Data Driven Process

Metrics DataFinancial advisors may seem like mythical human beings that are able to somehow predict the financial future. Unfortunately, were here to burst that bubble and demystify the data driven process. Financial advisors arent omniscient and they cant predict the future. Despite that, they do use a variety of a potential investments metrics history and current valuations to make judgment calls about the future of the potential investments performance versus the market. At MyRetirementPlan, we use historical data over 3, 5 & 10 years, as well as at least 17 other metrics for investment selections and 3-Year data to make the allocation decision for your mutual fund portfolio.

Now, what does all this mean for you? Chances are youre like the rest of us that are still fairly convinced financial advisors are lying about being omniscient. To the average investor, a data driven process means your financial advisor is choosing to use history to decide where and how to allocate your funds into investments. Your level of risk will also determine how your financial advisor uses the markets fiscal history to determine which investments best suit your goals and type of portfolio. A skilled financial advisor can create a portfolio to suit a variety of risk levels utilizing their data driven process.

Not all data driven processes are created equal. Typically, less than 50% of portfolio managers match or outperform their benchmarks over 3-year and 5-year periods (Standard & Poors Indices Versus Active Funds Scorecard, August 2011). Additionally, MyRetirementPlan has found success putting more weight on 3-year data versus 5-year or 10-year data. Three-year data falls within the typical 5-year business cycle, and the bestinvestments typically will change within that 5-year cycle.

So, why is it so difficult for many financial advisors to match or outperform their benchmarks over the 3-year and 5-year periods? The simple answer is that humans can view data and come to different decisions, machines cannot. At MyRetirementPlan, we utilize 20 metrics working behind the scenes, searching through five asset classes, making it exceedingly simple to locate your best investment solutions. It is through this process that your money can be allocated according to your appetite for risk and thirst for reward. By utilizing the process, Bob Sloma the founder of MyRetirementPlan, has beat the S&P 500, especially on a 3-year and 5-year basis, which is where 50% of portfolio managers fail to meet or outperform their 3-year & 5-year benchmarks.

The data driven process utilized by MyRetirementPlan maintains a process of research, which would demand making portfolio changes only periodically and maintains a process that is not only repeatable but is able to outperform the market on a relative consistent basis.

In becoming a member of MyRetirementPlan, you receive personalized access to our cutting-edge investment engine. This puts you behind the wheel of your retirement plan, with a little (or a lot) of guidance from us. Rest easy with a financial advisor who may not be omniscient, but has a resume that shows hes the closest thing to it.Sign up today and take your first step toward a more secure future.