The Benefits of Tactical Money Management In Today’s Market


12:49 ‘It’s not how much you make, it’s how much you keep’ ~ Drew Horter

20:30 ‘Do not let the tax tail wag the dog’ ~ Jack Peters


Tactical Money Management represents a blending together of offensive and defensive strategies into managed accounts. Leading experts Drew Horter, Founder and CEO of Horter Investment Management, and his Senior Vice President, Jack Peters, have come together to shed some light on its benefits in today’s money market.

1:36 What advice would you give to those considering putting retirement money into the stock market but has concerns about market crashes?

  • It’s always good to have good returns over time but not take unnecessary risks.
  • A lot of caution must be exercised..
  • Develop a plan that will enable you to generate the income you need on a very consistent basis.
  • Use financial tools that are best at generating income to generate income only.
  • Use financial tools that are best at growing money for growth only.
  • Drew highlights the importance of watching your portfolio every day versus loosely rebalancing every quarter.
  • Have managers who will watch your money every day and be able to risk-off to cash, stay invested or go to the treasury.

7:09 Does it make sense today to use blue-chip stocks and 2% dividend yield as income replacement to low yielding bonds with the upside potential of the stock market?

  • Dividends are not guaranteed and you can’t use it as your sole income plan because of the volatility of the underlying asset
  •  Blue-chip stocks are still stocks.

9:20 Who would you recommend using Real Estate Investment Trust (REIT) for income planning and what percentage would be appropriate for them to use?

  •  REITs generally pay 4%-9% dividends
  • REITs are very good for some dividends, for part of a portfolio but the underlying asset still has a lot of volatility to it.
  • Volatility is not your friend when you’re a retiree.
  • Have a smoother return stream without worry.
  • REITs are illiquid and they require great caution with regards to picking the right REIT.

What would you say to folks who have most of their retirement dollars inside vehicles like saving accounts, banks or annuities that are earning little interest?

  • By having money in banks or money markets or low yielding short term treasury you have purchasing power issues

14:38 What are the best investment planning tips about structuring a mathematically correct investment portfolio?

  • Establish where you’re at.
  • Invest in a peace of mind type of portfolio which guarantees an income for the rest of your lives then take the balance of that and put it into a less risky portfolio to grow over time.

What should be known about taxation on your portfolio especially in retirement?

  • It depends on the effective tax bracket or the marginal tax bracket of the client.

In most cases a person’s retirement should last, depending on their health, 20-30+ years and so over that time frame how many market corrections or potential crashes do you think that they’ll need to weather?

  • Asa general rule, historically, these severe bear markets happen every 5-7 years.
  • Emphasis on tactical investment to watch your money every day to move to safety and keep you out of harm’s way.
  • You don’t know when a market crash is going to happen and when it does it could be devastating.
  • Reiteration of working with a mathematically correct portfolio that generally is going to take most of the risk out of the portfolio.

How do you see the tactical money management strategy evolving into the future?

  • The change that happened over the last 12 years in the sophistication level of manager’s models, methodologies and fine tuning their own time frame has been dramatic to see.
  • Evolution is key.
  • Money managers need to be agile, evolve themselves and adjust to the current market conditions and what’s in front of them.


Michael’s contact info.

  • Tel: 727 243 6467
  • Email: or



Investment advisory services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor.   Horter Investment Management does not provide legal or tax advice.  Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements.    Insurance and annuity products are sold separately through Tampa Bay Advisory, LLC,  Securities transactions for Horter Investment Management clients are placed through E*TRADE Advisor Services, TD Ameritrade and Nationwide Advisory Solutions.

 Past performance is no guarantee of future results.  Investments are subject to risk, including market and interest rate fluctuations.   Investors can and do lose money.

 There is no guarantee that managers will be able to avoid future market losses by going risk off to cash.  In addition, holding cash may carry the risk that a manager will not be invested during periods of positive market performance.

 Insurance and annuity products are not sold through Horter Investment Management, LLC (“Horter”).  Horter does not endorse any annuity or insurance products nor does it guarantee their performance.  Owners of these products are subject to the terms and conditions of the policies and contracts of the issuing companies.  All product guarantees depend on the insurance company’s financial strength and claims-paying ability.