An article from ThinkAdvisor.com titled Many Affluent Investors ‘Have No Idea’ What Alt Investments Mean: Survey, by Melanie Waddell, details results of a recent survey that indicates many investors, despite having an advisor, find themselves unaware of what alternative investments are and whether they are utilizing any.
The survey included investors from the ages of 35-65 with at least $200,000 in investable assets. This target group makes the statistics even more startling because they show that alternative investments are not understood by people likely to incorporate them in their portfolio.
This isn’t surprising news to us. At Endowment Wealth Management, we are committed to understanding our clients’ needs and then help educating them on proper asset allocations to achieve a globally diversified endowment portfolio.
We have built our entire firm on helping clients to better understand their investments. It starts with our name… Endowment Wealth Management. We named the firm after our investment philosophy. The Endowment Investment Philosophy® (EIP) combines three major asset allocations into every client portfolio: Global Equity, Global Income, and Alternative investments. When combined with our straight talk, using terms that our clients can understand, rather than financial jargon people don’t fully understand, we see their level of engagement rise. For instance, when describing the three asset class buckets that comprise their portfolio, we use a football analogy Equity (offense), Fixed Income (defense) and Alternatives (special teams). We also designed notepads, which are watermarked with a graphical representation of the 3 dimensional EIP showing how a portfolio will be structured. During our meetings, we use those sheets to breakdown client’s portfolio of traditional and alternative investments according to their goals. At the end of the meeting, they tear off the note sheet as their primary take-away from the meeting because that’s how they understand the importance of including alternative investments in their portfolio. People hire us, not just for our professional expertise, but because they also understand our team, our investment philosophy, and where they are going.
If you have an investing question or would like assistance when constructing an endowment portfolio and the importance of using alternative investment allocations, please call our office at 920.785.6010 or contact Rob directly at rob@endowmentwm.com to set up a private, no-obligation wealth consultation.
By Robert Riedl CPA®, CFP®, AWMA
To read Many Affluent Investors ‘Have No Idea’ What Alt Investments Mean: Survey: http://bit.ly/1nSWKSx
Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies, nor shall it be construed to be the provision of investment advice. Investments involve risk and unless otherwise stated, are not insured or guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any investment strategies discussed herein. While the firms are related and share corporate offices, Endowment Wealth Management, Inc. and ETF Model Solutions, LLC are each individually registered as an investment adviser in the State of Wisconsin. A copy of Endowment Wealth Management’s disclosure document, Form ADV Brochure Part 2, is available upon request.
