How we started
In 1989, Charles Stoll and Doug Alden (investment advisors) met in San Francisco at an industry conference and shortly thereafter began working together in South Florida where they resided. They both experienced and learned the concept of money in motion, otherwise called the velocity of money multiplier theory. By using dividends and interest from bank and investment accounts, they could demonstrate how to add additional money supply and benefits for the client.
Since the financial industry is built on the concepts of accumulation and deferral, this was “upstream” if you will, from the whole industry. We used terms like the “interest move” or the “dividend move” that used the cash flow from dividends and interest to add additional benefits, to help pay for estate plans and improve various areas of protection for the client. What slowly evolved was a covered call writing system that, when carefully monitored, added additional cash flow. However, the underlying securities were still subject to market returns.
Fast forward to 2009. After suffering through two very serious bear markets, Stoll/Alden were frustrated having to nurse clients through very traumatic times, trying to keep clients invested.
The mantra of broker or advisor was, “stay the course, stocks always recover and move upward. The problem was and is that most investors are older and don’t have time on their side. In other words, the buy, hold and wait strategy didn’t give some clients the time to recover. Either the daily lifestyle needs, or emergency spending were greater than the ability of their investment accounts to keep up without going deep into principle.
