2019 January

Did you know there is a vast discrepancy between how individuals and institutions allocate their investment capital?

According to the 2017 American Association of Individual Investors Asset Allocation Survey, the average individual investment portfolio consisted of about 66% equity, 16% fixed income, and 18% cash. While individual portfolios are highly skewed in the direction of equities, the same does not hold true for large institutional investors such as college endowments or pension plans whose asset allocation models look quite different.

Some Americans are getting seasick from Wall Street volatility and are looking for alternative investment options. You may be considering alternative investments as well for placing and growing your money.

But, where to start?

Start where the wealthy put their money. Institutions, such as hedge funds and university endowments, as well as ultra-wealthy investors have long invested in private markets as an alternative to the stock market since growth and returns in the private markets have outpaced those in the public market.

Just as in sports, the wealthy know that for growing or maintaining wealth a good defense is just as important as a good offense.

In financial terms, for growing wealth, not only is it important to increase income but it’s equally important to protect that income from the IRS.

Just as zealous as the wealthy are about growing their proverbial “pot,” they are equally fervent about defending that pot from being chipped away by taxes.

2019 is here and let’s go counter-intuitive.

Don’t plan for retirement.
In the world of finance, there are two types of financial advisors, financial planners whose goal is to help customers get ahead and wealth managers who assist those who have already made it.
Financial planners primarily assist with lifestyle planning, including budgeting, college, and retirement. Most of their clients are middle class.