[{"data":1,"prerenderedAt":16539},["ShallowReactive",2],{"topic-planning":3,"all-resources":2199},[4,189,331,509,724,869,1103,1206,1257,1426,1715,1985],{"id":5,"title":6,"author":7,"body":8,"category":176,"date":177,"description":178,"extension":179,"image":180,"imageAlt":181,"meta":182,"navigation":183,"path":184,"seo":185,"stem":186,"topic":187,"__hash__":188},"resources\u002Fresources\u002Fwealth-architecture-strategies-generational-wealth.md","Wealth Architecture Strategies: How the Ultra-Wealthy Build Tax-Efficient Generational Wealth","Josh Giordano",{"type":9,"value":10,"toc":166},"minimark",[11,15,18,27,33,38,48,51,54,61,65,68,71,74,79,84,87,91,94,99,103,106,109,112,121,126,130,135,139,147,150,153,157,160,163],[12,13,14],"p",{},"WEALTH • STRUCTURE • LEVERAGE",[12,16,17],{},"There is a structural gap between how most people hold wealth and how the most sophisticated families do it. The gap is not about returns. It is about architecture: the deliberate separation of ownership, legal protection, and financing across jurisdictions specifically designed to handle each function.",[12,19,20,21,26],{},"Once you see this pattern, it is difficult to unsee. Buy assets. Hold them inside a Wyoming LLC. Borrow against them through a New York institutional lender. ",[22,23,25],"a",{"href":24},"\u002Fresources\u002Fhow-much-should-clients-allocate-to-private-markets","Redeploy the capital",". Repeat. Never sell. And when the original owner passes, the accumulated gains vanish for the next generation through a provision baked into the US tax code for over a century.",[12,28,29],{},[30,31,32],"strong",{},"“The most powerful wealth strategies are not about picking better assets. They are about how you hold the ones you already have.”",[34,35,37],"h2",{"id":36},"why-wyoming","Why Wyoming",[12,39,40,41,47],{},"Wyoming did not accidentally become the preferred domicile for family office structures. The state deliberately engineered its LLC statute to attract long-term capital. The centerpiece of that statute is the ",[22,42,46],{"href":43,"rel":44},"https:\u002F\u002Fwyoleg.gov\u002Fstatutes\u002Fcompress\u002Ftitle17.pdf",[45],"nofollow","charging order protection",", which functions as the exclusive creditor remedy against a Wyoming LLC interest.",[12,49,50],{},"In plain terms: a creditor who wins a judgment against a member of a Wyoming LLC cannot force a liquidation of the entity, cannot seize the membership interest, and cannot compel a distribution. They can only receive distributions if and when the LLC’s manager decides to issue them. In practice, most creditors walk away. The cost of pursuing a Wyoming LLC shield rarely justifies the uncertain recovery.",[12,52,53],{},"Wyoming also levies no state income tax, no franchise tax on LLC income, and requires no public disclosure of members or managers. For families building multi-entity structures, this combination of legal protection, fiscal neutrality, and privacy is difficult to match.",[12,55,56],{},[57,58],"img",{"alt":59,"src":60},"","\u002Fimages\u002Fresources\u002Fmedia\u002F2026-05-Screenshot-2026-04-30-191716.png",[34,62,64],{"id":63},"borrowing-as-a-substitute-for-selling","Borrowing as a Substitute for Selling",[12,66,67],{},"The mechanism that makes this architecture function is simple in concept but underutilized in practice. When an investor sells an appreciated asset, they trigger a taxable event. When they borrow against the same asset, they do not. The borrowed proceeds are not income. They are debt. And debt is not taxable.",[12,69,70],{},"Institutional lenders in New York — private banks, prime brokerage desks, securities-backed lending facilities — evaluate loan applications almost entirely on collateral quality. The legal domicile of the holding entity is largely irrelevant to their underwriting. A Wyoming LLC holding high-quality collateral can pledge that asset to a New York lender and receive a credit facility at competitive loan-to-value ratios, typically in the range of 50 to 70 percent of the asset’s appraised value.",[12,72,73],{},"The math changes the conversation entirely. Consider an asset worth $1 million with an original cost basis of $200,000:",[12,75,76],{},[57,77],{"alt":59,"src":78},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-05-Screenshot-2026-04-30-191955.png",[80,81,83],"h6",{"id":82},"source-irs-publication-550-citizen-mint-analysis-illustrative-example-only","Source: IRS Publication 550; Citizen Mint analysis. Illustrative example only.",[12,85,86],{},"Beyond the immediate comparison, the asset that was not sold continues to appreciate inside the LLC. The borrowed capital gets deployed into a new asset, which goes into a new Wyoming LLC. The cycle compounds.",[34,88,90],{"id":89},"the-flywheel-in-practice","The Flywheel in Practice",[12,92,93],{},"The real sophistication of this approach is not the individual LLC or the individual loan. It is the deliberate repetition of the cycle. Each pass through the structure expands the collateral base, which expands borrowing capacity, which funds new acquisitions, which are held in new entities.",[12,95,96],{},[57,97],{"alt":59,"src":98},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-05-Screenshot-2026-04-30-192509.png",[34,100,102],{"id":101},"the-trust-layer-and-the-generational-transfer","The Trust Layer and the Generational Transfer",[12,104,105],{},"The LLC structure is powerful on its own. The trust layer above it is what converts a wealth-building strategy into a generational one.",[12,107,108],{},"In a mature implementation, a master trust sits at the top of the architecture, owning the portfolio of Wyoming LLCs. During the creator’s lifetime, assets accumulate, borrowing continues, and unrealized capital gains grow without ever being triggered. The entities and the compounding structure pass to the next generation intact at death.",[12,110,111],{},"And then the step-up in basis applies.",[12,113,114,115,120],{},"Under ",[22,116,119],{"href":117,"rel":118},"https:\u002F\u002Fwww.irs.gov\u002Fpublications\u002Fp559",[45],"Section 1014 of the Internal Revenue Code",", inherited assets receive a new cost basis equal to their fair market value at the date of the original owner’s death. Decades of embedded unrealized gains are permanently eliminated. The heirs inherit a clean tax slate and can restart the cycle from current values, often with the same entity structure and the same lending relationships already in place.",[12,122,123],{},[57,124],{"alt":59,"src":125},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-05-Screenshot-2026-04-30-193001.png",[34,127,129],{"id":128},"jurisdiction-by-jurisdiction-what-each-layer-does","Jurisdiction by Jurisdiction: What Each Layer Does",[12,131,132],{},[57,133],{"alt":59,"src":134},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-05-Screenshot-2026-04-30-193159.png",[34,136,138],{"id":137},"what-this-requires-to-work","What This Requires to Work",[12,140,141,142,146],{},"The components of this architecture are not novel in isolation. Wyoming LLC law has been in place since 1977. Securities-backed lending is a standard product at every major private bank. The step-up in basis has been a cornerstone of US ",[22,143,145],{"href":144},"\u002Fresources\u002Fwhat-is-estate-planning","estate planning"," for generations. What requires expertise is assembling the pieces correctly for a specific situation and maintaining the structure over time.",[12,148,149],{},"Formation of the Wyoming entities needs to be done properly or the protections do not hold. The trust layer needs to be coordinated with generational transfer goals. Lending relationships need to be established with institutions that understand the collateral being pledged. And the whole structure needs ongoing management as asset values change and borrowing capacity evolves.",[12,151,152],{},"This is not a template you configure once and forget. It is an ongoing architecture that grows more valuable the longer it is maintained and the more capital cycles through it. The families and family offices that have used it longest tend to have spent decades refining the entity structure, the lending relationships, and the trust provisions that govern transfer.",[34,154,156],{"id":155},"the-default-is-a-choice-too","The Default is a Choice Too",[12,158,159],{},"Most investors treat their financial life as a single undivided pile: assets, legal exposure, tax liability, and capital access all sitting in the same jurisdiction with no deliberate separation between them. That approach is not inherently wrong. But it is a choice, usually made by default rather than by design.",[12,161,162],{},"The families building wealth across generations made a different choice. They decided that ownership, protection, and financing each deserved to be assigned to the jurisdiction that handled it best. The result is a structure where each layer reinforces the others, and none of them can be attacked or eroded as a single target.",[12,164,165],{},"Structure, assembled with intent, is what separates wealth that transfers once from wealth that compounds indefinitely.",{"title":59,"searchDepth":167,"depth":167,"links":168},2,[169,170,171,172,173,174,175],{"id":36,"depth":167,"text":37},{"id":63,"depth":167,"text":64},{"id":89,"depth":167,"text":90},{"id":101,"depth":167,"text":102},{"id":128,"depth":167,"text":129},{"id":137,"depth":167,"text":138},{"id":155,"depth":167,"text":156},"blog","2026-05-01","Learn how sophisticated investors use LLC structures, asset-backed lending, and tax strategies to build and transfer generational wealth efficiently.","md","\u002Fimages\u002Fresources\u002Fwealth-architecture-strategies-generational-wealth.jpeg",null,{},true,"\u002Fresources\u002Fwealth-architecture-strategies-generational-wealth",{"title":6,"description":178},"resources\u002Fwealth-architecture-strategies-generational-wealth","planning","QVTDEg532ahRcUPk5g-2H5VzU_aOsKlkxn7j1jjLabI",{"id":190,"title":191,"author":192,"body":193,"category":176,"date":323,"description":324,"extension":179,"image":325,"imageAlt":181,"meta":326,"navigation":183,"path":327,"seo":328,"stem":329,"topic":187,"__hash__":330},"resources\u002Fresources\u002Ftax-planning-for-high-income-investors.md","Tax Planning for High Income Investors: Practical Steps to Strengthen After-Tax Wealth","Marshall Dunford",{"type":9,"value":194,"toc":311},[195,198,201,204,207,211,214,218,221,225,232,236,243,247,250,264,268,276,280,283,287,290,294,297,301,304],[12,196,197],{},"TAX PLANNING • GROWTH • PRIVATE MARKETS",[12,199,200],{},"High earners often feel the pressure of rising tax bills, especially in years when compensation, bonuses, or investment gains come in waves. The good news is that tax planning does not need to be complicated or overwhelming. With the right mix of planning, structure, and investment choices, you can meaningfully improve your after-tax outcomes.",[12,202,203],{},"At Citizen Mint, we help advisors and investors build portfolios that work smarter. That includes identifying strategies that naturally support better tax efficiency over time.",[12,205,206],{},"Below are some of the most effective levers we see high income investors use today.",[34,208,210],{"id":209},"build-a-strong-foundation-with-retirement-and-workplace-plans","Build a Strong Foundation With Retirement and Workplace Plans",[12,212,213],{},"Start with the essentials. Maxing out 401(k)s, IRAs, and deferred compensation programs remains one of the easiest ways to reduce taxable income in high earning years. These plans create space for long-term compounding while lowering your current tax burden. Catch-up contributions for investors over 50 add even more flexibility.",[34,215,217],{"id":216},"treat-equity-compensation-as-a-planning-tool","Treat Equity Compensation as a Planning Tool",[12,219,220],{},"Equity awards reward performance, but they also create real, predictable tax events. Understanding vesting schedules, exercising stock options at the right time, and deciding when to sell can prevent surprise income spikes. Many investors opt for a simple approach: sell RSUs as they vest, lock in value, and redeploy proceeds into a diversified plan.",[34,222,224],{"id":223},"use-hsas-as-long-term-investment-vehicles","Use HSAs as Long-Term Investment Vehicles",[12,226,227,231],{},[22,228,230],{"href":229},"\u002Fresources\u002Fwhy-utilize-a-health-savings-account","Health Savings Accounts"," are one of the most efficient accounts available. Contributions reduce taxable income, growth is tax-deferred, and qualified withdrawals are tax-free. Many high earners who can pay medical expenses out of pocket choose to invest HSA funds for the long run.",[34,233,235],{"id":234},"harvest-losses-when-markets-hand-you-the-chance","Harvest Losses When Markets Hand You the Chance",[12,237,238,242],{},[22,239,241],{"href":240},"\u002Fresources\u002Fwhat-is-tax-loss-harvesting","Tax-loss harvesting"," can offset gains from liquidity events or portfolio rebalancing. Used thoughtfully, losses today can help manage taxable income across multiple years. Just remain mindful of the wash sale rule, which limits repurchases of similar positions within the restricted window.",[34,244,246],{"id":245},"integrate-private-markets-to-improve-tax-efficiency","Integrate Private Markets to Improve Tax Efficiency",[12,248,249],{},"This is where many investors overlook valuable opportunities. Private markets often generate income and gains that behave differently from traditional stocks and bonds. Real estate strategies may deliver depreciation benefits. Infrastructure and private credit can offer stable, predictable cash flow with attractive risk-adjusted returns. Longer hold periods can defer taxable events while offering exposure to sectors that historically move independently from public markets.",[12,251,252,253,257,258,263],{},"Citizen Mint curates ",[22,254,256],{"href":255},"\u002Fresources\u002Falternative-investments-are-no-longer-alternative","private market strategies"," that support both portfolio construction and tax efficiency. You can ",[22,259,262],{"href":260,"rel":261},"https:\u002F\u002Fapp.citizenmint.com\u002Flogin\u002F?redirect=investments\u002F?objective=tax_advantaged",[45],"explore tax-advantaged offerings on the platform",".",[34,265,267],{"id":266},"plan-charitable-giving-with-intention","Plan Charitable Giving With Intention",[12,269,270,271,275],{},"Donating appreciated securities helps avoid capital gains and creates a tax deduction at fair market value. ",[22,272,274],{"href":273},"\u002Fresources\u002Fcase-study-utilizing-dafs-to-amplify-impact","Donor-advised funds"," let you make a single large contribution in a high-income year, then distribute grants over time. For more complex assets, charitable trusts can provide tax benefits and long-term income streams.",[34,277,279],{"id":278},"create-paths-for-tax-free-and-tax-deferred-income","Create Paths for Tax-Free and Tax-Deferred Income",[12,281,282],{},"Backdoor Roth conversions, municipal bond interest, and certain types of insurance structures can create a mix of income sources with lower tax exposure. Business owners have additional tools like the Augusta Rule, which allows limited tax-free rental income from their home.",[34,284,286],{"id":285},"think-about-family-planning-strategies","Think About Family Planning Strategies",[12,288,289],{},"Business owners can hire children for legitimate work, shifting some income into lower tax brackets. Families saving for education can use 529 plans to grow assets tax-free for future qualified expenses. Front-loading several years of contributions can be especially useful during high-income periods.",[34,291,293],{"id":292},"track-deductions-and-keep-good-records","Track Deductions and Keep Good Records",[12,295,296],{},"Mortgage interest, property taxes, medical expenses, business expenses, home office deductions, and charitable gifts add up. Consistent documentation makes all the difference. The more organized your approach, the easier it is to capture the deductions you are entitled to.",[34,298,300],{"id":299},"looking-ahead","Looking Ahead",[12,302,303],{},"Taxes are one of the few areas where careful planning can create immediate and long-lasting results. High income investors have more levers to pull, but also more complexity. The right structures, accounts, and investment mix can reduce today’s tax burden and support tomorrow’s growth.",[12,305,306,307,263],{},"If you are interested in exploring how private market strategies on Citizen Mint can support tax-efficient planning, you can ",[22,308,310],{"href":260,"rel":309},[45],"browse tax-advantaged offerings on the platform",{"title":59,"searchDepth":167,"depth":167,"links":312},[313,314,315,316,317,318,319,320,321,322],{"id":209,"depth":167,"text":210},{"id":216,"depth":167,"text":217},{"id":223,"depth":167,"text":224},{"id":234,"depth":167,"text":235},{"id":245,"depth":167,"text":246},{"id":266,"depth":167,"text":267},{"id":278,"depth":167,"text":279},{"id":285,"depth":167,"text":286},{"id":292,"depth":167,"text":293},{"id":299,"depth":167,"text":300},"2025-12-03","Explore tax-efficient strategies including depreciation, opportunity zones, and private market investments to reduce your tax burden and strengthen after-tax wealth.","\u002Fimages\u002Fresources\u002Ftax-planning-for-high-income-investors.jpg",{},"\u002Fresources\u002Ftax-planning-for-high-income-investors",{"title":191,"description":324},"resources\u002Ftax-planning-for-high-income-investors","ucWyuhLHNwQJWqAXgEDlA80JlWg8INd1hqrSru6LMKk",{"id":332,"title":333,"author":192,"body":334,"category":176,"date":502,"description":503,"extension":179,"image":504,"imageAlt":181,"meta":505,"navigation":183,"path":273,"seo":506,"stem":507,"topic":187,"__hash__":508},"resources\u002Fresources\u002Fcase-study-utilizing-dafs-to-amplify-impact.md","Case Study: Utilizing DAF’s To Amplify Impact",{"type":9,"value":335,"toc":489},[336,340,352,355,359,362,366,379,383,388,396,400,403,407,410,414,419,422,427,431,436,440,445,450,454,457,461,464,467,472,479,484],[34,337,339],{"id":338},"case-study-utilizing-dafs-to-amplify-impact","Case Study: Utilizing DAF's to Amplify Impact",[12,341,342],{},[343,344,345,346,351],"em",{},"Learn how ",[22,347,350],{"href":348,"rel":349},"https:\u002F\u002Fwww.givinga.com\u002F",[45],"Givinga"," has partnered with Citizen Mint to amplify the impact of DAF dollars and how you can amplify your dollars for more impact.​",[12,353,354],{},"AFFORDABLE HOUSING • REAL ESTATE INVESTMENTS",[34,356,358],{"id":357},"objectives","Objectives",[12,360,361],{},"Givinga’s foundational mission is to create meaningful and intentional impact by removing the traditional financial barriers to charitable giving. This mission started with a fresh take on Donor Advised Funds, offering both brands and individuals innovative strategies to maximize their impact and more effectively support their chosen causes. Givinga realized that they could amplify the impact for their clients through investments that seek both positive social or environmental impact as well as compelling financial returns. These are called Impact Investments.",[34,363,365],{"id":364},"solutions","Solutions",[12,367,368,369,373,374,378],{},"In early 2023, Givinga began exploring ways to enhance the impact of their clients’ contributions. They focused on enabling investments of DAF capital into direct-impact opportunities aligned with their clients’ interests. Looking ahead, the plan involves reinvesting the returns from these investments into further impactful projects and charitable endeavors. Givinga identified and partnered with Citizen Mint, which offers simple access to private market impact investments across asset classes and issue areas. These could include investments in affordable & ",[22,370,372],{"href":371},"\u002Fresources\u002Fmultifamily-workforce-housing-investing-current-market-cycle","workforce housing",", ",[22,375,377],{"href":376},"\u002Fresources\u002Fthe-case-for-renewable-infrastructure","renewable infrastructure",", healthcare, education, and quality jobs. All of the opportunities presented by Citizen Mint have been vetted to maximize both financial returns as well as positive impact.",[34,380,382],{"id":381},"benefits","Benefits",[384,385,387],"h4",{"id":386},"benefit-one","Benefit One",[12,389,390,391,395],{},"Givinga’s partnership with Citizen Mint allows our clients to directly impact issue areas that are important to them, from ",[22,392,394],{"href":393},"\u002Fresources\u002Finvesting-in-affordable-housing-for-impact-and-return","affordable housing"," and climate change to education and quality jobs.",[384,397,399],{"id":398},"benefit-two","Benefit Two",[12,401,402],{},"Citizen Mint offers comprehensive impact and financial reporting on all investments, allowing companies to highlight important results with their users.",[384,404,406],{"id":405},"benefit-three","Benefit Three",[12,408,409],{},"Maximize the ultimate impact of charitable dollars by utilizing returns to invest in future impact investments or increase the size of your donation to charity.",[34,411,413],{"id":412},"investment-affordable-attainable-housing","Investment - Affordable & Attainable Housing",[415,416,418],"h3",{"id":417},"overview-of-issue","Overview of Issue",[12,420,421],{},"Affordable & workforce housing in many areas of the U.S. is in high demand while supply has remained stubbornly low. We need a dramatic increase in affordable housing for workers to be able to live locally, including teachers, nurses, firefighters, and retail\u002Frestaurant\u002Fhotel staff. Underinvested in for decades despite strong growth in demand, we believe that quality affordable housing can be both a good investment opportunity as well as a way to help alleviate the U.S. housing shortage.",[12,423,424],{},[57,425],{"alt":59,"src":426},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-04-Untitled-design-7.png",[34,428,430],{"id":429},"projected-returns","Projected Returns",[432,433,435],"h5",{"id":434},"target-annual-net-yield-12","Target Annual Net Yield: 12%",[432,437,439],{"id":438},"projected-positive-impact-goals","Projected Positive Impact Goals",[12,441,442],{},[57,443],{"alt":59,"src":444},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-04-Screen-Shot-2024-04-17-at-8.28.12-AM.png",[12,446,447],{},[57,448],{"alt":59,"src":449},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-04-Screen-Shot-2024-04-17-at-8.39.53-AM.png",[34,451,453],{"id":452},"givinga-investment","Givinga Investment",[12,455,456],{},"Givinga invested in a 115 unit affordable & attainable multifamily project. This project provides increased affordability to essential workers and is near easy transit stops for reduced car commuting trips. Additionally, 90% of units are for individuals making between 50-80% of area median income (AMI). From an environmental perspective, the project minimizes its carbon footprint by implementing rainwater harvesting systems, utilizing high-efficiency water and energy solutions, and recycling construction waste generated on-site. The housing also provides tenants better livability through high quality finishes and access to one of the top neighborhoods in the Seattle area. From a returns perspective the project is expected to provide a ~1.4x multiple on invested capital, allowing for additional future dollars for charitable giving.",[34,458,460],{"id":459},"want-to-learn-more","Want to Learn More?",[12,462,463],{},"If you want to learn more