New Customer Profiles: Asset Revesting Doctors
Alex has always understood that the journey to practicing medicine would be difficult. Years of additional schooling, long days spent as a resident, plenty of missed holidays, establishing a practice, medical conferences, etc. He recalls long, tiring days that began to blend together all too soon – a hurried breakfast, then off to the hospital to start rounds as the sun rose. Lunch would be a series of snacks crammed somewhere between seeing patients, attending meetings, scheduled surgeries, and responding to emergencies. Dinner would often be interrupted when he was on call, and then, for dessert, there was the never-ending paperwork and patient charts that had to be updated and completed. It was a hectic and demanding schedule that did not allow for much else.
Throughout the years, Alex has had a growing problem. Due to the extremely long hours and mental dedication to his career, Alex knew he was not handling his money as well as he could be. Out of necessity, Alex invested most of his money with a financial advisor who adamantly believed in using a diversified buy-and-hold strategy to grow wealth. But even with a professional at the helm of his savings, Alex felt that the results fell short of his expectations. When he brought this up to his advisor, he felt like he’d been given a bit of a runaround and had no actual answers to his questions. This led to a frequent and growing concern about his long-term financial situation. The crux of the problem was that, for the time being, he didn’t have the time to find a new advisor or take over his own investments. What he could do, though, is begin to research investing strategies, even if it was only for ten minutes at a time.
With that thought in mind, Alex’s motivation was rekindled. His ultimate goal, retiring early and living in the moment without concern for money, was now set in stone. So, no more tidy, pat, placating answers from his advisor would be acceptable. No more watching his retirement accounts taking nosedives. No more being left behind while others around him locked in gains. No more missed chances and opportunities to protect his capital investments and lock in profits. No more sticking his head in the sand and leaving the decisions of his financial future in someone else’s hands. It was time to take control, and that’s precisely what he chose to do.
Alex already knew he had to stop relying solely on the conventional diversified buy-and-hold strategy his advisor advocated for, as he no longer had the time left to recover from major market corrections. The recent downturn in the bond market gave him a scare and reminded him of the decades it took to recover from previous market collapses. Touted as the safest place to park money, he was shocked to watch the ‘safe haven’ fall by the wayside.
No matter what the stock and bond markets did, Alex needed something that would offer him the ability to escape bear markets and maintain the trajectory of his retirement account. He had to find a new strategy to manage market cycles and get around the severe drawbacks of the traditional methodology. In his search, Alex came across the term Asset Revesting and having never heard of it before, he dug deeper.
Asset Revesting, it turns out, was a growing investment category that divested itself of decisions based on emotions, news, or lazy practices. Instead, tactical asset allocation was done according to technical analysis. An asset hierarchy was used, and the asset revesting signals identified which assets in the hierarchy were starting a new trend to the up or downside.
Everything Alex read was exactly what he was looking for. Here was a strategy that’s first goal was to protect capital. The next goal was to grow an account with risk and position management tools in place that supported the first goal. Asset revesting rules locked in profits along the way, moved stops to protect the remaining capital, sold assets that began to lose value, and stayed in cash when there was no safe play. Alex knew there was always some risk in investing, but with asset revesting, the risk was acknowledged, and tools were put in place that would help him protect a lot, even if he occasionally lost a little.
Despite being a little apprehensive, Alex decided to give it a shot and started employing asset reinvesting signals from a well-known and proven newsletter. He committed the time to learn and understand exactly what was happening to his money with each aspect of the trade. Even if he chose to have the alerts autotraded later, this time, gaining the experience of investing his money was very important to him.
And, wouldn’t you know it, Alex noticed an improvement as soon as he began deploying the asset revesting signals in his self-controlled retirement account. His investments not only avoided market corrections, but they also benefited from them. The proof was in the pudding when Alex’s retirement account experienced new highs every few months during the challenging years of 2022, while the accounts of his friends who used the buy-and-hold strategy continued to decline.
Alex was so grateful that his investments were now making money for him. With every trade that passed, he was less concerned about significant losses, drawdowns, or extended periods of no returns. Over the course of a year, he moved more funds over to the asset revesting strategy and encouraged his financial advisor to check it out. Once Alex understood how everything worked, he set up the asset revesting signals to be autotraded in his retirement account. As he kept an eye on the consistent gains, he felt the release of pressure and fear that had gripped him for so long. For perhaps the first time in his life, Alex was free from the worry about money and was able to fully relax and unwind on a vacation.
As his retirement date drew nearer instead of further away, Alex felt more at ease, knowing he wouldn’t have to worry about money. Looking back at the time since deciding to take charge of his financial future, Alex was astounded by how much he had grown and learned. With asset revesting, he had come a long way from near-constant work, stress, and denial to be so close to his retirement that he could taste it.