Lakewood, New Jersey

  • 695 Cross Street, Lakewood, NJ 08701
  • (212) 634-7842
Rethinking Retirement New Perspective

Able Wealth Management New Jersey

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695 Cross Street, Lakewood, NJ 07801

New Jersey Office

New Jersey Office

Welcome to the Lakewood, New Jersey office of Able Wealth Management, conveniently located at 695 Cross Street, Lakewood, NJ 08701. Our dedicated team of financial professionals is committed to providing exceptional wealth management services to clients throughout the tri-state area and beyond. With a focus on personalized attention and comprehensive financial solutions, we strive to help our clients achieve their financial goals and secure their financial future.

At Able Wealth Management, we understand that every client’s financial situation is unique. That’s why we take the time to get to know each client personally, learning about their individual needs, goals, and aspirations. Our experienced advisors work closely with clients to develop customized wealth management strategies that encompass a wide range of services, including investment management, retirement planning, estate planning, tax optimization, and more.

Our Lakewood office is staffed by a team of highly skilled and knowledgeable professionals who bring a wealth of experience and expertise to the table. Whether you’re just starting to build your wealth or you’re a seasoned investor looking to optimize your portfolio, our advisors have the knowledge and tools to help you succeed. We pride ourselves on our ability to provide clear, straightforward advice and guidance, ensuring that our clients have the information they need to make informed decisions about their financial future.

In addition to serving clients in the Lakewood area, our New Jersey office is proud to work with clients throughout the tri-state region. We understand that many of our clients lead busy lives and may not always have the time to meet with us in person. That’s why we offer a range of remote wealth management services, allowing us to work with clients across the country. Whether you prefer to meet with us in person, over the phone, or via video conference, we’re here to provide the support and guidance you need to achieve your financial goals.

At Able Wealth Management, we’re committed to building long-term relationships with our clients based on trust, transparency, and exceptional service. We believe that effective wealth management is about more than just numbers and investments – it’s about helping our clients live the lives they want to live, with the financial security and peace of mind they deserve.

If you’re looking for a wealth management partner who will put your needs first and work tirelessly to help you achieve your financial goals, look no further than Able Wealth Management’s Lakewood, New Jersey office. Contact us today at (212) 634-7842 to schedule a consultation and learn more about how we can help you build a brighter financial future.

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Volatility Drag

Volatility drag, often unnoticed by many investors, plays a significant role in the performance of investment portfolios, especially in markets characterized by high volatility. Understanding volatility drag is crucial for making informed investment decisions and managing long-term investment performance.

Understanding Volatility Drag

Volatility drag refers to the negative effect of investment volatility on compound returns over time. It occurs because losses have a more significant impact on portfolio value than gains of the same magnitude. For example, if an investment loses 10% one year and gains 10% the next, the investment will not return to its starting value due to the mathematical asymmetry between gains and losses. This phenomenon underscores the importance of minimizing large fluctuations in investment value to protect long-term returns.

The Mathematics Behind Volatility Drag

The mathematical principle underlying volatility drag is relatively straightforward but profound in its implications for investors. The key concept is that percentage gains and losses are not symmetrical. A 50% loss requires a 100% gain to break even, not a 50% gain. This asymmetry means that volatility (up and down movements in price) can erode the compound growth rate of an investment, even if the arithmetic mean of the returns seems healthy.

Example of Volatility Drag

Consider an investment with the following annual returns: +20%, -15%, +10%, and -5%. While the arithmetic mean of these returns might suggest a modest positive performance, the compound annual growth rate (CAGR) would tell a different story, factoring in the volatility drag and showing a lower effective return than the arithmetic mean would suggest.

Implications for Investors

  • Risk Management: Understanding volatility drag emphasizes the importance of risk management strategies, such as diversification and the use of derivatives for hedging, to minimize significant downturns in portfolio value.
  • Investment Strategy: Investors might consider investment strategies that aim for steady, consistent returns over those with potentially higher but more volatile returns. Such strategies might include investing in low-volatility stocks, index funds, or using dollar-cost averaging to mitigate the impact of market fluctuations.
  • Psychological Aspects: Volatility drag also highlights the psychological challenge for investors who may overreact to short-term market movements. A long-term perspective is crucial for successful investing, as frequent trading in response to volatility can exacerbate the drag on returns.
  • Performance Evaluation: When assessing investment performance, considering both the arithmetic mean return and the compound annual growth rate (CAGR) can provide a more comprehensive view of an investment’s performance, factoring in the effect of volatility.

Financial Planning Fees

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Investment Advisory Fees

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