Letting your emotions drive financial decisions is typically not in your best interests, especially as a high pursuer with substantial wealth and complex financial requirements. As you accumulate more assets, your decision-making processes should be based on informed decisions using historical data and solid evidence.
Investing isn’t just about picking stocks and hoping for the best. This is where Evidence-Driven Investing™, also known as evidence-based investing, comes into play. At Cogent Strategic Wealth, we’ve transformed how our high-income earning clients preserve, nurture, and grow their wealth.
In today’s blog, we’ll examine four case studies showing how evidence-based investing, combined with Cogent Strategic Wealth’s Design | Build | Protect investment process, helped these clients pursue financial independence.
Case Study 1: A Tech Executive in Chicago
Client Profile:
- Name: Sarah
- Profession: Senior Software Engineer
- Location: Chicago, IL
- Annual Income: $350,000 plus stock bonuses
The Challenge: Sarah, a high-earning tech executive, wanted to maximize her investment returns while minimizing risk. She sought the help of a fee-only financial advisor in Chicago to build a strategy that aligned with her goals.
The Solution: Cogent Strategic Wealth stepped in with their Design | Build | Protect process, emphasizing evidence-driven investing. The approach started with designing a personalized financial plan tailored to Sarah’s current circumstances, timelines, and goals.
Evidence-Driven Investing™ in Action:
- Data Analysis: Using historical market data and financial science, Cogent relied on the research to employ asset classes with strong long-term performance potential.
- Diversification: Sarah’s portfolio was diversified across domestic and international markets while balancing the allocations between stocks, bonds, and alternative investments.
- Regular Rebalancing: The portfolio was rebalanced regularly to maintain the desired risk level and capitalize on market opportunities.
The Result: Sarah saw her portfolio grow grow significantly and in accordance with her need for risk to accomplish her goals.The evidence-driven approach reduced her anxiety about market fluctuations, knowing her strategy was grounded in data and in-depth research.
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Case Study 2: A Legal Professional in St. George
Client Profile:
- Name: Michael
- Profession: Business Attorney
- Location: St. George, UT
- Annual Income: $450,000
The Challenge: Michael was looking for a fiduciary financial advisor in St. George who could offer unbiased advice. He needed a comprehensive plan to grow wealth while protecting his family’s financial future.
The Solution: Cogent Strategic Wealth applied its Design | Build | Protect process, starting with a thorough assessment of Michael’s financial situation. Then, Cogent professionals crafted a strategy using evidence-based investing principles.
Evidence-Driven Investing™ in Action:
- Customized Planning: The design phase focused on understanding Michael’s current circumstances, timelines, risk tolerance, and long-term goals.
- Portfolio Construction: Investments were selected based on rigorous academic research, favoring low-cost, systematic funds and ETFs.
- Ongoing Monitoring: The portfolio strategy focuses on capturing market returns through broad diversification and tax-efficient strategies while minimizing costs and mitigating risk.
The Result: Michael’s investment portfolio served as the engine of his financial journey—it helped move him down the path towards his long-term goals. Each piece plays an important role in reaching the outcomes you desire.
He felt confident knowing his fiduciary financial advisor in St. George always acted in his best interest.
Case Study 3: An Entrepreneur in Chicago
Client Profile:
- Name: Jennifer
- Profession: Owner of a Marketing Firm
- Location: Chicago, IL
- Annual Income: $475,000
The Challenge: A successful entrepreneur, Jennifer wanted to optimize her wealth accumulation while preparing for a potential business sale. She had previously worked with a Wall Street advisor who, unfortunately, placed her in various proprietary products that did not perform the way she expected.
She wanted to work with an independent fee-only financial advisor in Chicago who could provide unbiased advice and had access to a time-tested, evidence-based investment process.
The Solution: Cogent Strategic Wealth’s Design | Build | Protect process was the perfect fit. They developed a comprehensive plan integrating evidence-based investing, tax mitigation, and business planning.
Evidence-Driven Investing™ in Action:
- Holistic Assessment: The design phase included an in-depth analysis of Jennifer’s business assets, personal finances, and tax profile both now and after the sale of the business.
- Strategic Allocation: Investments were chosen based on empirical data, strategically blending her investments and tilts towards higher returning assets based on her risk tolerance.
- Tax Efficiency: Strategies were implemented to minimize tax liabilities, including tax-loss harvesting, tax-mitigation through use of Separately Managed Accounts, and creative optimization of retirement accounts.
The Result: Jennifer’s portfolio pursued the research which shown that investing more in companies that share certain characteristics, such as being smaller, of higher quality or less expensive, can change the risks of your portfolio, also increasing her potential for higher returns. The evidence-based strategy boosted her investment returns and prepared her for a lucrative and successful business exit.
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Case Study 4: A Medical Professional in St. George
Client Profile:
- Name: Dr. Robert
- Profession: Cardiologist
- Location: St. George, UT
- Annual Income: $650,000
The Challenge: Dr. Martinez wanted a St. George financial advisor who could help him grow his investments while managing the complexities of his high-income situation. He sought a fiduciary advisor who put his interests first.
The Solution: Cogent Strategic Wealth utilized a Design | Build | Protect process, focusing on evidence-based investing to create a tailored financial strategy for Dr. Martinez.
Evidence-Driven Investing™ in Action:
- Risk Assessment: The design phase involved understanding Dr. Martinez’s risk tolerance and investment horizon.
- Evidence-Based Selection: Investments were selected based on academic research, emphasizing diversification, reduced taxes, and low costs.
- Proactive Adjustments: The portfolio was regularly reviewed and adjusted to reflect current market conditions and Dr. Martinez’s changing financial situation.
The Result: Dr. Martinez enjoyed a more consistent outcome and smaller average swings in value within his portfolio. He had better opportunities for growth and similar downside risks as a traditional stock and bond portfolio by employing alternatives in his portfolio.
The evidence-based approach gave him peace of mind, knowing his investments were based on solid research and strategic planning.
More about Cogent Strategic Wealth
These examples of Evidence-Driven Investing™ demonstrate that it’s more than just a strategy—it’s a smarter way to secure your financial future. By basing investment decisions on historical data and scientific research, clients at Cogent Strategic Wealth have witnessed steady portfolio growth and avoided the common pitfalls of market speculation.
These case studies underscore the importance of a disciplined, data-backed approach in achieving long-term financial goals.
At Cogent Strategic Wealth, we are committed to helping you build a prosperous financial future with investment strategies that stand the test of time.
If you’re ready to start your success story, contact us today to learn how evidence-driven investing can be tailored to meet your unique financial objectives.
Remember, when you choose to invest based on solid evidence, you’re not just planning for tomorrow—you’re securing your financial legacy for you and your family.
For informational and educational purposes only and should not be construed as specific investment, accounting, legal or tax advice. Cogent Strategic Wealth provides investment advice only through individualized interactions. Certain information is based upon third-party data, which may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article. © 2024, Cogent Strategic Wealth®
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