Our Advisors

We recognize the intricacies and challenges that come with managing your financial life.

To make this process more manageable, we’ve brought together a group of exceptional advisors dedicated to offering tailored advice and assistance in reaching your financial goals. Explore our Advisors page to discover more about each advisor’s specialties and how they can guide you through the world of finance.
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Our Advisors Financial Advisors Able Wealth Management

Seth Hodes

Co-Founder / Financial Advisor

Seth P. Hodes, the co-founder and managing partner at Able Wealth Management, specializes in providing financial planning for individuals in the creative and technological sectors, including artists, writers, freelancers, and executives. He is adept at crafting financial plans that enable clients to harmonize their financial decisions with their values and goals. Seth’s educational background includes a Bachelor of Arts in Humanities from New School University and a Diploma in Financial Planning from New York University. 

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Joel Kaplowitz

Co-Founder / Financial Advisor

Joel Kaplowitz, the co-founder and managing partner of Able Wealth Management, offers advice to individuals, families, and business owners in the real estate and financing industry. He specializes in working with high net worth clients and holds the designation of CERTIFIED FINANCIAL PLANNER™ (CFP®) professional. Joel earned his B.A. from BMG in New Jersey and his Diploma in Financial Planning from New York University. Currently, he resides with his wife and children in New Jersey.

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Simcha Goldberg

Financial Advisor

Simcha Goldberg is a financial advisor with a passion for helping people safeguard their present and plan for their future. With years of experience, he understands the industry and is committed to assisting families in achieving their financial objectives. He believes everyone deserves the chance to secure their financial future and works tirelessly to help clients achieve financial security and peace of mind.

 

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Elchanan Abramowitz

Financial Advisor

Elchanan Abramowitz holds an MBA from Rutgers University and has completed The American College’s CFP® Certification Curriculum. Before pursuing his education in business and finance, he obtained his DDS from NYU College of Dentistry and completed a residency program at the University of Pennsylvania. Elchanan has written various articles for publications such as the New York State Dental Journal, the Journal of New Jersey Dental Association, The Jewish Press, and Big Apple Parent.

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Liam Lynch

Financial Advisor Assistant

Liam Lynch is a recent graduate from Saint Peter’s University with a degree in Finance. During his academic career, Liam consistently earned recognition on the Dean’s List for exceptional academic performance.At Able Wealth Management, Liam is dedicated to supporting financial advisors in providing top-tier client services. His proactive approach to financial management and commitment to professional development make him a valuable asset to our team.
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Berel Sitzer

Financial Advisor

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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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