about the current opportunities available to your DAF plan or would like to explore unique opportunities to create additional impact through your DAF funds, please contact our team. Contact info below.",[12,465,466],{},"Josh HileCEO & CIOjosh@citizenmint.com425-974-5564",[12,468,469],{},[57,470],{"alt":59,"src":471},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-04-Screen-Shot-2024-04-17-at-8.37.27-AM.png",[12,473,474],{},[22,475,478],{"href":476,"rel":477},"https:\u002F\u002Fapp.citizenmint.com\u002Finvestments",[45],"Review Current Opportunity Zone Opportunities",[12,480,481],{},[57,482],{"alt":59,"src":483},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-01-Investment-Opportunity-17.png",[12,485,486],{},[57,487],{"alt":59,"src":488},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-02-Untitled-design-4.png",{"title":59,"searchDepth":167,"depth":167,"links":490},[491,492,493,494,495,499,500,501],{"id":338,"depth":167,"text":339},{"id":357,"depth":167,"text":358},{"id":364,"depth":167,"text":365},{"id":381,"depth":167,"text":382},{"id":412,"depth":167,"text":413,"children":496},[497],{"id":417,"depth":498,"text":418},3,{"id":429,"depth":167,"text":430},{"id":452,"depth":167,"text":453},{"id":459,"depth":167,"text":460},"2024-04-17","See how one investor used a donor-advised fund to amplify their impact through private market investments on the Citizen Mint platform.","\u002Fimages\u002Fresources\u002Fcase-study-utilizing-dafs-to-amplify-impact.jpeg",{},{"title":333,"description":503},"resources\u002Fcase-study-utilizing-dafs-to-amplify-impact","I8bzrVnPI2zA4cVfJXsrBYcwQ8Xs-9zJnNgwoyrRfLI",{"id":510,"title":511,"author":512,"body":513,"category":176,"date":717,"description":718,"extension":179,"image":719,"imageAlt":181,"meta":720,"navigation":183,"path":144,"seo":721,"stem":722,"topic":187,"__hash__":723},"resources\u002Fresources\u002Fwhat-is-estate-planning.md","What is estate planning & why is it important","Citizen Mint Team",{"type":9,"value":514,"toc":711},[515,519,524,527,532,588,593,596,601,604,609,617,620,625,633,642,647,650,655,658,661,666,673,678,681,686,689,693,696,699,706],[34,516,518],{"id":517},"what-is-estate-planning-why-does-it-matter","What is estate planning & why does it matter?",[12,520,521],{},[30,522,523],{},"Estate planning refers to the process of arranging for the transfer of an individual’s assets and properties upon their death, in accordance with their wishes. The process typically involves creating legal documents such as wills, trusts, powers of attorney, and advance directives that outline how the individual’s assets will be managed, distributed, and protected after they die.",[12,525,526],{},"ESTATE PLANNING • BENEFICIARIES • ASSET ALLOCATION",[12,528,529],{},[30,530,531],{},"Estate planning is important for several reasons:",[533,534,535,542,553,559,571,582],"ol",{},[536,537,538,541],"li",{},[30,539,540],{},"Asset Distribution:"," Estate planning ensures that your assets are distributed according to your wishes after your death. Without an estate plan, your assets may be distributed based on state laws or by the court, which may not align with your preferences.",[536,543,544,547,548,552],{},[30,545,546],{},"Minimize Estate Taxes:"," Estate planning can help minimize estate taxes, which can significantly reduce the value of your estate. By using various strategies such as trusts, ",[22,549,551],{"href":550},"\u002Fresources\u002Fcharitable-and-family-giving","charitable donations",", and lifetime gifts, you can reduce the tax burden on your estate.",[536,554,555,558],{},[30,556,557],{},"Protect Beneficiaries:"," Estate planning can help protect your beneficiaries, especially if they are minors or have special needs. By setting up a trust or other legal instrument, you can ensure that your loved ones receive the assets and financial support they need while minimizing their exposure to potential risks.",[536,560,561,570],{},[30,562,563,564,569],{},"Avoid ",[22,565,568],{"href":566,"rel":567},"https:\u002F\u002Fwww.americanbar.org\u002Fgroups\u002Freal_property_trust_estate\u002Fresources\u002Festate_planning\u002Fthe_probate_process\u002F#:~:text=Probate%20is%20the%20formal%20legal,assets%20to%20the%20intended%20beneficiaries.",[45],"Probate",":"," Estate planning can help avoid the probate process, which can be time-consuming and costly. By establishing a trust or other legal instrument, you can transfer assets directly to your beneficiaries without going through probate.",[536,572,573,576,577,581],{},[30,574,575],{},"Retain Control:"," Estate planning provides you with the power to set out your desired medical care and distribute ",[22,578,580],{"href":579},"\u002Fresources\u002Fwhy-should-you-invest-in-private-markets","financial instruments"," in a way that will benefit both yourself and those close to you. It can grant peace of mind, ensuring future generations receive an inheritance according to your wishes while also minimizing any tax burden they may face.",[536,583,584,587],{},[30,585,586],{},"Peace of Mind:"," Estate planning provides peace of mind by allowing you to plan for the future and ensure that your legacy is protected. Knowing that your assets will be distributed according to your wishes and that your loved ones will be taken care of can provide a sense of comfort and security.",[12,589,590],{},[30,591,592],{},"Why many don’t have estate plans",[12,594,595],{},"Estate planning is about more than just what happens to your assets after you’re gone – it can provide peace of mind and financial security for unexpected events, regardless of age or monetary worth. Unfortunately, some people avoid estate planning out of fear of their own death or demise; others believe they’re too young to be concerned with such matters; while still more think that the process will take up too much time and money. However, giving thought now towards protecting yourself in the future could pay huge dividends further down the line.",[12,597,598],{},[30,599,600],{},"Building your estate plan",[12,602,603],{},"Estate planning can seem daunting, but a good way to tackle it is by breaking things down into smaller pieces. Start with inventorying your assets and listing out beneficiaries (those individuals you would like to give your assets to); you should also consider the tax laws of your state so that family liabilities are minimized when needed. If any part becomes overly complicated, bring in an expert for help – just remember to revisit this plan periodically as life circumstances may change over time.",[12,605,606],{},[30,607,608],{},"Review your assets",[12,610,611,612,616],{},"Take an inventory of your assets both tangible and intangible. Tangible assets include investments in ",[22,613,615],{"href":614},"\u002Fresources\u002Fhow-can-you-start-investing-in-real-estate","real estate",", vehicles such as cars and boats, collections of items like watch pieces or coins and other personal possessions. Intangible Assets encompass financial instruments like stocks, bonds and private market funds; life insurance policies; retirement accounts including IRAs; annuities and business ownership interests.",[12,618,619],{},"After documenting the assets and their ownership, it’s time to determine each item’s worth. In some instances a specialized appraisal is necessary – like with real estate or similar investments; financial records from banks, brokerages etc are also useful in establishing fair value for intangibles.",[12,621,622],{},[30,623,624],{},"Family needs & security",[12,626,627,628,632],{},"Ensure your family’s ",[22,629,631],{"href":630},"\u002Fresources\u002Fbehavioral-finance","emotional and financial security"," with adequate life insurance. Not only will this bring peace of mind that they’re taken care of, but it can also save them from the burden—and sometimes high cost—of covering memorial expenses while in grief.",[12,634,635,636,641],{},"Protecting your children’s future starts with providing for them in the case of unforeseen events. By naming a primary and secondary guardian, you are ensuring that people who share your values will care for those closest to you should life take an unexpected turn. Designating ",[22,637,640],{"href":638,"rel":639},"https:\u002F\u002Fwww.guardianship.org\u002Fwhat-is-guardianship\u002F",[45],"guardianship"," is a proactive step towards safeguarding not only their present but also their future well-being.",[12,643,644],{},[30,645,646],{},"Review beneficiaries",[12,648,649],{},"Naming a beneficiary for retirement and insurance accounts should never go overlooked. Doing so can ensure that your finances are allocated to the right people, even if it differs from what is originally listed in wills or other documents. But as life goes on, designations may need changing – particularly after getting remarried while having an old spouse still named as primary beneficiary of assets. Further, make sure to name a secondary beneficiary if primary beneficiaries aren’t able to accept the bequest.",[12,651,652],{},[30,653,654],{},"Write a will",[12,656,657],{},"When estate planning, it is critical to take the time and effort to properly execute your wishes in a formal document. Your choices may be as straightforward or complex as needed, but utilizing an online template or engaging with legal counsel can help ensure that costly errors are avoided. Additionally, you should make sure that every detail of what is being conveyed within this document remains crystal clear so there will not be any discrepancies between heirs over interpreting these instructions down the line. Splitting up tangible assets can be tricky, so it might make more sense to assign ownership or convert them into cash and divide the proceeds.",[12,659,660],{},"When writing your will, it’s important to choose an executor who is reliable and detail-oriented. Although a legal or accounting background may be helpful for this role, any responsible individual can take on these duties as needed. Additionally, you’ll want to specify directives regarding trusts and medical care decisions in the document; which could include granting powers of attorney so someone else has permission to manage finances or make healthcare choices if necessary.",[12,662,663],{},[30,664,665],{},"Review tax implications",[12,667,668,669,672],{},"Consult with a tax professional or estate planning attorney to understand the ",[22,670,671],{"href":240},"tax implications"," of your estate plan. Explore strategies to minimize estate taxes, such as gifting assets during your lifetime, establishing trusts, or leveraging exemptions and deductions.",[12,674,675],{},[30,676,677],{},"Properly store documents",[12,679,680],{},"Proper estate planning ensures that your loved ones are taken care of when you’re no longer here. Besides creating and signing a will, it’s also important to gather related documents such as trust agreements, living wills or powers of attorney in a safe place. This may include insurance policies, deeds, bonds and other financial instruments for easily accessed distribution upon passing away. By taking these extra steps now you can help ensure smooth sailing at what could otherwise be an emotionally difficult time down the road.",[12,682,683],{},[30,684,685],{},"Regularly review and update your plan",[12,687,688],{},"Life circumstances and laws can change over time, so it’s important to periodically review and update your estate plan. Major life events like marriage, divorce, birth or adoption of children, or significant changes in your financial situation should trigger a review of your plan to ensure it remains aligned with your current wishes.",[415,690,692],{"id":691},"estate-planning-is-a-thoughtful-way-to-express-your-love-for-those-who-matter-most-it-not-only-allows-you-to-make-sure-that-your-wishes-are-honored-but-it-also-provides-an-extra-layer-of-comfort-and-stability-during-trying-times-when-theyre-needed-the-most","Estate planning is a thoughtful way to express your love for those who matter most. It not only allows you to make sure that your wishes are honored, but it also provides an extra layer of comfort and stability during trying times when they’re needed the most.",[12,694,695],{},"Learn how Citizen Mint reviews investment opportunities by downloading our Investment Philosophy and Process white paper.",[34,697,698],{"id":459},"Want to learn more?",[12,700,701,702,705],{},"Sign up to download Citizen Mint’s ",[30,703,704],{},"Investment Process & Philosophy"," white paper.",[12,707,708],{},[57,709],{"alt":59,"src":710},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Investment-Process-1.png",{"title":59,"searchDepth":167,"depth":167,"links":712},[713,716],{"id":517,"depth":167,"text":518,"children":714},[715],{"id":691,"depth":498,"text":692},{"id":459,"depth":167,"text":698},"2023-03-10","Learn about estate planning and why it is a thoughtful way to express your love for those who matter most.","\u002Fimages\u002Fresources\u002Fwhat-is-estate-planning.jpg",{},{"title":511,"description":718},"resources\u002Fwhat-is-estate-planning","K_Ffl3EL5iiCXbAoNkykMByEK_0A8wxhQrTYm8Q1sHY",{"id":725,"title":726,"author":512,"body":727,"category":176,"date":862,"description":863,"extension":179,"image":864,"imageAlt":181,"meta":865,"navigation":183,"path":630,"seo":866,"stem":867,"topic":187,"__hash__":868},"resources\u002Fresources\u002Fbehavioral-finance.md","The Importance of Behavioral Finance in Investing",{"type":9,"value":728,"toc":857},[729,733,738,743,746,751,754,757,762,767,770,775,778,781,786,789,792,797,800,803,806,811,814,817,822,825,828,833,838,842,845,847,852],[34,730,732],{"id":731},"behavioral-finance","Behavioral Finance",[12,734,735],{},[30,736,737],{},"“Great investors are those who are generally less affected by cognitive bias than the general population, learn about biases and how to cope with them, and put themselves in a work environment that allows them to think well.”",[12,739,740],{},[30,741,742],{},"— Thorsten Hens and Anna Meier of Behavioral Finance Solutions",[12,744,745],{},"BEHAVIORAL FINANCE • INVESTING • DECISION MAKING",[12,747,748],{},[30,749,750],{},"Why is behavioral finance so important?",[12,752,753],{},"A subject that has been broached and become more mainstream over the last decade has been that behavioral finance has a large impact in how investors make decisions. However, for most investors and investment processes, the subject continues to hang on the outskirts and is not readily implemented or observed. This paper hopes to shine a brighter light on something that should be an aspect of every eventual investment decision, not to be all encompassing or to cause inertia, but to reduce behavioral errors that can have major implications on your portfolio and financial goals.",[12,755,756],{},"This blog will first and foremost discuss what behavioral bias look like in investors, while also extrapolating on ways to mitigate this bias in order to provide better investment outcomes. The ultimate goals that I hope this blog will instill in investors is first a recognition of your own bias and those of investors in which we have allocated financial resources too, and; secondly, being cognizant of the mistakes made as a result of these biases and taking judicious steps to avoid them in the future.",[12,758,759],{},[30,760,761],{},"Traditional Finance Theory and the Evolution of Prospect",[12,763,764],{},[30,765,766],{},"Theory",[12,768,769],{},"Traditional finance theory has been based on utility theory, where investors are risk averse and feel diminishing marginal utilities of wealth (i.e. as wealth increases, they are less likely to take risk). Unfortunately, utility theory is based on unrealistic expectations such as:",[12,771,772],{},[57,773],{"alt":59,"src":774},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-02-behavior-blog.png",[12,776,777],{},"While these were used to for simplicity reasons, they were not able to be as practically implemented in investment processes. This led academics, mostly psychologists, to review specific and observable investor behaviors that persist over time which came to be known as behavioral finance.",[12,779,780],{},"Academics Daniel Kahneman and Amos Tversky’s were not satisfied with the practicality of utility theory, and instead proposed Prospect Theory, which postulated that the significance of investor losses has the greatest impact on the utility perceived by investors. Basic assumptions of Prospect Theory include:",[12,782,783],{},[57,784],{"alt":59,"src":785},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-02-behavior-blog-2.png",[12,787,788],{},"The result is that prospect theory assumes investors are risk averse when facing gains (and therefore sell winners too soon) but loss averse and risk seeking when facing losses (and therefore hold losers too long). This is also called disposition affect and it can have massive negative implications on the portfolio returns over time. As an example, it is often that “deep value” managers made a wrong determination about a stock and its future prospects, but continue to hold it in order to not face the realization that something they did was wrong. Most of the time this means changing the underlying thesis to present a rosier picture of a company’s prospects and ability to get out of the rut they are currently in.",[12,790,791],{},"Herbert Simon proposed Bounded Rationality as “the idea that when individuals make decisions, their rationality is limited by the available information, the tractability of the decision problem, the cognitive limitations of their minds, and the time available to make the decision”. Essentially, we are not machines and have limitations on the amount of data we are able to process at any one point in time. We are also shaped by experiences and are not necessarily always rational. This leads to the process of satisficing or accepting the most satisfactory option based on the data we have been able to process and our prior experiences.",[12,793,794],{},[30,795,796],{},"Behavioral Finance Basics",[12,798,799],{},"Behavioral finance is the process of reviewing how cognitive limits and emotional bias affect us as investors. The goal is to make sure that we have a strong understanding of how these will affect us so as to have the highest probability of investment success and not making significant and irreversible financial mistakes.",[12,801,802],{},"Behavioral finance assumes investors exhibit three other major characteristics which are loss aversion, biased expectations and they construct portfolios via asset segregation (bucketing investments into certain areas instead of looking at the portfolio as a whole). We will discuss each below, but in general, individual investors overestimate their ability to forecast the future. This overestimation isn’t just relegated to the world of personal finance, but most people overestimate their abilities in multi-facets of life: 75% of employees believe they are above average, which as you can see is an impossibility. Relatively the same statistic applies to people who believe they are better drivers even when their traffic and accident record say differently.",[12,804,805],{},"The most common behavioral finance mistakes are below and fall into the category of belief perseverance:",[12,807,808],{},[57,809],{"alt":59,"src":810},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-02-Cognitive.png",[12,812,813],{},"Cognitive errors are patterns of thinking that distort how we approach a subject or decision. Try to diligently review and recognize your own cognitive errors in order that we may not fall victim to them in the long-term pursuit of your financial goals.",[12,815,816],{},"A brief list of the most common cognitive errors that we look to identify are as follows:",[12,818,819],{},[57,820],{"alt":59,"src":821},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-02-Cognitive-2.png",[12,823,824],{},"Emotional errors are a result of the tendencies and preferences you have built over time. Think of it as your “gut reaction” to a problem. This is embedded in you and as such is actually the hardest to recognize and change.",[12,826,827],{},"A brief list of the most common emotional bias include:",[12,829,830],{},[57,831],{"alt":59,"src":832},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-02-Emotional-.png",[12,834,835],{},[57,836],{"alt":59,"src":837},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-02-Emotional-2.png",[34,839,841],{"id":840},"behavioral-decision-making-can-be-the-difference-between-poor-returns-and-great-ones-this-is-why-it-is-key-to-have-a-thoughtful-long-term-plan-for-your-investing-and-stick-to-it-through-good-and-bad-market-environments","Behavioral decision making can be the difference between poor returns and great ones. This is why it is key to have a thoughtful long-term plan for your investing and stick to it through good and bad market environments.",[12,843,844],{},"Learn more about financial education topics by downloading our Guide to Financial Topics",[34,846,698],{"id":459},[12,848,701,849],{},[30,850,851],{},"Guide to Financial Topics",[12,853,854],{},[57,855],{"alt":59,"src":856},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-CM_LinkeIn_twitter_guide-2.png",{"title":59,"searchDepth":167,"depth":167,"links":858},[859,860,861],{"id":731,"depth":167,"text":732},{"id":840,"depth":167,"text":841},{"id":459,"depth":167,"text":698},"2023-02-09","Behavioral decision making can be the difference between poor returns and great ones. This is why it is key to have a thoughtful long-term financial plan.","\u002Fimages\u002Fresources\u002Fbehavioral-finance.jpg",{},{"title":726,"description":863},"resources\u002Fbehavioral-finance","_Z_ouHLqlKdcwxv3JyT8D6bSfYihjFARtM5Q_rbiwZI",{"id":870,"title":871,"author":512,"body":872,"category":176,"date":1095,"description":1096,"extension":179,"image":1097,"imageAlt":181,"meta":1098,"navigation":183,"path":1099,"seo":1100,"stem":1101,"topic":187,"__hash__":1102},"resources\u002Fresources\u002F6-steps-to-jump-start-your-finances-in-2023.md","6 Steps to Jump Start Your Finances in 2023",{"type":9,"value":873,"toc":1091},[874,879,882,887,892,900,906,909,916,941,949,952,959,974,981,992,1000,1003,1006,1035,1042,1050,1053,1072,1075,1079,1081,1083,1087],[12,875,876],{},[30,877,878],{},"Make 2023 a productive year for your finances by reviewing your financial goals. This means taking stock of your investments, budget, debt and taxes. Here are six steps to get you started.",[12,880,881],{},"FINANCIAL GOALS • BUDGETING • INVESTING",[12,883,884],{},[30,885,886],{},"6 Steps for Financial Health in 2023",[12,888,889],{},[30,890,891],{},"1. Review your household budget",[12,893,894,895,899],{},"Jumpstart your new year with a financial check-in and map out an ideal budget for yourself. This will require a re-evaluation of your average monthly income, fixed expenses, and variable costs – such as groceries or gas. Make sure that your budget matches your personal and financial goals in 2023 and look for ways to reduces expenses and increase savings, especially when considering big ticket items such as buying a house, ",[22,896,898],{"href":897},"\u002Fresources\u002F401k-investing-roth-or-traditional","saving for retirement"," or a child’s education.",[12,901,902,903],{},"2",[30,904,905],{},". Look to reduce debt",[12,907,908],{},"Debt can be a massive hinderance to long-term financial goals. Seek to reduce your debt as quickly as you can and look to consolidate debt wherever possible. When thinking about where to allocate capital, always “pay yourself first”. What this means is reducing high interest rate debt instead of putting money in savings or investments.  This creates a snowball effect through a reduction in future interest payments and an increase in savings and investments.",[533,910,911],{"start":498},[536,912,913],{},[30,914,915],{},"Diversify your investments",[12,917,918,919,923,924,928,929,932,933,373,936,940],{},"2022 exposed significant gaps in the ",[22,920,922],{"href":921},"\u002Fresources\u002Fdecline-of-the-60-40-portfolio","traditional 60\u002F40 portfolio"," as stocks and bonds were both simultaneously in decline. As we face ongoing geopolitical uncertainty, ",[22,925,927],{"href":926},"\u002Fresources\u002Fbest-alternative-investments-for-inflation","inflation"," and public market volatility, consider whether increasing your allocation to ",[22,930,931],{"href":579},"private markets"," could be advantageous. These opportunities could both decrease the volatility of your portfolio while also increasing the likelihood of achieving your financial goals. This can include the addition of income opportunities in ",[22,934,615],{"href":935},"\u002Fresources\u002Fguide-to-investing-in-real-estate",[22,937,939],{"href":938},"\u002Fresources\u002Fguide-to-investing-in-real-assets","infrastructure"," and private debt. Citizen Mint helps advisors and individuals gain access to a curated list of institutionally vetted private market opportunities at low minimums.",[533,942,944],{"start":943},4,[536,945,946],{},[30,947,948],{},"Contribute to and leverage tax-advantaged accounts",[12,950,951],{},"Utilize an IRA, either Roth or Traditional, to invest excess capital to grow tax free until retirement. Contribution limit is $6,500 for 2023 and $7,500 for individuals over 50. Reducing tax drag can add thousands to your portfolio over time. For investments that generate regular payments, an IRA can also help reduce higher ordinary income tax exposure through deferral of recognition.",[12,953,954,955,958],{},"Utilize your company’s ",[22,956,957],{"href":897},"401(k)"," match to maximize your retirement savings. Here’s how you can make the most of your 401(k) match:",[960,961,962,965,968,971],"ul",{},[536,963,964],{},"Understand your company’s 401(k) match: Review the details of your employer’s 401(k) plan to understand the matching contribution policy. Pay attention to factors such as the match percentage, contribution limits, vesting schedule (the time it takes for you to become fully entitled to the employer’s contributions), and any specific rules or requirements.",[536,966,967],{},"Contribute at least enough to receive the full match: To take full advantage of your company’s 401(k) match, contribute at least the minimum amount required to receive the maximum matching contribution. For example, if your employer matches 50% of your contributions up to 6% of your salary, make sure you contribute at least 6% of your salary to maximize the match.",[536,969,970],{},"Automate your contributions: Set up automatic payroll deductions to contribute the desired amount to your 401(k) each pay period. By automating the process, you ensure that you consistently contribute and don’t miss out on the match.",[536,972,973],{},"Contribute beyond the match if possible: While it’s essential to contribute enough to receive the full match, if your financial situation allows, consider contributing more to your 401(k) plan. Contributions beyond the match will help you take advantage of tax advantages and accelerate your retirement savings.",[12,975,976,977,980],{},"Utilize an ",[22,978,979],{"href":229},"Health Savings Account",", which are one of the best and least known places to stash away capital for retirement. These accounts benefit from tax deductions both in the contributions and tax free withdrawals at retirement. They accounts provide triple tax preference as:",[960,982,983,986,989],{},[536,984,985],{},"Contributions reduce taxable income as well as social security and Medicare taxes.",[536,987,988],{},"Earnings accumulate tax free",[536,990,991],{},"Distributions are not subject to taxation when used for medical expenses (some restrictions apply)",[533,993,995],{"start":994},5,[536,996,997],{},[30,998,999],{},"Align your portfolio with your values",[12,1001,1002],{},"As we look at 2023, it’s clear that investors want their investments to reflect the values they hold dear. Morgan Stanley’s Investor Pulse Poll reported 71% of all respondents feel this is important – but only 44% believe it currently happens.",[12,1004,1005],{},"Here are some steps to help you align your portfolio with your values:",[533,1007,1008,1011,1022],{},[536,1009,1010],{},"Identify your values and priorities: Start by reflecting on your personal values and the issues that matter most to you. Examples of areas include climate change, sustainability, ethical business practices, or social justice, just to name a few. Clarify which values are most important to you and prioritize them in your investments.",[536,1012,1013,1014,1018,1019,1021],{},"Research and understand the investment opportunities that align with your values: Educate yourself about values aligned investment options across assets classes including stocks, bonds, and private market investments. Investing in value aligned opportunities in private markets is usually called ",[22,1015,1017],{"href":1016},"\u002Fresources\u002Fimpact-investing-guide","Impact Investing",". These are investments that seek to both maximize financial returns as well as have a positive impact on specific global challenges whether around climate change, sustainability, ",[22,1020,394],{"href":393},", etc. This knowledge will help you make informed decisions when aligning your portfolio.",[536,1023,1024,1025,1029,1030,1034],{},"Diversify your portfolio: Apply the principles of ",[22,1026,1028],{"href":1027},"\u002Fresources\u002Fhow-to-diversify-your-portfolio","diversification"," to your values-aligned portfolio. ",[22,1031,1033],{"href":1032},"\u002Fresources\u002Fstrategic-asset-allocation","Allocate your investments across different asset classes",", sectors, and regions to manage risk effectively. Diversification ensures that your portfolio is not overly exposed to the performance of a single company or sector, providing stability and potential for returns.",[12,1036,1037,1041],{},[22,1038,1040],{"href":1039},"\u002F","Citizen Mint"," is here to help advisors align client portfolios with their values while seeking to maximize returns.",[533,1043,1045],{"start":1044},6,[536,1046,1047],{},[30,1048,1049],{},"Examine where your cash is held",[12,1051,1052],{},"As a result of the Federal Reserve’s aggressive rate hiking spree, investors have significantly better options for storing cash heading in 2023. Savings rates have creep up to 4% and, in some cases even approach ~5%. Some places to hold cash include:",[533,1054,1055,1063,1066,1069],{},[536,1056,1057,1062],{},[22,1058,1061],{"href":1059,"rel":1060},"https:\u002F\u002Fwww.apple.com\u002Fnewsroom\u002F2023\u002F04\u002Fapple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy\u002F",[45],"High-yield savings accounts",": These accounts are offered by banks and online financial institutions. Look for accounts with FDIC insurance to ensure your deposits are protected.",[536,1064,1065],{},"Money market accounts: Money market accounts are similar to savings accounts but often offer a higher interest rate. They provide liquidity, allowing you to withdraw cash when needed, and typically come with check-writing privileges. Like high-yield savings accounts, ensure they are FDIC-insured.",[536,1067,1068],{},"Certificates of Deposit (CDs): CDs are time deposits that offer a fixed interest rate for a specific term, ranging from a few months to several years. They provide a higher interest rate than regular savings accounts but require you to leave the money untouched for the duration of the term. CDs are a good option if you have a specific timeframe in mind and don’t need immediate access to the funds.",[536,1070,1071],{},"Treasury bills (T-bills): T-bills are short-term government securities issued by the U.S. Department of the Treasury. They typically have maturities of a few days to a year. T-bills are considered very safe investments as they are backed by the U.S. government. While they may not offer the highest returns, they provide a low-risk option for holding cash",[12,1073,1074],{},"When deciding where to hold your cash, consider the balance between safety, accessibility, and potential returns that align with your needs and risk tolerance. It’s advisable to diversify your cash holdings and keep an appropriate amount readily available for emergencies or immediate expenses, while allocating the rest to options that offer higher yields or potential tax advantages.",[34,1076,1078],{"id":1077},"take-action-now-to-find-investment-opportunities-that-provide-both-diversification-and-values-alignment-by-clicking-here","Take action now to find investment opportunities that provide both diversification and values alignment by clicking HERE .",[12,1080,695],{},[34,1082,698],{"id":459},[12,1084,701,1085,705],{},[30,1086,704],{},[12,1088,1089],{},[57,1090],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":1092},[1093,1094],{"id":1077,"depth":167,"text":1078},{"id":459,"depth":167,"text":698},"2023-02-03","Make 2023 a productive year for your finances by reviewing your financial goals. Here are a few steps to get you started.","\u002Fimages\u002Fresources\u002F6-steps-to-jump-start-your-finances-in-2023.jpg",{},"\u002Fresources\u002F6-steps-to-jump-start-your-finances-in-2023",{"title":871,"description":1096},"resources\u002F6-steps-to-jump-start-your-finances-in-2023","VN4vqWOXXv4IOuFtaLOtQhFmveAptYEmwUgTi5OMmks",{"id":1104,"title":1105,"author":512,"body":1106,"category":176,"date":1198,"description":1199,"extension":179,"image":1200,"imageAlt":181,"meta":1201,"navigation":183,"path":1202,"seo":1203,"stem":1204,"topic":187,"__hash__":1205},"resources\u002Fresources\u002Fmagic-of-compounding-returns.md","The Magic of Compounding Returns",{"type":9,"value":1107,"toc":1194},[1108,1113,1116,1121,1124,1129,1132,1135,1138,1141,1144,1147,1150,1153,1156,1159,1162,1165,1173,1178,1182,1184,1186,1190],[12,1109,1110],{},[30,1111,1112],{},"Compounding is the most powerful tool in long-term investing and Albert Einstein once referred to compound interest as the “eighth wonder of the world” given its ability to exponentially increase the value of investments over long periods of time.",[12,1114,1115],{},"COMPOUNDING • RETIREMENT PLANNING • EIGHT WONDER OF WORLD",[12,1117,1118],{},[30,1119,1120],{},"What is compounding?",[12,1122,1123],{},"Compounding is the most powerful tool in long-term investing. In simplest terms it is when an investor reinvests the returns they earn from their initial investment with the reinvested earnings generating additional returns over time. It allows investors to grow their money faster than if they only earned return from their initial investment. Albert Einstein once referred to compound interest as the “eighth wonder of the world,” and for good reason. Through compounding returns, the power of an investor’s initial investments can increase exponentially over time, leading to much higher values than what would be possible without compounding.",[12,1125,1126],{},[30,1127,1128],{},"Compounding returns for retirement",[12,1130,1131],{},"Compounding returns is key to retirement planning. For example, if you invested $10,000 today at an 8% compound interest rate over 10 years, you would have $21,589 at the end of the term! See the math below:",[12,1133,1134],{},"Year 1: $10,000 x 1.08 = $10,800",[12,1136,1137],{},"Year 2: $10,800 x 1.08 = $11,664",[12,1139,1140],{},"Year 3: $11,664 x 1.08 = $12,597",[12,1142,1143],{},"Year 4: $12,597 x 1.08 = $13,605",[12,1145,1146],{},"Year 5: $13,605 x 1.08 = $14,693",[12,1148,1149],{},"Year 6: $14,693 x 1.08 = $15,869",[12,1151,1152],{},"Year 7: $15,869 x 1.08 = $17,138",[12,1154,1155],{},"Year 8: $17,138 x 1.08 = $18,509",[12,1157,1158],{},"Year 9: $18,509 x 1.08 = $19,990",[12,1160,1161],{},"Year 10: $19,990 x 1.08 = $21,589",[12,1163,1164],{},"The effects of compound returns become even more dramatic over time as compound interest continues to compound on itself. To illustrate this point, if you take that same $10,000 investment and compound it for 20 years instead of 10 at the same 8% growth rate, the result would be $46,610! Over 30 years, $100,627! Over 40 years $217,245!",[12,1166,1167,1168,1172],{},"The power of compound returns is truly remarkable, and it’s important to take advantage of this powerful financial tool in order to maximize your savings and investments. With compound returns, you can generate substantial wealth with relatively small amounts of capital over a long period of time. But the key is starting now by investing in assets such as stocks, bonds, and ",[22,1169,1171],{"href":1170},"\u002Fresources\u002Fprivate-market-investments-guide","private market investments"," that generate returns over a long period of time to reach your financial goals. See the chart below that shows the long-term benefits of saving and investing early and often",[12,1174,1175],{},[57,1176],{"alt":59,"src":1177},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-01-Benefits-of-saving-early.png",[34,1179,1181],{"id":1180},"today-is-a-great-day-to-start-if-you-are-looking-for-ways-to-diversify-your-investments-and-compound-your-wealth-as-part-of-a-well-diversified-portfolio-review-open-investment-offering-here","Today is a great day to start. If you are looking for ways to diversify your investments and compound your wealth as part of a well-diversified portfolio, review open investment offering HERE .",[12,1183,695],{},[34,1185,698],{"id":459},[12,1187,701,1188,705],{},[30,1189,704],{},[12,1191,1192],{},[57,1193],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":1195},[1196,1197],{"id":1180,"depth":167,"text":1181},{"id":459,"depth":167,"text":698},"2023-01-18","Discover why Albert Einstein once referred to compound interest as the “eighth wonder of the world\" and how it allows you to hit your financial goals.","\u002Fimages\u002Fresources\u002Fmagic-of-compounding-returns.jpg",{},"\u002Fresources\u002Fmagic-of-compounding-returns",{"title":1105,"description":1199},"resources\u002Fmagic-of-compounding-returns","AalD5ERrhURU3Ncj3OFhXm_hmSGkQd9as6G3dZLo5x4",{"id":1207,"title":851,"author":192,"body":1208,"category":1248,"date":1249,"description":1250,"extension":179,"image":1251,"imageAlt":181,"meta":1252,"navigation":183,"path":1253,"seo":1254,"stem":1255,"topic":187,"__hash__":1256},"resources\u002Fresources\u002Fguide-to-financial-topics.md",{"type":9,"value":1209,"toc":1245},[1210,1214,1217,1223,1231],[34,1211,1213],{"id":1212},"e-book-on-financial-topics","E-Book on Financial Topics",[12,1215,1216],{},"At Citizen Mint, one of our goals is financial literacy. As such, we have created this e-book that provides a basic overview of numerous financial topics. This book covers topics such as investing basics, budgeting, HSA plan investing, utilizing Roth or traditional 401ks and many more.  Download this e-book now to learn:",[12,1218,1219],{},[22,1220,1222],{"href":1221},"\u002Fdownloads\u002Fguides\u002Fguide-to-financial-topics.pdf","Download the guide (PDF)",[1224,1225],"iframe",{"className":1226,"src":1228,"title":1229,"loading":1230},[1227],"pdf-embed","\u002Fdownloads\u002Fguides\u002Fguide-to-financial-topics.pdf#navpanes=0&view=FitH","Guide to Financial Topics (PDF)","lazy",[960,1232,1233,1236,1242],{},[536,1234,1235],{},"The difference between stocks, bonds, and private market investments and why these are all necessary for a well diversified portfolio.",[536,1237,1238,1239,1241],{},"How to utilize a ",[22,1240,979],{"href":229}," to reduce taxes and save for retirement.",[536,1243,1244],{},"How your behavioral biases negatively affect your decision making and how to reduce biases to better hit your long-term financial goals.",{"title":59,"searchDepth":167,"depth":167,"links":1246},[1247],{"id":1212,"depth":167,"text":1213},"guide","2023-01-07","A comprehensive guide to numerous financial topics including investing basics, budgeting, HSA Plan investing, behavioral finance and many more.","\u002Fimages\u002Fresources\u002Fguide-to-financial-topics.jpg",{},"\u002Fresources\u002Fguide-to-financial-topics",{"title":851,"description":1250},"resources\u002Fguide-to-financial-topics","OL117G2sRvqjsObQBoG0EZbwR-rPuwi4G4AJSEfr2Gg",{"id":1258,"title":1259,"author":512,"body":1260,"category":176,"date":1419,"description":1420,"extension":179,"image":1421,"imageAlt":181,"meta":1422,"navigation":183,"path":240,"seo":1423,"stem":1424,"topic":187,"__hash__":1425},"resources\u002Fresources\u002Fwhat-is-tax-loss-harvesting.md","Benefits of Tax Loss Harvesting",{"type":9,"value":1261,"toc":1414},[1262,1266,1269,1272,1277,1280,1287,1292,1298,1304,1315,1318,1323,1330,1333,1338,1342,1345,1360,1365,1386,1392,1395,1398,1402,1404,1406,1410],[34,1263,1265],{"id":1264},"what-is-tax-loss-harvesting-how-can-you-benefit","What is Tax Loss Harvesting & How Can You Benefit?",[12,1267,1268],{},"Tax loss harvesting is a practice of offsetting capital gains taxes by selling investments at a loss and using the losses to reduce taxable income. When done strategically, tax loss harvesting can help investors save money on taxes. In this blog post, we will discuss how to maximize your returns through tax loss harvesting.",[12,1270,1271],{},"TAX-LOSS HARVESTING • TAXES • CAPITAL GAINS",[12,1273,1274],{},[30,1275,1276],{},"What is tax loss harvesting?",[12,1278,1279],{},"Tax loss harvesting is a strategy employed by investors to reduce their taxable income by offsetting capital gains with capital losses. It involves intentionally selling investments that have experienced losses in order to generate capital losses that can be used to offset capital gains.",[12,1281,1282,1283,1286],{},"The purpose of tax loss harvesting is to minimize an investor’s tax liability by ",[22,1284,1285],{"href":1032},"strategically managing their investment portfolio",". By realizing losses on certain investments, investors can reduce their overall taxable income, potentially lowering the amount of tax they owe. The concept is based on the principle that losses can be used to offset gains, thereby reducing the net taxable gain.",[12,1288,1289],{},[30,1290,1291],{},"What are capital gains & losses?",[12,1293,1294,1297],{},[30,1295,1296],{},"Short-term Capital Gains and Losses:"," Short-term capital gains and losses occur when assets are held for one year or less before being sold or disposed of. They are subject to ordinary income tax rates, which are the tax rates applied to your regular income. Short-term capital gains are typically taxed at your marginal income tax rate, which can range from 10% to 40% depending on your income level.",[12,1299,1300,1303],{},[30,1301,1302],{},"Long-term Capital Gains and Losses:"," Long-term capital gains and losses arise when assets are held for more than one year before being sold or disposed of. They benefit from preferential tax rates, which are generally lower than ordinary income tax rates. The long-term capital gains tax rates vary based on your taxable income and are typically lower than short-term capital gains tax rates. As of 2023, the long-term capital gains tax rates are as follows:",[960,1305,1306,1309,1312],{},[536,1307,1308],{},"For individuals with taxable income up to $44,626 (single filers) or $89,250 (married filing jointly): 0% tax rate.",[536,1310,1311],{},"For individuals with taxable income between $40,401 and $492,300 (single filers) or $89,250 and $553,850 (married filing jointly): 15% tax rate.",[536,1313,1314],{},"For individuals with taxable income above $492,301 (single filers) or $553,851 (married filing jointly): 20% tax rate.",[12,1316,1317],{},"It’s important to note that these tax rates are subject to change based on tax law revisions or updates. It’s advisable to consult with a tax professional or refer to the latest tax regulations for the most accurate and up-to-date information",[12,1319,1320],{},[30,1321,1322],{},"How does tax-loss harvesting work?",[12,1324,1325,1326,1329],{},"Tax loss harvesting works by recognizing losses on ",[22,1327,1328],{"href":1202},"investments"," that have decreased in value due to market forces or other factors. These losses can be used to offset any taxable gains made during the year. This means that you are able to reduce your taxable income and pay less in taxes.",[12,1331,1332],{},"Let’s look at the example below. In this case, an investor has two investments, A & B, with one in a loss position and one having a gain. The investor is able to take $25,000 in losses by selling investment B that both offset capital gains on investment A as well as reduced his ordinary income by $3,000 with additional losses leftover for future gains in their portfolio. In this case, it creates $8,050 in tax savings and the potential for future additional tax savings with the $3,000 in additional losses rolled forward to offset future capital gains.",[12,1334,1335],{},[57,1336],{"alt":59,"src":1337},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-01-Tax-Loss-Harvesting.png",[12,1339,1340],{},[30,1341,1259],{},[12,1343,1344],{},"Benefits of Tax Loss Harvesting:",[533,1346,1347,1350,1357],{},[536,1348,1349],{},"Capital gains tax reduction: By realizing losses, you can offset capital gains and potentially lower your tax liability. Capital losses can be used to offset capital gains in the same tax year, and any excess losses can be carried forward to offset future gains.",[536,1351,1352,1353,1356],{},"Portfolio optimization: Tax loss harvesting allows you to rebalance your portfolio while maintaining your desired ",[22,1354,1355],{"href":1032},"asset allocation",". It provides an opportunity to sell underperforming investments and replace them with similar investments, thereby maintaining your overall investment strategy.",[536,1358,1359],{},"Tax-efficient investing: By strategically harvesting losses, you can minimize your taxable income and potentially move into a lower tax bracket. This can result in tax savings and improve the after-tax returns of your portfolio.",[12,1361,1362],{},[30,1363,1364],{},"Things to consider before tax-loss harvesting a portfolio",[960,1366,1367,1374,1377],{},[536,1368,1369,1370,1373],{},"Tax-loss harvesting can only be utilized in taxable accounts not in non-taxable accounts like ",[22,1371,1372],{"href":897},"401(k)’s"," and IRA’s.",[536,1375,1376],{},"Long-term losses are first applied to long term gains and short-term losses to short-term gains. If there are additional losses in either of these categories, they can be applied to gains of either type.",[536,1378,1379,1380,1385],{},"It’s important to ensure that you don’t trigger the ",[22,1381,1384],{"href":1382,"rel":1383},"https:\u002F\u002Fwww.investopedia.com\u002Fterms\u002Fw\u002Fwashsalerule.asp#:~:text=A%20wash%20sale%20is%20an,Investor.gov.",[45],"IRS wash sale rule"," which disallows taxpayers from claiming a capital gain or loss if they own “substantially similar” security within 30 days before or after the sale. In this case the loss is not allowed.",[12,1387,1388],{},[1389,1390,1391],"span",{},"if !supportLists",[12,1393,1394],{},"It is also important for investors to use caution when engaging in tax-loss harvesting