F U T U R E S A F E

Why FutureSafe?

$ 0 +Billion
Assets under Advisement

FutureSafe is powered by Optimal Asset Management, with a long track record in servicing large institutional clients

$ 1 +M
in Discretionary AUM

Optimal Asset Management is an SEC-registered investment adviser under the Investment Advisers Act of 1940

 

Backed by the expertise of Optimal Asset Management, FutureSafe offers a new way to shape your investment outcomes with a few clicks.

 

Control your upside and downside.

Every investment strategy, from the simplest to the most complex, comes down to two variables: upside (the amount you aspire to make) and downside (the amount you can stand to lose). What if there was a way to maximize your upside while limiting your downside? With FutureSafe, not only is this possible, but it’s at the core of what we do.

Controlling your downside is not just about losing less, it’s about winning more.

Knowing you have a safety net underneath you is exactly what allows you to invest more boldly – and more confidently.

Think about it this way – how high would you be willing to go rock climbing if you didn’t have a safety harness on?

The point of a safety harness when rock climbing, or a safety net when investing is the same: to allow you to go higher than you would if you didn’t have one.

We use academically vetted High-Performance Portfolios.

We use sophisticated, state of the art portfolios much like the largest institutional investors use. These are based on decades of academic research by some very smart professors and yes, that includes a bunch of Nobel prize winners. We like these Factor-Based (also called Smart Beta) portfolios because the indices they are based on have a long track record and demonstrate a solid level of out-performance.

 

For instance, over the period 1995-2018 the average of the four major S&P500-based Large Cap Factor indices out-performed the S&P500 index by a stunning 2.5% per year. Even more shocking, it did so with lower volatility than the S&P500 index (source: data courtesy of S&P Dow Jones Indices).

 

2.5% per year??? Yup. We think that’s a lot of money to leave on the table, which is why we use these types of portfolios for all of our clients regardless of account size.

 

If you prefer thinking in Dollars rather than Annualized Percentages, try this: If you had invested $100,000 in the S&P500 index in January of 1995, you’d end 2018 with around $860,000. That’s impressive, but wait for this: if you’d invested that same $100,000, Equally-Weighted in those four S&P500 Factor Indices, you’d end 2018 with nearly $1.5 Million! ($1,490,000 to be exact)

 

Well, Hello Millionaire!

 

It’s not always the case that financial academics and financial data agree, but when they do, it’s worth paying attention!

 

Decide for yourself: what do you have to lose?

Investing can be a gateway to more income, wealth and eventually, financial confidence. But every market is susceptible to fluctuations and downturns. With FutureSafe, we trade based on your customizable objectives:

  • Set an upside target to lock in your gains as your portfolio grows in value and you reach your goal
  • Set a safety net to minimize the chances of falling below a certain investment threshold
  • Choose a time horizon that establishes a target date for your investment goals

Reach for upside, but limit the downside.

Investment service providers, traditional and robo-advisers alike, often put you in a “portfolio bucket” based on a questionnaire or quiz-based assessment of your risk which they rarely update. Why base your future on a static risk profile when the market is constantly in flux? And who doesn’t want both “Aggressive Growth” and “Capital Preservation”??

We think these static quizzes and questionnaires are unhelpful and obsolete.

We believe that what matters is “will you have the money you need, when you need it?”

FutureSafe offers an alternative approach based on a dynamic calculation of risk. Here’s how we do it:

  • Your portfolio has two components: a return-seeking component (stocks or high yield bonds depending on your goal) and a low-risk component (Treasury bonds).
  • The ratio of the return-seeking component to the low-risk component continually adjusts based on your risk budget.
  • Your risk budget adapts to market conditions, maximizing the chance of reaching your upside target without ending up below your safety net at the end of your time horizon.

 

Choose a portfolio strategy that works for you.

The strategies that power FutureSafe come from our track record of building stock portfolios for the world’s largest and most sophisticated pension funds. You can also invest in the industry-standard S&P 500® (or any other US-based S&P index). Either way, regardless of the chosen strategy, our portfolios come with several perks:

  • Direct ownership of hundreds of stocks, allowing for more sophisticated tax-management relative to fund or ETF-based strategies.
  • Individual stock-level exclusions: if you don’t like a stock for moral, ethical, or tax-related reasons, you don’t have to hold it in your portfolio.
  • Access to broadly diversified, factor-based portfolios. (See our section on How we Invest.)

 

Stick with the plan while adjusting as needed.

FutureSafe gives you the flexibility to take on life’s ever-changing circumstances. Once you put a plan in place, our engine will trade accordingly. You can adjust and adapt any time along the way.

  • Concerned about a downturn? Set your Safety Net at a higher threshold.
  • Doing better than expected? Update your upside target to put more money into stocks.
  • Liquidate or add funds to your portfolio at any time, for any reason.
 

This Website is owned and maintained by Optimal Asset Management Inc. (“OAM”), an SEC-registered investment adviser under the Investment Advisers Act of 1940. For more details, see our Form ADV Part 2A and our Privacy Policy. By using this Website, you accept our Terms of Service

OAM’s investment advisory services are currently available only to residents of the United States. OAM provides its investment advisory services only to individuals/institutions who become OAM clients pursuant to a written investment advisory agreement. Articles, commentaries, investment strategies, our risk control playground tool and other content provided by OAM on or through the website are for illustrative or educational purposes only and do not constitute investment, legal or tax advice, or an offer to buy, sell or hold any security. Forecasts or projections of investment outcomes in investment strategies are estimates only, based upon our scientific and data-driven algorithmic analysis. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client’s financial situation and do not incorporate specific investments that clients hold elsewhere.

Investment management and advisory services are provided by Optimal Asset Management (“Optimal”), an SEC registered investment adviser. Optimal is not a bank. Assets are invested in exchange-traded fund securities, and are therefore not FDIC-insured. However, the securities are SIPC-insured up to $500K per account. SIPC does not protect against the decline in value of your securities; it does protect the custody of such securities.

Before investing, consider your investment objectives and consult with your Registered Investment Advisor for more information.

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Brokerage services are provided to OAM clients by third party brokers who are members of FINRA/SIPC. For more information or any questions, please contact us at Support@optimalam.com.