October 2015 - In This Issue:
Best of Draper
Last month Ailsa shared information with you about simple ways to Plan improvements for your financial outlook.  This month we talk about what AILSA is already doing to help you reach for your plan--ways to Improve what is possible now.

We are happy to announce Ailsa Capital has been recognized f or these efforts and our ongoing awareness and care for our clients' needs in the 2015 Best of Draper Awards. 


Draper, Utah - Ailsa Capital, top financial planners in Utah, have been selected for the 2015 Best of Draper Award in the Wealth Management category by the Draper Award Program.
Each year, the Draper Award Program selects one financial planner who they feel best enhances the positive image of small business through service to their customers and the community. Because of the exceptional success of Ailsa Capital in Draper, Utah, the committee feels they help make the Draper area a better place to live, work, and recreate.
The 2015 Draper Award Program gathers information both internally and externally through third party affiliates. After reviewing the information, it was determined the top Financial Planners of Ailsa Capital were most deserving of the 2015 Best of Draper Award in the category of Wealth Management.



Halloween Fast Facts
Each year in the United States, we spend:  
  • $2.5 billion on costumes
  • $2.3 billion on candy
  • $330 million on pet costumes
35 million pounds of candy corn are made for the holiday.


The average American will eat 1.2 pounds of candy during the holiday.

 

The first costumed children went door to door for treats in Scotland in 1895.
CONTACT US

AILSA CAPITAL 
272 E 12200, Suite 100 
Draper, Utah 84020

Toll Free (866) 511-0302
T (801) 501-0302
F (801) 501-0313
San Diego (619) 952-3561

[email protected]

     

Visit us on the web at www.ailsacapital.com
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We're Building Better Portfolios
A satellite strategy can improve returns and reduce risk
Some of the things we look for in building portfolios for clients is diversification and reducing risk. This focus on risk reduction is as important as ever as we have experienced a long bull market. This new strategy can be best explained by the following:
 

70/30

Traditionally, portfolio allocation has always been X% stocks, Y% bonds.  The basis of this approach is the thinking that stocks provide the majority of a portfolio's returns, while bonds provide the majority of its stability.   
 
Our research shows that this traditional allocation doesn't always provide the expected results, particularly during extreme market conditions.


There is a better way

Our goal is to improve long-term performance while reducing long-term risk. This can be difficult in today's global economy where many asset classes move in concert. Recent research shows that there is a better way. This method is called the satellite strategy.  
 
         
 
 

 
 
 
In essence, this strategy reduces the stock/bond mix at the center of the portfolio and adds satellite holdings.  These satellites help diversify risk and produce returns that are less connected to the market.
 

Simply put

Better performance. Lower volatility.  The satellite strategy proved itself over periods of extreme market conditions, and we think the fundamentals are sound.

 

Lessons learned

We can't predict the future, but we can plan for it.  By implementing lessons from history, we can adapt our strategies going forward to those proven to work in the past. 
 
It's changes like these that matter to us - changes that help you reach your goals.
 
We have been slowly changing client's portfolios to this more diversified strategy. We will be reaching out to you as we review your accounts to see if this might be a good fit for your situation. If you would like to discuss before that time, please contact us. 


Not Your Grandma's Mattress
Online FDIC insured banks offer some return on
savings accounts
Clients often ask us if there is anywhere to save money and actually earn a return without taking much risk. The short answer is, not like there used to be. Back when interest rates were higher, it was normal for a bank savings account to pay 3-4% interest a year on a FDIC insured savings account. Because of the recent recession our country went through, rates were cut and have been kept artificially low to try and grow the economy again. One of the negative consequences of this behavior has harmed savers, next to nothing interest rates. 

Big banks like Wells Fargo and Chase pay almost no interest for savings accounts. Local Credit Unions normally offer slightly higher rates. Our advice to our clients is to look for a reputable FDIC insured online bank for your emergency and cash savings. These online banks normally offer between 0.75% to 1.25% a year on liquid savings accounts. A recent deal with one of these banks offered an annual 1.6% yield for the first 6 months. 

These yields are a far ways off the historical normal interest rate level, but offer some return compared to the 0.1% the big banks offer. 

These accounts are relatively easy to open and can be linked to your personal big bank checking/savings accounts for easy transferring back and forth. We have a few online banks that we have recommended in the past. If you would like a recommendation, give us a call. 
 
The gratification of wealth is not found in mere possession or in lavish expenditure, but in its wise application.
-Miguel de Cervantes