S&P 500 companies have reported their earnings, with a staggering 73% providing negative earnings guidance. This indicates a pessimistic outlook for the future, with expectations of performance being worse than the present.

The S&P earnings growth, which was estimated at 3% in December, has now turned negative, standing at -2.7%. This downturn is particularly stark, considering the record-high earnings growth witnessed in 2018.

Implications for Investors

These market conditions underscore the need for caution among investors. The rapid recovery of the markets from recent losses might create an illusion of stability and growth. However, the underlying economic indicators suggest otherwise. The volatility is likely to persist, and it's crucial for investors to be prepared for this uncertainty.

Investors are advised to develop a comprehensive understanding of the risks associated with their portfolios. This involves not only a keen awareness of market trends but also a thorough assessment of individual investment objectives, risk tolerance, and long-term financial goals.

Strategies for Navigating the FOMO Market

In conclusion, navigating the FOMO Market requires a balanced approach, blending caution with opportunity. Understanding the broader economic context, staying informed, and aligning investment strategies with individual risk profiles are key to successfully managing investments in these volatile times. Investors should remain vigilant, adaptable, and informed to make the most out of the opportunities that arise, while safeguarding their investments against potential downturns


Retirement planning is an essential aspect of financial management, yet it remains a challenging endeavor for many. Understanding the nuances of investment, market trends, and effective strategies is vital for a secure retirement. 

This blog post explores key principles and strategies to help individuals build a robust retirement plan, emphasizing risk management and financial efficiency.

The Reality of Retirement Preparedness

Statistics indicate a concerning trend: a large percentage of individuals reach the age of 65 without adequate financial resources, often relying on family or government support. This underscores the importance of proactive and strategic retirement planning, focusing on creating a guaranteed lifetime income.

Market Trends and Risk Management

Market volatility is a significant factor in retirement planning. Historical trends show substantial market downturns can occur rapidly, highlighting the need for a risk-aware investment approach. As time passes since major financial crises, there's a risk of investor complacency. Acknowledging and planning for potential market fluctuations is crucial in safeguarding retirement funds.

Understanding Market Valuation and Interest Rates

The valuation of the market, often influenced by decisions made by central banks like the Federal Reserve, especially regarding interest rates, plays a critical role in retirement planning. Overvaluation of the market and fluctuating earnings projections can impact investment strategies. Recognizing these factors can aid in making informed decisions for retirement portfolios.

Key Strategies for Retirement Security

To achieve a secure retirement, certain strategies and principles should be considered:

Additional strategies include understanding market dynamics, diversifying investments, and regularly reviewing and adjusting financial plans.

The Hidden Impact of Fees

One often overlooked aspect of retirement planning is the impact of fees on long-term savings. Many individuals are unaware of the fees they incur, especially in investment products like mutual funds and employer-sponsored plans such as 401(k)s. Reducing these fees can lead to significant savings over time.

The Value of a Structured Retirement Plan

A structured retirement plan is critical. It should include a thorough risk assessment, an analysis of fees, and a comprehensive strategy tailored to individual needs and goals. A well-constructed plan provides clarity and a roadmap for achieving retirement objectives.


Effective retirement planning requires a multifaceted approach, balancing risk management, financial efficiency, and a deep understanding of market conditions. By adopting key strategies and maintaining a focus on long-term goals, individuals can enhance their chances of a financially secure retirement

The process involves regular review and adaptation to changing circumstances, ensuring that retirement funds are not only accumulated but also protected and optimized for the long haul.

Planning for retirement requires a keen understanding of market trends, interest rates, and other economic indicators. Here, we explore strategies and insights for securing a financially stable retirement, even in the face of potential economic downturns.

The Harsh Reality of Retirement Readiness

A significant number of individuals reach the age of 65 unprepared financially, often relying on family support or government assistance. This highlights the critical need for effective financial planning to ensure a consistent income throughout retirement.

Understanding Stock Market Dynamics

An important aspect of stock market behavior to recognize is the phenomenon of bear market rallies. These are substantial yet typically temporary recoveries in a declining market, which can mislead investors into believing in the market's stability. The mathematical reality is that a stock falling by 50% and then gaining 50% is still 25% below its original value. This underscores the need to be wary of significant losses and to approach investment decisions with caution.

Recognizing Signs of a Recession

Several indicators suggest the possibility of an economic recession:

Strategies for Recession-Proofing Retirement Portfolios

To reduce risks associated with economic downturns, several proactive measures are recommended:

Maintaining Confidence During Market Volatility

Having a solid retirement plan can provide confidence, even during market downturns, preventing panic and impulsive decision-making.

The Role of Professional Guidance

The complexities of retirement planning, especially in uncertain economic times, make professional advice invaluable. Tailored retirement strategies, responsive to individual needs and economic conditions, are critical for achieving financial security in retirement.


Achieving a secure retirement amidst economic uncertainties is challenging but attainable with the right approach. Being informed about market dynamics, recognizing economic indicators, and taking strategic actions to protect retirement funds are integral to successful retirement planning. These insights offer guidance for individuals seeking to build a resilient and secure retirement plan, regardless of economic fluctuations.

