McKeon Financial has access to alternative investments that many large brokerage firms cannot or do not offer because these choices do not fit their "investment model" which is often heavily or entirely in the stock and bond markets. From the beginning, out goal has been to specialize in investments the average advisor typically does not have access to.
Our investment approach at McKeon Financial is much more similar to that of the Harvard and Yale Endowment Funds than that of the traditional equity investor, whom would typically invest in a passively managed, 60/40 split of stock and bond mutual funds, hoping that the market will only go up.
Over the past 20+ years, the Harvard and Yale Endowment Funds have significantly outperformed other endowment and pension funds, which have, in turn, significantly outperformed the average equity investor. Our goal is to diversify your portfolio with many of the same types of alternative investments that the most successful endowment funds invest in, with similar allocations, using investment products that are suitable and appropriate through our Broker/Dealer, Independent Financial Group.
At McKeon Financial, we believe investment results need to be evaluated with respect to the individual goals of each investor. Most of our clients want more predictable returns with as little volatility as possible so they can more effectively prepare for future income needs. Portfolio diversity guards against market risk that may be present in other investments. Our goal is to provide you with alternative investments that have low "correlation" to the market and less exposure to market volatility, either as your primary strategy or as a secondary strategy.
Distribution Theory vs. Accumulation Theory
Many of our clients at McKeon Financial face the same primary challenge: needing to fund multi-decade obligations without running out of money.
Many planning firms will prepare you for retirement using “Accumulation Theory.” Using this theory, you attempt to accumulate as much value as possible through regular contributions and through market appreciation, with the hope that your accumulated value in your account will be enough to supplement future income needs in retirement. The investments often consist of passively managed stocks, bonds, and/or mutual funds. Accumulation Theory assumes you are not overly concerned with market fluctuations while you are still contributing to your accounts and still a long way from retirement. This is because you are able to continue investing at lower share prices during market lows and able to benefit from the appreciation later when the markets recover and share prices increase again (much like “dollar cost averaging”).
The problem with “Accumulation Theory” when nearing or already in retirement is that it does not account for your taking distributions or withdrawals during periods of market losses. “Accumulation Theory” assumes markets always come back up and that your portfolio is safe as long as you continue to “hold” until your portfolio recovers the value you have lost. However, if you are already taking money out, there is less money earning interest each month as distributions are taken, so even higher returns are needed in order for you to fully recover from market losses.
“Distribution Theory” concentrates on your need for regular, relatively predictable income with lower volatility, and it tends to be more defensive in nature. The goal is to protect your principle, generate steady, consistent income, and continue to grow your portfolio to account for inflation. Our investment model is similar to that of the Harvard and Yale Endowment funds, where there is a need for predictable returns in order to fund future obligations.
All investments involve risk. The most significant risk with many investments we use is that they are not very liquid. While they may be suitable for some investors in appropriate amounts, they are not the best option for everyone.
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By choosing non-traditional investing alternatives to the stock market, you'll find the same level of potential return with a strategy to minimize risk. We offer same-day appointments.
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John McKeon is a registered representative offering securities and advisory services through Independent Financial Group LLC, a registered broker-dealer and investment advisor. Member FINRA
/ SIPC. Independent Financial Group LLC and McKeon Financial aren't affiliated. Office of Supervisory Jurisdiction: 12671 High Bluff Dr. Ste 200, San Diego, CA 92130 WA Ins #238134.
This information is from sources we believe to be reliable; however, we can't guarantee or represent that it's accurate or complete. Because investors' situations and objectives vary, this information is not intended to indicate suitability for any particular investor.
John McKeon is licensed to sell securities in the following states: AZ, CA, CO, FL, HI, KS, MN, MT, NC, NV, NY, OH, OR, TX, WA, & WI.
Located approximately 40 miles north of Seattle. One mile west of I-5 at Exit 206. 0.1 miles after the railroad tracks, on the right side of the road just before the Shell Gas Station. 2nd floor of the white and tan building, above Cascadia Chiropractic.
McKeon Financial offers securities and advisory services through Independent Financial Group, LLC, a registered broker-dealer and investment advisor. Member FINRA/SIPC. Independent Financial Group, LLC and McKeon Financial are not affiliated entities. John McKeon is licensed to sell securities in the following states: AZ, CA, CO, FL, HI, KS, MN, MT, NC, NV, NY, OH, OR, TX, WA, & WI.
Information provided is from sources believed to be reliable however, we cannot guarantee or represent that it is accurate or complete. Because situations vary, any information provided on this site is not intended to indicate suitability for any particular investor. Hyperlinks are provided as a courtesy and should not be deemed as an endorsement. When you link to a third party website you are leaving our site and assume total responsibility for your use or activity on the third party sites.