Professional Retirement Planning L.P.

The Winning Strategy That Won a Nobel Prize
Through Professional Retirement Planning L.P. (dba PRP), clients benefit from investment methods and a unique alliance with a group of mutual funds that, up to now, were reserved for only large institutional investors. These strategies were derived from extensive historical research undertaken by the world's leading academic economists including Nobel Laureate Merton Miller, Eugene Fama and Kenneth French. This research turned the investment world on its head by introducing three major conclusions:

1. Investment returns are not determined by market timing or stock selection. Over the last 50 years, the evidence shows that no one can consistently pick the right stocks or time their market buys/sells any better than random chance.

2. Investment returns are almost entirely determined by "asset class selection" - meaning representative categories of investments such as US and International large and small capitalization stocks, value stocks, short-term bonds, etc. Over the last 50 years, the key to investment success - 94% of the time - was to be invested in the asset classes themselves and not worry about any particular stock, mutual fund manager or buy/sell timing technique.

3. Portfolio risk can be significantly reduced by diversifying investments across asset classes. The availability of a broad base of passive asset class mutual funds allows an investor to achieve a double win: maximize returns while achieving the risk reduction benefits of diversification.

These findings form the basis of PRP's investment philosophy stressing passively managed asset class portfolios which minimize portfolio turnover, capital gains taxes and transaction expenses. In addition, PRP maximizes risk reduction benefits by diversifying investments across domestic, international and emerging markets.

PRP uses a proprietary line of institutional style, asset class, pure no-load mutual funds. Portfolios are invested in each asset class based on the objectives and risk tolerances of each client. PRP continues to study the current research of the leading academic economists to develop and enhance our investment strategies.

The Four Tenets of Modern Porfolio Theory
Markets process information so rapidly when determining security prices that it is extremely difficult to gain a competitive edge by exploiting market anomalies.

Over time, riskier assets provide higher expected returns as compensation to investors for accepting greater risk.

Adding high risk, low-correlating asset classes to a portfolio can actually reduce volatility and increase rates of return.

Passive asset class fund portfolios can be designed with the expectation of delivering over time the highest returns for a chosen level of risk.