THE SECRET KEY:

LESSONS OF THE MASTERS

An Insiders Guide To Wealth Management In A Rapidly Changing World
By Rick Bitsky, JD, CFP

WealthGuard, LLC 1465 Post Road East Westport, CT 06880 Phone: 203.222.0404 WealthGuardLLC.com

Life Is Like A River? A Favorite Story

The most honored students of the ancient, ailing Rabbi huddled around his deathbed to hear the sage reveal in his final words the great secret of life itself. The great master, mustering what appeared to be his last strength, uttered Lifeis like a river! With that, he collapsed back on his pillow and closed his eyes. Our master says Life is like a river, said his most prized pupil. Pass it down. In turn, each student passed the Rabbis utterance to the next down the line. The simplest student at the end, puzzled, said Wait, what? Life is like a river? What does he mean? Embarrassed, and tentative, each student tsking and shaking his head, whispered his question back up the line. The first student once again leaned close to the Rabbi and said, Im so sorry, master teacher, but the dunce down there did not understand. Hes asking what does it mean, life is like a river? With every ounce of strength remaining in his dying, frail body, the Rabbi managed these last words: Okay, so its not like a river!

Introduction
Today, we live in a much smaller world, a world more interconnected than in any previous generation. While creating vast opportunities for wealth creation, this same interconnection has also created an environment of potentially greater risks. These days, Americans face extreme volatility in the financial markets, ineffective government economic policies, rising tax and inflationary pressures, and global political upheaval. Unfortunately, the prevailing strategic response has been pervasive paralysis or misguided reliance upon TV gurus and often very self-serving trading advice from Wall Street. The purpose of this report, The Secret Key: Lessons from the Masters, is to introduce to you the Masters Key to help preserve, invest, grow, and enjoy your wealth in this New Normal world. The report, based on the lessons of the Masters, identifies common risks to which successful families are exposed, and shares suggested strategies to help you mitigate these risks, and help preserve and grow your wealth. We urge you to read through The Secret Key: Lessons from the Masters. Then we recommend that you call us to set up a free, no-obligation WealthScan Review today. With our unique WealthScan Review, developed over 20 years of private wealth management experience, you will learn the praxis of our system and how you can personally benefit as a WealthGuard client. After your WealthScan Review, we guarantee, whether or not we move forward on your custom-designed game plan together, you will attain insights so potent, you will surely deem the time we spend together as invaluable.

The Secret Key to Successful Wealth Management: Lessons of the Masters Are The Greatest Investors Born?
I purchased my first share of stock with my work savings and Bar Mitzvah money in 1969. The stock was the highest priced stock on the NYSE. Shortly thereafter the stock split 10 for 1 and then subsequently was taken over by one of the seven sister major oil companies. I thought I was a genius! I began to trade, at first with my savings, and then my dad gave me some trading capital. Do you remember the 1970s? My new trading operation was, at best, an undisciplined, speculative jumble of unworthy assets. Embarrassed, I went to my dad for advice. My dad, who was an accomplished trial lawyer, said: I learned a long time ago, that in litigation, as with most of lifes endeavors, I was always most successful when I learned from the successes -- and especially from the failures -- of others. My dad told me to stop trading and to seek out, and to learn from master investors. From that day forward, I did, and still do today, more than 40 years later. That was the best investment advice Ive ever received.

What Single Trait Do All Successful Investors Share?

Ask yourself what you have accomplished in your life when you felt confident? And when you didnt feel confident?
The legendary Warren Buffett expressed his guiding philosophy, in this famous quote from an early Berkshire Hathaway annual report to shareholders letter: Rule #1 Rule #2 Don't lose money Don't forget rule #1.

Of course Mr. Buffett, (a student of Ben Graham, the father of Fundamental Analysis), was talking about long-term, permanent loss of capital and not shortterm quotational losses. In the late 1980s, I managed a private investment fund in New York City, and met Mr. Buffett one afternoon. We talked about, among other things, these rules, my partnership, and my investment philosophy. I observed that the management of individual portfolios was a completely different animal from managing a permanent investment pool (such as Berkshire Hathaway or a private partnership) -because investment pools have fresh replacement capital which can lessen the impact of selection choices. I also observed that investor behavior is more critical to attain financial goals than securities selection.

At this chance meeting, before Mr. Buffett winked, smiled, wished me luck and said he had enjoyed our talk, but that he was really late for an appointment, I had discovered the secret key to wealth management success, and my most important asset.

