Tag Archives: Wealth Management

Business Articles, Wealth Management

“Basic Asset Allocation For Portfolio Management”

What is Asset Allocation? How do Portfolio’s take shape with investment choices? And how do Investment Advisors, CFP’s, and Wealth Management, Asset Managers, Fund Managers use Asset Allocation? All good questions! Todays article is for you. This is a very broad topic. And there are many moving parts. This post is meant to give you a better top down view into how “Financial Advisors, and Asset Managers Allocate Assets to Fictional Portfolios. And the process” This post should not be used as personal or professional Investment Advice.

Interestingly I am learning a ton as I continue to study the fine art and processes of Wealth Management, and earning my License as a Independent Financial Advisor. One of the latest Youtube Channels I have been listening to is Family Office Club, they do touch on Asset Allocation and so do several Podcasts I have listening to in my spare time.

Investment Advisor Podcast

Back to me listening to Podcasts. One of the Podcasts I highly recommend is Money for the Rest of Us. Hosted by experienced Institutional Investment Advisor J. David Stein. In all this content you can be sure to hear Tax Optimization, Retirement, Investing Smart, and Asset Allocation for large and small family portfolio’s and a ton more. In todays article I am going to demystify a bit “How Financial Advisors grow, protect, and leverage investment opportunities while deciding “How much and where to Invest their Capital?”

Another Podcast which is a Favorite? My Friend Andy Flattery who is a CFP in Kansas City who operates Simple Wealth Planning. His Podcast? “The Reformed Financial Advisor”

Blackstone Investment Choices For Investment Advisors

Before I continue, I would like to introduce Blackstone’s Investment Vehicles for Investment Advisors Clients. Blackstone Alternative Investments for Investment Advisors Clients Portfolio’s is a very smart choice. Blackstone’s investment products and Investment Vehicles continue to produce above normal returns. And this fact is one of several reasons why Blackstone is my go Alternative Investment Product list.” Here Joan Solotar to share more about why Blackstone’s Portfolio Investment Vehicles just makes since.”

“How do Financial Advisors Allocate Capital For Investments?”

If your reading my article? I am positive I know what your thinking? “How do Financial Advisors Allocate Capital and make Investment Choices?” This is where working closely with a Licensed Financial Advisor starts to pay dividends.

Maybe your a Entrepreneur that has had a recent liquidity event? Maybe your a Executive that has had a Exit Opportunity moving towards you on your professional Horizon? Or Maybe? Your a NFL, NBA, or a Music Artist who needs to know your options and what comes next? And you have questions. Well this post should help you with your questions, and will delve into “How Financial Advisors Manage, Grow, Diversify, and Protect your Portfolio. For the Sole Purpose of Preservation of Wealth”.

First what we would generally do? Meet face to face and learn more about each other. Maybe play golf, go on a Offshore Fishing Trip, or Ski Trip, or even you invite us to travel with you as you continue to work. After your thoroughly acquainted with the advisor of your choosing and have interviewed several other Advisors? You decide who you can trust and who is capable of protecting your assets while giving you room for growth and let’s not forget providing concierge style of extraordinary service.

Later after we begin to explore what are the most important things? Here are some questions that get us heading in the right direction. Usually we would sit down and talk about a list of questions to consider. Examples? Do you have any appetite for risk? On a scale of 1-10 “How important is preserving your principle?” On a scale of 1-10 do you require Income from your Capital? On a scale of 1-10 are you seeking to grow your capital? “What is the time horizon we need to consider?”

“Financial Advisors & Client Objectives and Recommendations”

Did you know? “Financial Advisors develop a Plan based on your goals and objectives? It’s how we begin to develop a plan as Fiduciary’s and how we consider Suitability of Securities and Investments.

Allocation of Capital

Most Investment Advisors have a list of Investment Opportunities they can allocate capital to for your Portfolio. This list is sort of unique to each Financial Advisor. Because they have done their due diligence on the offering or security. This list is unique and usually is one of the many reasons “Why” High Net Worth Families and Individuals have sought out the services of a Investment Advisor. In order for a Allocation of Capital to Happen? Financial Advisors first need to finish the financial plan to get you and your Assets into a Portfolio that has a purpose and objective. In simple terms? “We look at it like placing you into a car and getting you from Point A to Point B. We must have a financial destination.” And this is where our list of Investment Vehicles comes into the picture.

“Portfolio Asset Allocation”

Ok once we have asked Hard Questions and developed a Plan we can now begin to allocate capital to investment vehicles that have specific goals and objectives.

