Index Fund Advisors Network Membership Program

The primary goal of financial advice is to determine the appropriate range of probable outcomes (standard deviation) for a clients' entire investment portfolio. IFA refers to this process of obtaining a client-specific standard deviation as risk capacity analysis. Once that is determined, that standard deviation value is matched to a portfolio of indexes that is supported by the highest quality historical data for the longest period of time available (preferably 50 years or more).* The portfolio of indexes should represent the lowest cost, most globally diversified, tax-efficient, and highest historical return portfolio, net of all fees, expenses and taxes. This is what IFA refers to as an efficient risk exposure.

An advisor should then buy, hold and rebalance a portfolio of index mutual funds (a risk exposure) that most closely represents the selected indexes. It should only be changed as a client's risk capacity changes. Market changes are not relevant to asset allocation decisions because nobody can consistently predict the next random bit of new information that will move a stock or an entire market. Once that information, which is some times wrong, is transmitted to millions of traders it is immediately reflected in the price of all relevant assets. This is the beauty of capitalism and a free market system where assets are always priced at a "fair market value" reflecting the risk of the investment, the cost of capital for the equity holder, and the resulting expected return of the capital provider (your client).

This rapid reflection of news in asset prices leaves no opportunity for traders to consistently profit at the expense of all the other traders. These concepts are referred to as the random walk theory and the efficient market hypothesis.

The result of the investment strategy described above is an optimal portfolio and investment experience for each investor. IFA refers to this overall process as Capacity - Exposure Optimization (CEO) Investing. Current events analysis, stock picking, time picking, manager picking, and style picking are the equivalent of short-term speculation and have no place in a prudent investment strategy.

If you understand and agree with the above statements, you are a candidate for our network membership. If you don't, you must be new to investing or have not done sufficient reading of academic research. If you don't understand these principles of investing, then we have no interest in working with you. Then again, you might not want to know or admit to the facts that support those statements. As William Bernstein stated in The Intelligent Asset Allocator, "There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor - the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know."

Index Fund Advisors (IFA) would like to show you a turnkey asset management program that invests your clients' assets in a risk-appropriate portfolio that will allow you and your client to sleep at night. The program is based on a strategy that is solidly backed by reams of academic research, which has identified rewarded risk factors in long-term historical market data going all the way back to 1928. You will have authorized access to a complete explanation of how the market works in the form of a web site, eBook, PowerPoint presentation and videos. You will also have passworded access to your clients' Risk Capacity Survey, which facilitates an advisory session to discuss many elements of their financial planning process.

Network Members pay IFA a license fee of $500/month/advisor or will handle the back office, including trading, reporting and billing for 50% of the IFA fee schedule. The solicitor program is a separate program. Please call 888-643-3133.

IFA neither endorses nor recommends Network Members individually or as a group and does not endorse or recommend any particular Network Member’s investment strategy. IFA recommends strongly that investors do due diligence on any particular investment manager they consider hiring, regardless whether that manager is IFA, any IFA Network Member, or any other advisor.

Our mission is to change the way the world invests and you can help us improve the investing experience for millions of investors worldwide. IFA is a fee-only Independent Financial Advisor (ifa), registered with the United States Securities and Exchange Commission.

We prefer Network Members who are DFA approved advisors. We are currently seeking Network members in the top 50 cities in the US as seen below, Australia and all English speaking countries o

If you have an interest in IFA's Network program, click on the subscribe button below, and then call Mark Hebner at 888-643-3133 or send him an e-mail.


Policies and Procedures for Network Members and Solicitors

If you are a Registered Investment Adviser that wishes to establish a relationship with Index Fund Advisors (IFA) as a Network Member or Solicitor please do the following.

  1. Index Fund Advisors reserves the right to refuse Network Members. Before you pay any money to IFA, please provide to IFA both your Form ADV Parts I and II. These will be reviewed by IFA. Only after IFA contacts you about proceeding should you pay IFA through PayPal by clicking on one of the following subscriber buttons:

    For Passive Advisors in the United States
    For International Passive Advisors

  2. If you are interested in becoming a Network Member you must sign a Network Member Agreement

  3. If you are interested in becoming a solicitor you must sign a Solicitor’s Agreement.

  4. After becoming a Network Member or Solicitor you will be provided with passwords for access to IFA’s administrative website.