What a great time to remind us of our patriotism and freedoms in the middle of all of the noise going on in the world. It is easy to feel polarized so I love any day that makes us intentionally slow down and do what we love with people we love. Be safe & enjoy your Indepedence Day!
The public markets have touched all-time highs this year but if you zoom out and look at the last 25 years, it has been a roller coaster ride to get us there. In my opinion, the best blanket advice anyone with a license can give is to “stick to the plan” and “stay invested”. As with anything, everyone has a different tolerance for the inevitable highs and lows. Our firm’s investment team works day in and day out to navigate public markets and tactically seek out momentum, but there are also private market tools we have access to that help us mitigate volatility.
However, with private investment products, there may be financial qualifications an investor needs to meet before they have the ability to invest in these products:
As it relates to private investments, one of the three basic investor qualification types is an “Accredited Investor”. To be considered an Accredited Investor requires the following:
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.
This means, among many things, that there is an assumed level of sophistication and understanding of markets that qualifies one to participate in private market investments. Private market investments are not directly correlated to public exposures such as geopolitical tensions, so the volatility does not always track with public market indices, such as the S&P500, the Dow Jones, or the Nasdaq composites. It can be a huge value add for those who are looking for long-term asset management without the stomachdropping, roller coaster swings in their portfolio. We are unique in our firm seeking access to and vetting these investments so we can provide our prospects and clients investments that have gone through a structured evaluation process.
As a strictly fee-based fiduciary, it is my duty to remain independent and have access to EVERYTHING so that we can narrow down what is truly in the best interest of the clients we serve. I started in this industry for a captive commission-based company and realized quickly there was a cap on the service I could provide. Some clients are perfectly fine accumulating wealth in these products, however, there usually comes a time for true financial planning and investment advice custom to their goals and ambitions. Our team has never met a problem to big or a goal too ambitious. With each client we serve, having the opportunity to be a part of their financial journey is an absolute honor.
Sharing financial literacy is the heart that beats behind what we do. Take us up on a free “second-opinion” meeting on your unique situation.
Ashlea (Kleitsch) Jones
Financial Advisor
Prime Capital Investment Advisors
Cedar Rapids, Iowa
pciacedarrapids.com
1815 Boyson Rd.
Hiawatha, IA 52233
P: (319) 269-7143
This information does not constitute legal or tax advice. PCIA and its associates do not provide legal or tax advice. Individuals should consult with an attorney or professional specializing in the fields of legal, tax, or accounting regarding the applicability of this information for their situations.
