Class Overview

The purpose of this course is to educate financial professionals on the principles and benefits of building diversified, multi-asset portfolios for long-term success. The course emphasizes the importance of spreading risk across uncorrelated asset classes, such as stocks, bonds, real estate, and commodities, to manage volatility and enhance returns. Key topics include the 7Twelve portfolio model, the impact of portfolio costs, the necessity of rebalancing, and the role of low-correlation assets in stabilizing portfolios. Attendees also learn how to align portfolio strategies with client goals and set realistic expectations by using appropriate benchmarks. The course provides actionable insights to help advisors construct portfolios that balance risk and return effectively over time. You’ll learn:


  1. The Value of Diversification in Portfolios.  Diversification reduces risk and enhances long-term returns by including multiple asset classes with low correlations.
  2. How 7-Asset Model Enhances Diversification.  A multi-asset, 7-class portfolio is more robust than traditional 60/40 portfolios, offering broader risk mitigation.
  3. Asset Correlation Matters in Portfolio Design.  Combining low-correlation assets ensures that when one asset declines, others may rise or remain stable.
  4. Volatility is Part of Investing Success.  Managing volatility is essential; diversified portfolios balance risk and return better than equity-only strategies.
  5. Cost Control Maximizes Portfolio Growth.  High portfolio costs reduce returns; reducing fees significantly improves outcomes for investors and retirees.
  6. Rebalancing is Key to Portfolio Stability. Annual rebalancing maintains target allocations, improving returns and reducing risk over time.
  7. Contribution Rates vs. Returns by Age. Younger investors benefit from improving returns, while older investors benefit more from increasing contributions.
  8. Commodities Add Low-Correlation Value  While volatile alone, commodities stabilize portfolios with their counter-cyclical performance in inflationary periods.
  9. Patience and Consistency Drive Results.  Staying invested through downturns and adhering to a plan ensures long-term goals are met despite short-term noise.
  10. Developing Realistic Benchmarks and Expectations. Compare portfolios to appropriate benchmarks, not solely the S&P 500, to accurately assess performance.



Craig L. Israelsen, Ph.D., has been a regular contributor to Advisors4Advisors since April 2009. Prof. Israelsen has taught about family financial management at universities and is currently Executive-in-Residence in the Financial Planning Program at Utah Valley University. He teaches classes toward earning a CFA charter. He's a regular contributor to AAII Journal.  Craig provides a system to manage low-expense portfolios and educate clients on A4A. 


Who Should Attend:
IA Reps, CFPs, EAs, CFAs, CPA financial planners, CPA/PFSs, CIMAs, CLUs, ChFCs, and other professionals who seek a deeper understanding of diversified portfolio strategies.

Cost:
Free to Advisors4Advisors members ($60/Qtr).

CPE Credit:
1 hour, Economics field of study

Prerequisites: None
Advanced Preparation: None
Course Level: Update
Course Delivery Method: On-demand webinar replay

Program Policies:
Advisors4Advisors is approved as a provider of IAR CE by the North American Securities Administrators Association. 
Advisors4Advisors is has been approved by the National Association of State Boards of Accountancy (NASBA) as a Quality Assurance Service (QAS) Self-Study Provider, enabling CPA financial planners to earn CPE credit on-demand via webinars on A4A, as well as on live webinars. 

State boards of accountancy retain final authority on course acceptance. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors at www.nasbaregistry.org.

Advisors4Advisors is approved as a CE sponsor by CFP Board, and by Investments & Wealth Institute, enabling credit for CFP®, CIMA®, and CPWA® professionals. 

For information regarding administrative policies, such as refunds, cancellations and complaints, mail [email protected].

Class curriculum

  1. Instructions

  2. Class Content

  3. Review Exercise

  4. Assessment

  5. Feedback

About this class

  • $29.99
  • 1 hour of video content

Instructor

Craig Israelsen

Craig Israelsen, Ph.D. , has taught classes to candidates for the CFA-charter and about family financial management, at the graduate and undergraduate level, at universities for three decades. His course on A4A since 2009 is best-suited to professional fiduciaries seeking to minimize investment expenses on a broadly diversified portfolio core.