Offensive Vs. Defensive Investments










A New Investment Era Needs a New Approach


TFG was formed to meet a growing demand for both offensive (growth) and defensive (protection) tactics in asset management. The recent financial crisis showed investors, especially retirees, the dramatic impact a stock market decline can have on holdings, especially at the time when they need to access their investments. With life expectancy increasing and markets fluctuating, investors need help managing their money in tough times.


Our third-party money managers practice active management, monitoring accounts and moving money among market leading segments as they deem appropriate. We believe this is the best strategy to give our clients the best chance to realize a return on their investments to help them reach their goals in up and down markets.


Passive Asset Allocation



  • A strategy for investors to manage risk by allocating investments among a broad array of asset classes and holding such assets for an extended period of time regardless of market conditions.



Active Management



  • Contrary to Passive Asset Allocation, the portfolio holdings are adjusted on a continuing basis in response to market and economic conditions.  
  • When a defensive strategy is needed, the portfolio can go to cash or defensive investments to limit downside exposure.



 


The Need for a Good Offensive AND Defensive Strategy



  • Every winning game plan needs both a good offense and defense.  
  • An offensive strategy can help with inflation and help money last for someone’s entire lifespan.  
  • A defensive strategy can help protect against market volatility.  
  • Since the recent market decline in 2008, investors have been reminded of the reality of market risk. 



 

                                 .....



 





























Defensive Investments









Offensive Investments



  1. Money Market
  2. CDs
  3. Savings Accounts
  4. Fixed Annuities
  5. Bonds
  6. Universal Life Insurance*



  1. Stocks
  2. Mutual Funds
  3. Variable Annuities
  4. Variable Life Insurance Subaccounts**


Pro's:


  • Less Risk
  • Protects against market volatility


Pro's:


  • Potential for greater return/greater interest
  • Can help offset Inflation
  • Can help grow money for increased life expectancy


Con's:


  • Less growth/lower interest
  • May outlive wealth/not enough money for a longer life
  • May not offer inflation protection


Con's:


  • More risk
  • Greater exposure to market volatility




 









 


*Universal Life Insurance should be purchased on the basis of a need for life insurance and should not be purchased solely as an investment.


**Variable Universal Life Insurance should be purchased on the basis of a need for life insurance and should not be purchased solely as an investment. Variable Universal Life Insurance policies have features of both traditional life insurance and securities. The cash value will fluctuate in accordance with the investment performance of the underlying fund referred to as subaccounts.