Fact Based Investing

What makes Volk and Associates unique is that unlike 99% of the financial services field,
we do not engage in any of the following:
Predictions
Opinions
Outlooks
Forecasts
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Volk and Associates makes no predictions because no one can know the future with any certainty. Relying on predictions, be they simple forward looking market predictions or making assumptions that asset classes will always produce similar returns as the past makes portfolios go- you guessed it. POOF! Unfortunately, many of our clients experienced this when their previous advisors thought they had a crystal ball. As economist Edgar Fiedler, former Assistant Secretary of the U.S. Treasury once said, ‘He who lives by the crystal ball soon learns to eat ground glass.’Just as dangerous as relying on predictions is relying on assumptions. The vast majority of the retirement / pension planning field came to the conclusion decades ago that an 8% return was a safe assumption to make. After the last 12 years worth of returns, pension funds have made around a 3-4% average annual return. That’s ok for a year or two, but for 12 years, this is incredibly damaging. For example, what does that mean for someone who is 5 years from retirement and has been told for decades they could safely assume that they’d get 8%?

With the dangers of relying on predictions and assumptions, is it any wonder that Volk and Associates relies instead on ‘Fact-based Investing’? We believe our results speak for us in answering this question.