1) The document discusses developing a comprehensive financial strategy that combines different investment ideas, practices, and notions into a coordinated plan. 2) It emphasizes regularly reviewing and adjusting the strategy based on economic changes to ensure the strategy's actions and goals remain aligned. 3) The author proposes a "Financial Select" approach that incorporates monthly coaching, regular strategy adjustments, and considering both long-term and short-term factors to develop a holistic financial strategy.

1. A Strategic Financial
Response
www.theevansgroupllc.com
Rodney G. Mogen

2. A Strategic Financial Response
In 2015 or 2014 or 2020 to “win” at the market one needs to be strategic about how they do it. There are many
ways this can be done. One can be Modern Portfolio Theory (MPT). MPT states that there is an optimization of a
portfolio by having a balanced attack. Below is a sample allocation of MPT portfolio:
 25% Large Cap
 20% Middle Cap
 20% Small Cap
 15% International
 5% Cash
 15% Bonds
This is a sample moderately aggressive allocation for a moderate aggressive individual. Now when looking at this,
moderately aggressive is defined as someone that is looking for an 8% a year return or more. In today’s age, I
would argue this would be considered aggressive and risky behavior by most people thus may not be the right
allocation. In addition today the way most people accomplish this allocation is through mutual funds, which has
their own problem but obviously should be a part of the portfolio.
Instead of working with a mutual fund, or traditional strategy, some people evolve that to what come consider
more aggressive and others more controlling and do an individual stock strategy. There are problems with this as
well, since time is always at question and the market can move fast. Some people, always looking to improve,
build to other strategies again putting pressure on time and resources. That is why when looking at something
like financial planning, a strategy needs to be in place and needs to be enacted. In the next few paragraphs, I will
discuss the idea of a financial strategy and how things can develop and grow the right way.
What is the best way to approach it then? Is there a good way? MPT tries to address that from a strategic and
scientific way, but to many investors and advisors it has become a fallback position and allows for under returns
because you are diversified. Don’t get me wrong, you need to be diversified and have a proper asset allocation,
but too often that allocation is confined to one area, stocks or by extension mutual fund, and that is it. That is
not the point of diversification. Diversification is the spread of resources among multiple places that will provide
counter balances and opportunities to provide the best protection but also the best growth for your portfolio.
This is where we get to the first part of the strategy, Ideas, Notions and Practices.

3. In the above diagram you see that ideas, notions and practice come together to become a strategy. Right now,
people have notions about what they do or should do, but don’t put it into play. Some have taken those ideas
and execute them, following laid out plans like option buying and selling. The best is OEX Options and Blue Chip
Options which give you the plan, the facts, and the way to practice the ideas that are out there. There is also a
larger strategy in play here with that which we will talk about. Practice, is the actual execution of things and
when you combine them all together you have a strategy.
As you move forward with that strategy you put all the ideas, notions, and practice into a combined plan,
diversifying your resources among different areas in the implementation of a strategy. Once your strategy is in
place, then you take action. Action is the execution of that strategy and you put in place different steps and ideas
that will help you accomplish your goals and what you want. For example, let’s say your goal is to retire at 55,
and you want to have different things in place. One strategy might be to diversify your assets and resources
among different categories, some would be considered safer investments: Cash and fixed investments, the next
resource might be a tax advantaged area like cash value life insurance and other products, then you will get your
more predictable returns through your normal investment strategies, diversifying among different asset classes,
but then you might take more aggressive plays with your money including venture capital option plays. I say
more aggressive because of the time that is involved in these investments both in research and following, if done
correctly they can be safer than other areas and come with less volatility but you have to be more aggressive with
your time.
If one applies a strategic approach to their investments, their actions have a purpose and time becomes easier to
deal with when strategy is applied. The key thing with the strategy is actions must be taken. When these actions
are taken results become clearer and easier to manage and you start to see the results as a part of your overall plan.
Strategy
Practice
Notions
Ideas

4. As seen below, your performance has an upward trend when using strategy as a launching point.
So how does one implement the right financial strategy?
1. Identify what you want to accomplish?
2. What actions are you willing to take and not take?
3. What resources do you have to apply to this strategy?
4. What are your S.M.A.R.T goals? (Specific, Measurable, Actionable, Relatable, Timely)
5. How much time do you have to devote?
6. What is your risk tolerance?
a. This is one of the most important ones. Whether you are looking at devising an investment
strategy for yourself or for a business, you need to know how much you are willing to risk losing
and how that will play into your strategy.
Once you have accomplished this then you need to review it on a regular basis. A strategy is important but not
reviewing the effectiveness of the strategy could cause harm to your strategy as things change. If we were
looking at 2015 compared to 2014, investing in aircraft, construction, and transportation companies would not
make sense. However, with low oil prices, increased infrastructure, if the strategy was to find growth
opportunities with option plays, then now in 2015, those companies might see a bigger play thus making them
better opportunities. It might also be the right time to invest wisely in development or other companies from a
business perspective.
How are you designing your strategy?
Taking different strategies and/or practice and combining them into your investment plan, either as a business or
an individual does not mean you have a well thought out strategy that is comprehensive in nature and takes into
account balances and weights of your other independent strategies. That is where the theory of a combined
strategy taking these systems into accounts come in. Financial Select, is one aspect of that theory:
Strategy
Action
Results

5. As seen above, The Financial Select Theory is a multi-step process including coaching and regular changes to all
aspects of your strategy and making sure economic changes don’t disrupt it. How connected are your
independent strategies to an overall arc? Are you doing regular reviews of their success and defining their
progress or are you measuring by results only?
Strategy is more complicated sometimes than just writing something out. Strategy requires global, domestic, and
local thought. This thought takes many different resources into account to adjust to what you want to
accomplish.
Rodney Mogen is the Director of Financial Strategy for The Evans Group and the President of Solve ur Puzzles,
organizations designed to help businesses and high net worth individuals apply different strategies to accomplish
financial objectives in business and/or investment portfolios. Check out www.financialselectservices.com for more
information.
Action and Results
Monthly Coaching Changes and Actions
Investment Strategy
Long Term Thought Short Term Focus
Financial Select
Comprehensive Look Thoughts and Feelings