A New Investment Era Needs a New Approach

TFA 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. 

1. Money Market
2. CDs
3. Savings Accounts
4. Fixed / Indexed Annuities
5. Bond Funds
6. Universal Life Insurance*

1. Equity Funds
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.  It is not and should not be considered an investment.

**Variable Universal Life Insurance is adjusable permanent life insurance with flexible premiums that provides a death benefit to the policy beneficiary.  Variable universal life insurance policies (VUL's) are similar to whole life or universal life insurance policies, except that the policy value (net premiums) and/or the death benefit fluctuate with the investment performance of the sub-accounts (investment options) of the separate account in which the policy value is invested. The sub-accounts are invested in corresponding funds that hold stocks, bonds and other types of securities. The underlying funds are professionally managed with specified investment objectives and each has varying degrees of risk and reward potential. All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing.