As I near retirement I would like to move some investments from the market to some private funds/product so I'm not as subject to to the ups and downs of the market. What do you recommend?

I currently have stocks, mutual funds, etc.

Asked by John Zur

1 Answer

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Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi John,

Can you elaborate on contributions to "Private Funds/products?" If you are referring to illiquid REITS, be very careful.
Here is an SEC bulletin on this.

There are lots of options to smooth the roller coaster market. An easy one is FACs (Floors & Ceilings). There are also many other strategies.

The most important things to pay attention to are the 4M's:
1. Meaning - Are you capable of understanding the investment?
2. Moat - Does it offer a durable and viable competitive advantage?
3. Management - Who is in charge of your $$ and are they getting your minimum acceptable rate of return (MARR)?
4. Margin Of Safety (MOS) - Are you investing well below the intrinsic value? Why and how do you know?

Rather than put the cart in front of the horse, a good way to look at investments is to invert them. What do you want in return for investing your hard-earned $$? What is your ROI? Invest in yourself first and understand where you are financially and where you want to be financially. Next, put together a plan to achieve your goals per your specifications. Everybody wants to save and make money. What is the bottom line for you? How much did you lose by saving money or how much did you make after all your expenses are some great questions to ask.

Feel free to contact us directly for further discussions. No obligation.
It's not what you make, it's what you keep that determines your lifestyle. | 06.24.16 @ 21:01
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:31
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