Take a minute to watch this video for important information on long-term care, a topic everyone needs to be ahead of.

Long-term care (LTC) is a critical aspect of health and personal care that affects a significant portion of the population. Statistics indicate a high probability—around 70%—that an individual or their spouse will require long-term care at some point. This statistic underscores the importance of understanding what long-term care entails, its costs, and how to prepare for it.

What is Long-Term Care?

Long-term care refers to a variety of services and supports tailored to meet an individual’s personal care needs over an extended period. Contrary to common misconceptions, most long-term care is not medical in nature. Instead, it predominantly involves assistance with everyday activities crucial for daily living.

Activities of Daily Living (ADLs)

Activities of Daily Living, or ADLs, are fundamental tasks that most people perform daily without assistance. These include:

Instrumental Activities of Daily Living (IADLs)

Instrumental Activities of Daily Living, or IADLs, are tasks that are somewhat more complex than ADLs and are essential for independent living. These include:

The Cost of Long-Term Care

The cost of long-term care can vary significantly based on several factors:

Age Factor in Premium Costs

The initial premium level for long-term care insurance tends to increase with the age of the applicant. Younger individuals typically face lower premiums, highlighting the advantage of planning for long-term care early.

The Challenge of Qualification

Qualifying for long-term care insurance becomes more challenging with age. Statistics show that 1 in 4 applicants between the ages of 60 and 69 do not qualify for such insurance. This statistic is a stark reminder of the importance of early planning.

The Necessity of Preparation

Given the high likelihood of needing long-term care and the associated challenges and costs, it is crucial to understand the options and prepare adequately. This preparation is not just a personal matter but also a significant consideration for families.

Why Prepare for Long-Term Care?

  1. Financial Stability: Long-term care can be expensive, and early planning can help in managing these costs more effectively.
  2. Quality of Life: With proper care, the quality of life in later years can be significantly improved.
  3. Family Peace of Mind: Knowing that there is a plan in place can provide peace of mind to both the individual and their family members.
  4. Independence: Adequate preparation can help maintain independence for as long as possible.


Understanding and preparing for long-term care is a critical aspect of life planning. Given the high probability of needing such care, it’s prudent to start planning early. This includes understanding what long-term care entails, evaluating insurance options, and considering personal and family needs. By taking proactive steps today, individuals can ensure they have the support and resources they need to maintain their quality of life and independence in the future.

Watch the video above to get important updates from David's latest successful retirement creation "The Perfect Annuity"

In 1980, Ronald Reagan famously compared inflation to a violent mugger, a frightening armed robber, and a deadly hitman. During the tumultuous 1970s and early 1980s, inflation rates soared, averaging around 13.5%. This period of rampant inflation had a profound impact on the cost of goods, effectively doubling them within a decade. 

While we might have experienced a reprieve from high inflation in recent years, it's crucial to recognize that it can rear its head once more. This article delves into the critical relationship between inflation and investing, highlighting the often-overlooked concept of the "perfect annuity" as a tool to combat the eroding effects of inflation in retirement.

Understanding Inflation and Its Impact on Investments

Inflation is an ever-present economic phenomenon that erodes the purchasing power of money over time. When you invest, especially in long-term assets like stocks, the goal is to outpace inflation and preserve the value of your wealth. 

Traditionally, many have seen investing in stocks as a hedge against inflation, with the assumption that equities can generate returns that outpace the rising cost of living. However, this assumption doesn't always hold true, as evidenced by events like the 2008 financial crisis, which wiped out substantial portions of many portfolios.

The Challenge of Mitigating Inflation

Investors often face the challenge of ensuring that their income and wealth can withstand the corrosive effects of inflation, especially in retirement. While the concept of the "perfect annuity" may sound like an ideal solution, it remains a relatively obscure strategy. In this article, we aim to shed light on this innovative approach to safeguarding retirement income while simultaneously battling inflation.

The Perfect Annuity: A Concept Unveiled

The "perfect annuity" is a financial strategy designed to provide guaranteed lifetime income while also offering protection against inflation. This concept is gaining traction among financial advisors and retirees for its potential to address two significant retirement concerns: longevity risk and inflation risk.

Here's how it works:

A Real-World Example

Consider a scenario where an individual has a retirement portfolio of approximately $1 million. By strategically allocating a portion of this portfolio to a perfect annuity, they can secure an annual income for life. Over a 20-year period, assuming a conservative annual growth rate, their income will almost double, providing a reliable hedge against inflation.

The Legacy Factor

One of the significant advantages of the perfect annuity is its resemblance to a pension. In most cases, when you choose a joint life expectancy option, both spouses can enjoy the same income benefits. Moreover, if there's a remaining balance upon the passing of the annuitant and their spouse, it can be passed on to beneficiaries, such as children, providing a legacy that many traditional annuities do not offer.


Inflation is an ever-present financial adversary, and safeguarding your retirement income against its erosive effects is paramount. The "perfect annuity" represents a powerful and relatively undiscovered tool in this battle. 

