Kirk Chisholm I Help Investors Protect Their Wealth From Inflation, Retire Well & Make Life Better I advise individuals and […]

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Kirk Chisholm I Help Investors Protect Their Wealth From Inflation, Retire Well & Make Life Better

I advise individuals and families on financial matters involving, financial planning, strategic college funding, retirement lifestyle design, legacy planning, advanced tax strategies, alternative investments inside self directed IRAs & more.

I also provide mentorship to Financial Advisors, Planners & Wealth Managers.

Episode Highlights Here:

 

Kirk

 

I think it was Benjamin Graham who said this, that you can’t manage performance, but you can manage the risk. Which is true, right? We don’t know what the market is going to do. I don’t know if it’s gonna go up or down, so I can’t manage that performance. But what’s the number one secret to managing the money properly? Risk Management first. So think about it this way. People try to manage performance, they try to beat the index, everybody does it. Right? We are naturally human beings, we are outcome based. human thinking, that’s how we all think, right? What’s the weather going to do tomorrow? What’s the stock market gonna do? Who’s gonna get elected? Those are all outcome based thinking questions. What we should be is scenario based questions. What are we gonna do if this candidate wins? What are we gonna do? If that candidate wins? What are we going to do? For the sake of the last presidential election? What are we gonna do? If it’s unclear, right? Like, how are we going to act in different situations, and I think that kind of thinking opens you up to managing risk better. So for example, if you’re in the stock market, you have one of three outcomes, the markets gonna go up, it’s gonna go down, or it’s gonna go sideways, you can make money on two of those three outcomes, you cannot make money on three of those three outcomes. So you can choose, if it goes up, you can choose if it goes up and sideways, up or down any of the three, you can come up with a strategy to make money for any of the three depending on what you think should happen. You just have to account for the fact that you’re not going to make money in that third scenario. And the question is, How bad are you going to lose in that scenario? And if you set it up in such a way, so you lose really, really badly, then obviously you’re not managing risk. So we look at I think it was Benjamin Graham who said this, that you can’t manage performance, but you can manage risk, which is true, right? We don’t know what the market is going to do. I don’t know if it’s gonna go up or down. So I can’t manage that performance. But I can tell you, I can set up risk management in such a way. So I can tell you, I will not lose more than x amount of this portfolio. I can create that for a client vary, you know, to the penny, I can create the loss. I just can’t create the outcome or the performance, because that is unpredictable. That is knowing the future which of course nobody can do. So that’s really where we differ is that we’re not just saying Oh, put it in this and you’re gonna make 6% 7% Whatever. You can’t know that. That’s total total guesswork. That’s interesting.

 

 

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About Kirk Chisholm

Advanced Tax Planning with Kirk Chisholm

Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group. His roles at IAG are co-chair of the Investment Committee and Head of the Traditional Investment Risk Management Group. His background and areas of focus are portfolio management and investment analysis in both the traditional and alternative investment markets.

Kirk has been providing wealth management services to individuals, executives, entrepreneurs, and their families, as well as businesses and organizations since 1999. Kirk is dedicated to developing lasting relationships with all of his clients. One of the benefits of working with Kirk is his patience and his ability to provide clear, easy to understand explanations of all financial options.

Prior to integrating with Innovative Advisory Group in 2008, Kirk founded Stirling Global Advisors, LLC in 2005, a full-service private wealth management firm. Kirk has also held wealth management roles at both UBS PaineWebber and Smith Barney.

 

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