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should I attend?

A Self-Assessment Quiz

Alternative investments are sophisticated offerings with distinct differentiations when compared to traditional stock- or bond-based investments, such as: little to no correlation, lower volatility, consistent income distributions, potentially higher total return. Alternative investments also possess certain considerations that may make them less attractive when compared to traditional investments, such as: limited to no liquidity, less transparency, higher internal expenses, higher regulatory scrutiny, and greater arbitration risk.

As a fiduciary, you have a higher standard of care in determining whether these types of investments are in your client’s best interest. You must be willing to invest the time and energy in learning about how these investments work, what risks they carry, and when they should or shouldn't be utilized.

CLICK HERE to listen to a 20-minute podcast on the challenges RIAs face when adding a meaningful allocation to alternative investments.

 

To better understand if incorporating alternative investments into your practice is appropriate, please take our self-assessment quiz, which may help you gain some clarity:

  1. Do you provide financial planning services?

  2. Do at least half of your clients have a Net Worth greater than $1,000,000 or a Net Income greater than $200,000 annually, and are generally financially sophisticated?

  3. Do you believe that adding alternative investments that provide distinct differentiations from traditional investments, as outlined above, is worth the additional work required on your part to mitigate the considerations, also outlined above?

  4. Do you have the authority to add the use of illiquid investments to your practice?

  5. Do you have a practice with a strong culture for compliance?

 
How did you score?
 
  • Answered “yes” to all 5 questions: Congratulations! You are great candidate for attending. We hope to see you there. Why not register for our next event now?
  • Answered “yes” to 3 to 4 questions: Great. There’s a good chance you’ll get some benefit from attending, but don’t hesitate to contact us to be sure.
  • Answered “yes” to 2 questions or less: Proceed with caution. Your practice may not be optimal. Please do further due diligence before registering. Feel free to contact us if you have any questions.
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