5 S

mart Investing S

trategiesInvestm

ent atters

Financial Matters Series

The Registered R

epresentatives are with and securities and Advisory Services offered through LPL Financial, a registered investm

entadvisor, M

ember FIN

RA & SIPC

.The LPL Financial representative associated with this w

ebsite may discuss and/or transact securities

business only with residents of the follow

ing states: CA, FL, M

N, VA. 1-063306

Randy M

adrid

Madrid R

etirement Advisors

About

my

• Background

• Firm• C

omm

itment

The information in this m

aterial is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax

penalties. Please consult a professional for specific inform

ation regarding your individual situation.

Click to Play

Five Sm

art Investing Strategies

Don’t tim

e the market

Asset allocation

Investment selection

Dollar-cost averaging

Rebalance your portfolio

Don’t time the market

Asset allocation

Investment selection

Dollar-cost averaging

Rebalance your portfolio

Fear, Greed &

Ma

rk

et T

imin

g

Buy Low

Sell H

ighBu

y High

Sell L

ow

Best

Approach

Co

mm

on

Ap

pro

ach

This illustration is a hypothetical example. It is not representative of any investm

ent or combination of investm

ents. Actual results w

ill vary.

Missin

g the Mark

Source: Yahoo! Finance, 2016

Past perform

ance does not guarantee future results. Individuals cannot invest directly in an index. Actual results w

ill vary.

Num

ber of B

est Trading

Days M

issed

0

8.19%

5

5.99%

10

4.49%

20

2.05%

Stan

da

rd &

Poor’s 500 A

verage a

nn

ua

l rate of retu

rn(1996 to 2015)

The Pow

er of Asset Allocation

8. 5% is

determined by

other factors

Asset

Allocation

of performance is

determined by...

Source: B

rinson, Singer, and B

eehower, “D

eterminants of P

ortfolio Perform

ance II: An U

pdate.” The Financial Analysts Journal, 1991.

Past perform

ance does not guarantee future results. Asset allocation is an approach to help m

anage investment risk. It does not

eliminate the risk of loss if security prices decline.

Diversification and asset allocation are approaches to help m

anage investment risk. They do not elim

inate the risk of loss if security prices decline. P

ast performance does not guarantee future results. A

ctual results will vary.

Cash

Equivalen

ts

Bond

s

Speculative

StocksFixed

Interest

Selecting A

mong A

sset Classes

The Investment Selection

Process

A Lon

g-Term Look at P

erformance

Source: Thom

son Reuters, 2016. P

ast performance does not guarantee future results. A

ctual results will vary.

$20,000

$70,000

$60,000

$10,000

$50,000

$40,000

Start

20142015

1996

1998

1997

2000

1999

2002

2001

2004

2003

2006

2005

2008

2007

201120122013

2010

2009

$30,000

$10,000 Original Investm

ent

$48,250Stocks

$16,185Ca

sh$32,111

Bond

s

Source: Thom

son Reuters, 2016. P

ast performance does not guarantee future results. A

ctual results will vary.

The Scoreboard: Which A

sset C

lass Had the B

est Perform

ance?

2006200720082009201020112012201320142015

4.76%4.74%1.80%0.16%0.13%0.08%0.07%0.05%0.03%0.03%

4.57%4.90%-4.01%18.39%9.13%8.26%9.97%-1.52%7.48%-0.75%

15.79%5.49%

-37.00%26.46%15.06%2.11%

16.00%32.39%13.69%1.38%

StocksBon

ds

Cash

Dollar-Cost Averagin

g in a Falling

Market

This is a hypothetical example used for illustrative purposes only. It does not reflect the actual or expected perform

ance of any invest-m

ent product. Dollar-cost averaging does not guarantee a profit nor protect against losses.

JanuaryFebruary

MarchA

prilM

ayJune

$500$500$500$500$500$500

Total Invested

Total Shares Pu

rchased

Average Price per ShareAverage Cost per Share

$30$29$28$27$26$25

16.717.217.918.519.220.0

$3,000109.5$27.50$27.39

Sha

rePrice

Sha

resPu

rcha

sedIn

vested

Dollar-Cost Averagin

g in a Rising

M

arket

This is a hypothetical example used for illustrative purposes only. It does not reflect the actual or expected perform

ance of any invest-m

ent product. Dollar-cost averaging does not guarantee a profit nor protect against losses.

JanuaryFebruary

MarchA

prilM

ayJune

$500$500$500$500$500$500

Total Invested

Total Shares Pu

rchased

Average Price per ShareAverage Cost per Share

$26$27$28$29$30$31

19.218.517.917.216.716.1

$3,000105.6

$28.50$28.40

Sha

rePrice

Sha

resPu

rcha

sedIn

vested

Source: Thom

son Reuters, 2016. P

ast performance does not guarantee future results. A

ctual results will vary.

Balance Your P

ortfolio

Conservative

Cash

60%Bon

ds

20%Stocks20%

Initial Investment:

$100,000Ending Value:

$257,831

Best year:

12.56%W

orst year: -11.06%

Average year

5%

Source: Thom

son Reuters, 2016. P

ast performance does not

guarantee future results. Actual results w

ill vary.

AggressiveInitial Investm

ent:$100,000

Ending Value: $434,295

Best year:

28.87%W

orst year: -32.19%

Average year

8.89%

Balance YourP

ortfolioStocks80%Bon

ds

10%Ca

sh10%

Rebalan

cing: Tim

e And Intent

Source: Thom

son Reuters, 2016.

This is a hypothetical example used for illustrative purposes only. It is not

representative of any specific investment or com

bination of investments. P

ast perform

ance does not guarantee future results. Actual results w

ill vary.

1995Bon

ds

60%Stocks 50%

Stocks40%

Bond

s50%

2015

Where Is Your M

oney?

Elemen

ts of Sound Investing

S

trategies

Financial Matters Series

Madrid R

etirement A

dvisors

The Registered R

epresentatives are with and securities and Advisory Services offered through LPL Financial, a registered investm

entadvisor, M

ember FIN

RA & SIPC

.The LPL Financial representative associated with this w

ebsite may discuss and/or transact securities

business only with residents of the follow

ing states: CA, FL, M

N, VA. 1-063306