4 Things You Didn’t Know About Investing

If your idea of safeguarding your financial future is a stack of cash under the mattress, it’s time to rethink your financial situation. There are more options than just sitting on your savings. Learn how institutions and the Top 1% of individuals invest their portfolios.

1. Break out of traditional investments. Traditional investments include stocks, bonds and cash and usually make up most of an investment portfolio, depending on the client. But there are more options out there. Although many investing firms don’t have the resources to deal with alternative investments, Haydel, Biel and Associates specializes in alternatives. Ricky Biel, a Principal at the firm, suggests allocating a portion of your portfolio to alternative investments such as commercial real estate and private equity. The right percentage of these assets for your portfolio depends on your individual circumstances.

2. Love inefficiencies. Although it seems counter-intuitive to love inefficiencies, these market flaws offer investors a golden opportunity. “Inefficiencies create opportunities. So through those inefficiencies and these sub-markets where there’s less competition [investors are] able to unlock more value for these types of investments,” said Ricky Biel, Principal at Haydel, Biel and Associates.

3. Know the Limits of Alternatives. Alternatives are a smart addition to your investment portfolio but should not be the bulk of it. Unlike traditional investments, they do not have liquidity. “So we have to be very selective with where we invest and of course – that’s one of the reasons why sometimes people are reluctant to invest in alternatives is because they don’t have the liquidity…[But] for everyone, it’s different,” said Biel.

4. Do Your Due Diligence. Due Diligence is the industry term for appraising the viability and security of a business before investing. These comprehensive research endeavors take a large amount of resources and time; they’re not something a simple Google Search will turn up. At Haydel, Biel and Associates, these potential investments go through several layers of due diligence, to ensure the security of your portfolio.

Clearly this is just the tip of the tip of the iceberg when it comes to examining alternatives and capitalizing on inefficiencies. Investing in alternatives can be a lucrative choice if done wisely, but you must do your own “due diligence” before rearranging your portfolio.

Attend Haydel, Biel and Associates’ investment conference, ‘Investing like the Top 1%’, from 8:30-11:30 a.m. on Saturday, October 10th at the Langham Huntington, 1401 South Oak Knoll Avenue, Pasadena 91106. The event is free but registration is an RSVP is required, register at www.2015fall.eventbrite.com.

Watch this video, “How to Invest Like the Top 1%” to learn more: https://vimeo.com/136151088

Haydel Biel & Associates is located at 100 E. Corson Street Suite 310, Pasadena. For more information, call (626) 529-8347 or visit www.hbawealth.com.