Block Out The Noise

Robert J. Bancroft

The first in a series of articles developed to define and personalize the Wealth That Lasts Process. This process is based on your personal values and goals in balance with your assets and lifestyle needs. It is designed to block out the noise of the investment markets and to allow you to focus on the things that are truly important in your life.


When I started in this industry more than 20 years ago, I was very open to everything I could read or hear relating to investing and the investment markets...

The What and Why of Your Wealth Management Strategy

Robert J. Bancroft


It was Mark Twain who said, “I can teach anybody how to get what they want out of life. The problem is I can’t find anybody who can tell me what they want.” Twain was speaking about the lack of direction that exists in most people’s lives and how they could benefit by taking the time to determine what they wanted in life. I have seen this lack of direction in the investment portfolio of individual investors for my entire career. Most investors have never formulated a plan, so they accumulate financial products...

Meet the Smiths

Robert J. Bancroft


The following case study is designed to help understand values and goals in relation to personal circumstances. This article and the next will be used to help define financial independence. 


In the previous article, we defined values and goals as they relate to the development of your wealth management strategy. Since the range of individuals’ goals can be infinitely large, I am going to introduce you to John and Betty Smith... 

Realistic Expectations

Robert J. Bancroft


If a traveler doesn’t have a destination in mind, then any road will do.


Unlike nomads, serious investors need to determine a destination by establishing realistic goals based on their values and in balance with their personal circumstances. Our goals describe where we want to go, and our values define why we want to go there. During this article, we will continue to demonstrate how the Wealth That Lasts process uses... 

Risk Is a Four Letter Word

Robert J. Bancroft


Is the market ever going to stop going down? What is going to happen next? Should I change my strategy? I’m worried about our national debt, terrorism, accounting fraud, interest rates, strengthening dollar, weakening dollar, weak earnings, consumer confidence, housing starts, investor apathy, inflation, deflation, gold prices, European debt crisis…


Investor Toolbox
Robert J. Bancroft


We have been working through the elements of the Wealth That Lasts process during the past few articles. The purpose of the process is to block out the “noise” that comes from the scattered, disconnected investment information that bombards us every day. The financial services industry has focused most of its attention on marketing to potential clients rather than on educating them. This type of marketing is typically...

Investing's Crystal Ball:
Future Value of Current Decisions is More Valuable Than Present Value of Past Decisions
Robert J. Bancroft


The two main lifecycle stages to be examined in investment management for an individual or a family are accumulation and depletion. The accumulation stage is defined as the period when wealth accumulates faster than it is used (working life). The depletion stage is defined as the period when wealth use exceeds accumulation (usually retirement). When one is in the accumulation stage, market volatility appears to be of less concern than the depletion stage because the need to spend principal is relatively small. During the depletion stage...

The securities/instruments discussed in this material may not be suitable for all investors. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Global Wealth Management Institute and Wealth That Lasts recommends that investors independently evaluate specific investments and strategies, and encourages investors to seek the advice of a financial advisor.


Global Wealth Management Institute and Wealth That Lasts do not provide tax or legal advice.  Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

Past performance is no guarantee of future results.


Asset allocation and diversification do not guarantee a profit or protect against a loss in a declining financial market.


Rebalancing does not protect against a loss in declining financial markets. There may be a potential tax implication with a rebalancing strategy. Investors should consult with their tax advisor before implementing such a strategy.


Any type of continuous or periodic investment plan does not assure a profit and does not protect against loss in declining markets. Since such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities, the investor should consider his financial ability to continue his purchases through periods of low price levels.


Monte Carlo simulations are used to show how variations in rates of return each year can affect your results. A Monte Carlo simulation calculates the results of an analysis by running it many times, each time using a different sequence of returns. Results generated by a Monte Carlo simulation will vary with each use and over time because each portfolio simulation is randomly generated.  Some sequences of returns will give you better results, and some will give you worse results. These multiple trials provide a range of possible results, some successful (you would have met all your goals) and some unsuccessful (you would not have met all your goals). The percentage of trials that were successful is shown as the probability that the analysis, with all its underlying assumptions, could be successful. Results using Monte Carlo simulations indicate the likelihood that an event may occur as well as the likelihood that it may not occur. In analyzing this information, the analysis does not take into account actual market conditions, which may severely affect the outcome of your goals over the long term. The projections or other information generated by a Monte Carlo simulation regarding the likelihood of various investment outcomes (including any assumed rates of return) are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Global Wealth Management Institute and Wealth That Lasts cannot give any assurances that any estimates, assumptions or other information generated by a Monte Carlo simulation will prove correct. They are subject to actual known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those shown.


Interest in municipal bonds is generally exempt from federal income tax.  However, some bonds may be subject to the alternative minimum tax (AMT).  Typically, state tax-exemption applies if securities are issued within one’s state of residence and, local tax-exemption typically applies if securities are issued within one’s city of residence.


Bonds are affected by a number of risks, including fluctuations in interest rates, credit risk and prepayment risk.  In general, as prevailing interest rates rise, fixed income securities prices will fall.  Bonds face credit risk if a decline in an issuer's credit rating, or creditworthiness, causes a bond's price to decline.  Finally, bonds can be subject to prepayment risk. When interest rates fall, an issuer may choose to borrow money at a lower interest rate, while paying off its previously issued bonds. As a consequence, underlying bonds will lose the interest payments from the investment and will be forced to reinvest in a market where prevailing interest rates are lower than when the initial investment was made.  NOTE: High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues.


S&P 500 Index is an unmanaged, market value-weighted index of 500 stocks generally representative of the broad stock market.


Dow Jones Industrial Average is a price-weighted index of the 30 “blue-chip” stocks and serves as a measure of the U.S. market, covering such diverse industries as financial services, technology, retail, entertainment and consumer goods.


An investment cannot be made directly in a market index.


Information contained herein has been obtained from sources considered to be reliable, but Global Wealth Management Institute and Wealth That Lasts do not guarantee their accuracy or completeness.


The views expressed herein are those of the author and all opinions are subject to change without notice.  Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.  Past performance is no guarantee of future results.


Any case study presented is provided for illustrative purposes only. Past performance is no guarantee of future results.   The information has been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness.  These strategies do not guarantee a profit or protect against loss and may not be suitable for all investors.  Each person’s specific situation, goals, and results, may differ.