The strongest argument against what I do comes from the investor I have been quoting a lot lately.
David Swensen told individuals without Yale’s resources to establish a sensible allocation and use low-cost index funds. He also warned that private investments can send more of an investor’s money to managers through fees and profit sharing.
Those objections deserve a serious answer from anyone discussing private funds with you.
Including me.
There are fees at the fund level and at mine. Quoting Swensen doesn’t justify them, and neither does putting “institutional” in a presentation.
So why am I hosting today’s webinar?
Because Swensen also identified 2 important differences between Yale and individual investors: tax treatment and the resources available to evaluate managers.
Your retirement account offers tax advantages that can change where an investment makes sense.
A traditional IRA generally defers tax until withdrawal, although exceptions apply. That creates a useful planning question; it doesn’t turn your account into Yale’s endowment.
The manager-selection problem also needs an answer. Someone must examine the documents, challenge the underwriting and understand what could go wrong. Paying someone to do that work is defensible only if the work and the economics justify the cost.
Today, I’ll explain my process and fees so you can evaluate that argument yourself.
We’ll also examine portfolio concentration, retirement-account considerations and the risks of private investments, including who should avoid them.
The first 5 segments build the educational framework. In the 6th, I’ll explain the specific investment I use and clearly identify that transition.
You may leave deciding your existing approach is appropriate. You may leave with questions for your CPA or adviser. Both are useful outcomes.
If you’re an accredited investor approaching retirement, join me today at 1 PM Mountain / 3 PM Eastern.
There’s no cost, and we’ll have live Q&A. Register even if you can’t attend; everyone who registers receives the replay.
Register at https://lnkd.in/gzXjqshP