It wont be the economy that will do in investors; it will be investors themselves.

Warren E. Buffett

What Is Your Most Important Asset? Financial Confidence

When it comes to wealth management, your answers to the opening questions should prove that personal financial confidence is your number one asset. At WealthGuard, LLC we believe financial freedom (e.g., retirement income you cannot outlive) originates from a lifelong pursuit of increasing your financial confidence. As your confidence grows, your overall potential for success increases. This creates the ever-upward spiral of financial achievement.

What three rules should the prudent investor follow to increase personal financial confidence? 1. He/she who makes the fewest mistakes wins 2. Be ever vigilant in mitigating risks 3. Dont go it alone.
Courage is the first of human qualities, because it is the quality that guarantees all others.
Aristotle

Please take a moment to take the WealthGuard Lifeboat Drill on the next page.

Is a WealthScan Review For You?

Check Your Score For These Common Planning Gaps. A Problem for Me Not a Problem
Procrastination Estate plan not updated Unorganized Lack of information Information overload Investing without specific goals Unclear asset protection plan Confusion about priorities Unrealistic time frames Poor communication with advisers Unrealistic return projections No progress reviews No plan for paying for college No inflation risk hedges No interest rate mitigation No Trusted Financial Advisor Never did a "lifeboat drill" Lack of plan for market excesses Play too safe with Retirement Funds Portfolios are not tax-efficient High transaction costs No plan for eldercare No income replacement plan Over-diversification, under-diversification High concentration of employee stock Overleveraged Confuse speculation with investing Emotions dictate investment decisions Taxes override investment decisions Buy and Forget investment strategy No written investment policy statement (IPS) No written financial/retirement action plan

TOTALS
Scoring: Count the number of responses in the first column. If you scored:
15 or more: Whoa! A goal without a realistic, comprehensive plan is like flying a plane blindfolded. You are losing critical time and opportunities to lower your taxes and costs, and the ability to make meaningful progress towards the successful achievement of goals. 8 to 14: It will be very difficult to achieve your critical goals if you do not have a customtailored Financial Roadmapa plan implemented with discipline and accountability to keep you on course. Less than 8: You have done a good job setting achievable goals and taking action to implement them. Remember, dont go it alone. Our unique WealthScan Review can help you become even more effective, tax & cost efficient, and organized. Call 203.222.0404 today for your personal, WealthScan Review.

An Early Lesson In Confidence

Back in the 1970s, just two years out of law school, I was representing one of my firms most important clients in the sale of a New York City parking garage. The seller, who I will call Johnny, was represented by bigname counsel who never uttered a word during any meetings. Johnny was a big man. Not a tall man, but large, portly, with remarkably thick fingers on his stubby hands. Nobody had asked, but when our conferencing was done, Johnny proudly volunteered he was a serial entrepreneur, that he owned or was a "partner" in 27 different business ventures. My client asked him why he was selling his garage, particularly at that time. Johnny shrugged his shoulders and replied simply: "Diversification. I must have looked surprised, because Johnny paused, then turned to me as he continued, taking a rifle shell out of his suits breast pocket and standing it up on the table in front of me! "Ya see kid, I look at money as my soldiers, he said. Every day I send them out to battle, every night I expect them to return with the spoils of war. It's time to sign the contract." My first thought was, boy is this guy scary! As soon as I was able to avert my The investor's chief eyes from the bullet, I realized the thickproblem - and even his looking guy in front of me was a Master worst enemy - is likely to investor, and he was sharing a valuable be himself. lesson. Johnny created his own vision of the Benjamin Graham lifestyle he wanted for himself and family; He developed a plan; He executed the plan with discipline and revised it as needed; and he understood the wisdom of having an advisor by his side. I realized these steps all contributed to what gave Johnny his financial confidence. At WealthGuard, LLC, this is what we do for our clients. We help them develop and channel their financial confidence.

We are what we repeatedly do. Excellence, therefore, is not an act, but a habit. Aristotle

17 Powerful Pointers to Boost Your Financial Confidence

1. 2. 3. 4. 5. 6. 7. 8. 9. Start this instant: create your vision, design your financial roadmap, implement, stress-test, and monitor your plans progress. Recognize the interconnectedness of all financial planning elements. Focus on risk before focusing on opportunity. Allow yourself to become comfortable with uncertainty. Total return, not income, must be your goal, even during retirement. Minimize emotional errors that can be hazardous to your financial health. There is no perfection. There is only progress. Acknowledge the element of luck in life, and then move on. Beware of false prophets.

