Cindy Couyoumjian Discusses Retirement Planning Beyond the Basics: The Power of the REALM Model

Planning for retirement has never been more essential, particularly for women navigating unique financial challenges such as longer life expectancies and potential gaps in income due to caregiving responsibilities. Cindy Couyoumjian of Cinergy Financial, a passionate educator dedicated to expanding financial literacy and awareness among women, believes in empowering individuals with the tools to achieve financial independence. One of the key frameworks she promotes is the Retail Endowment Allocated Like Model (REALM®)—an innovative approach designed to provide strength and potential stability for investors in uncertain markets.

The REALM Model at a Glance

The REALM model is built on three integrated strategies, each working together to potentially enhance portfolio performance:

1. Passive (buy/hold investments)
2. Tactical (buy/sell investments)
3. Alternative (non-correlated investments)

Unlike traditional retirement plans that focus primarily on stocks and bonds, REALM adopts a broader strategy by incorporating five core investments instead of the typical two-asset-class approach. Cindy Couyoumjian explains that this diversification aims to provide investors with potentially better risk-adjusted returns and the potential for more sustainable income streams in retirement.

Dynamic Diversification: The Foundation of REALM

Cindy Couyoumjian emphasizes that the REALM model’s strength lies in its commitment to dynamic diversification—an investment strategy designed to adapt to market fluctuations while protecting against downside risks. Dynamic diversification under the REALM framework is achieved by spreading investments across three key strategies:

1. Passive Approach: Buy-and-hold investments with a focus on long-term gains.
2. Tactical Approach: Active management through buying and selling based on market conditions.
3. Alternative Approach: Non-correlated investments that provide protection against market volatility.

Cindy Couyoumjian explains that this multi-strategy design aims to weather periods of economic uncertainty while capitalizing on growth opportunities.

The Five Core Investments of the REALM Model

1. Stocks (Passive Strategy)
   A traditional component of any investment portfolio, stocks are included in the REALM model to provide long-term capital appreciation. Passive stock investing focuses on holding diversified equities for the long haul, allowing investors to ride out market fluctuations.
2. Bonds (Passive Strategy)
   Bonds remain an important fixture for generating steady income and preserving capital. Under the passive strategy, bonds are used to balance the more volatile nature of stock investments.
3. Absolute Return Funds (Tactical Strategy)
   This tactical investment seeks positive returns regardless of market conditions. Absolute return funds operate by strategically buying and selling assets to capitalize on short-term opportunities while reducing overall portfolio risk.
4. Real Estate Investment Trusts (REITs) – (Alternative Strategy)
   By investing in income-generating real estate, REITs offer diversification beyond traditional stocks and bonds. With limited liquidity compared to publicly traded equities, they are less vulnerable to daily market swings, making them an excellent hedge during periods of market turbulence.
5. Private Credit and Lending (Alternative Strategy)
   Private credit investments, such as loans to small businesses or infrastructure projects, provide steady income with limited correlation to traditional markets. Their inclusion in the REALM model offers stability and protection when markets experience volatility.

How the REALM Model Differs From Traditional Approaches

Many large brokerage firms follow a traditional investment model focused mainly on stocks and bonds, which can leave portfolios vulnerable to market downturns. The REALM model, by contrast, takes inspiration from the endowment model used by major universities to generate stable long-term growth while managing risks. Cindy Couyoumjian of Cinergy Financial explains that this comprehensive, multi-strategy approach can offer investors a number of key advantages:

1. Diversification for Reduced Risk
   Diversifying across five core investments instead of just two asset classes potentially reduces the risks associated with market volatility. This diversification also helps mitigate sequence of return risk—the danger of experiencing poor returns early in retirement, which could deplete savings prematurely.
2. Higher Sustainable Income
   By incorporating alternative investments like REITs and private credit, the REALM model may provide investors with higher income sources and safer withdrawal rates. This is especially important for retirees seeking consistent income without exhausting their savings.
3. Equity-Like Returns with Lower Volatility
   The blend of passive, tactical, and alternative investments is designed to deliver equity-like returns while maintaining bond-like volatility, offering a smoother ride for investors concerned about market swings.
4. Potential Protection Against Inflation, Taxes, and Government Intervention
   With its built-in diversification and alternative asset exposure, the REALM model is designed to protect investors from external factors they can’t control, such as inflationary pressures or shifts in government policy.

REALM’s Unique Relevance for Women Investors

Cindy Couyoumjian emphasizes that women face unique challenges in retirement planning, from gender pay gaps to career interruptions related to family caregiving. The REALM model can be a game-changer for women seeking to overcome these challenges by expanding their investment strategies beyond traditional portfolios. Its focus on diversified, income-generating assets provides a safety net for women looking to build lasting financial security.

Cindy Couyoumjian believes that education is the key to financial independence. By introducing women to innovative models like REALM, she hopes to foster confidence in navigating the complexities of investing and retirement planning.

Key Takeaways

• The REALM model offers a dynamic, multi-strategy approach combining passive, tactical, and alternative investments.
• Diversification across five core investment types—stocks, bonds, absolute return funds, REITs, and private credit—potentially enhances risk-adjusted returns.
• By mitigating market volatility and sequence of return risk, the REALM model is designed to help retirees maintain stable, sustainable income.
• Women, in particular, can benefit from the model’s flexibility and protective features, making it an ideal framework for addressing long-term financial challenges.

Cindy Couyoumjian of Cinergy Financial encourages women to take charge of their financial futures by exploring new investment models that go beyond conventional strategies.

There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication. This document is for informational purposes only and does not constitute investment advice. Cindy Couyoumjian does not provide tax, legal or accounting advice. It does not take an investor’s personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service. The opinions of the presenter do not necessarily reflect those of Independent Financial Group, LLC, (IFG) its affiliates, officers or directors. 

The REALM strategy contains Alternative Investments which are speculative by nature and have various risks including possible lack of liquidity, lack of control, changes in business conditions and devaluation based on the investment, the economy and or regulatory changes. As a result, the values of alternative investments do fluctuate resulting in the value at sale being more or less than the original price paid if a liquid market for the securities is found. Alternative investments are not appropriate for all investors. No investment process is free of risk, no strategy or risk management technique can guarantee returns or eliminate risk in any market environment. University endowments typically have multi-billion dollar asset bases, institutional access, and significantly different time horizons and liquidity needs than individual investors. Unlike endowments, individual investors face different tax considerations, shorter investment horizons, and ongoing liquidity needs for retirement and other financial goals. The REALM model offered to individual investors is a simplified adaptation that cannot replicate many of the advantages available to institutional endowment investors. There is no guarantee that this investment model/process will be profitable. Diversification does not guarantee profit nor is it guaranteed to prevent losses.

Registered Representative offering securities and advisory services through Independent Financial Group LLC (IFG), a registered investment adviser. Member FINRA/SIPC. Cinergy Financial and IFG are unaffiliated entities.