AN EDUCATIONAL FINANCIAL FRAMEWORK
Your assets aren’t just pieces of a portfolio.
Your assets aren’t just pieces of a portfolio.
Your assets aren’t just pieces of a portfolio.
They’re there to support your life, and align your money with what matters.
They’re there to support your life, and align your money with what matters.
They’re there to support your life, and align your money with what matters.
Asset Life Matching is a framework for connecting your investments to the future spending, goals, and obligations they are intended to support.
Asset Life Matching is a framework for connecting your investments to the future spending, goals, and obligations they are intended to support.
Match the life of the asset to the life of the liability.
Match the life of the asset to the life of the liability.
A portfolio is not a financial plan.
A portfolio is not a financial plan.
A portfolio is not a financial plan.
Investors are often described as aggressive, moderate, or conservative. Their portfolios are summarized as 80/20, 60/40, or 40/60. Those labels tell us what an investor owns. They don’t tell us what the money is supposed to accomplish.
Investors are often described as aggressive, moderate, or conservative. Their portfolios are summarized as 80/20, 60/40, or 40/60. Those labels tell us what an investor owns. They don’t tell us what the money is supposed to accomplish.
The financial plan should determine the portfolio structure, not merely sit beside it.
The financial plan should determine the portfolio structure, not merely sit beside it.
The financial plan should determine the portfolio structure, not merely sit beside it.
01
One pool
Assets with different purposes and timelines are treated as though they have the same job.
02
One allocation
A single investment mix is applied across obligations with very different characteristics.
03
Unclear purpose
The relationship between the assets and the life they must support remains hidden.
What is this money for—and when will it be needed?
What is this money for—and when will it be needed?
Different money has different jobs.
Different money has different jobs.
Different money has different jobs.
A future obligation is not just a date. It has a character.
A future obligation is not just a date. It has a character.
Asset Life Matching begins with the financial plan, then expresses that plan through a portfolio.
Asset Life Matching begins with the financial plan, then expresses that plan through a portfolio.
Today
Today
Six years
Six years
Later life
Later life
Emergency reserve
Emergency reserve
Emergency reserve
Timing
immediate
Certainty
uncertain
Flexibility
low
Inflation
low
Consequence
high
Stability and liquidity
Stability and liquidity
Home purchase in six years
Home purchase in six years
Home purchase in six years
Timing
intermediate
Certainty
moderate
Flexibility
moderate
Inflation
moderate
Consequence
moderate
Defined maturity and resilience
Defined maturity and resilience
Legacy assets
Legacy assets
Legacy assets
Timing
long term
Certainty
flexible
Flexibility
high
Inflation
high
Consequence to current lifestyle
lower
Long-term growth and inflation protection
Long-term growth and inflation protection
Risk tolerance describes how market volatility feels. Risk capacity describes how much loss the financial plan can actually withstand.
Risk tolerance describes how market volatility feels. Risk capacity describes how much loss the financial plan can actually withstand.
The appropriate strategy depends not only on time, but also on how certain, flexible, inflation-sensitive, and consequential the future obligation may be.
The appropriate strategy depends not only on time, but also on how certain, flexible, inflation-sensitive, and consequential the future obligation may be.
The portfolio is the financial plan expressed through assets.
The portfolio is the financial plan expressed through assets.
The portfolio is the financial plan expressed through assets.
Asset Life Matching is not a one-time exercise. Liabilities approach, markets change, and life evolves. The matches must evolve with them.
Asset Life Matching is not a one-time exercise. Liabilities approach, markets change, and life evolves. The matches must evolve with them.
Identify
Identify
Define future spending, goals, and obligations.
Evaluate
Evaluate
Assess timing, certainty, flexibility, inflation, and consequence.
Assess Capacity
Assess Capacity
Determine how much risk the financial structure can withstand and how much return is actually required.
Match
Match
Select assets whose characteristics align with the obligation.
Monitor
Monitor
Review and revise the matches as markets, priorities, and life circumstances change.
The financial plan determines the portfolio structure, not the other way around.
The financial plan determines the portfolio structure, not the other way around.
The financial plan determines the portfolio structure, not the other way around.
Markets are unpredictable. Your life is more knowable.