as there are specific restrictions on how much one can deduct each year as well as limits on how long one may carry forward their losses into future years without incurring additional taxes or penalties. For 2023, if an investor doesn’t have gains to offset the losses they are allowed to take a $3,000 deduction to ordinary income. When taking losses, investors should be aware of what type of costs associated with selling investments such as transaction fees and commissions which may lower overall profits if not taken into account when performing your calculations.",[12,1396,1397],{},"Remember, tax loss harvesting should not be the sole driver of your investment decisions. It should be considered as part of a comprehensive investment and tax planning strategy.",[34,1399,1401],{"id":1400},"tax-loss-harvesting-is-a-valuable-tool-for-investors-seeking-to-optimize-their-investment-strategy-while-minimizing-their-tax-liability-by-understanding-the-concept-benefits-and-implementation-strategies-individuals-can-take-advantage-of-this-powerful-tax-saving-technique-remember-to-consult-with-a-tax-professional-or-financial-advisor-to-tailor-tax-loss-harvesting-to-your-specific-circumstances-and-ensure-compliance-with-applicable-regulations-start-leveraging-this-strategy-today-to-maximize-your-after-tax-investment-returns-and-work-towards-your-financial-goals","Tax loss harvesting is a valuable tool for investors seeking to optimize their investment strategy while minimizing their tax liability. By understanding the concept, benefits, and implementation strategies, individuals can take advantage of this powerful tax-saving technique. Remember to consult with a tax professional or financial advisor to tailor tax loss harvesting to your specific circumstances and ensure compliance with applicable regulations. Start leveraging this strategy today to maximize your after-tax investment returns and work towards your financial goals.",[12,1403,695],{},[34,1405,698],{"id":459},[12,1407,701,1408,705],{},[30,1409,704],{},[12,1411,1412],{},[57,1413],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":1415},[1416,1417,1418],{"id":1264,"depth":167,"text":1265},{"id":1400,"depth":167,"text":1401},{"id":459,"depth":167,"text":698},"2023-01-04","Discover how to decrease taxes and increase long-term returns through active tax loss harvesting in your portfolio.","\u002Fimages\u002Fresources\u002Fwhat-is-tax-loss-harvesting.jpg",{},{"title":1259,"description":1420},"resources\u002Fwhat-is-tax-loss-harvesting","OxoguLnjVRigf0689Fo8cLNWeb2GIeRm0vUGkc1j41M",{"id":1427,"title":1428,"author":512,"body":1429,"category":176,"date":1708,"description":1709,"extension":179,"image":1710,"imageAlt":181,"meta":1711,"navigation":183,"path":550,"seo":1712,"stem":1713,"topic":187,"__hash__":1714},"resources\u002Fresources\u002Fcharitable-and-family-giving.md","Charitable & Family Giving",{"type":9,"value":1430,"toc":1697},[1431,1434,1437,1441,1444,1449,1453,1464,1468,1484,1488,1491,1494,1499,1523,1528,1531,1536,1547,1552,1569,1574,1589,1594,1598,1601,1605,1610,1618,1623,1634,1639,1647,1652,1657,1661,1670,1678,1681,1685,1687,1689,1693],[12,1432,1433],{},"Giving is a powerful tool for individuals and families to have a positive impact or create a legacy. If done right, it also provides estate and tax planning benefits. Learn more about these benefits and ways to utilize gifting below.",[12,1435,1436],{},"CHARITABLE GIVING • TAXES • GIFTING",[415,1438,1440],{"id":1439},"charitable-giving","Charitable Giving",[12,1442,1443],{},"Charitable giving in the U.S. reached $484.85 billion in 2021 (Source: Giving USA). This amount has increased steadily in nine out of the last 10 years. As shown below, individuals give for many different reasons which could include having a greater impact on a specific issue area or cause as well as creating a legacy (i.e. endowment for a professor, musician, student, etc.).",[12,1445,1446],{},[57,1447],{"alt":59,"src":1448},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-12-Giving-.png",[432,1450,1452],{"id":1451},"in-the-us-there-is-a-financial-benefit-to-charitable-giving-which-can-include","In the US, there is a financial benefit to charitable giving which can include:",[960,1454,1455,1458,1461],{},[536,1456,1457],{},"Income tax deductions",[536,1459,1460],{},"Capital gains tax savings",[536,1462,1463],{},"Estate tax deductions",[432,1465,1467],{"id":1466},"there-are-many-ways-to-give-to-organizations-and-to-set-up-giving-if-the-gift-is-expected-to-be-long-term-in-nature-this-could-include","There are many ways to give to organizations and to set-up giving if the gift is expected to be long-term in nature. This could include:",[960,1469,1470,1473,1478,1481],{},[536,1471,1472],{},"Direct gift to charitable organization",[536,1474,1475],{},[22,1476,1477],{"href":273},"Donor advised funds",[536,1479,1480],{},"Private foundation",[536,1482,1483],{},"Charitable trust",[34,1485,1487],{"id":1486},"income-tax-deductions","Income Tax Deductions",[12,1489,1490],{},"Charitable contributions are an itemized deduction.  As long as an individual is itemizing deductions on their tax return rather than taking the standard deduction, they are able to utilize this tax benefit. To qualify for this deduction, there must be an irrevocable transfer of assets to a qualified charitable organization. In layman’s terms, this means that you can’t recall the gift in any form.",[12,1492,1493],{},"In most cases, the fair market value at the time of contribution qualifies as an itemized deduction.",[12,1495,1496],{},[30,1497,1498],{},"Limits on deduction:",[960,1500,1501,1509,1517,1520],{},[536,1502,1503,1504],{},"50% of adjusted gross income (AGI).",[960,1505,1506],{},[536,1507,1508],{},"30% for certain organizations and private foundations.",[536,1510,1511,1512],{},"30% of AGI for capital gain assets (e.g., investment assets).",[960,1513,1514],{},[536,1515,1516],{},"20% for certain organizations and private foundations.",[536,1518,1519],{},"You can carryover excess contributions for five years.",[536,1521,1522],{},"May be further limited as part of total itemized deductions.",[12,1524,1525],{},[30,1526,1527],{},"Reducing Capital Gains",[12,1529,1530],{},"Contributing highly appreciated securities is a powerful way to decrease or eliminate capital gains while also minimizing income tax owed.",[12,1532,1533],{},[30,1534,1535],{},"Example",[960,1537,1538,1541,1544],{},[536,1539,1540],{},"10,000 shares of stock, purchased five years ago for $1 per share.",[536,1542,1543],{},"It is now worth $10 per share.",[536,1545,1546],{},"Assume 15% long-term capital gains tax.",[12,1548,1549],{},[30,1550,1551],{},"Alternative 1: Contribute cash from the sale of securities",[960,1553,1554,1557,1566],{},[536,1555,1556],{},"Donation Value: $100,000",[536,1558,1559,1560,1565],{},"Capital gains tax ",[343,1561,1562],{},[30,1563,1564],{},"incurred",": $13,500 (15% x ($100k current value – $10k initial investment))",[536,1567,1568],{},"Net cost to donor: $23,500 ($10k initial investment + $13.5k capital gains tax)",[12,1570,1571],{},[30,1572,1573],{},"Alternative 2: Contribute appreciated securities",[960,1575,1576,1578,1586],{},[536,1577,1556],{},[536,1579,1559,1580,1585],{},[343,1581,1582],{},[30,1583,1584],{},"saved",": $13,500",[536,1587,1588],{},"Net cost to donor: $10,000 (initial investment)",[12,1590,1591],{},[57,1592],{"alt":59,"src":1593},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-12-Gift-Image-2.jpg",[34,1595,1597],{"id":1596},"gifting-to-individuals","Gifting to Individuals",[12,1599,1600],{},"Gifting to family members and others during one’s lifetime is rather common, but can have significant tax ramifications if done poorly.",[415,1602,1604],{"id":1603},"tax-efficient-gifting-methods","Tax-Efficient Gifting Methods",[12,1606,1607],{},[30,1608,1609],{},"Annual Gifting Exclusion",[960,1611,1612,1615],{},[536,1613,1614],{},"Most direct gifting of cash or property is tax-free up to $17,000 per year. If you are married, you can gift split which doubles the amount of tax-free gifting allowed ($17,000 from each spouse for a $34,000 total gift).",[536,1616,1617],{},"As of 2023, the lifetime tax-free gift amount for individuals was $12.92 million per person (charitable gifts are not factored in towards this limit).",[12,1619,1620],{},[30,1621,1622],{},"529 Plans",[960,1624,1625,1628,1631],{},[536,1626,1627],{},"A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs.  Most typically these are opened for children to help save for their college education.",[536,1629,1630],{},"Gifts of cash up to the annual exclusion amount of $17,000 can be contributed tax-free each year to the beneficiary’s 529 plan. Appreciated securities are not allowed.",[536,1632,1633],{},"Most plans allow the ability to front-load the account with five years’ worth of annual exclusion gifts, which can be up to $85,000 ($17,000 x 5).",[12,1635,1636],{},[30,1637,1638],{},"Medical & Education Expenses",[960,1640,1641,1644],{},[536,1642,1643],{},"Unlimited amounts can be gifted towards education as long as they are paid directly to the qualified educational institution (this exclusion applies to tuition only).",[536,1645,1646],{},"Unlimited amounts can be gifted toward someone’s medical expenses as long as they are paid directly to the qualified medical care provider. Appreciated securities are not allowed.",[12,1648,1649],{},[30,1650,1651],{},"Gifts to a Spouse",[960,1653,1654],{},[536,1655,1656],{},"Unlimited assets can be gifted to a spouse if they are a US citizen and you are legally married. Limits are placed on foreign spouses. Appreciated securities are allowed.",[34,1658,1660],{"id":1659},"valuation-of-gifts","Valuation of Gifts",[12,1662,1663,1666,1669],{},[30,1664,1665],{},"Appreciated Assets",[1667,1668],"br",{},"\nThe cost basis of appreciated assets is transferred to a recipient if gifted while the donor is alive. Inherited assets receive a stepped-up basis to the date-of-death value.",[12,1671,1672,1675,1677],{},[30,1673,1674],{},"Depreciated Assets",[1667,1676],{},"\nIn some cases, the recipient will receive a depreciated asset such as a real estate property. If the donor is alive and the asset is sold for less than fair market value, fair market value at the time of the gift will be considered the cost basis. If the asset is sold for more than the original donor’s cost, the original cost will be used to determine the gain. If the asset is sold between fair value and original cost basis, the gain or loss will be zero.",[12,1679,1680],{},"If the asset is gifted at death, the cost basis is stepped down to the value of assets on the date of the death. If the asset is sold between fair market value and original cost basis, the gain or loss will be zero.",[415,1682,1684],{"id":1683},"gifts-can-be-a-powerful-form-of-legacy-with-the-potential-to-profoundly-touch-lives-and-provide-lasting-benefits-with-a-well-crafted-gifting-plan-you-are-able-to-leave-something-meaningful-behind-while-also-ensuring-advantageous-estate-and-tax-planning-over-the-long-term","Gifts can be a powerful form of legacy, with the potential to profoundly touch lives and provide lasting benefits. With a well-crafted gifting plan, you are able to leave something meaningful behind while also ensuring advantageous estate and tax planning over the long-term.",[12,1686,695],{},[34,1688,698],{"id":459},[12,1690,701,1691,705],{},[30,1692,704],{},[12,1694,1695],{},[57,1696],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":1698},[1699,1700,1701,1704,1707],{"id":1439,"depth":498,"text":1440},{"id":1486,"depth":167,"text":1487},{"id":1596,"depth":167,"text":1597,"children":1702},[1703],{"id":1603,"depth":498,"text":1604},{"id":1659,"depth":167,"text":1660,"children":1705},[1706],{"id":1683,"depth":498,"text":1684},{"id":459,"depth":167,"text":698},"2022-12-21","Discover alternative investment opportunities that both provide diversification to traditional stock & bond portfolios.","\u002Fimages\u002Fresources\u002Fcharitable-and-family-giving.jpg",{},{"title":1428,"description":1709},"resources\u002Fcharitable-and-family-giving","rlw7WnCKF5Dwa6T-GWIDBI8BmHvjkY2Ty4HXEW9OABo",{"id":1716,"title":1717,"author":512,"body":1718,"category":176,"date":1978,"description":1979,"extension":179,"image":1980,"imageAlt":181,"meta":1981,"navigation":183,"path":229,"seo":1982,"stem":1983,"topic":187,"__hash__":1984},"resources\u002Fresources\u002Fwhy-utilize-a-health-savings-account.md","HSA Plan Investing: A Hidden Retirement Planning Gem",{"type":9,"value":1719,"toc":1974},[1720,1723,1726,1729,1732,1757,1760,1768,1771,1776,1779,1782,1786,1829,1834,1842,1847,1858,1863,1871,1880,1883,1888,1893,1898,1901,1906,1917,1922,1933,1938,1956,1961,1964,1966,1970],[12,1721,1722],{},"Health Savings Accounts (HSAs) were introduced in 2003 as tax-exempt trust or custodial accounts to pay or reimburse many medical expenses as they occur.",[12,1724,1725],{},"HEALTH SAVINGS ACCOUNT • TAXES • RETIREMENT",[12,1727,1728],{},"Unlike a flexible spending account (FSA), the funds in an HSA roll over to the following years when not spent. These are likely the best and least known place to stash away capital for retirement and get rewarded with tax deductions both in the contributions and then the tax free withdrawals at retirement.",[12,1730,1731],{},"HSAs offer a unique tax advantage known as the “triple tax preference.” This refers to three significant tax benefits associated with HSAs, which make them a powerful tool for healthcare savings. The triple tax preference includes the following advantages:",[960,1733,1734],{},[536,1735,1736,1737],{},"Triple Tax Preference:",[960,1738,1739,1745,1751],{},[536,1740,1741,1744],{},[343,1742,1743],{},"Tax-deductible Contributions",": Contributions made to an HSA are tax-deductible, meaning the amount contributed is subtracted from your taxable income. This deduction provides an immediate tax benefit, as it reduces your overall taxable income, potentially lowering your tax liability for the year. However, there are annual contribution limits set by the IRS, and contributions must be made with after-tax dollars if not through a payroll deduction.",[536,1746,1747,1750],{},[343,1748,1749],{},"Tax-free Growth",": Once funds are contributed to an HSA, they can be invested and grow on a tax-free basis. Any interest, dividends, or capital gains earned within the HSA are not subject to income tax. This tax-free growth allows your HSA balance to accumulate and compound over time, enhancing the potential for long-term savings.",[536,1752,1753,1756],{},[343,1754,1755],{},"Tax-free Withdrawals for Qualified Medical Expenses",": The most significant benefit of an HSA is the ability to withdraw funds tax-free when used for qualified medical expenses. As long as the funds are used for eligible healthcare costs, including deductibles, copayments, prescriptions, and other qualified medical expenses, withdrawals from the HSA are not subject to income tax. This provides a valuable tax advantage and can significantly reduce healthcare-related expenses.",[12,1758,1759],{},"Other benefits of HSAs include:",[960,1761,1762,1765],{},[536,1763,1764],{},"HSAs stay with the person even when they change employers and\u002For leave the workforce",[536,1766,1767],{},"After age 65, withdrawals can be utilized for non-medical expenses with any distributions subject to regular income tax.",[12,1769,1770],{},"Below is a chart that displays the value of triple tax advantaged accounts. and how the these deductions can add thousands of dollars to your portfolio over time.",[12,1772,1773],{},[57,1774],{"alt":59,"src":1775},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-12-Graph.png",[12,1777,1778],{},"*Must have a qualifying high-deductible health plan to make contributions. Funds in the HSA may be withdrawn tax free for qualified medical expenses unless a credit or deduction for medical expenses is claimed. After age 65 funds also may be withdrawn at ordinary income tax rates without penalty for any reason. Some health insurance premiums may be qualified expenses such as COBRA coverage, coverage while receiving state or Federal unemployment compensation, Medicare Part B and D premiums and qualified long-term care insurance premiums up to certain limits, but excludes Medigap \u002F Medicare supplement policies and most long-term care policies that include annuity income or life insurance. See IRS Publications 969 and 502. This is not intended to be individual tax advice; consult your tax advisor.",[12,1780,1781],{},"The above example is for illustrative purposes only and not indicative of any investment. Does not include account fees. Present value of illustrated HSA after 15 years is $146,885. Estimated savings from tax deductions at a 37% marginal rate are $45,430. Assumes cash or income used for health care expenses is not withdrawn from an account with a tax liability. The example assumes the HSA is fully invested; if $2,000 was held in a cash account, the illustrated cumulative HSA account value would be $197,687 is projected to be enough to fund about 13 years of projected average qualified Medicare-related health care expenses for a couple.",[34,1783,1785],{"id":1784},"qualifying-for-an-hsa","Qualifying for an HSA:",[960,1787,1788,1806,1819,1824],{},[536,1789,1790,1798],{},[30,1791,1792,1793,1797],{},"Have to utilize a [high deductible plan](",[22,1794,1795],{"href":1795,"rel":1796},"https:\u002F\u002Fwww.healthcare.gov\u002Fglossary\u002Fhigh-deductible-health-plan\u002F#:~:text=A%20high%20deductible%20plan%20(HDHP,or%20%242%2C800%20for%20a%20family",[45],".) (HDHP)",[960,1799,1800,1803],{},[536,1801,1802],{},"Monthly premiums will be lower, but of pocket costs are much higher until you meet the deductibles. Many employers make it cheaper to have a HDHP than a PPO by contributing to the HSA an amount based on if the employee has to meet a self-only or family deductible.",[536,1804,1805],{},"Many hold-outs that like the mental security of the PPO plan worry about the costs if they have a medical emergency. In most case, healthy individuals and families really do spend significantly less than the deductible in most years and as noted above, employers understand the additional cost of emergencies under HDHP and try to make up for this with additional contributions that actually make it a better deal than the PPO.",[536,1807,1808,1811],{},[30,1809,1810],{},"Have to have no other health coverage",[960,1812,1813,1816],{},[536,1814,1815],{},"Cannot have additional health coverage that is not HDHP.",[536,1817,1818],{},"You are still eligible if your spouse has a non-HDHP but you are not covered under it.",[536,1820,1821],{},[30,1822,1823],{},"Not enrolled in Medicare (still can utilize contributed funds from HSA)",[536,1825,1826],{},[30,1827,1828],{},"Not claimed as a dependent on anyone’s tax return",[12,1830,1831],{},[30,1832,1833],{},"2023 Contribution Limits",[960,1835,1836,1839],{},[536,1837,1838],{},"Maximum annual contribution is $3,850 for an individual and $7,750 for a family",[536,1840,1841],{},"Additional contributions of $1,000 are allowed if you are 55 or older and not enrolled in Medicare",[12,1843,1844],{},[30,1845,1846],{},"Flexible Spending Account (FSA)",[960,1848,1849,1852,1855],{},[536,1850,1851],{},"You can’t contribute to an FSA if utilizing a HSA",[536,1853,1854],{},"Still can contributed to a limited purpose FSA such as a one utilized for dependent care or vision\u002Fdental care",[536,1856,1857],{},"Cannot “double-dip” by trying to get reimbursed by both HSA and FSA to cover same qualified expense",[12,1859,1860],{},[30,1861,1862],{},"Distributions from an HSA",[960,1864,1865,1868],{},[536,1866,1867],{},"Medical expenses are paid up to the deductible of the HDHP.",[536,1869,1870],{},"You may utilize the HSA to pay for medical expenses or pay these out of pocket",[12,1872,1873,1874,1879],{},"Most medical and dental expenses are qualified under an HSA plan. Additionally, prescription medication and over-the-counter medications for which you have a prescription are also covered. Under the ",[22,1875,1878],{"href":1876,"rel":1877},"https:\u002F\u002Fwww.investopedia.com\u002Fcoronavirus-aid-relief-and-economic-security-cares-act-4800707",[45],"CARES act",", certain medications such as pain relievers and allergy medications are covered.",[12,1881,1882],{},"Qualified expenses could be incurred by you, your spouse, and all dependents you claim on your tax return.",[12,1884,1885],{},[57,1886],{"alt":59,"src":1887},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-12-Screen-Shot-2022-12-15-at-4.42.21-PM.png",[12,1889,1890],{},[57,1891],{"alt":59,"src":1892},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-12-Screen-Shot-2022-12-15-at-4.42.10-PM.png",[12,1894,1895],{},[30,1896,1897],{},"Other Items to Consider",[12,1899,1900],{},"If any portion of a distribution is used for non-qualified medical expenses, that portion is subject to income tax PLUS a 20% Penalty!! There is no penalty if the distribution was taken after reaching age 65 or after becoming disabled.",[12,1902,1903],{},[30,1904,1905],{},"If the HSA holder dies:",[960,1907,1908,1911,1914],{},[536,1909,1910],{},"HSA will transfer to spouse if they are beneficiary",[536,1912,1913],{},"If there isn’t a designated beneficiary, the accounts stops being an HSA and the fair market value becomes taxable to the beneficiary in the year of death.",[536,1915,1916],{},"If the HSA goes to the estate, the value is reported as income on the final income tax return",[12,1918,1919],{},[30,1920,1921],{},"Additional insurance for the following items is okay even with an HSA:",[960,1923,1924,1927,1930],{},[536,1925,1926],{},"Liabilities incurred under workers compensation laws, torts, or ownership or use of property Specific disease or illness",[536,1928,1929],{},"Fixed amount cost for hospitalization",[536,1931,1932],{},"Vision, dental, accident, disability, and long-term care insurance wouldn’t disqualify an individual",[12,1934,1935],{},[30,1936,1937],{},"Maximizing Your HSA",[960,1939,1940,1943,1949],{},[536,1941,1942],{},"Try to pay for medical costs outside of your HSA and use your HSA as another retirement vehicle.",[536,1944,1945,1946,1948],{},"Make sure to invest your HSA. It is best to try and get broad ",[22,1947,1028],{"href":1027}," like the rest of your portfolio. Begin as soon as you can to take advantage of compounding.",[536,1950,1951,1952,1955],{},"If the goal is to minimize taxes and maximize savings, max out your HSA contributions before ",[22,1953,1954],{"href":897},"401k"," contributions. This will obviously need to be weighed versus loss of 401k contribution match from your employer, but in many times HSA still makes sense.",[12,1957,1958],{},[30,1959,1960],{},"In summary, HSAs provide several benefits: tax-deductible contributions reduce taxable income, tax-free growth allows savings to compound, and tax-free withdrawals for qualified medical expenses provide valuable tax advantages. HSAs offer control, flexibility, and portability, allowing individuals to choose their healthcare providers and carry funds over time. They can be used for eligible expenses for dependents as well. HSAs offer long-term savings and investment opportunities, including potential retirement savings. They provide financial protection against unexpected medical costs and promote cost-conscious consumer behavior. HSAs empower individuals to take control of their healthcare expenses while enjoying tax advantages and potential growth of their