Print Posted on 08/09/2017 in Financial Planning

Buy & Hold is a Hope & Prayer Strategy

Buy & Hold is a Hope & Prayer Strategy

Some may call it an Outdated Investment Strategy

Working with a financial professional has looked just about the same for the last 25 years. Challenging the status quo is not for the faint of heart. But Darcy Bergen, CRFA, managing partner of Bergen Financial Group in Peoria, Arizona, wanted to offer his clients a retirement plan they desired. “Aging traditions and philosophies are strongly entrenched in our industry,” explains Bergen who leads a team of six advisors. “For example, a Buy & Hold strategy in 2000 took 13 years to get back to even. If this repeats itself with the market going down 50%, it will once again take an upswing of 100% just to get back to even. In addition, the Modern Portfolio theory, which was first introduced in 1952, depends on stocks and bonds moving in concert – when stocks go up, bonds go down and vice versa. I felt it worked quite well for most investors before 2007. Since that time, there’s been little relationship between the movement of stocks and bonds. I feel the modern portfolio theory simply isn’t modern any longer. Yet some still may follow it.”

Helping Put Minds at Ease

Bergen and his team take a different approach designed to provide guaranteed income for life through fixed annuity options. They have access to a platform of private wealth managers who integrate investments designed to be low risk, low volatility portfolios. Bergen Financial Group offers conservative retirement planning strategies and products that include fixed annuity options that guarantee the safety of the investors’ principal. As independent advisors, they can select products that best fit clients’ goals.

“As fiduciaries, we are required to work on our clients’ behalf, not stockholders,” says Bergen who has 25 years of experience in the field, 15 in the Phoenix area. “So, we don’t pay lip service to the discovery process. People typically ask questions about goals, timelines and risk tolerance, then we generate a plan for allocating assets.

We take clients through a methodical process before recommending a plan that covers their entire financial picture, including tax efficiencies; lifetime income streams through fixed annuity options, risk management through life insurance, estate planning and more. All these aspects must work in harmony.”

Bergen advisors advocate for tactical asset management. They also use fixed annuities that offer principal protection. Based on what’s best for the client, our goal is that these strategies will minimize the effect of the Wall Street roller coaster. In simple terms, tactical managers can shift assets out of equities and into other vehicles such as cash whenever a downturn in stocks is anticipated.

The real estate limited partnership mortgage crisis in the late 1990s helped shape Bergen’s commitment to his clients. “I saw the importance of brokers with integrity, so I work as a fiduciary as an investment advisor representative with Horter Investment Management,” he says. “I also witnessed the hardship that investors in their 50s and 60s faced after losing their assets so close to retirement. I couldn’t sleep at night if I didn’t feel I did the best I could to help with my clients’ retirement plans.

As Seen in Kiplinger's Personal Finance

Bergen Financial Group

20542 N. Lake Pleasant Rd., Suite 111

Peoria, AZ 85382

(602) 652-2665 |

Investment advisory services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products sold separately through Midland National Life Insurance Company and Nationwide Mutual Insurance Company. Securities transactions for Horter Investment Management clients are placed through Trust Company of America, TD Ameritrade and Jefferson National Life Insurance Company. Insurance and annuity products are not sold through Horter Investment Management, LLC (“Horter”). Horter does not endorse any annuity or insurance products nor does it guarantee their performance. Owners of these products are subject to the terms and conditions of the policies and contracts of the issuing companies. All product guarantees depend on the insurance company’s fi nancial strength and claims-paying ability.

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