Markets are unpredictable. Your life is more knowable.
Markets are unpredictable. Your life is more knowable.
No one can reliably forecast the next market cycle. Returns, interest rates, inflation, and economic conditions are uncertain by nature. But you often know far more about your own goals, obligations, priorities, and flexibility than you know about the future path of markets. Asset Life Matching connects those more knowable elements of life to the unavoidable uncertainty of investing.
No one can reliably forecast the next market cycle. Returns, interest rates, inflation, and economic conditions are uncertain by nature. But you often know far more about your own goals, obligations, priorities, and flexibility than you know about the future path of markets. Asset Life Matching connects those more knowable elements of life to the unavoidable uncertainty of investing.
No one can reliably forecast the next market cycle. Returns, interest rates, inflation, and economic conditions are uncertain by nature. But you often know far more about your own goals, obligations, priorities, and flexibility than you know about the future path of markets. Asset Life Matching connects those more knowable elements of life to the unavoidable uncertainty of investing.
Clarity can change behavior.
Clarity can change behavior.
Clarity can change behavior.
When investors cannot distinguish near-term money from long-term growth assets, every market decline can feel like a threat to the entire plan. Asset Life Matching creates structure around purpose, timing, and consequence. That structure can help investors make calmer, more deliberate decisions.
When investors cannot distinguish near-term money from long-term growth assets, every market decline can feel like a threat to the entire plan. Asset Life Matching creates structure around purpose, timing, and consequence. That structure can help investors make calmer, more deliberate decisions.
When investors cannot distinguish near-term money from long-term growth assets, every market decline can feel like a threat to the entire plan. Asset Life Matching creates structure around purpose, timing, and consequence. That structure can help investors make calmer, more deliberate decisions.
Less fear
Less fear
Near-term needs do not feel indistinguishable from long-term growth assets.
Near-term needs do not feel indistinguishable from long-term growth assets.
More discipline
More discipline
Long-term investments are less likely to be sold simply because current spending feels uncertain.
Long-term investments are less likely to be sold simply because current spending feels uncertain.
Better decisions
Better decisions
Investors can respond deliberately instead of reacting emotionally.
Investors can respond deliberately instead of reacting emotionally.
The emotional benefit is not separate from the financial benefit. It is part of it.
The emotional benefit is not separate from the financial benefit. It is part of it.
The emotional benefit is not separate from the financial benefit. It is part of it.
Asset Life Matching in real life
Asset Life Matching in real life
Asset Life Matching in real life
Asset Life Matching is not just a portfolio theory. It is a way to think more clearly about the financial decisions, obligations, and transitions that shape a person’s life.
Asset Life Matching is not just a portfolio theory. It is a way to think more clearly about the financial decisions, obligations, and transitions that shape a person’s life.
Asset Life Matching is not just a portfolio theory. It is a way to think more clearly about the financial decisions, obligations, and transitions that shape a person’s life.
Retirement income
Retirement income
Retirement is not one liability. Different years of retirement create different spending needs, timelines, and levels of flexibility.
Major purchases
Major purchases
Homes, renovations, education, and other planned expenses can be matched to assets with appropriate timing and stability.
Career transitions
Career transitions
Changing careers, reducing work, or starting a business may require a dedicated financial runway.
Healthcare
Healthcare
Healthcare needs may be uncertain in timing but significant in consequence.
Charitable giving
Charitable giving
Planned gifts and charitable commitments can be aligned with appropriate assets, timing, and tax characteristics.
Legacy
Legacy
Assets intended for children, grandchildren, or future generations may have a longer life than assets intended for current spending.
Explore the applications →
Explore the applications →
More than a set of time-based buckets.
More than a set of time-based buckets.
More than a set of time-based buckets.
Time matters. But time is not the whole framework. Two obligations with the same date can require very different investment approaches if one is essential and inflexible while the other is optional and adjustable.
Time matters. But time is not the whole framework. Two obligations with the same date can require very different investment approaches if one is essential and inflexible while the other is optional and adjustable.
Time matters. But time is not the whole framework. Two obligations with the same date can require very different investment approaches if one is essential and inflexible while the other is optional and adjustable.