savings.",[12,1962,1963],{},"Learn how Citizen Mint reviews impact investment opportunities by downloading our Investment Philosophy and Process white paper.",[34,1965,698],{"id":459},[12,1967,701,1968,705],{},[30,1969,704],{},[12,1971,1972],{},[57,1973],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":1975},[1976,1977],{"id":1784,"depth":167,"text":1785},{"id":459,"depth":167,"text":698},"2022-12-15","Discover how a health savings account (HSA) is one of the best and least known places to stash away capital for retirement.","\u002Fimages\u002Fresources\u002Fwhy-utilize-a-health-savings-account.jpg",{},{"title":1717,"description":1979},"resources\u002Fwhy-utilize-a-health-savings-account","hPkPUJXawMAblu5YHoZFrGgZeHxrQ_rbXb0NhQKlcAs",{"id":1986,"title":1987,"author":512,"body":1988,"category":176,"date":2192,"description":2193,"extension":179,"image":2194,"imageAlt":181,"meta":2195,"navigation":183,"path":897,"seo":2196,"stem":2197,"topic":187,"__hash__":2198},"resources\u002Fresources\u002F401k-investing-roth-or-traditional.md","401k Investing Roth or Traditional",{"type":9,"value":1989,"toc":2181},[1990,1994,1997,2000,2004,2007,2025,2028,2032,2035,2038,2041,2044,2048,2053,2058,2060,2062,2073,2077,2080,2084,2087,2090,2104,2107,2111,2114,2117,2125,2128,2139,2142,2150,2154,2157,2160,2168,2171,2173,2177],[34,1991,1993],{"id":1992},"unlocking-the-power-of-your-401k-a-deep-dive-into-traditional-vs-roth-contributions","Unlocking the Power of Your 401k: A Deep Dive into Traditional vs. Roth Contributions",[12,1995,1996],{},"401K • TAX ADVANTAGES • IMPACT INVESTING",[12,1998,1999],{},"Your 401k plan is more than just a savings account, it’s a dynamic and flexible vehicle for financial growth and stability. When employed correctly, it offers not just significant savings for your retirement years but also notable tax benefits. But to make the most of these advantages, you need to understandfinancial topicslike the difference between traditional (pre-tax) and Roth (post-tax) contributions, and how to choose the right approach for you.",[34,2001,2003],{"id":2002},"traditional-vs-roth-contributions-the-basics","Traditional vs. Roth Contributions: The Basics",[12,2005,2006],{},"Most employers offer both traditional and Roth 401k accounts. Here’s the core difference:",[533,2008,2009,2019],{},[536,2010,2011,2014,2015,2018],{},[30,2012,2013],{},"Traditional (Pre-Tax) Contributions",": These contributions are deducted before income taxes are calculated, which reduces your current ",[22,2016,2017],{"href":240},"tax liability",". However, when you withdraw the funds in retirement, you’ll have to pay taxes on both the contributions and the earnings.",[536,2020,2021,2024],{},[30,2022,2023],{},"Roth (After-Tax) Contributions",": These contributions are deducted after income taxes have been calculated, meaning they don’t lower your present tax bill. But the real benefit comes during retirement, when you can withdraw the funds entirely tax-free.",[12,2026,2027],{},"Choosing between a traditional or Roth 401k depends largely on your expectations about your future tax rate compared to your current tax rate.",[34,2029,2031],{"id":2030},"making-the-right-choice-future-tax-predictions","Making the Right Choice: Future Tax Predictions",[12,2033,2034],{},"Making the right choice between traditional or Roth 401k contributions is, in large part, a strategic game of predicting your future tax situation. It’s about looking into your financial crystal ball and making the best educated guess about what your tax landscape will look like when you retire, compared to where it stands now.",[12,2036,2037],{},"Consider this scenario: If you’re in the early years of your career, chances are your income bracket is relatively modest, and consequently, so is your tax rate. In this situation, choosing a Roth 401k often makes more sense. Your contributions will be taxed at your current lower rate, and then, you can enjoy those retirement distributions tax-free, regardless of whether tax rates have skyrocketed in the interim.",[12,2039,2040],{},"Furthermore, it’s essential to take into account the economic climate and trends. Currently, we’re experiencing historically low tax rates. But with rising national debt, it’s reasonable to foresee a future where tax rates could be significantly higher. If such a scenario materializes, those who chose to lock in their tax rate today with Roth contributions could find themselves with a significant advantage.",[12,2042,2043],{},"Ultimately, it’s about using the information available to you now to make the most informed decision possible for your future financial health. That said, predicting future tax rates is certainly a challenge and, while it’s an important consideration, it shouldn’t be the only factor guiding your 401k strategy.",[34,2045,2047],{"id":2046},"exploring-the-details-specific-scenarios","Exploring the Details: Specific Scenarios",[12,2049,2050],{},[30,2051,2052],{},"Traditional Contributions Could be Better If:",[960,2054,2055],{},[536,2056,2057],{},"Your 401k contributions would decrease without the immediate tax savings because you need that extra money now.",[1667,2059],{},[1667,2061],{},[960,2063,2064,2067,2070],{},[536,2065,2066],{},"If you want to avoid potential Social Security taxes, since Roth distributions aren’t factored into Social Security taxation calculations like pre-tax contributions are.",[536,2068,2069],{},"If your earnings disqualify you from making Roth IRA contributions.",[536,2071,2072],{},"If you plan to leave the account to your heirs, as an inherited Roth 401k won’t be subject to income tax.",[34,2074,2076],{"id":2075},"the-contribution-limits","The Contribution Limits",[12,2078,2079],{},"As of 2022, if you’re under 50, you can contribute up to $20,000 in total to both traditional and Roth 401k accounts (excluding any company match). If you’re 50 or older, you can make an additional catch-up contribution of $6,500, for a grand total of $26,500.",[34,2081,2083],{"id":2082},"navigating-roth-401k-distributions-when-are-they-qualified","Navigating Roth 401k Distributions: When Are They Qualified?",[12,2085,2086],{},"When it comes to the world of Roth 401ks, there’s a particular term that you’ll frequently encounter: ‘Qualified Distributions’. But what exactly does this mean?",[12,2088,2089],{},"A ‘qualified distribution’ from a Roth 401k is one that is both tax-free and penalty-free. However, this advantageous treatment isn’t handed out freely. There are two key conditions that must be met before you can enjoy a qualified distribution:",[533,2091,2092,2098],{},[536,2093,2094,2097],{},[30,2095,2096],{},"Five-Year Rule",": The Roth 401k account from which you’re withdrawing must have been opened and funded for at least five years.",[536,2099,2100,2103],{},[30,2101,2102],{},"Age or Circumstance Rule",": The distribution must occur for one of three reasons – you’ve reached the age of 59 1\u002F2, you’ve become disabled, or the distribution is made to your estate or beneficiary after your death.",[12,2105,2106],{},"It’s a nuanced part of the Roth 401k landscape, but understanding these criteria can help ensure you’re optimizing your tax-free benefits.",[34,2108,2110],{"id":2109},"balancing-your-approach-pre-vs-post-tax-contributions","Balancing Your Approach: Pre vs. Post-Tax Contributions",[12,2112,2113],{},"A key factor in deciding between pre or post-tax accounts is the time until you expect to retire.",[12,2115,2116],{},"5-10 Years to Retirement:",[960,2118,2119,2122],{},[536,2120,2121],{},"Pre-tax contributions may be appealing if you believe your tax bracket will decrease, and you plan to utilize the money sooner.",[536,2123,2124],{},"Post-tax contributions might still be a good idea if you plan to let the money grow over a longer period, possibly for inheritance purposes.",[12,2126,2127],{},"10-20 Years to Retirement:",[960,2129,2130,2136],{},[536,2131,2132,2133,2135],{},"If you don’t have much in a Roth 401k, now is the time to start, for ",[22,2134,1028],{"href":1027}," and growth potential.",[536,2137,2138],{},"Consider converting some pre-tax savings to Roth, a move known as an In-Plan Conversion, for added tax benefits.",[12,2140,2141],{},"20+ Years to Retirement:",[960,2143,2144,2147],{},[536,2145,2146],{},"Pre-tax contributions could be useful if you need extra cash now, such as for a house down payment or to pay off student loans.",[536,2148,2149],{},"If you can afford it, Roth contributions offer the most benefits, given the substantial growth potential of tax-free compounding over a long period.",[34,2151,2153],{"id":2152},"the-benefits-of-back-door-roth-conversions","The Benefits of Back-door Roth Conversions",[12,2155,2156],{},"A Roth conversion lets you convert all or part of your traditional 401k to a Roth 401k. You can spread this conversion over several years to manage the tax impact and potentially convert in a year with lower earnings.",[12,2158,2159],{},"Please note, for a tax-free treatment on converted funds, you need to meet the following conditions:",[960,2161,2162,2165],{},[536,2163,2164],{},"You have to be at least 59 1\u002F2 at the time of withdrawal.",[536,2166,2167],{},"It has to be at least five years since your first conversion or first Roth contribution.",[12,2169,2170],{},"With the right planning and understanding of theseretirement strategies, you can set yourself up for a financially stable future, despite the potential for higher tax rates. Navigating your 401k options can be complex, but making the right decisions now can pave the way to a more comfortable retirement. So, whether it’s traditional or Roth, making an informed choice is the first step to maximizing your 401k.",[34,2172,698],{"id":459},[12,2174,701,2175,705],{},[30,2176,704],{},[12,2178,2179],{},[57,2180],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":2182},[2183,2184,2185,2186,2187,2188,2189,2190,2191],{"id":1992,"depth":167,"text":1993},{"id":2002,"depth":167,"text":2003},{"id":2030,"depth":167,"text":2031},{"id":2046,"depth":167,"text":2047},{"id":2075,"depth":167,"text":2076},{"id":2082,"depth":167,"text":2083},{"id":2109,"depth":167,"text":2110},{"id":2152,"depth":167,"text":2153},{"id":459,"depth":167,"text":698},"2022-09-20","401k's are great savings vehicles for employees and have additional tax advantages if properly utilized. Learn more about different options for 410k Investments.","\u002Fimages\u002Fresources\u002F401k-investing-roth-or-traditional.jpg",{},{"title":1987,"description":2193},"resources\u002F401k-investing-roth-or-traditional","oxZcg0_NPmgLRTgbNqUDOeQXAo-eEZdbQe3gcKaFsfY",[2200,2332,2470,2584,2709,2993,3274,3303,3332,3361,3390,3796,3825,3895,4096,4125,4166,4195,4224,4419,4525,4789,5048,5440,5891,5944,6173,6246,6536,7937,7968,8030,8091,8290,8486,8569,8783,8807,8952,9037,9093,9269,9324,9431,9651,9681,9946,10152,10283,10428,10520,10578,10794,10980,11094,11334,11356,11376,11396,11416,11453,11473,11490,11509,11530,11549,11705,11736,11756,11775,12066,12183,12322,12476,12688,12792,12944,13015,13044,13161,13371,13568,13700,13967,14150,14267,14310,14597,14791,14994,15099,15146,15294,15351,15422,15591,15645,15701,15760,15847,16055,16104,16208,16295,16384],{"id":2201,"title":2202,"author":2203,"body":2204,"category":2321,"date":2322,"description":2323,"extension":179,"image":2324,"imageAlt":2325,"meta":2326,"navigation":183,"path":2327,"seo":2328,"stem":2329,"topic":2330,"__hash__":2331},"resources\u002Fresources\u002Ffewer-public-stocks-than-1996.md","There Are Fewer Stocks to Buy Today Than in 1996","Josh Hile",{"type":9,"value":2205,"toc":2313},[2206,2209,2245,2250,2257,2261,2264,2268,2271,2282,2285,2289,2292,2296,2299,2303,2306],[12,2207,2208],{},"In this video, Josh Hile covers:",[960,2210,2211,2214,2217,2220,2223,2230,2233,2236,2242],{},[536,2212,2213],{},"The Setup: Fewer Public Stocks, More Private Opportunity",[536,2215,2216],{},"Meet Josh Hile and the Data Behind This Video",[536,2218,2219],{},"Why the Number of Public Companies Has Been Shrinking Since 1996",[536,2221,2222],{},"Private Markets Have Grown to $20 Trillion in AUM",[536,2224,2225,2226,2229],{},"The ",[22,2227,2228],{"href":1027},"Diversification"," Dimension Most Portfolios Miss",[536,2231,2232],{},"The Hidden Concentration Risk Inside the S&P 500",[536,2234,2235],{},"Answering the Best Counterarguments",[536,2237,2238,2239],{},"A Framework for Thinking About ",[22,2240,2241],{"href":24},"Private Market Allocation",[536,2243,2244],{},"Call to Action",[1224,2246],{"src":2247,"title":2248,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FMBpA1sg5w58","There Are Fewer Stocks to Buy Today Than in 1996 (video)","accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture",[12,2251,2252],{},[22,2253,2256],{"href":2254,"rel":2255},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=MBpA1sg5w58",[45],"Watch on YouTube",[34,2258,2260],{"id":2259},"summary","Summary",[12,2262,2263],{},"In this video, Josh Hile, CEO and founder of Citizen Mint, looks at a structural change that gets less attention than stock market concentration: the public stock market now covers less of the US economy than it used to. He draws on data from McKinsey, S&P Global, and Preqin, and acknowledges his own perspective as a private markets professional.",[415,2265,2267],{"id":2266},"why-there-are-fewer-public-companies-than-in-1996","Why there are fewer public companies than in 1996",[12,2269,2270],{},"Josh points to a peak of roughly 8,000 stocks trading on major US exchanges around 1996, falling to roughly 4,000 by 2020. He describes several forces at work:",[960,2272,2273,2276,2279],{},[536,2274,2275],{},"Mergers and acquisitions, as larger firms absorbed smaller public companies",[536,2277,2278],{},"Higher costs and regulatory burden of being public after the Sarbanes-Oxley Act of 2002",[536,2280,2281],{},"A deeper private funding ecosystem, where venture capital, growth equity, and private credit can supply large amounts of capital without an IPO",[12,2283,2284],{},"He cites Stripe and SpaceX as businesses that have raised capital privately far longer than earlier generations could. The IPO has become optional for many strong businesses, so a public-only portfolio holds only the companies that chose, or were able, to go public.",[415,2286,2288],{"id":2287},"how-large-private-markets-have-become","How large private markets have become",[12,2290,2291],{},"The video notes that global private market assets under management reached approximately $20 trillion by the end of 2024, which Josh compares to the total market capitalization of the S&P 500. He describes a full ecosystem (private equity, private credit, private real estate, private infrastructure, venture capital, and natural resources), each with its own return drivers, risks, and liquidity. His point is not that private markets are better, but that they are different and represent a growing share of where economic value is created.",[415,2293,2295],{"id":2294},"asset-class-diversification-and-sp-500-concentration-risk","Asset class diversification and S&P 500 concentration risk",[12,2297,2298],{},"Holding many stocks across sectors diversifies within public markets. Asset class diversification means owning exposures driven by different factors: infrastructure tied to contracted cash flows and regulated pricing, private credit tied to interest payments, and private real estate tied to rents and property values. Josh also highlights concentration inside the index. By mid 2025, the 10 largest companies represented 35% of the S&P 500, and AI related stocks had accounted for almost 75% of the index's returns since ChatGPT launched in late 2022. He frames diversifying away from that concentration as a structural portfolio decision, not a market timing trade.",[415,2300,2302],{"id":2301},"counterarguments-and-a-framework-for-private-market-allocation","Counterarguments and a framework for private market allocation",[12,2304,2305],{},"Josh addresses common objections: public alternative managers offer only indirect, fee-layered exposure; private markets are illiquid, opaque, and high fee, which is why sizing and manager selection matter; and public market capitalization is still growing, even as it concentrates in fewer companies. Rather than prescribing an allocation, he offers a framework: identify which portion of a portfolio truly has a 5 to 10 year horizon, determine which exposures are missing, and be realistic about access. He cites a top quartile infrastructure fund at a 14% IRR versus barely 3% for a bottom quartile fund, so manager selection carries real weight.",[12,2307,2308,2309,263],{},"This video is educational only and is not investment advice. See our ",[22,2310,2312],{"href":2311},"\u002Fdisclosures","disclosures",{"title":59,"searchDepth":167,"depth":167,"links":2314},[2315],{"id":2259,"depth":167,"text":2260,"children":2316},[2317,2318,2319,2320],{"id":2266,"depth":498,"text":2267},{"id":2287,"depth":498,"text":2288},{"id":2294,"depth":498,"text":2295},{"id":2301,"depth":498,"text":2302},"video","2026-09-21","Why the number of public companies has shrunk since 1996, how large private markets have become, and what that means for diversification and concentration risk.","\u002Fimages\u002Fresources\u002Ffewer-public-stocks-than-1996.jpg","Josh Hile video: There Are Fewer Stocks to Buy Today Than in 1996",{},"\u002Fresources\u002Ffewer-public-stocks-than-1996",{"title":2202,"description":2323},"resources\u002Ffewer-public-stocks-than-1996","private-markets","RwC26TECVmns_5dqbeKjA-Nn7h6QNlw53dZ3t-p7Mpk",{"id":2333,"title":2334,"author":2203,"body":2335,"category":2321,"date":2461,"description":2462,"extension":179,"image":2463,"imageAlt":2464,"meta":2465,"navigation":183,"path":2466,"seo":2467,"stem":2468,"topic":939,"__hash__":2469},"resources\u002Fresources\u002Famericas-power-grid-interconnection.md","America's Power Grid Wasn't Built for This",{"type":9,"value":2336,"toc":2453},[2337,2339,2375,2379,2385,2387,2390,2394,2397,2401,2404,2408,2411,2422,2425,2429,2432,2446,2449],[12,2338,2208],{},[960,2340,2341,2344,2352,2355,2358,2361,2364,2367,2370,2373],{},[536,2342,2343],{},"The Setup: AI's Power Problem and a Hidden Opportunity",[536,2345,2346,2347,2351],{},"How ",[22,2348,2350],{"href":2349},"\u002Fresources\u002Fguide-to-interconnection-capital","Interconnection"," Actually Works",[536,2353,2354],{},"The Queue Has Exploded: 325% Growth Since 2019",[536,2356,2357],{},"What's Driving the Backlog: AI, EVs, and the Clean Energy Buildout",[536,2359,2360],{},"FERC Order 2023 and the New Deposit Requirements",[536,2362,2363],{},"The Three Forces Behind This Opportunity",[536,2365,2366],{},"How Returns Are Actually Generated",[536,2368,2369],{},"The Real Risks: Timeline, Regulatory, and Concentration",[536,2371,2372],{},"Why This Belongs in the Portfolio Conversation",[536,2374,2244],{},[1224,2376],{"src":2377,"title":2378,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002F8nyq14fdRf0","America's Power Grid Wasn't Built for This (video)",[12,2380,2381],{},[22,2382,2256],{"href":2383,"rel":2384},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=8nyq14fdRf0",[45],[34,2386,2260],{"id":2259},[12,2388,2389],{},"In this video, Josh Hile explains how new power projects connect to the US electric grid, why the line of projects waiting to connect has grown so quickly, and why that bottleneck has created a niche private capital opportunity known as interconnection capital.",[415,2391,2393],{"id":2392},"how-grid-interconnection-works","How grid interconnection works",[12,2395,2396],{},"The grid must stay in balance at all times, so a new generator cannot simply plug in. Grid operators study how a new source will affect voltage, power flow, and system stability. That formal permission process is called interconnection. It requires one or more studies and a deposit to hold a project's place in the queue while studies are completed and upgrades are built. The utility holds the deposit, and if the project does not proceed, the unspent portion is returned.",[415,2398,2400],{"id":2399},"why-the-interconnection-queue-has-grown","Why the interconnection queue has grown",[12,2402,2403],{},"Josh points to a 325% increase in interconnection requests from 2019 to 2023. The time from request to generating electricity has increased by nearly 30 months since 2015, with a median wait of over four years in many regions. Drivers include AI data centers, EV manufacturing plants, battery storage, and the solar and wind buildout tied to state clean energy mandates and Inflation Reduction Act incentives.",[415,2405,2407],{"id":2406},"ferc-order-2023-and-the-interconnection-capital-gap","FERC Order 2023 and the interconnection capital gap",[12,2409,2410],{},"In July 2023, the Federal Energy Regulatory Commission (FERC) issued Order 2023 to reduce speculation and clear the backlog, partly by raising required deposits. The video notes that deposits once in the tens of thousands of dollars are now in the hundreds of thousands, and in the millions for larger projects. Josh describes three converging forces:",[960,2412,2413,2416,2419],{},[536,2414,2415],{},"Regulatory reform, which raised capital needs and set clear rules for how deposits are held and returned",[536,2417,2418],{},"A capital gap, since large utilities can fund their own deposits while small and mid-sized developers often cannot",[536,2420,2421],{},"Refundability, since deposits sit with the regulated utility in restricted accounts and state tariffs require unspent portions to be returned if a project is withdrawn",[12,2423,2424],{},"He cites the PG&E bankruptcy, in which deposits were treated as unearned funds rather than utility property.",[415,2426,2428],{"id":2427},"how-interconnection-capital-strategies-work-and-the-risks","How interconnection capital strategies work, and the risks",[12,2430,2431],{},"According to the video, returns in these strategies come from contractual interest on capital advanced and participation in a project sale when a project completes its studies. Josh explains that these outcomes are tied to a regulatory process rather than long-term power prices or which energy technology wins. He is candid about the risks:",[960,2433,2434,2437,2440,2443],{},[536,2435,2436],{},"Timeline risk, if studies or upgrades run past the typical one to two year window",[536,2438,2439],{},"Regulatory risk, since rule changes could alter deposits, queue mechanics, or refundability",[536,2441,2442],{},"Project risk, since refundability protects principal in most cases but not necessarily all accrued interest",[536,2444,2445],{},"Concentration risk in single-project positions",[12,2447,2448],{},"He frames interconnection capital as part of a broader alternatives conversation alongside private credit, infrastructure, and real assets, not a replacement for them.",[12,2450,2308,2451,263],{},[22,2452,2312],{"href":2311},{"title":59,"searchDepth":167,"depth":167,"links":2454},[2455],{"id":2259,"depth":167,"text":2260,"children":2456},[2457,2458,2459,2460],{"id":2392,"depth":498,"text":2393},{"id":2399,"depth":498,"text":2400},{"id":2406,"depth":498,"text":2407},{"id":2427,"depth":498,"text":2428},"2026-09-14","How grid interconnection works, why the queue has grown so quickly, and the forces behind the interconnection capital opportunity.","\u002Fimages\u002Fresources\u002Famericas-power-grid-interconnection.jpg","Josh Hile video: America's Power Grid Wasn't Built for