Each investor has specific attitudes toward risk and return. Those views are not always easy to articulate or even to recognize, but they can be discerned with the help of advanced concepts in finance and psychology.

It often is difficult for individual investors to understand financial risk, including their own tolerance and appetite for risk. Investors sometimes form irrational and intractable return expectations and move assets from one investment manager to the next, searching for mythical investments with little risk and very high expected returns.

We work with you to assess your risk profile using a proprietary approach that we created and named Riskometry™. It uses the most recent advances in modern finance and psychology to help you think carefully about your attitude toward risk. It was developed by Guggenheim with psychologist and Nobel Laureate in Economics, Daniel Kahneman, who is part of our team.

Traditional asset allocation generally creates a single portfolio for an investor- one that tries to solve simultaneously and without transparency the two distinct and different problems of preserving wealth on the one hand and growing wealth on the other.

We proceed very differently. We establish and run two distinct portfolios or accounts for each client: a "Conservative" account focused on preserving wealth and a "Bold" account focused on growing wealth.

In constructing each of these two portfolios, we take into consideration each client's specific liquidity and cash flow needs as well as the client's tax position. We find that the best overall asset allocation for any individual client is a combination of that client's two distinct goal-specific portfolios.

The allocation of wealth between the two portfolios is chosen by the client- in consultation with us- to minimize regret and control risk relative to expected return using our Riskometry™ approach.

Our two-account approach separates each client's goals clearly and expressly. It helps us better to achieve the two different goals of preserving wealth and growing wealth in response to client preferences while also helping clients better assess and monitor our efforts and successes.