Bart Zandbergen, Founder and CEO of The Zandbergen Group, joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Alternative Investment Summit to discuss the meaning of true wealth.
Bart Zandbergen believes that there is more to wealth than money. In addition to money, clients should consider their goals in areas including health, legacy, family, and friends. Accumulating wealth may not be satisfying if it comes at the expense of health or family. In fact, much of the accumulated wealth may be spent in an attempt to restore health that has deteriorated.
It is important for financial advisors to truly listen and understand the goals and objectives of their clients. What areas of true wealth are important to each individual client? Many investors may state a goal to earn a return of 8% or 10%. Zandbergen states that not every client needs a 10% return and the risks that come with the pursuit of those returns. Investors who have had a significant liquidity event may be able to meet or exceed their lifetime income needs with returns of 4% or less.
Zandbergen separates alternative investments into real assets and true alternatives and finds CAIS to be helpful in introducing strategies and managers not previously known to his firm. True alternatives include investments such as hedge funds, private equity, and life settlements. Real assets perform the function of hedging inflation risk in the portfolio. These assets include commodities, oil, gold, and especially direct investments in real estate. Investing directly in real estate can produce stable cash flow with low asset price volatility while providing key tax benefits such as depreciation.
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NO OFFER OR SOLICITATION: The contents of this podcast episode: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, and (ii) may not be relied upon in making an investment decision related to any investment offering Axxcess Wealth Management, LLC, an SEC Registered Investment Advisor. Axxcess does not warrant the accuracy or completeness of the information contained herein. Opinions are our current opinions and are subject to change without notice. Prices, quotes, rates are subject to change without notice. Generally, investments are NOT FDIC INSURED, NOT BANK GUARANTEED and MAY LOSE VALUE.