This",{},"\u002Fresources\u002Famericas-power-grid-interconnection",{"title":2334,"description":2462},"resources\u002Famericas-power-grid-interconnection","72fr1kPIBnPT78hFMFWqxiMeC-NQmzDZAew9XHa0Jt4",{"id":2471,"title":2472,"author":2203,"body":2473,"category":2321,"date":2575,"description":2576,"extension":179,"image":2577,"imageAlt":2578,"meta":2579,"navigation":183,"path":2580,"seo":2581,"stem":2582,"topic":2330,"__hash__":2583},"resources\u002Fresources\u002Fhidden-risks-of-interval-funds.md","The Hidden Risks of Interval Funds",{"type":9,"value":2474,"toc":2567},[2475,2477,2506,2510,2516,2518,2521,2525,2528,2532,2535,2539,2542,2545,2549,2552,2563],[12,2476,2208],{},[960,2478,2479,2482,2485,2488,2491,2494,2497,2500,2503],{},[536,2480,2481],{},"The $100 Billion Pitch Behind Interval Funds",[536,2483,2484],{},"Interval Fund Mechanics: Open-End vs. Closed-End vs. Interval",[536,2486,2487],{},"The 5% Rule: How Quarterly Redemption Caps Actually Work",[536,2489,2490],{},"Why Interval Funds Took Over the Wealth Management Channel",[536,2492,2493],{},"What Happens When 20-30% of Investors Try to Exit at Once",[536,2495,2496],{},"Case Studies: The 2022 Real Estate Gates and the 2026 Private Credit Stress Test",[536,2498,2499],{},"Are Interval Funds Bad? The Honest, Balanced Take",[536,2501,2502],{},"Why Manager Selection Matters More Than the Wrapper",[536,2504,2505],{},"The Questions Every Advisor and Investor Should Ask",[1224,2507],{"src":2508,"title":2509,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002Fdj9yeB3SkSc","The Hidden Risks of Interval Funds (video)",[12,2511,2512],{},[22,2513,2256],{"href":2514,"rel":2515},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=dj9yeB3SkSc",[45],[34,2517,2260],{"id":2259},[12,2519,2520],{},"The video notes that more than $100 billion has flowed into interval funds over the past five years. Josh Hile explains how these vehicles work, why they spread through the wealth management channel, and what happens to quarterly liquidity when many investors try to leave at once. He is clear that he is not telling viewers to avoid them.",[415,2522,2524],{"id":2523},"how-interval-funds-work","How interval funds work",[12,2526,2527],{},"Open-end funds, such as mutual funds and ETFs, offer essentially daily liquidity. Closed-end funds trade on an exchange, so investors trade with each other rather than the fund. An interval fund sits in between: it does not trade on an exchange, and instead periodically (usually quarterly) offers to repurchase a limited percentage of its shares, typically capped at 5% of net assets per quarter. If requests exceed the cap, they are prorated and each investor receives only a fraction of what they asked for.",[415,2529,2531],{"id":2530},"why-interval-funds-became-popular-in-wealth-management","Why interval funds became popular in wealth management",[12,2533,2534],{},"Josh describes three real reasons. Accessibility: lower minimums than a traditional limited partnership, a 1099 instead of a K-1, and a wider pool of eligible investors. Simplicity: advisors can use them in a normal brokerage account without explaining capital calls. Economics: higher fees on private market strategies create revenue for distributors. The result wraps an illiquid strategy in a semi-liquid wrapper.",[415,2536,2538],{"id":2537},"what-happens-when-redemptions-exceed-the-5-cap","What happens when redemptions exceed the 5% cap",[12,2540,2541],{},"In a hypothetical $1 billion fund, 5% per quarter equals $50 million. If a shock prompts 15%, 20%, or even 30% of investors to request redemptions in the same window, everyone is prorated and the remainder waits, sometimes for several quarters. Because underlying assets are valued quarterly or annually, often through the manager's own processes, the reported NAV may not fully reflect the stress. Josh calls this \"volatility laundering.\"",[12,2543,2544],{},"He points to two episodes. In late 2022, as rates rose, Blackstone's BREIT and Starwood's SREIT hit their redemption limits. In 2026, Blue Owl faced roughly $5.4 billion in redemption requests in one quarter across retail focused private credit vehicles, with some funds seeing requests above 20% of shares outstanding and others above 40%. Josh stresses that gates are not proof a fund is failing; they exist to keep managers from becoming forced sellers, though exiting investors experience them very differently.",[415,2546,2548],{"id":2547},"questions-advisors-should-ask-about-interval-funds","Questions advisors should ask about interval funds",[12,2550,2551],{},"Josh argues the structure can fit a client with a genuine long horizon, liquidity covered elsewhere, and a full understanding that exits may take extended stretches. The problem is usually framing, because quarterly liquidity sounds like liquidity. He also notes roughly 20 percentage points of IRR separating top and bottom quartile private equity managers, so the strategy inside matters more than the wrapper. His suggested diligence questions:",[960,2553,2554,2557,2560],{},[536,2555,2556],{},"How does the strategy behave when 20% of investors try to redeem in the same window?",[536,2558,2559],{},"How often is the NAV independently verified?",[536,2561,2562],{},"What is the all-in fee load, net of management, performance, and origination costs?",[12,2564,2308,2565,263],{},[22,2566,2312],{"href":2311},{"title":59,"searchDepth":167,"depth":167,"links":2568},[2569],{"id":2259,"depth":167,"text":2260,"children":2570},[2571,2572,2573,2574],{"id":2523,"depth":498,"text":2524},{"id":2530,"depth":498,"text":2531},{"id":2537,"depth":498,"text":2538},{"id":2547,"depth":498,"text":2548},"2026-09-07","How interval funds work, how quarterly redemption caps behave under stress, and what advisors should weigh before using them.","\u002Fimages\u002Fresources\u002Fhidden-risks-of-interval-funds.jpg","Josh Hile video: The Hidden Risks of Interval Funds",{},"\u002Fresources\u002Fhidden-risks-of-interval-funds",{"title":2472,"description":2576},"resources\u002Fhidden-risks-of-interval-funds","wcABQTxIqrshXYxI2_iaoSg6BI5vkHmhDG3UgtfFt9U",{"id":2585,"title":2586,"author":2203,"body":2587,"category":2321,"date":2700,"description":2701,"extension":179,"image":2702,"imageAlt":2703,"meta":2704,"navigation":183,"path":2705,"seo":2706,"stem":2707,"topic":2330,"__hash__":2708},"resources\u002Fresources\u002Fportfolio-missing-half-the-market.md","Your Portfolio Is Missing Half The Market",{"type":9,"value":2588,"toc":2692},[2589,2591,2619,2623,2629,2631,2634,2638,2641,2644,2648,2674,2678,2681,2685,2688],[12,2590,2208],{},[960,2592,2593,2596,2599,2602,2605,2608,2611,2614,2617],{},[536,2594,2595],{},"The Setup: What Most Portfolios Are Missing",[536,2597,2598],{},"What Private Markets Actually Are",[536,2600,2601],{},"Why 87% of the Economy Stays Private",[536,2603,2604],{},"The Four Asset Classes and Their Return Profiles",[536,2606,2607],{},"Why Correlations Have Changed the Conversation",[536,2609,2610],{},"The Generational Shift: $124 Trillion and a New Set of Expectations",[536,2612,2613],{},"Where We See Opportunity Right Now",[536,2615,2616],{},"What to Watch Out For",[536,2618,2244],{},[1224,2620],{"src":2621,"title":2622,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002F2gmBuN-bBnI","Your Portfolio Is Missing Half The Market (video)",[12,2624,2625],{},[22,2626,2256],{"href":2627,"rel":2628},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=2gmBuN-bBnI",[45],[34,2630,2260],{"id":2259},[12,2632,2633],{},"In this video, Josh Hile gives a plain-language introduction to private markets: what they are, why so much of the economy stays private, how the four main private asset classes differ, and what risks come with them. He opens with a statistic: 87% of US companies with over $100 million in revenue are privately owned.",[415,2635,2637],{"id":2636},"what-private-markets-are-and-why-companies-stay-private","What private markets are and why companies stay private",[12,2639,2640],{},"Josh defines a private market investment as anything not traded on a public exchange, such as a direct loan to a manufacturing company, a stake in a renewable energy project, or a direct investment in a multifamily building. These assets are valued periodically, are illiquid, and were historically available mainly to institutions.",[12,2642,2643],{},"Companies no longer need an IPO to raise large amounts of capital. The video notes that in the 1990s roughly 85% of companies going public had positive earnings, compared with around 35% today, so more value creation happens before a listing. Josh cites private market capital formation growing from roughly $4 trillion in 2013 to $15 trillion by 2023. Meanwhile, seven stocks make up roughly 35% of the S&P 500, all tied to the same AI narrative.",[415,2645,2647],{"id":2646},"the-four-private-market-asset-classes","The four private market asset classes",[960,2649,2650,2656,2662,2668],{},[536,2651,2652,2655],{},[30,2653,2654],{},"Private infrastructure:"," long-life assets such as data centers, battery storage, renewable energy, and cell towers, often with relatively stable cash flows.",[536,2657,2658,2661],{},[30,2659,2660],{},"Private credit:"," loans not provided by a bank or government, a market that grew as banks pulled back from mid-size lending after 2008.",[536,2663,2664,2667],{},[30,2665,2666],{},"Private real estate:"," core stabilized properties through development projects. Josh notes public REITs have averaged about a 0.6 correlation to the S&P 500, versus closer to negative 0.1 historically for direct real estate.",[536,2669,2670,2673],{},[30,2671,2672],{},"Private equity:"," capital to grow or improve a business for an eventual sale. Josh calls it the most correlated to public markets of the four, with reported volatility that likely understates true volatility.",[415,2675,2677],{"id":2676},"why-correlations-and-the-wealth-transfer-matter-for-advisors","Why correlations and the wealth transfer matter for advisors",[12,2679,2680],{},"The 60\u002F40 portfolio relied on low or negative stock-bond correlation, and in 2022 both fell together. Josh cautions that infrequent valuation can make reported private market correlations look lower than true economic correlation. He also points to a projected $124 trillion wealth transfer by 2048 and a 2024 Bank of America private wealth survey in which investors aged 21 to 43 ranked US stocks last at 14%, while those 44 and older ranked them first at 41%. He outlines themes the firm is watching, including energy demand from data centers and onshoring, niche debt strategies, and workforce housing.",[415,2682,2684],{"id":2683},"the-risks-of-private-market-investing","The risks of private market investing",[12,2686,2687],{},"The video closes on four risks: illiquidity (capital often committed for 5 to 10 years), manager selection (a roughly 20% spread between top and bottom quartile private equity managers), fees, and operational complexity such as K-1s and capital calls. Josh describes private markets as suited to long-duration capital with rigorous diligence, not a silver bullet.",[12,2689,2308,2690,263],{},[22,2691,2312],{"href":2311},{"title":59,"searchDepth":167,"depth":167,"links":2693},[2694],{"id":2259,"depth":167,"text":2260,"children":2695},[2696,2697,2698,2699],{"id":2636,"depth":498,"text":2637},{"id":2646,"depth":498,"text":2647},{"id":2676,"depth":498,"text":2677},{"id":2683,"depth":498,"text":2684},"2026-08-31","What private markets are, why most of the economy stays private, and how the four private asset classes differ.","\u002Fimages\u002Fresources\u002Fportfolio-missing-half-the-market.jpg","Josh Hile video: Your Portfolio Is Missing Half The Market",{},"\u002Fresources\u002Fportfolio-missing-half-the-market",{"title":2586,"description":2701},"resources\u002Fportfolio-missing-half-the-market","cBNZuNKReg4BB5cLeS_5KoT0A_Ezo9NXVhgBmo6shJw",{"id":2710,"title":2711,"author":7,"body":2712,"category":2983,"date":2984,"description":2985,"extension":179,"image":2986,"imageAlt":181,"meta":2987,"navigation":183,"path":2988,"seo":2989,"stem":2990,"topic":2991,"__hash__":2992},"resources\u002Fresources\u002Faustin-peterson-backbone-planning-partners.md","Austin Peterson | Backbone Planning Partners",{"type":9,"value":2713,"toc":2981},[2714,2723,2729,2736,2739,2742,2745,2748,2751,2754,2757,2760,2763,2766,2769,2771,2774,2777,2780,2783,2786,2789,2792,2795,2798,2801,2804,2806,2809,2812,2815,2818,2821,2823,2826,2829,2832,2835,2838,2840,2843,2845,2848,2851,2854,2856,2859,2862,2865,2867,2870,2873,2876,2879,2882,2885,2888,2891,2894,2897,2900,2902,2905,2908,2911,2913,2916,2919,2922,2925,2928,2931,2934,2936,2939,2941,2944,2947,2950,2953,2956,2958,2961,2963,2966,2969,2972,2975,2978],[12,2715,2716,2717,2722],{},"Read transcript highlights or listen to the full episode to hear Austin Peterson of ",[22,2718,2721],{"href":2719,"rel":2720},"https:\u002F\u002Fbackboneplanning.com\u002F?utm_source=chatgpt.com",[45],"Backbone Planning Partners"," and Josh Hile discuss Austin’s background, the evolution of Backbone Planning Partners, how business owners can diversify wealth beyond their companies, and why thoughtful exit planning, tax-aware portfolio construction, and private markets can play an important role in building long-term financial independence.",[2724,2725],"buzzsprout-player",{":height":2726,"title":2727,"url":2728},"100","Austin Peterson","https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F19642787",[12,2730,2731,2735],{},[22,2732,2734],{"href":2728,"rel":2733},[45],"Listen to the episode","\nJosh Hile: Welcome back to The Advisor View. I’m Josh Hile, CEO and co-founder of Citizen Mint. Each episode I sit down with wealth advisors to hear their journey, how they built their practice, and how they actually serve their clients on a day-to-day basis. Today I have Austin Peterson of Backbone Planning Partners. Thanks for jumping on, Austin. Maybe just to start, you can give us a quick background on yourself and kind of your journey into wealth management.",[12,2737,2738],{},"Austin Peterson: Yeah, yeah, I appreciate it, Josh. Um, excited to be here. So, uh, I’ve got a little different journey, I guess, into financial planning and wealth management. I grew up in a family that was pretty poor, did not have a financial advisor, wouldn’t have needed one. Um, my dad was an independent business owner, but pretty small. I mean, it was basically him and a couple of guys that kind of helped him out. And it was enough most of the time. But in 9th grade, I took a class that just kind of fit a hole in my schedule. I had to fill some sort of an elective in there, and it was called Entrepreneurship and the Stock Market. And it kind of just opened my eyes to what was out there. I don’t know that I even knew what the stock market was before then. And I’ll date myself, I’m clearly older than you are, Josh, but when we, when we were researching stocks in that class, we did so by looking up the tickers in the newspaper and then going to the library to find information. So a little different than stock research today, but that’s kind of what got me excited about it and realizing, man, I think I want to be a business owner and this stock market stuff is pretty cool. And that kind of launch that direction, because prior to that, I was, I was sure I was headed to law school, and that was the way that I saw a bright future for me.",[12,2740,2741],{},"Josh Hile: Okay. And then, um, I guess, like, maybe you can talk about that, like, you know, journey along, like, uh, you know, reading your bio, you know, you kind of go through a number of different iterations on your background and kind of where you were within that. like financial services realm. So maybe you can just give us a quick view to where— how you came all the way to where you are now, uh, and the backbone of Planning Partners.",[12,2743,2744],{},"Austin Peterson: Yeah, I mean, I originally got started in the business, I was 23 years old. Uh, I didn’t have any family with money. I didn’t have any friends with money. You know, when you’re 23, none of your friends have money. So kind of getting started was tough. I did okay, actually, looking back now and understanding how the industry works. But I was young, I had a child, and I needed something a little bit more stable. And so I went to work for Pacific Life Insurance Company.",[12,2746,2747],{},"Josh Hile: Yeah.",[12,2749,2750],{},"Austin Peterson: And then I just kind of bounced around at some different insurance companies and brokerages throughout the years before I finally realized that one, I want to get off the road, stop traveling as much as I am. And 2, now I’ve got some gray hairs not just on my head but in my, you know, in my beard. Um, it might be a little bit easier to kind of go back into business on my own. And so I, I made that transition back into personal practice, um, in 2019.",[12,2752,2753],{},"Josh Hile: And, um, yeah, so, and then maybe just kind of how you brought together Backbone Planning Partners and like you know, who your co-founder was and how that all kind of came together and like what you were trying to build. And because, I mean, like a lot of the wealth managers and financial planners we talked to, you know, it’s like they saw something in the industry that they didn’t like and then they’re like, okay, I want to build something different and here’s who I want to kind of serve with that different business.",[12,2755,2756],{},"Austin Peterson: Yeah, I think there was definitely part of that. You know, I got connected with my business partner, Landon Mance, through, um, basically just attending different conferences together, doing some meetings together. Uh, we were both with Lincoln Financial. That was actually my last stop on the, you know, on the insurance\u002Fcorporate side. And so when I jumped into the personal production side, I stayed with Lincoln as my broker-dealer and RIA at the time. He was already there. Um, we started doing a little bit of joint work together. And then ultimately became, you know, full-time partner starting in 2019. So, um, yeah, we, we basically saw that there was this gap, and we’re not the only ones that, that do this, but we’re definitely in the minority, um, with working with private business owners. And, and that’s, you know, the reality is, I hate to say it this way, but there are a lot of financial advisors, either if they’re working with business owners, they’ve got to have other investments to manage and something for them do, if they don’t have those investments, they’re basically going to walk right past a business owner until they know that the business owner is getting ready to sell because they see an ability to kind of make some money helping that business owner. And our model is just completely different. We look at it and say, well, look, these business owners need help getting their largest asset or their largest investment ready to be some sort of liquid investment in the future. And so we tell business owners that they should be hiring us 3 to 10 years before they are planning to exit so that we can help them not only get that business ready, but in the meantime, try to move some of their investments or their net worth, if you will, off of their business balance sheet and onto their personal balance sheet.",[12,2758,2759],{},"Josh Hile: Yeah, no, that makes sense. And, and why do you think your like you were drawn to business owners specifically?",[12,2761,2762],{},"Austin Peterson: Yeah, I mean, I grew up— my dad, like I said, he owned his own, his own business. My uncle owned his own business. And so I, I would say that I kind of grew up in this, you know, business owner background. And my business partner was the same way. His family was kind of all independent business owners his whole life. Um, but it was really that entrepreneurship class that I took in high school that sparked in me, I think I want to be a business owner. But there’s also this lack of advice in a lot of ways for business owners who are running really successful companies but not massively successful companies. Right? So think about anybody who runs a business that does $5 million in revenue up to maybe $100 million in revenue. Most of those business owners don’t have great advisors around them, and I’m sure that some people would listen to this and think that that sounds shocking to me to them. You know why would that be the case? But they’re just head down; they’re building their business. They they know they have something that’s providing them a good income, and they’re building a business that’s that’s great. But they don’t necessarily know what to do next: how to build it the right way, how to get it ready for that exit, how do we offset taxes today along the way? Is my estate plan set up correctly? Like, they know they have a CPA or need a CPA, but that’s— and maybe they need an attorney from time to time, but that’s kind of the extent of what most business owners have in terms of advisors.",[12,2764,2765],{},"Josh Hile: And so maybe you can walk us through the process from, you know, talking to that specific business owner and just because that’s your focus and like, what are you actually talking to them about, especially when they don’t have that liquidity event, you know, 6 months out, but a few years like 3 to 5 years out? Like, what do you actually work with them from a planning perspective?",[12,2767,2768],{},"Austin Peterson: Yeah, so I mean, step one is, is typically the, the D word, right? Diversification. You know, most investment advisors are thinking diversification with inside of an investment portfolio, but if they don’t have an investment portfolio, the only asset that they have is their business or maybe their primary residence. Then we talk to them about the importance of kind of diversifying away from that and recognizing that they do have a diversification issue or a risk issue, right? Because think of it this way, if somebody told me that they had a $50 million net worth and— or they told you that they had a $50 million net worth and it’s all in Tesla stock or Apple stock, you would think they were crazy, right? Because it’s tied into one company. Yet most of the time, if somebody tells you that they own a business that is valued at $50 million, your inclination is to say, congratulations, that’s amazing, you built something cool.",[12,2770,2747],{},[12,2772,2773],{},"Austin Peterson: One thing still exists, right? There’s still massive risk. And even though you control that company, there’s massive risk that’s tied— their entire net worth is tied to one asset or one investment. Yeah.",[12,2775,2776],{},"Josh Hile: Yeah. And then, so how do you create that diversification at that early stage in the business? Is that through being like, hey, we need to start allocating your salary to some other places, or what do you look at there?",[12,2778,2779],{},"Austin Peterson: Yeah, I mean, I would say that most of the clients we work with are not in the early stages, right? The startup stage where they’re just kind of maybe barely making a paycheck for themselves and trying to build things. It’s— they’ve typically been running the business for at least 5 years, and there’s a little bit of stability involved there. But the principles would remain the same, right? It’s like, let’s set up a 401 company— 401 for the company. Let’s make sure that you’ve got your own retirement accounts and maybe a, you know, traditional investment brokerage account or a trust-owned account or, you know, something like that. To just start that process of, you