By combining guaranteed lifetime income with the potential for income growth that keeps pace with inflation, this strategy offers a compelling solution for retirees seeking financial security and peace of mind. 

It's a strategy worth considering as you plan for your retirement years and aim to ensure that your income not only lasts a lifetime but also remains resilient in the face of inflation's challenges.

In this article, we will explore the dynamics of the stock market and provide insights into its recent performance, potential risks, and important considerations for investors. While we often focus on various aspects of financial planning, it's crucial to address the current state of the market, especially given the unprecedented bull run we've witnessed over the past decade.

A Decade-Long Bull Market

The stock market has experienced an exceptional 10-year bull run, marking its longest duration in history. Since 2009, the market has surged by more than 330%. To put it into perspective, if we were to compare this to a baseball game, we would be in extra innings. 

However, the prolonged period of growth raises concerns and highlights the importance of being prepared for potential challenges ahead.

Recent Turbulence

Recent market movements have been quite turbulent. For instance, in just three days in October, the Dow Jones Industrial Average experienced a sharp decline of 1,500 points, resulting in a 7% loss. The S&P 500, which had been up 9% year-to-date, saw its gains dwindle to nearly flat at just 1%. The Nasdaq also faced a 9% drop, with major tech companies like Netflix and Amazon witnessing substantial declines of 15% and 13%, respectively. These significant fluctuations occurred within a single week, emphasizing the market's unpredictability.

The Complacency Conundrum

One of the primary concerns during a prolonged bull market is investor complacency. The more the market thrives, the more complacent investors tend to become. This complacency can be dangerous because it often obscures the potential risks that lie ahead. 

As the famous adage by Warren Buffett goes, "When others are fearful, be greedy, and when others are greedy, be fearful." Currently, there seems to be a general eagerness to invest in the stock market, particularly in the tech sector.

Overweight on Technology

The S&P 500 is currently overweighted by approximately 30% in technology stocks. This means that a significant portion of the S&P 500's value is attributed to technology companies. This level of overweighting in technology reminds us of the dot-com bubble in 2000, which led to an 80% decline in tech stocks. 

Similarly, during the financial crisis, the S&P 500 had about 25% of its value tied to financial stocks, which subsequently lost 80%. The current overvaluation in technology stocks should not be underestimated.

Protecting Your Portfolio

Given the current market conditions and the looming risk of a downturn, it is crucial for investors to take proactive steps to protect their portfolios. While the idea of a bear market may seem alarming, it's essential to be prepared for potential losses ranging from 30% to even 50-60%. Being proactive and adequately prepared is the key to safeguarding your investments in such scenarios.


In conclusion, it is vital for investors to stay informed, assess their risk tolerance, and be ready to adapt their investment strategies in response to changing market conditions. Regardless of market circumstances, it is prudent to have a well-thought-out financial plan and risk management strategy in place. Your financial well-being is of paramount importance, and being prepared for market fluctuations is a responsible approach to safeguarding your investments.


As individuals approach retirement, it becomes increasingly vital to engage with financial professionals who can provide guidance on creating a secure financial future. This article focuses on the importance of comprehending your investment portfolio and the benefits of working with knowledgeable advisors in this regard.

Understanding Your Portfolio

Surprisingly, research shows that only a small fraction of investors truly understand the composition of their investment funds. This lack of knowledge can pose significant challenges, as it limits one's ability to make informed financial decisions, especially when planning for retirement.

A Thorough Approach

A holistic approach to retirement planning involves gaining a deep understanding of your investment portfolio. Advisors who take this approach spend considerable time dissecting your portfolio, explaining its nuances, and ensuring that you comprehend its components. Whether you are well-versed in financial matters or not, this personalized education is crucial.

Portfolio Stress Testing

One fundamental aspect of comprehensive retirement planning is the evaluation of your investment portfolio's resilience. Advisors often perform what is known as a "portfolio stress test." This in-depth analysis assesses the allocation between stocks and bonds and evaluates the overall risk profile. Understanding these factors is essential, particularly when considering the potential impact of economic downturns.

Diversifying Beyond Conventional Assets

It's important to recognize that investments extend beyond traditional stocks and bonds. Diversification into alternative assets can help reduce portfolio risk. Over-reliance on the performance of stock and bond markets can be risky, as these markets can be volatile. Incorporating a range of assets outside the mainstream can provide a more stable financial foundation.

A Real-Life Example - Susan's Portfolio

To illustrate the importance of portfolio understanding, let's consider a hypothetical case. Susan, a retiree with a substantial portfolio, became concerned about her investments' performance. Upon a detailed examination, it was discovered that her bond holdings were suffering due to rising interest rates. This case highlights the necessity of monitoring and adjusting portfolios to adapt to changing market conditions.


In summary, comprehensive retirement planning involves gaining a clear understanding of your investment portfolio. This knowledge empowers you to make well-informed financial decisions, ensuring a more secure retirement

By undergoing portfolio stress testing and diversifying investments across various asset classes, individuals can enhance the resilience of their financial portfolios. This approach remains critical in today's uncertain financial landscape, providing a pathway to a financially secure retirement.

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