Privacy policy notice

We work hard to maintain your privacy and to preserve the private nature of our relationship with you.

We place the highest value on the information you share with us. Able Wealth Management will not disclose your personal information to anyone unless it is required by law or at your direction. We will not sell your personal information. Able Wealth Management will also provide the privacy statement to all clients annually.Investment advisers are required by law to inform their clients of their policies regarding privacy of client information. We are bound by professional standards of confidentiality that are even more stringent than those required by law. Federal law gives the customer the right to limit some but not all sharing of personal information. It also requires us to tell you how we collect, share, and protect your personal information.At Able Wealth Management, we are committed to safeguarding your privacy. As a registered investment advisory firm, we are legally obligated to inform you about how we handle your personal information. Our commitment to confidentiality goes beyond what is mandated by federal law, ensuring an extra layer of security for your data.

Information We Collect

Nonpublic Personal Information (NPI)

To deliver our services effectively, we gather various types of Nonpublic Personal Information (NPI). This may encompass, but isn’t restricted to:

  • Social Security Number
  • Date of Birth
  • Banking Details
  • Financial Account Numbers and Balances
  • Sources of Income
  • Credit Card Information

This information is either directly provided by you or obtained with your explicit authorization. Even after you are no longer a client, we may retain and share your information as outlined in this notice.

How We Share Your Information

Disclosure to Third Parties

We are dedicated to safeguarding your privacy and do not share or sell your personal information to third parties for marketing purposes. Furthermore, we do not share mobile information with third parties or affiliates for marketing or promotional purposes. We may share your personal information for the following purposes:
  • Everyday Business Activities: To process transactions, manage your accounts, adhere to legal requirements, or report to credit bureaus.
  • Marketing Purposes: To inform you about our products and services, and for joint marketing with other financial institutions.
  • Affiliate Sharing: Our affiliates may use your information for their routine business activities, including transactional experiences and creditworthiness assessments
  • Third-Party Marketing: We do not disclose your information to affiliates or non-affiliates for marketing purposes.
For new clients, information sharing begins upon signing our service agreement. If you choose to terminate our services, we may continue to share your information as described in this notice.

Protecting Your Information

Opting Out

We employ a range of security measures, in compliance with federal law, to safeguard your personal information. These measures include computer safeguards, secured files, and a physically secure environment.

Your Rights to Limit Sharing

Security Measures

Federal law grants you the right to limit the sharing of your NPI in certain situations. You may opt-out of:
  • Sharing for everyday business activities by non-affiliates, specifically concerning your creditworthiness.
  • Sharing with affiliates or non-affiliates for marketing purposes.
State laws and individual company policies may provide you with additional rights to limit information sharing. If you wish to exercise these rights, please contact us immediately to opt-out.For any questions or concerns regarding this Privacy Notice, please contact us. Thank you for entrusting Able Wealth Management with your financial future.

Terminology

Definitions

  • Affiliates – companies related by common ownership or control. They can be financial and non-financial companies;
  • Non-affiliates – companies not related by common ownership or control. They can be financial and non-financial companies;
  • Joint marketing –a formal agreement between non-affiliated financial companies that together market financial products or services to you.

Please call if you have any questions. Your privacy, our professional ethics, and the ability to provide you with quality financial services are very important to us.

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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.

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  • Actual fee will be determined on complexity and scope after an initial consultation
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Annual Fee: $

  • Fee charged on a percentage-tiered rate
  • Fee based on total assets managed
  • Fee covers services such as portfolio design, continuous monitoring, rebalancing, and personalized guidance

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