Lasting a Lifetime
Stuffing Cash Under the Mattress
THE SUIT MAGAZINE - SEPT 2014 Despite the market hitting record highs, retail investors, with investable assets ranging from less than $250,000 to more than $1MM, have dramatically increased their allocation to cash. Cash allocations have jumped in the past two years with the global average rising from 31% in 2012 to 40% in 2014. In the US, allocations rose from 26% in 2012 to 36% in 2014,” stated the report.
These statistics come as no surprise to Gary Montgomery, president and CEO of Wealth Security LLC, a feebased financial advisory firm in Austin, Texas.
“The 2008 recession has refocused a lot of attention on capital preservation – and the event put fear into investors, keeping them from taking the appropriate amount of risk, particularly baby boomers approaching retirement,” said Montgomery.
Wealth Security LLC has helped people reenter the market who, because of the recession, had largely pulled out and were sitting on significant amounts of cash. “We’ve encouraged them and helped them make better decisions,” he explained. Referencing one such client who was helped to understand the right mix of risk and capital preservation, Montgomery noted, “We’ve done extremely well with her portfolio. In fact, she’s so much more comfortable with the amount of assets that she has, that she is encouraging us to take larger risks.”
Montgomery is currently involved in a pro bono project for the military to help soldiers returning to civilian life. He is a graduate of the United States Military Academy at West Point, where he studied engineering as an undergrad. Later on, he earned an MBA, and with experience in mergers and acquisitions, also became a Certified Financial Planner.
“Because I come from an analytical background, I look for left-brained clientele – the left brain being logical, analytical, and objective,” Montgomery emphasized. “I can apply my analytical skills to help make better decisions for them. I recognize that emotions are part of any decision, so we match logical and analytical thinking with the emotional aspects and help clients make good financial decisions to preserve or increase their wealth.“
Foreseeing a time when people could be retired for more years than they actually work, Montgomery related, “In the future, the expected lifespan is going to be age 100 or higher. It’s likely that people are going to be retired for 35 to 40 years, and their retirement money has to last.” In answer to that, Wealth Security LLC has developed a paycheck system for retirees. Similar to they way money was handled when they were working, retirees receive periodic paychecks, annual bonuses and pay raises.
Montgomery said, “We link the performance of the pay raises and the bonus as it relates to the portfolio performance, which ensures that it will last their lifetime.”
Wealth Security LLC 100 Congress Ave. Suite 2000
Austin, Texas 78701 Office: 1-877-256-1681 Fax: 1-877-276-5696 firstname.lastname@example.org www. wealthsecurityllc.com