A Right Triangle is a triangle that has 2 sides called legs forming a 90° angle and a third side called a hypotenuse. There can only be a single 90° angle. Only 2 of the 3 sides are connected to the 90° angle, called Legs.
The RTDM theory is based on the naming of sides on a right triangle. There can only be 2 Legs making the 90° angle and the remaining side, a hypotenuse. During decision making for investment vehicles, we try to teach clients that each investment has a unique decision between: Liquidity, Participation, and Preservation.
The ability for an investor to access his or her investment. The more liquid an investment the quicker an investor can access the money invested.
An investment correlation to the market performance. Participation is higher when a client is going to recognize more equity market potential returns.
An investment with the focus of minimizing losses of a client’s principal.
RTDM wants investors to approach every investment as it’s a right triangle. Liquidity, Participation, and Preservation are the 3 sides for the metaphor. We must select 2 legs that are the focus of the investment and a hypotenuse representing the option we are sacrificing. We believe most investments will focus on 2 of the sides creating the legs. The third side would be considered a lesser priority for the investment.
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Investment advice is offered through Fortis Capital Advisors, LLC, 7301 Mission Road, Suite 326, Prairie Village, Kansas 66208, an investment adviser registered with the Securities and Exchange Commission ("SEC"). Insurance Products are offered through Fortis Brokerage Services, Inc. Additional Information about Fortis Capital Advisors, LLC is available on the SEC's website. at www.adviserinfo.sec.gov.
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