BONDS & CREDIT MARKET SECURITIES

Example: We may allocate 40% of your capital for Municipal or Corporate Bonds after we have carefully considered your Tax Bracket. The main reason we would use Bonds? Is because they offer a excellant opportunity to generate Income as an Investment Vehicle. Make sense? Excellent.

STOCKS

Another Example of making a Asset Allocation in our fictional Portfolio? If we have had a conversation about introducing an Equity portion into your portfolio with calculated Risk? We would begin to carefully consider using Stocks as an Investment Vehicle. Meticulously making sure we are using tools that could minimize risk of big swings in market volatility to your Stock positions. Yes we have tools that can do this. However if we are properly diversified? This can be a fantastic way to use Growth Stocks as investment vehicles to grow your Portfolio and capital.

Investment Vehicles Used For Asset Allocations By Investment Advisors

Since Asset Allocation is a complex subject. We honestly do not have enough time to write about all the Investment Vehicles and Securities we use for Client Portfolios. However here are some additional Choices we use for Asset Allocation. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills, Real Estate Investment Trusts, Mutual Funds, Index Funds, Exchange Traded Notes, Investment Funds by Direct Participation Programs, and much more.

Asset Management Goal? Preservation and Capital Growth

Bottom line up front, I genuinely hope you learned a few things during todays Post of Asset Allocation? Todays post was meant to give a brief view for anyone who was curious how Financial Advisors and Wealth Managers divide up capital and build a fictional portfolio. This is a very general topic. Not in depth. The width of this topic is very wide. But if you ask me? One constant should always be placed a the forefront of Asset Management. “That is the Preservation of Capital” In the Grand Scheme of Investing? That is all that matters. I do hope you learned and discovered a few things today. And please reach out if you feel I could be helpful.

Thank you
JS

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Business Articles

FINRA Series 65 Exam Registered Investment Advisor

It’s time for me to go get the FINRA Series 65 Registered Investment Advisors Exam out of the way. Im all in.

It’s Sunday July 31st 6am, Have you seen the incredible fall in the Markets? Are we in a recession or are we not in a recession? It seems the current Administration that decides Fiscal Policy is unable to agree. I genuinely hope you are capitalizing on the correction in the markets as we continue to spiral into a recession.

Goals Keep The Talented, Strong & Courageous Seeking Excellence

Interestingly Ive decided since I find myself devouring content and books about the Series 65 Exam? And after looking at the challenge and rewards? Its time I take the initiative and have the courage to prove to the awesome Mr. Marty Bicknell CEO of Mariner Capital Management. That I can crush the the Series 65 Exam. Becoming a licensed and registered Investment Advisor Representative like himself. Marty is the leader of a very special Financial Services Firm in Overland Park, Kansas.

The really interesting thing about Marty Bicknell and Partner Cheryl Bicknell? They are Entrepreneurs like myself who Consolidated the Money Management sector. I genuinely admire their Grit and Commitment to their mission. They have made a name for themselves. And that track record is impressive.

You find that those who have passed the Series 65 are a cut above most entrepreneurs and this adds a level of sophistication and professionalism that Investors take seriously. It can do nothing except improve my life at this time.

What is the Series 65 Exam?

According to Kaplan Financial,

The Series 65 license, known as the Uniform Investment Adviser Law Examination, qualifies individuals to provide investing and general financial advice to clients. Passing the Series 65 exam qualifies individuals as Investment Advisor Representatives (IARs).

Obtaining the Series 65 license is important for representatives who provide advice on ERISA-regulated retirement accounts.  

Why I decided to add Investment Advisor to my list of Qualifications?

Along my journey of Mergers and Acquisitions, and also learning to become a detailed oriented Value Investor like Warren Buffett and building a track record of positive 39.1 % in annual growth. I find myself being asked questions about Investing and money by many Tradesman like Roofing Contractors, Electricians, and even many White Collar Professionals.

“How should we invest for the Future? And “How can I grow my money?”

All incredibly important questions. Legally I am disqualified and unable to provide Investment Advice for Payment without first passing the Series 65 exam and registering with the State and SEC. But first we need to do a bit of educating and bringing you up to speed about Financial Literacy.

I have found 95% of Americans have absolutely no clue what I am talking about when I get in the details of Corporate Finance, and financial strategies inside Investing? It’s like I am talking Greek. But Good News. I find it very interesting to sit and listen to peoples financial plans and futures. That develops into some very interesting Coffee Talk. It’s incredibly clear underperforming assets are on the mind of Investors and Wealth Mangers alike.

Since these Professionals are calling on me and asking for direction to serve them on future investments or ideas? I find, I might as well make myself useful in the name of Community Service and take the Series 65 Exam and build a Financial Services Firm or business from my growing experiences in Investing, and Corporate Finance. In all honesty? I could always use the cash to fund Community service Projects as a Non Profit. Or grow my own Investment Fund. Which is the goal.

