'Buy and Hold' Investing Forever Dead, Warns Investments Management Specialist Jeff Voudrie

In the good ol’ days of frequent Bull markets, retired investors could take an extremely simplistic approach to investments management: simply put their money in a few blue-chip funds, and watch it grow like a sunflower. In today’s consistently volatile market and economic slow growth, “Set It and Forget It” could lead to retired investors losing all of their retirement funds and firing your financial advisor shortly thereafter, warns Jeff Voudrie, CFP®--a financial advisor in Johnson City, TN.

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Jeff Voudrie, CFP® Professional Financial Planner in Johnson City, TN

Jeff Voudrie, CFP® Professional Financial Planner in Johnson City, TN

'Different approaches are needed from one season to another in the midst of a Bull or Bear market. The strategies used have to be more flexible and the account allocation needs to be dynamically adjusted,' says Jeff Voudrie, a financial planner in TN.

Johnson City, TN (PRWEB) September 30, 2013

Jeff Voudrie, president of Common Sense Advisors, recalls Ron Popeil of Ronco fame, who had an infomercial about a simple-to-use oven. “There was a saying that he kept repeating throughout the 30 minutes show,” Jeff Voudrie reminisced. “‘Set It And Forget It.’ All you had to do was put a roast or chicken in, set-it-and-forget-it and voila, you’d have the perfect entree.” Retired investors have taken a similar approach to investing over the last several decades and it is one strongly recommended by most large financial firms. “Those days of having all of your money in the Buy and Hold strategy are permanently over,” according to a prominent financial advisor with three U.S. patents and increasing media attention.

Jeff Voudrie illustrates the approach used by the ‘Big Firm’ financial advisors:

"Are you 10 years away from retirement? Do you need to make up for lost ground? Just set it and forget it in this great mutual fund or annuity.

"Are you retired but don’t need income? Just set it and forget it in this great mutual fund or annuity.

"Are you retired and taking monthly distributions from your portfolio? Just set it and forget it in this great mutual fund or annuity.

"They call this approach Buy and Hold. I call it Buy, hold and hope," the financial planner in Johnson City, TN observed.

Jeff Voudrie argues for a much more practical approach to investments management during market fluctuations. He argues that if it is logical to diversify between stocks, bonds and real estate to reduce overall risk (as recommended by typical advisors), then why isn’t is logical to also diversify by the investments management approach and the strategies used? “Why take pains to make sure 100% of a portfolio isn’t invested in a single type of investment like stocks but then ignore the fact that the way that they are being managed is 100% the same?”

“The buy, hold and hope strategy can work well when the markets are in a longer-term Bull trend. In a longer-term Bear market, the same strategy turns into buy, hold and suffer because secular Bear markets are characterized by extreme volatility and have more frequent and more severe ups and downs. Gains that are made can quickly be lost if you just buy and hold,” he noted.

This type of buy, hold and suffer was plain to see in the past few years. “2011 was a good example of that,” Jeff Voudrie continued. “The S&P 500 ended the year virtually the same place as where it started, but there were something like six different up-and-down moves greater than 15%. It was a roller coaster and few buy, hold and suffer investors were able to endure it as evidenced by the amount of money flowing out of stocks during that time.”

Jeff Voudrie believes wholeheartedly that no single long-term strategy is wise, unless that strategy is flexible in the shorter terms within a long period. “A different approach may be needed from one season to another in the midst of an overall Bull or Bear market. The strategies used have to be more flexible and the account allocation needs to be dynamically adjusted more often,” he summarized. “Buy and Hold is a valid strategy but there isn’t any single strategy that works all the time, in all market environments. As an investments management specialist, it’s my job to match the strategies used to the type of market being currently experienced.”

He makes a powerful argument for what he calls “tactical management,” in stark contrast to Buy and Hold: “Tactical management typically involves some type of pre-defined approach that helps identify when to enter the market and when to exit. Tactical-based strategies are better suited for cyclical Bull and Bear markets that might only last for a series of months instead of years.”

A financial services industry veteran with more than 20 years’ experience, Jeff Voudrie is a new breed of private money manager. Using sophisticated electronic monitoring and software, combined with his 25 years’ experience as a money manager, Jeff works with you to create a personal investments management portfolio that reflects your lifestyle goals and risk tolerance. He specializes in stable growth and prudent profits while applying a robust, patented risk management processes. When you work with Jeff, you have the security of knowing that your life savings is getting the attention it deserves.

Jeff Voudrie, a financial planner in Johnson City, TN has been interviewed by The Wall Street Journal, CBS MarketWatch, The London Financial Times and the Christian Science Monitor. He is a former syndicated newspaper columnist and the author of two ground-breaking books: How Successful Investors Tripled the Return of the S&P 500 and Why Variable Annuities Don’t Work the Way You Think They Work. He accepts a limited number of new clients in his personal investments management practice. He and his wife Julie live with their seven children in Johnson City, TN. He is heavily involved in his local church and has done missionary work in Hungary and Cambodia.


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