Portfolio Pathfinder takes advisors and investors right past the prevailing investment complexity and confusion, to see and judge best investments for the investor’s future.
Pathfinder advances investment comparison-and selection beyond “return” and “risk” for the individual year, to show advisor and investor what portfolios offer and how they compare in result probabilities for the investor’s purpose – her dollar plan and future dollar goals.
Pathfinder advances consideration of volatility beyond the questionnaire of short-term fear, to inform the investor of what investments of various volatilities offer in prospects through the years of her future. Not just one year, but year by year through the life of her plan to her final goal.
Pathfinder assesses and compares investments in prospects for the investor’s dollar future, because that’s the purpose . . assesses and compares those prospects in terms of probabilities, because future results are unknown . . uses mixes of whole asset classes, because they offer better grounds for estimating future-performance probabilities . . enables and encourages conservative adjustment and testing of assumptions, to reflect uncertainties about the future . . and delivers a unique set of interactive graphs comparing portfolios in prospects for the investor’s plan and goals visually, so the advisor can show and the investor can see best choices for the investor’s financial future.
First thing to see about Pathfinder is its portfolio-comparison graphs. Below are working videos on use of Pathfinder’s three key graphs for comparing and selecting portfolios.
(To see a video enlarged, click the four-arrows box in the video’s bottom right.)
1. Zeroing in
Whoa there, wait a second – where do those numbers come from?
That question is answered under video #3 below.
2. Closer Look
3. Year by Year
How Pathfinder gets the probabilities shown on the graphs
From you –- Pathfinder uses numbers you enter for the amounts and years of the cash flow plan and goals. Also numbers for rates of fees, taxes, inflation. And your portfolio choices. We recommend that you test changes in these – in assumptions that may be in some doubt, in aspects of the dollar plan and goals. With Pathfinder, you can easily change any of these numbers or choices, and then see how the Pathfinder graphs appear with your changes.
From history -– Pathfinder also uses numbers from history, for determining portfolios’ return-rate probabilities: asset classes’ historical return-rate averages and variations (“standard deviations”), and “correlation coefficients” indicating how much the asset classes have tended to do well or poorly at the same or different times. We recommend you test changes in some of these numbers too. Pathfinder makes it easy to change them, and offers options for single-click conservative changes.
From ten thousand tests — For each portfolio, Pathfinder uses the numbers from you and history to carry out ten thousand year-by-year tests of how your dollar plan and goals might work out with that portfolio’s probabilities. This method has the fancy name Monte Carlo simulation, but it is basically just lots of logical testing, like tossing a coin or throwing dice lots of times to test the odds.
For a phone demo and discussion of Portfolio Pathfinder, using illustrations here at this website, contact us at firstname.lastname@example.org.