A Registered Investment Advisor is your Strategic Investment Partner and Financial Services Firm Professionals

Wealth Management

When we look at the growing opportunities within the Credit Markets, S&P Index Funds, or New York Stock Exchange? We see lots of opportunities for Professionals to invest and leverage the growth for their Retirement options. After all strategically investing to receive a Monthly Payment from a Mutual Fund, or Customized Strategic Investment is very smart.

More individuals, Professional Tradesman like Electricians, Contractors, Professional Basketball Players, Baseball, Football, and even Attorneys who can start preparing accounts that can grow organically from the Stock Markets rise and fall. It’s important to point out and zero in on this point. If you are having doubts about investing in the Stock Market? You absolutely SHOULD!!! For to long Asset Management Firms have become so large and lazy the just do not care about maximizing the investments they hold for you.

However with a personable trustworthy relationship with Investment Advisor Representative managing your families wealth or strategically investing assets? You will have an edge when Investing. You have your own personal customized investment professional who can use experience and strategy to build a future of Portfolio Earnings and Gains without suffocating tax penalties that follow most investments. Investing in a private placement fund or strategically investing in a Index is an idea many add to a strategic portfolio. But before I am able to elaborate? I must first pass the Series 65 to have these conversations and establish a professional relationship with anyone.

When your thinking about your future? You need to know what are some of the choices you have for investing. This short list is some of the most common investment vehicles Registered Investment Advisors use to grow your principle investment.

Types of Investments

  • Stocks.
  • Bonds.
  • Mutual Funds and ETFs.
  • Bank Products.
  • Options.
  • Annuities.
  • Retirement.
  • Saving for Education.

In conclusion? Many people I have talked to who have passed the Series 65 Exam tell me “It’s difficult! And I barely passed.” All things considered? I do not work for a Financial Services Firm. Which makes the reason I want to take the test all that much more interesting. I want to pass this test because Id like the opportunity to expand my professional skills. And serve the community professionally. Yes I am a Entrepreneur. However I feel I have alot to give. And getting this test out of the way? Does create more opportunities for me as a entrepreneur and as a servant to the community. I plan on taking the test ASAP. And before the FALL. The sooner the Better.

Being passionate about Finance and Investing is an advantage. I plan on using my Geeky curiosity to benefit my Family, Friends, and Community and build a business along the way. Thank you for reading. Im absolutely positive I will have fantastic news to report very soon from taking the FINRA Registered Investment Advisor Series 65 Exam.

Godspeed.

JS

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Business Articles

Wealth Management “TRUST”

What is the elusive often misunderstood Trust. Wealth Management Topic

A trust is a contract that gives an individual or an institution—like U.S. Bank, for example—the authority to hold legal title to assets while managing them for the benefit of others. Trusts can help you ensure that your assets are distributed and managed according to your wishes. US BANK Rich Snippet

I would like to introduce you to Trusts and the history and also how they are used in Banking.

In the 12th century and middle ages of English Knights whom were about to go on crusade needed a safe place to keep their wealth and have it benefit someone else “IF” they were captured, tortured and placed into indentured servitude for the rest of their short lives. So wouldn’t make sense to have a place to have all your wealth act like a “Will” in a way? Of course. So they would go to the London Finance Center which is a little Banking Town inside of London the City and its sole purpose in this small finance town is to act as a separate entity to ensure personal Land, Assets, and wealth was taken care of and used in the correct manor under English Law. These stewards in Banking were often bound by law so nothing could ever separate the Beneficiary from the Assets.

The legal owner would hold the land for the benefit of the original owner, and would be compelled to convey it back to him when requested. The Crusader was the “beneficiary” and the acquaintance the “trustee”. The term “use of land” was coined, and in time developed into what we now know as a “trust”.

Click on Image For Wikipedia Page

The Beneficiary is the person who is entitled to the benefits and entitlements of the TRUST. Now with this said. Beneficiary’s do not “OWN” the TRUST. They are the Beneficiary of the Trust. Trustee’s are the legal stewards of the land or Assets. Often times Attorneys have their own Trusts being officers of the courts in United States.

Is a beneficiary an owner of a trust? In legal jargon, trust and will attorneys refer to Trust beneficiaries as the “equitable owners” of the Trust. Beneficiaries will receive money and other assets from the Trust either outright (meaning being paid all at once) or in smaller amounts over time, based on the provisions in the Trust document.

Thanks for reading, we hope you found this useful. Use the links if you would like to know more.

J.S.

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