“The last ten years isn’t going to look like the next ten years…” – AlphaCore CEO Dick Pfister
In the past, investors could rely on a conventional 60/40 portfolio to achieve diversification. However, in today’s world, Federal Reserve policies, unyielding equity market volatility, and constantly evolving macro dynamics have shown that relying solely on traditional asset classes is no longer sufficient. To protect client wealth in the face of these emerging uncertainties, advisors must integrate alternative strategies into their investment approach.
Despite its importance, RIAs struggle to incorporate alternative and real assets into portfolios for proper diversification. To help these firms better understand these challenges and how to overcome them, the Real Assets Adviser podcast turned to Dick Pfister, CAIA, the CEO, and founder of AlphaCore Wealth Advisory. AlphaCore Wealth Advisory is a firm that stands at the forefront of innovation in integrating alternatives into a well-rounded financial strategy, providing valuable insight.
During the episode, Pfister specifically discusses:
- Why the past 18 to 24 months has heightened the need for RIAs to go beyond traditional portfolio allocations
- The four types of investments that are necessary for RIAs to provide clients with proper portfolio diversification
- Current challenges faced by RIAs in the alternative space and how they can begin to utilize them effectively within client portfolios
- How the growing role of alternatives within portfolios has impacted M&A activity within the RIA realm
- The importance of in-depth wealth planning to determine the level of liquidity for each unique client
- How to manage expectations, both with time and levels of liquidity, when allocating towards alternatives
- Why the broad financial media favors coverage of quick-moving, public investments over alternatives and how this impacts the space
- The role technology has played, and will play, by advisors investing in alternative assets
Click here to listen to the entire podcast episode. If you want to learn more about utilizing alternative investments to build a strong, resilient portfolio, please do not hesitate to contact us.