Strategies

How does QAM achieve such high returns while increasing stability?

QAM’s strategies are composed of 3 investment components, for your short-term security and long-term security. Each portfolio has different amounts of the three components, offering different levels of short-term and long-term security. Refer to the articles Which is Safer for Retirement: Bonds or Stocks? and How Can You Maintain Security at all Times? for an explanation of this approach. Click on the three component titles below to see detailed performance information.

QAM puts your peace of mind at a very high priority. Refer to the following articles for details about how this is achieved: Diversification at Work!, Can the S&P 500 be dangerous?, Should you sell your declining stock?, When are Stocks Too Risky?, When are Bonds Too Risky?, The Imaginary Line and The Imaginary Line in Retirement.

Strategy: Extended-Term Component

Designed to provide substantial long-term growth, and annual income of up to 3% of your portfolio. This income is available for you at all times, designed to grow with inflation, and should be there whether you live to be 100 or 1,000, or are creating multi-generational wealth.

This is a diversified portfolio of over 2,000 companies, of different sizes, maturity levels and industries all over the world. It is a disciplined approach that focuses on long-term holding of companies. Ownership is through the Dimensional Fund Advisors (DFA) Mutual Funds.

Highlights

  • Annualized returns of 17.3% per year, as simulated since 1970.
  • $1M in 1970 grows to $1,831M in 2016.
  • 14.5% annual gains in the past 30 years, ending 2016.

Disclosures Including Backtested Performance Data

Strategy:  Long-Term Component

Designed to provide high long-term growth. Also, used as the main source of retirement income that is available to you at all times. Annual income of 4%, growing with inflation, is planned whether you live to be 100 or 1,000, or are creating multi-generational wealth.

This is a diversified portfolio of over 6,000 companies, of different sizes, maturities and industries all over the world. Ownership is through the Dimensional Fund Advisors (DFA) Mutual Funds, and QAM considers them to be the best mutual funds for constructing investment portfolios. The Dimensional Funds are similar to index funds, but allow for much broader diversification into desirable companies. This includes smaller companies and companies selling at bargains (low price compared to earnings or book value).

Highlights

  • Annualized returns of over 15.4% per year, as simulated since 1970.
  • $1M in 1970 grows to $850M in 2016.
  • 12.4% annual gains in the past 30 years, ending 2016.

Disclosures Including Backtested Performance Data

Strategy:  Short-Term Component

Designed to provide income that is there for you at all times. This short-term security is obtained using mid-term high-grade bonds from various governments and high-rated companies all over the world.

Highlights

  • Positive annual returns in most years as simulated since 1970.
  • Annualized returns of 6.9%, as simulated since 1970.

Disclosures Including Backtested Performance Data

Costs & Taxes

QAM understands that any cost for your investments directly affects the results. QAM increases your purchasing power at all times, by reducing various components of your costs. These include competitive advisory fees, low mutual fund expense ratio, no commissions or sales charges, no load mutual funds, negotiated large block transactions, low turnover (minimal transactions within mutual funds), minimal trades of mutual funds, smart rebalancing, low trading costs, no annual broker fees.

Your taxes are minimized across the board: within the mutual funds; when money shifts into-, out of- and between the holdings; and on the portfolio level. Some of the principles include, tax-managed mutual funds with minimal short-term gains and loss harvesting, low turnover, minimal sales, rebalancing using incoming money and a smart rebalancing algorithm.