10. Diversification, when done correctly, can actually smooth out portfolio volatility. 11. 12. 13. 14. 15. 16. 17. Rebalance your portfolio, especially during market extremes. Craft a written investment policy statement (IPS). Acknowledge what you can and cannot control. Own assets that, at least historically, have kept up with inflation. Gain an understanding of what you own and why; When the "why" is no longer valid, SELLhave a sell discipline. Volatility should be expected and, indeed, embraced Learn from the mistakes of others.

Why Do The Top Pros Hire The Best Coaches?

As Nike says, Just Do It! However, we know professional tennis players win by making We have met the enemy the fewest unforced errors. Pro golfers win, not and he is us. by hitting the ball the farthest, but by making Pogo the fewest terrible shots. Renowned singers have voice coaches. Top executives have a cadre of professional consultants and trainers. Everyone knows successful real-life outcomes come from making the fewest behavioral mistakes. If the greatest athletes, performers and business achievers in the world have coaches and trusted advisors, shouldn't you? With the help of a Trusted Financial Adviser, your odds will increase to achieve your personal financial outcomes. As in Law, Medicine, or Quantum Physics, if the challenges you face are outside your range of competencyseek the advice of the most talented professional you can find.

The Guiding Principle:

Investor Returns (Minus) the Cost of Bad Behavior (Equals) Real Life Investment Outcomes

Please go back to your Score sheet on page 5. What are the three areas that stand out in your mind that worry you now? List them: 1. ____________ 2. ____________ 3. ____________ Are you confident that you can resolve them yourself? Today, more than ever a key step is to acknowledge risks--those that are knowable, and those that are not. The next step is to prepare to deal with those risks. That in a nutshell is what we do best at WealthGuard, LLC. Call today to schedule your WealthScan Review. We will help you clarify, quantify and implement your unique lifestyle goals. If we work together, with a spirit of mutual trust, there is nothing --within reason-- that we cannot accomplish!

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be investing into directly. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk.

FREDERICK R. BITSKY, JD, CFP

Rick Bitsky founded his Westport LPL Financial Office in 1994 and WealthGuard, LLC in 2003, with a crystal clear vision of the unique firm he wanted to create. Ricks mission was two-fold. First and foremost, the independent firm would offer its services on a fee basis, without inherent conflicts of interest. Second, but equally important, the firm would be committed to the premise that each client is unique and special and that each individual would receive the same level of attention and service excellence. Rick Bitsky, JD, CFP
President/Founder

WealthGuard, LLC
Registered Investment Advisor (CT)

Practice Focus
Wealth management consulting Personal financial planning Retirement income planning Estate & Charitable planning Goal oriented planning Socially responsible investing WealthScan Review System

Rick, Certified Financial Planner, attorney, and steward of a finite number of select clients, has helped clients plan for, build, harvest, preserve and bequeath wealth for more than two decades. As a pioneer in fee-based investment management, his strong educational credentials and broad experience enables him to provide objective advice, and serve multi-generational clients as their trusted advisor. At the core of what we do is to coach clients in the understanding of, and planning for critical financial events, both today and in the future. We implement plans that help dramatically increase our clients confidence, and facilitate the achievement of their unique financial goals. Rick weds his keen understanding of sometimes complex tax, legal, insurance, and portfolio management concepts with his passionate and sincere commitment to the personal concerns of individuals and families he serves. A frequent source of information and opinion by the Connecticut press, Rick is the author of the financial section of The Divorce Mediators Manual, and educational guides such as, The WealthGuard System and Your Money in Connecticut. Also, he lectures on advanced financial topics, including Financial Issues for Divorce Mediators, Investing For Woman, Growth Investing Using Conservative Options Strategies and Multi-generational Gifting Strategies. Rick resides in Westport with his wife and four children and enjoys playing golf & tennis, reading, chess and learning to play guitar in his free time. 1465 Post Road E, Suite 100, Westport, CT 06880 203.222.0404 Rick@WealthGuardllc.com
Securities offered through LPL Financial, Member FINRA/SIPC

Affiliations
Financial Planning Association Former Board Member FPA Fairfield County Principal/ OSJ LPL Financial Top 50 Offices in Country Leave A Legacy Conn.

Education/Certification
Certified Financial Planner JD, Brooklyn Law School BA, Brooklyn College LPL Investment Advisor Representative Holds Series 63, 7, 51, 24; Life & Variable insurance licenses