What Asset Life Matching considers
What Asset Life Matching considers
What Asset Life Matching considers
Timing
Certainty
Flexibility
Inflation sensitivity
Consequence
Financial risk capacity
What it avoids
What it avoids
What it avoids
Arbitrary time divisions
Treating every future expense equally
Relying only on subjective risk tolerance
Pretending risk can be eliminated
Forcing every investor into the same formula
Confusing the portfolio with the plan
Asset Life Matching is a framework for deciding where different risks belong.
Asset Life Matching is a framework for deciding where different risks belong.
Asset Life Matching is a framework for deciding where different risks belong.
Compare approaches →
Compare approaches →
The goal is to align your money with your life.
The goal is to align your money with your life.
The goal is to align your money with your life.
The objective is not simply to build the largest possible portfolio. It is to use your resources to support the life you actually want to live. That may mean protecting near-term security, taking appropriate long-term risk, spending with greater confidence, helping family, giving money away, or preserving assets for future generations.
The objective is not simply to build the largest possible portfolio. It is to use your resources to support the life you actually want to live. That may mean protecting near-term security, taking appropriate long-term risk, spending with greater confidence, helping family, giving money away, or preserving assets for future generations.
The objective is not simply to build the largest possible portfolio. It is to use your resources to support the life you actually want to live. That may mean protecting near-term security, taking appropriate long-term risk, spending with greater confidence, helping family, giving money away, or preserving assets for future generations.
Protect near-term security
Protect near-term security
Take appropriate long-term risk
Take appropriate long-term risk
Spend with confidence
Spend with confidence
Support people and causes you care about
Support people and causes you care about
Financial alignment is not only about return. It is about making your money serve your life.
Financial alignment is not only about return. It is about making your money serve your life.
Financial alignment is not only about return. It is about making your money serve your life.
Developed through investing, planning, and real life.
Developed through investing, planning, and real life.
Developed through investing, planning, and real life.
Founder · Verbatim Financial
John Stoj is the founder of Verbatim Financial, an independent, flat-fee financial advisory firm. Before becoming an advisor, John worked as a trader, portfolio manager, hedge fund founder, entrepreneur, and stay-at-home parent. Asset Life Matching grew from his belief that investment portfolios should be organized around the lives they are intended to support—not merely around abstract measures of risk tolerance.
John Stoj is the founder of Verbatim Financial, an independent, flat-fee financial advisory firm. Before becoming an advisor, John worked as a trader, portfolio manager, hedge fund founder, entrepreneur, and stay-at-home parent. Asset Life Matching grew from his belief that investment portfolios should be organized around the lives they are intended to support—not merely around abstract measures of risk tolerance.
John Stoj is the founder of Verbatim Financial, an independent, flat-fee financial advisory firm. Before becoming an advisor, John worked as a trader, portfolio manager, hedge fund founder, entrepreneur, and stay-at-home parent. Asset Life Matching grew from his belief that investment portfolios should be organized around the lives they are intended to support—not merely around abstract measures of risk tolerance.
About John →
About John →
Continue exploring.
Continue exploring.
Continue exploring.
Asset Life Matching is a framework, not a slogan. These resources expand the core ideas behind the approach.
Asset Life Matching is a framework, not a slogan. These resources expand the core ideas behind the approach.
Asset Life Matching is a framework, not a slogan. These resources expand the core ideas behind the approach.
What Is Asset Life Matching?
What Is Asset Life Matching?
A complete introduction to the framework and why it begins with the life the assets must support.
A complete introduction to the framework and why it begins with the life the assets must support.
Read more →
Your Risk Tolerance Is Not a Time Horizon
Your Risk Tolerance Is Not a Time Horizon
Why emotional tolerance for volatility and the timing of future spending are related, but not the same question.
Why emotional tolerance for volatility and the timing of future spending are related, but not the same question.
Read more →
Why Retirement Is Not One Liability
Why Retirement Is Not One Liability
A closer look at the many different obligations contained within retirement.
A closer look at the many different obligations contained within retirement.
Read more →
Follow the work.
Follow the work.
Follow the work.
Receive new resources, examples, and research related to Asset Life Matching.
Receive new resources, examples, and research related to Asset Life Matching.
Receive new resources, examples, and research related to Asset Life Matching.