know, saving along the way. Because ideally what we tell our clients is, ideally when it’s time to sell your business, we’re hoping that you don’t need to sell that business to meet the financial goals that you have. We want you to be financially independent before we even think about selling the business. Not always feasible, right? Not always possible. But in an ideal scenario, we would like them to be financially independent before it’s time to do that. And a couple of reasons. One, peace of mind, right? We all know stories. I mean, Blockbuster is the one that gets thrown out all the time, right? But these stories of businesses that don’t end up actually being able to be sold, or— yeah, and there’s a high percentage of businesses in the country that just won’t. And that’s because most of them are, you know, mom-and-pop-owned companies. There’s no value there. There’s maybe a client list, whatever. And so if we can show them that they need to be financially independent without their business, if at all possible, they’ve got peace of mind that they’re going to be good no matter what. If the industry completely shifts and their business is not worth anything, but then when it does come time to go to the table and sell the business, You have full control at that point as to how that gets structured, who you sell it to, how you want to make it work, because you don’t need that money to be able to walk out the door and retire. You have full autonomy as to how you want to structure that, and it could be just gifting it to your kids because you don’t need the money. Why not just gift it to the kids and give them the ability to take it to the next level? So It just gives you options that don’t exist if you don’t build anything besides the business, right? Because what I hear all the time from business owners is my business is my retirement plan.",[12,2781,2782],{},"Josh Hile: Yeah. Yeah.",[12,2784,2785],{},"Austin Peterson: So we’re trying to avoid that.",[12,2787,2788],{},"Josh Hile: And how, like you mentioned that you usually try to help business owners in the process to get it ready for sale or some liquidity event, like How ingrained is that in kind of your model of like, you know, and how like are you essentially, do you get paid for any of that work? How do you actually like monetize the value you bring there?",[12,2790,2791],{},"Austin Peterson: Yeah, so we do charge financial planning fees to our business owner clients regardless, right? So the first year there’s always an upfront financial planning fee. And that’s to kind of get everything organized, know what’s going on, set up an actual plan. After that, it can be a hybrid, and we’ll just kind of see, you know, the way things look. If they have investments that they do need managed, and we can charge them an AUM-based fee like most investment managers charge, and that covers kind of our minimum. So we’ve, we’ve set our minimum at $12,000 a year per client. Right? And so if we can cover that in the assets that we’re managing for them, great. We’re not gonna double dip and charge additional inside of the business unless the complexity warrants it and there’s more time being spent. And that will be a joint conversation with the business owner. But if there’s not, a lot of our business owners are paying us a monthly, almost like a retainer that you would pay to a CPA or a an attorney to provide that ongoing advice. And depending on the business owner, it could be a monthly meeting, it could be quarterly, it could be twice a year. Just depends on where they are in, in the process, what the complexity is, if they have people on staff that are helping them with certain things that they need help with, they’ve got a good bookkeeper, good CPA, you know, whatever the case may be. But, um, so it can vary quite a bit. just based on the complexity. But we’re looking at all the things that you might think that we’d be looking at, right? What does your cash flow look like? What does your balance sheet look like? What does your management team look like? What can we do to start offloading some of the things that you do on a day-to-day basis as the business owner so that you can be freed up to do the things that you’re uniquely qualified to do and that drives the business to the next level? Because The reality is, if you could take 6 months off and walk away from the business and have the business maintain, or better yet, grow during that 6-month period because your entire team is set up to do that, your business is worth massively more than if you’re ingrained and doing everything day to day.",[12,2793,2794],{},"Josh Hile: Yeah, yeah. No, that’s such a key point. So Maybe just thinking about this and thinking about the ways that business owners, because as a business owner myself, both you and I, like, what do you see business owners, what are their biggest mistakes? Because I know they can get so focused on the business and so they’re not always thinking about the financials. And so what do you see as kind of continual mistakes that you see business owners make from a financial perspective?",[12,2796,2797],{},"Austin Peterson: Yeah, I mean, I, I would say number one that I see is not being willing or able to delegate.",[12,2799,2800],{},"Josh Hile: Hmm.",[12,2802,2803],{},"Austin Peterson: Um, that, that holds back businesses so much. You know, you’re, you’re gonna hit a plateau if you can’t start to delegate. And some, for some people that plateau is higher, but for most people, you hit that plateau, you can’t go any further. And we hear stuff like, well, they They just don’t get it, or I’m the only one who understands that, or you know they don’t care as much as I do. All of those things are true, but if they can’t get over that and understand that if you can delegate a task to somebody and they can do it even at 70% of how good you would do that that same task, it needs to be delegated to somebody else. Yeah, because you need to be able to go out and do what you do best, and a lot of times that’s. business development, sometimes it’s vision, you know, sometimes it’s strategy. But, you know, if you’re, if you’re the one who’s entering stuff into the books or, you know, you’re paying the bills or, you know, whatever the case may be, it’s just, it’s not a good use of your time. And you can pay somebody a lot less than your hourly rate to do that for you.",[12,2805,2747],{},[12,2807,2808],{},"Austin Peterson: But the biggest value is giving you your time back to focus on those high-value activities.",[12,2810,2811],{},"Josh Hile: Yeah. Yeah. Sales. That’s the highest value activity every single time.",[12,2813,2814],{},"Austin Peterson: Yeah. They say sales cures all, right? But I don’t know if that’s fully true, but it definitely helps.",[12,2816,2817],{},"Josh Hile: Yeah. So, and then maybe just when you’re talking to business owners, because this is probably something that you always have to balance, but this idea of, you know, if it’s a cash flow machine kind of business, It’s like, how much do you reinvest in that business and use that for working capital to grow the business versus essentially pulling money out of the business for those— through those distributions and getting their investments started? And you kind of mentioned it about really like getting them less dependent on the business, but how do those conversations go?",[12,2819,2820],{},"Austin Peterson: Yeah, I mean, it’s tough early on, right? Because I’ve heard thousands of times, well, I can reinvest this money back into the business and my profit margin is X, pick a number, 30%. So, can you give me an investment that pays 30%? I mean, I hear that all the time.",[12,2822,2747],{},[12,2824,2825],{},"Austin Peterson: And it’s a very difficult thing early on to get past because there’s truth to it. But again, at some point, they either hit the plateau, but they definitely are not diversifying, right? So, you can look at Tesla and it had periods of time where the rates of return were north of 30%. but then they have a big downturn, right? And so regardless, every portfolio— and that’s the biggest shift, is getting them to view their business as an investment rather than their business or their job, right? And so if you view it as an investment, yes, you want to reinvest in that business as much as you can to kind of drive that, but there has to be some diversification built in. So What’s the optimal way to grow? What can we do? So what can we do safely? How can we add people quickly enough to do it without breaking the machine? Like, let’s, let’s make responsible decisions the way that a CFO would guide you to drive those decisions or make those decisions. And then the rest, we need to start to build towards your financial independence. And so that’s easier to figure out, right? How much do you need to live on in today’s dollars and how do we build that?",[12,2827,2828],{},"Josh Hile: Okay.",[12,2830,2831],{},"Austin Peterson: Well, you’re gonna plan on running the business until this date. So in order to pull that off, you need to be saving this much money. So can you carve that much out of the business? If you wanna reinvest the rest, I can get on board. I may point out a few other things that you should be looking at and investing, but we’re definitely on the side of helping you grow your business by reinvesting. But we still need that diversification to be a key part of your plan.",[12,2833,2834],{},"Josh Hile: Okay. And then what about just how you build portfolios for these particular clients? Like, how do you start out those portfolios? How do you build them over time? I know you mentioned tax management and thinking about, you know, before and after an exit and how you’re going to manage taxes in those ways. What does that actually look like in practicality?",[12,2836,2837],{},"Austin Peterson: Yeah, so we’re, we’re actually pretty big believers in private or alternative investments.",[12,2839,2747],{},[12,2841,2842],{},"Austin Peterson: Um, we certainly have a heavy lean towards public investments, as most investment managers do.",[12,2844,2747],{},[12,2846,2847],{},"Austin Peterson: Um, but in terms of, you know, RIAs that are out there, I would say that we’re definitely on the, on the edge of RIAs that are putting more in alternatives than most.",[12,2849,2850],{},"Josh Hile: Yep.",[12,2852,2853],{},"Austin Peterson: You know, so most people would talk about, you know, an 80\u002F20 portfolio, right? 80% equities, 20% fixed income or bonds. Uh, whatever the portfolio is, the equity portion will be what the equity portion is, and maybe there’s some alternative equities in there. But on the fixed income side, rather than it being 20% fixed income, it’s likely going to be 10% fixed income and the other 10% some sort of alternative investment.",[12,2855,2747],{},[12,2857,2858],{},"Austin Peterson: Because here’s what I know about working with business owners for as long as I’ve been working with business owners. Now, 2019, back in personal production, but a good portion of the planning work that I’ve done the entire 27 years was business owner focused. And, and what I’ve learned is there’s 2 types of investments that business owners like: other businesses and real estate.",[12,2860,2861],{},"Josh Hile: Mm-hmm.",[12,2863,2864],{},"Austin Peterson: Those, those are the 2 that they, that they, they like, and it’s because they understand them better and they feel like it’s tangible, right? Like if I own a real estate investment, a, uh, you know, an Airbnb property, short-term rental, long-term rental, whatever, like I can go and put my hands physically on that. Um, that’s just kind of where they, they feel. And then on the private business, like they may know the business owner or they’re investing in a startup that they, that they know. Now they don’t connect that there might be a much higher risk with that than just buying Apple stock, right?",[12,2866,2747],{},[12,2868,2869],{},"Austin Peterson: But that’s where their mind goes because I, you know, I’ve heard it 1,000 times. Well, this stock market, like, it just reprices every day and it’s just whatever they think that it’s worth. That’s kind of a typical response from business owners and it just comes down to not fully understanding it all the time. Um, but we play into that and say, look, we’re with you. You should have private investments in your portfolio. Foundations have been doing it for years, you know, pensions, all these types of large institutional investors have been doing it. Now it’s becoming more mainstream and available to individual investors through their financial advisors. So we will deploy part of your capital into that. But history is on our side here. Public markets, they are efficient, they do work. Let’s have some investment here, but we’ll sprinkle in the private side as well.",[12,2871,2872],{},"Josh Hile: And where do you usually play on the private side? And does any of those private investments play into your tax strategy for the business owners?",[12,2874,2875],{},"Austin Peterson: Yeah, they definitely do. I mean, there’s some different real estate plays that we will do where there’s an added tax benefit to the business owner to offset passive income, for example, or if they’re a real estate professional, it can be against their— their, uh, uh, what am I thinking of?",[12,2877,2878],{},"Josh Hile: W-2 income.",[12,2880,2881],{},"Austin Peterson: Yeah, yeah, their W-2 income or whatever income they make, you know, earned income was what I was searching for. And so, yeah, we will play into all kinds of strategies that are going to be beneficial to the client, whether it’s Qualified Opportunity Zone fund or different, you know, gas stations and truck stops, different things like that to kind of help offset the taxes. Got it.",[12,2883,2884],{},"Josh Hile: And then what about just like, so is it usually about a 10% sizing on the private market side for your clients?",[12,2886,2887],{},"Austin Peterson: It’s typically half of whatever the fixed income side of the portfolio would be based on their risk tolerance and time horizon.",[12,2889,2890],{},"Josh Hile: Got it. Got it. And then do you do any of the other things around like 1\u002F30\u002F30s long-short to try and prepare for capital gains exits?",[12,2892,2893],{},"Austin Peterson: Yep. Yep. So we’re actually in the process of setting some of those accounts up currently because we’ve got clients that have exited recently and have exits coming up. And so that is a strategy that we will deploy in the right way. it takes on some additional risk, right? And they’ve got to understand what, what they’re doing there, but, um, it can be very beneficial to the client.",[12,2895,2896],{},"Josh Hile: And so if, like, when you’re talking to a business owner, I guess, for the first time, what should business owners think about wealth planning? Because I’m sure there’s business owners out there that are just like, like, do I even need a financial advisor? Or what are you going to help me with? And so it— what should they— how should they think of you as kind of like for what you provide to them? Because I’m sure the value you provide is incredibly high, especially compared to a lot of financial advisors. So I think, I think it would be, you know, just hitting on that.",[12,2898,2899],{},"Austin Peterson: Yeah, we, I mean, we sure hope that the, that the value is there. We, we think it is. The feedback that we receive from our current clients is that, that the value is there. Um, I would say about half of our clients worked with an advisor previous to us, and they do see a night and day difference in what we do, right? Just the understanding of the business and weighing in on those types of things sets us apart. But there’s kind of 2 ways that I would look at it. One, I would say they should look at us as a partner.",[12,2901,2747],{},[12,2903,2904],{},"Austin Peterson: We’re definitely taking on an advisory role, But we’re really going to partner with them to kind of get their business to where they want it to be and that they can exit or transfer that business the way that they want to do that or envision doing that. And sometimes that changes, right? I mean, we’ve— we have a client recently where we just changed the way that the trust is structured and the way that she’s going to transition her business because she kind of changed her mind on how she wanted to do it. And once she realized that we had her on a path to be financially independent no matter what, it gave her an opportunity to say, well, gosh, I might not want or need to sell this business. So let’s structure it in a way that I can have my kids ready to take over. I can offset some of my estate taxes along the way. And if they ultimately don’t want to be involved, okay, we’ll sell the business anyway, but I’ve already gifted shares to them. So it’s going into their trust, not mine, because I don’t need it. So, you know, there’s, they’re seeing the difference along the way with the value that we provide. But the way that we kind of look at it overall is that you should see us as the quarterback of your team, and we will help you coordinate and collaborate with your other advisors. So it’s common for us to be on meetings like this. with the CPA, with the estate planning attorney, with their business attorney, with their CFO, to make sure that everything’s being coordinated and collaborated together rather than getting advice from each of those people in a vacuum.",[12,2906,2907],{},"Josh Hile: Mm-hmm. Got it. And do you see any changes happening to— or like, where do you see kind of the business owner planning evolving over the next 3 to 5 years?",[12,2909,2910],{},"Austin Peterson: Uh, that’s a good question. I mean, there’s definitely more technology that’s coming into play. AI is, is changing a lot of things, even in, in what we do. Um, it’s making us more efficient in the way that we operate our practice and gives us the ability to be more present with our clients, right?",[12,2912,2747],{},[12,2914,2915],{},"Austin Peterson: Because I mean, rather than me making notes and writing everything down, my AI note-taker is capturing all that information and I’m present with the client, looking in their eyes and hearing what they’re saying, right? So I definitely think that those things are helping to benefit. I do think that there’s going to have to be more people who enter the marketplace doing what I do because we can’t cover everybody. We’re a small-ish shop, right? We’re not Fidelity or Vanguard or any of the groups that are out there. that are that large. But because there is such a massive transition of wealth that’s going to happen specifically with business owners, there’s going to be an increased number of advisors, I think, that are going to become ready to do this type, to provide this type of advice and do this type of work for business owners.",[12,2917,2918],{},"Josh Hile: And maybe that’s a good question to just dig in on. Because, okay, so I would assume most of these business owners are essentially closer to the end of their career. Some are holding these businesses even after they’re 65, and then their kids don’t want the business in most cases. And so how do you develop that kind of relationship with the next gen as well? Because I know that’s, you know, they have the stats out there. It’s like next gen fires advisor within 6 months of Yeah, there being a transition of wealth. So what does that look like for you and kind of the business owners you’re working with?",[12,2920,2921],{},"Austin Peterson: Yeah, so I mean, the biggest thing that we do in that area is offering to do family meetings with the client and their kids. Gives us an opportunity to meet the kids, to understand what it is that they understand about the whole situation and what their intentions are. It takes the pressure off of the business owner themselves or the mom or the dad. to have that conversation without like a professional there who’s saying, hey, this is kind of what the trust says, this is what, you know, to expect. So that’s, that’s the biggest thing that we do. The other thing to kind of keep in mind is, you know, all advisors, us included, don’t always necessarily want to hold on to the clients to the next generation because a good client to us that has 5 children might be 5 so-so clients and the business is not around any longer. It doesn’t really play to our strengths. And so we might help facilitate that getting to another advisor in that particular instance. But when it’s appropriate and there’s a desire, we will certainly service into the next generation. And we have younger advisors who work for us who are prepared and ready to kind of take that take that on as well so that there’s not even a concern about me. I’m not, I’m not young, but I’m not old, right? I’m going to be 50 next, or the end of this week I’ll be 50.",[12,2923,2924],{},"Josh Hile: Well, congrats.",[12,2926,2927],{},"Austin Peterson: Yeah, thank you. But, uh, it’s, you know, we’ve got a plan for the next generation as well. But family meetings is the, is the most important thing I think that we do to kind of make sure that the next generation is taken care of, whether it’s with us or just overall.",[12,2929,2930],{},"Josh Hile: Okay. What about, and this, I’m just interested on your take. You kind of mentioned AI as a way to get you more efficient. How do you think that affects the industry as a whole and kind of wealth management in general? You know, obviously there’s these AI wealth managers popping up here and there, a little bit different than robo-advisors given the capabilities are a little bit different, but just your thoughts on what that will do.",[12,2932,2933],{},"Austin Peterson: Yeah, I mean, I remember when the robo-advisor kind of came onto the scene and everybody said there’s going to be massive fee compression and we’re going to lose a bunch of clients, and it just, it didn’t happen. Um, there were some younger clients who were, who were using it and, and okay with it. The, the problem that exists is that personal connection can’t ever be replicated by AI.",[12,2935,2747],{},[12,2937,2938],{},"Austin Peterson: Can, can they get you to the right answer? Most of the time, right? We all know that there are flaws in AI and the answers that are given sometimes, but most of the time you’re going to get to the right answer. But there’s a couple of things. One, the client doesn’t know for sure that they got the right answer because they might not know the right questions to ask ChatGPT or any of the other, you know, search engines that are out there. And then they just don’t know they can’t have a conversation with you to understand the emotions behind the decision that’s being made.",[12,2940,2747],{},[12,2942,2943],{},"Austin Peterson: That just, it can’t ever be replicated by AI. So I don’t think that it’s gonna replace, but I do see that it could have maybe a larger impact than we saw with the robo-advisors. But I don’t think that they can ever replace the human side of of personalized financial planning.",[12,2945,2946],{},"Josh Hile: Yeah. Um, so to close us out, uh, I always like to ask this question, which is a little bit of a curveball, but what’s one thing that people don’t know about you or one hobby that you have?",[12,2948,2949],{},"Austin Peterson: Uh, well, you can see my background. I’m a massive baseball fan. Um, the Red Sox are my team, but I’m, I’m trying to visit all of the parks in the country. So that’s a map of all the parks. I visited about half of them so far. Um, but so that’s one thing.",[12,2951,2952],{},"Josh Hile: But then what’s your favorite other than Fenway?",[12,2954,2955],{},"Austin Peterson: Oh, my favorite other than Fenway. Um, I would probably say Wrigley. Yeah, I mean, when I turned 30, I saw the old Yankee Stadium, Fenway Park, and Wrigley Field on 3 successive days. I saw games at at those parks. And so Wrigley definitely, I would say, is probably second to Fenway. Both of those fan bases are very engaged fan bases. They’re watching very closely. It’s not phones out, I’m sitting at a baseball game, but they’re watching every pitch. They might even be scoring the game in the scorebook. I mean, there’s engaged fans.",[12,2957,2747],{},[12,2959,2960],{},"Austin Peterson: Um, I would say that for sure. But probably the thing that most people don’t know about me, even my clients, um, for the most part, is that I would consider myself an adrenaline junkie.",[12,2962,2828],{},[12,2964,2965],{},"Austin Peterson: If there’s adrenaline involved, I’m, I’m interested. So I fly airplanes, I’ve been skydiving, I’ve been bungee jumping. In 2 weeks, I’m hiking Mount Kilimanjaro. Like, I— if there’s some sort of adrenaline involved, I am interested.",[12,2967,2968],{},"Josh Hile: Okay. I love that. No, that’s awesome. That is a good one. And well, I appreciate the time so much and really thank you for being on and excited to, for everybody to learn more about how to service business owners.",[12,2970,2971],{},"Austin Peterson: Yeah, no, thanks for having me. I appreciate it.",[12,2973,2974],{},"Backbone Planning Partners is a registered investment adviser and the opinions expressed by Backbone Planning Partners on this show are their own and do not reflect the opinions of Citizen Mint. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.",[12,2976,2977],{},"Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.",[12,2979,2980],{},"Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.",{"title":59,"searchDepth":167,"depth":167,"links":2982},[],"podcast","2026-08-13","In our sixteenth episode, Austin Peterson of Backbone Planning Partners shares his perspective on wealth management for business owners, discussing diversification beyond the business, preparing for future liquidity events, tax-aware portfolio construction, and how private markets can help entrepreneurs build financial independence outside of their companies.","\u002Fimages\u002Fresources\u002Faustin-peterson-backbone-planning-partners.png",{},"\u002Fresources\u002Faustin-peterson-backbone-planning-partners",{"title":2711,"description":2985},"resources\u002Faustin-peterson-backbone-planning-partners","advisor-practice","CO89MthkcQRrT-uOYdNNuYcAgGqCLXhTlh9biSf6l_4",{"id":2994,"title":2995,"author":7,"body":2996,"category":2983,"date":3266,"description":3267,"extension":179,"image":3268,"imageAlt":181,"meta":3269,"navigation":183,"path":3270,"seo":3271,"stem":3272,"topic":2991,"__hash__":3273},"resources\u002Fresources\u002Fstephen-lewis-future-first-finance.md","Stephen Lewis | Future First Finance",{"type":9,"value":2997,"toc":3264},[2998,3007,3010,3016,3019,3022,3024,3027,3030,3033,3036,3039,3041,3044,3047,3050,3052,3055,3057,3060,3062,3065,3068,3071,3074,3077,3079,3082,3084,3087,3089,3092,3094,3097,3100,3103,3105,3108,3110,3113,3115,3118,3121,3124,3126,3129,3131,3134,3137,3140,3143,3146,3149,3152,3154,3157,3159,3162,3165,3168,3171,3174,3177,3180,3182,3185,3187,3190,3193,3196,3198,3201,3204,3207,3209,3212,3215,3218,3221,3224,3227,3230,3232,3235,3237,3240,3243,3246,3248,3251,3254,3257,3260,3262],[12,2999,3000,3001,3006],{},"Read transcript highlights or listen to the full episode to hear Stephen Lewis of ",[22,3002,3005],{"href":3003,"rel":3004},"https:\u002F\u002Ffuturefirstfinance.com\u002F",[45],"Future First Finance"," and Josh Hile discuss Stephen’s background, the evolution of Future First Finance, how climate-focused investing and the energy transition are reshaping long-term portfolio construction, and why disciplined investment management and private markets can play an important role in building resilient portfolios for the future.",[2724,3008],{"title":2995,"url":3009},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F19570548",[12,3011,3012],{},[22,3013,2734],{"href":3014,"rel":3015},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F19570548-stephen-lewis-future-first-finance",[45],[12,3017,3018],{},"Josh Hile: This is Josh Heil with AdvisorView Podcast. I’m the CIO and CEO of Citizen Mint. And today I have Steve Lewis of Future First Finance. And Steve, thank you so much for joining us. Maybe just to start out, you can give us your background and kind of your path into wealth management.",[12,3020,3021],{},"Stephen Lewis: Yeah, great question. Thank you for having me. Looking forward to this. I got into wealth Wealth Management about a year and a half ago. Been managing my own portfolio for roughly 20 years, focused on climate as part of the portfolio metrics, really since like back in the Al Gore days and Inconvenient Truth and thinking about this matters, what we invest in matters. And so I was talking to other people, trying to get them to kind of see things my way, thinking about how your portfolio has an impact outside of general financial metrics. A lot of people really thought it was an interesting presentation, but didn’t want to do the financial management I was doing and asked me to do it for them. I said, well, I can’t do that. I don’t have a license, et cetera.",[12,3023,2747],{},[12,3025,3026],{},"Stephen Lewis: Yeah. But then decided maybe I should do that. I really liked this stuff and I’m ready for a career change anyway. So that’s how I ended up here.",[12,3028,3029],{},"Josh Hile: Yeah. And so what was your career before, just so people understand kind of what that looked like?",[12,3031,3032],{},"Stephen Lewis: Mostly software consulting, project management. type stuff for software in the healthcare sphere.",[12,3034,3035],{},"Josh Hile: Yeah. So very different, but like, kind of like you managing those portfolios and trying to help others do that. And so how did you come up with the name for your firm? And maybe you can talk about like the demographics of maybe some of the people like, or of who is coming to you and wanting help.",[12,3037,3038],{},"Stephen Lewis: The name was 100% my wife.",[12,3040,2828],{},[12,3042,3043],{},"Stephen Lewis: Came up with it, and I thought the alliteration was great. And also thinking about, you know, you’re investing for the future if you’re, you know, investing for your retirement or whatever, 10 or 15, 20 years out. It’s like thinking about what the future is going to look like in 20 years and investing for where trends are heading. And then also kind of the future that you want to retire in.",[12,3045,3046],{},"Josh Hile: Yeah. And how do you separate just thinking about like, your kind of impact focus, climate focus, how do you separate that from like ESG, or is it the same, or do you think about it differently?",[12,3048,3049],{},"Stephen Lewis: ESG really frustrates me. I think most people are frustrated by it, but also see it as a useful tool. There’s a couple of problems. One is that looping all these different concerns or problems all together into one overall metric and say, this company has a high ESG rating, this company has low rating. When you’re just mixing all this stuff together, one could be really good for social communities, one could be really good for climate impact and bad for social communities. How do you put one score to that? But people just want a very simple metric. And now it’s expanded where like everything was rated. This morning I was looking at a short-term government bond fund, basically Treasury bills with an ESG rating. I’m like, what does an ESG rating mean on government debt? That just doesn’t make any sense to me. So that’s part of the problem. And then also part of the problem is if you really want to have impact, you’ve got to look— this is kind of a key thesis of my firm, that if you want to have impact, you’ve got to look for where there’s capital needs and what is that investment driving. Are you investing in a growth company that’s trying to raise capital via debt or equity, public markets or private markets, all this type of stuff where your investment actually gets to that company and drives their their progress or their potential success forward? Or are you just swapping from some other investor in an already stable company that’s been paying back shareholders and dividends and sharebacks for decades that has no impact? And that’s so much of the ESG portfolio, right? Is that like, maybe it’s something that you can feel good about owning, but I’m not about feeling good. I’m about actually driving impact.",[12,3051,2747],{},[12,3053,3054],{},"Stephen Lewis: So, Becky, you’d asked previously what, what my clients are like, what’s my typical client.",[12,3056,2747],{},[12,3058,3059],{},"Stephen Lewis: Really, like any advisor, you have a huge range, right, from quite wealthy to, uh, to not as wealthy. Um, but all of them are obviously quite concerned about climate impact and see that I’m offering something that they haven’t heard from any other advisor.",[12,3061,2747],{},[12,3063,3064],{},"Stephen Lewis: And so then obviously depending on wealth, then I might propose a lot more private market stuff if that’s appropriate for them based on their timeline, all that stuff. But that’s really the only unifying thing is that is something when they come to me, get referred to me, hear about me, whatever, they are already quite concerned about climate and they’ve already drawn the connection between how you invest your money matters, how we invest for the future matters. And so they’re just looking for someone who has some more expertise in that.",[12,3066,3067],{},"Josh Hile: Yeah. And is there any specific geographic demographics of your clients? Like, are they near to you or are there any other defining features beyond climate? And maybe it’s not, maybe it’s just like they’re across the board, like from an age perspective, from a demographic or from a geography perspective. What does it look like there?",[12,3069,3070],{},"Stephen Lewis: They tilt older, near retirement, like kind of the average RIA. Yeah, but no, pretty geographic dispersed. Okay. Because again, I’m offering something like pretty niche. And so people who hear about that are interested.",[12,3072,3073],{},"Josh Hile: And how are they finding you? How does it, like, is it like, I would assume some level of referrals, but how are you also getting out there to understand that people should think about this or I’m the person to be helping you with this?",[12,3075,3076],{},"Stephen Lewis: My successful hit rate has been 100% word of mouth.",[12,3078,2747],{},[12,3080,3081],{},"Stephen Lewis: Word spreads through like climate activist communities, you know, people that are involved in Third Act or Sierra Club or all these types of clubs that are trying to lobby for climate stuff. Been trying to branch out of that, get in front of more people, because my kind of driving ethos too is that I want more people to think like me and invest like me, have my perspective, whether or not you’re paying me to manage your funds or not.",[12,3083,2747],{},[12,3085,3086],{},"Stephen Lewis: If I can give you some pointers and invest your own, you know, the DIYers that want to do that, I would be happy to give some free advice to people and say, you know, here’s what you could do if you want to have real impact. I’ve said for a long time, rather than putting all your money in some like Green Century Fund or Carbon Collective or all these different, you know, fund managers that are focused on that, that I think are mostly irrelevant from an impact perspective.",[12,3088,2747],{},[12,3090,3091],{},"Stephen Lewis: perspective, that put 5% of your portfolio in a few companies that are maybe growth stage or sustainable infrastructure type companies who have a need for access to capital markets, put 5% in that and you will have far more impact than 100% of your portfolio going in some Green Century Fund that’s mostly US large-cap tech.",[12,3093,2747],{},[12,3095,3096],{},"Stephen Lewis: Just for example. And then of course I have clients who want 50% of their portfolio in that and can withstand a high level of risk. And so then we can accommodate that too. But for just the average person, start at 5%, you’re already doing more than almost anyone out there.",[12,3098,3099],{},"Josh Hile: Yeah. And how does that— so I mean, it really feels like a bespoke model of what you’re trying to do for your clients. So how do you build those kind of customized portfolios? What does that actually look like? Does that involve more direct indexing kind of opportunities? like excluding certain companies? Like, how do you do that from like an actual like implementation perspective for the clients?",[12,3101,3102],{},"Stephen Lewis: So again, there’s huge variations on this, but the basic model, especially for like a smaller, simpler portfolio, is start with a basis of diversified index-like funds. I’m a big fan of Avantis and Dimensional Fund Advisors. ‘Cause they have funds that are very low fee, very low turnover, tax efficient, et cetera, and index-like. So they aren’t tied to adding huge new IPOs right on IPO date, for example, just to throw out one recently relevant point.",[12,3104,2747],{},[12,3106,3107],{},"Stephen Lewis: But they have sustainable funds. Dimensional underweights fossil fuels pretty significantly, meaning they have less than the benchmark. But then they look at carbon emissions across industries. And so they have much lower, something like 80% on average, lower emissions per dollar of revenue compared to a standard index fund. Because they focus on industrials, utilities, and kind of those high-emitting industries more than just the fossil fuels, which I think is, from that perspective, is probably more important. Avantis is fossil fuel-free, but otherwise a very similar strategy. So that’s going to build the basis of your equity exposure. And then on the debt side, I mostly want to be right now in short-term treasuries or short-term investment grade. I don’t want to take any duration risk with, I think, where the sort of debt metrics are heading.",[12,3109,2747],{},[12,3111,3112],{},"Stephen Lewis: And secondly too, is that’s partly to balance out a lot of my sustainable investments are infrastructure-like, which is kind of like a long-duration bond in many respects. So that’s why I would underweight normal long-term bond exposure because the infrastructure balances that out.",[12,3114,2747],{},[12,3116,3117],{},"Stephen Lewis: Yeah.",[12,3119,3120],{},"Josh Hile: And then just thinking about that from a client perspective, how do you think about the private market side of a client’s portfolio from an asset allocation sizing perspective? And how do you differentiate that across clients and maybe just your thought processes there?",[12,3122,3123],{},"Stephen Lewis: I approach private markets first and foremost as it’s probably the best place for real impact because cost of capital is even more relevant there and like access, can they get their offering fully subscribed, et cetera, that really matters.",[12,3125,2747],{},[12,3127,3128],{},"Stephen Lewis: And they’re smaller, et cetera. So that is for the clients who can take higher overall risk in their portfolio and really wanna lean into impact. private markets have to be in.",[12,3130,2850],{},[12,3132,3133],{},"Stephen Lewis: So that’s my basis for analysis rather than thinking, oh, every client above $1 million should have 20% in private assets, or half in private equity and half in private credit, et cetera. It’s more thinking like, these are for people who want to drive impact, have a higher risk potential, longer timeframe, et cetera. And then what makes sense from that perspective and what is What is really effective impact? So then I’m less worried at having like a perfectly balanced portfolio because they can accept higher risk and want to put climate first, et cetera.",[12,3135,3136],{},"Josh Hile: Yeah. And what percentage of a portfolio would that look like for some of your clients?",[12,3138,3139],{},"Stephen Lewis: The highest percent of portfolio is probably only, right now is probably only 25%. Yeah. And I would be comfortable with going higher than that for some clients if there were enough good opportunities. Yeah. And maybe I could see conceivably up to like 50% in some situations. But generally for, I mean, you know, the average person, obviously if they’re not an accredited investor, then it’s irrelevant, right? If they are, then I, you know, say they have a million portfolio, like right at the cutoff line, even then, I don’t know, maybe 10%, but that’s kind of stretching it depending on what private method you’re talking about. So it’s just, there’s no one guideline that you can say, oh, privates should always be 20%. I’m not in that boat.",[12,3141,3142],{},"Josh Hile: So yeah, yeah, I 100% agree. It just depends on the specific client situation is really what it comes down to. And then what about just how you try and balance impact versus risk-adjusted returns over time. And like, how do your clients think about that? Like, do they want to be concessionary? Do they not want to be concessionary? How do you think about it as a fiduciary for your clients?",[12,3144,3145],{},"Stephen Lewis: That is the hardest question to answer. Because part of it is like even knowing if you’re concessionary, you know, I mean, the market purists, market fundamentalists, you know, of which Dimensional and Avantis are going to be kind of market fundamentalists. They say you can’t have impact unless you’re concessionary. By definition, that’s the only way you can have impact, because otherwise market efficiency will just drive it to whatever. So if you actually want to push impact forward, you have to accept concessionary returns. I’m not a market purist to that extreme, thinking that, oh yeah, markets are just always perfectly efficient. I think about too, on some of my riskier stuff, what’s helped me stay invested during heightened volatility periods, when things are crashing during COVID or whatever, is thinking, no, you know what? All these things that are very interest rate sensitive and are bombing, I bought them for impact, not because I was looking for a return over next year. And that helped me stay the course. And those obviously rebounded quite quickly and did well. So I think that’s one perspective because obviously staying the course is one of the most important things for investors when volatility spikes. So whether to take concessionary returns, I talk about some of my picks within the public market is I think I’m always shooting for at least a market return, but expect that there will be higher volatility and maybe higher risk, which is— Risk adjusted, maybe a potentially lower return, but that adjustment is mostly on the risk side.",[12,3147,3148],{},"Josh Hile: Especially when you’re looking for more like green tech companies or something that’s gonna like be more volatile over time based on their technology and like how the market perceives them.",[12,3150,3151],{},"Stephen Lewis: Yes. And, and just, you know, by the very nature, what I, what I preach is, you know, companies that need to raise some sort of growth capital or some sort of financing, they’re super interest rate sensitive, interest rate and overall liquidity environment sensitive, right? Um, and so many of them got hammered in ’22, ’23 when interest rates went from, you know, mostly zero to to 5%, that was horrible for them.",[12,3153,2747],{},[12,3155,3156],{},"Stephen Lewis: But like the very simple model that I explained to clients is, you know, when you’re financing solar and wind farms, there’s publicly traded vehicles for this and a lot of private infrastructure funds too that do similar stuff. You know, they need to raise $100 million for a solar farm and they get $60 million of bank debt, something like that, need to raise $40 million from markets. And Maybe they’ll issue some notes and some equity, but then they’re going to use all that, basically all the cash flow off that contracted farm. Maybe they’ll get $10 million a year in cash flow off a $100 million investment, and they’re going to pay out $9 million back to investors in dividends, distributions, whatever. That doesn’t leave any money over to buy the next solar farm. So then when they need to go out and do that again, they’re raising more equity. And There’s a lot of people in the market say you don’t want to buy companies that are always needing to issue shares. You want to buy companies that are buying shares back from you.",[12,3158,2747],{},[12,3160,3161],{},"Stephen Lewis: But that’s the model, business model. And maybe it looks riskier. It’s more volatile, right? Because then they have to issue shares at whatever the current share price is. But that long-term, it’s infrastructure, right? It’s a 30-year contracted asset that’s inflation protected. et cetera, et cetera. So yeah, that’s how you’re having that impact.",[12,3163,3164],{},"Josh Hile: Yeah. And then what about, do you, uh, do a lot of your clients have previous financial advisors or is it, are you their kind of first financial advisor?",[12,3166,3167],{},"Stephen Lewis: Um, almost all of them are coming from previous advisors. Uh, and some of them, you know, the ones sometimes, like if they’ve just met me through a referral, you know, yeah. Then they want to trial me and say, you know, I’m gonna stick to my other advisor, but he doesn’t really know anything about climate or tells me I shouldn’t do it or whatever, and I don’t buy it. I’m curious to see what you can do. And so then they use me and the other person for a period. That happens frequently too. But yeah, almost all of them come from other advisors. Yeah.",[12,3169,3170],{},"Josh Hile: And then that’s what I was curious about is like if you’re essentially like reweighting their portfolio and like that’s essentially happening because of this impact orientation that they want within their portfolio and essentially your views on like where the market’s going. And like, I, what I, what I think is really interesting, like from an impact perspective, we’re gonna say that is you’re really trying to solve some of the biggest issues in front of us, like whether it’s around energy transition or around like even like beyond like climate. Which this also goes into social and like the band of the whole world where most of the people are gonna be affected by extreme temperatures, and that’s most of the world’s population. But just the— I don’t think it needs to be concessionary to that point, like to your point earlier, like I think there actually is just a big opportunity in front of us. And that’s why we get excited about like those kind of infrastructure-focused opportunities, whether it’s within solar and interconnection or other places where we think like they’re just real, like additional to the grid where you’re getting positive risk-adjusted returns for clients.",[12,3172,3173],{},"Stephen Lewis: So. Yeah. Yep, I agree.",[12,3175,3176],{},"Josh Hile: What do you think from just thinking about, you know, your work, What do you think people should rethink about sustainable climate-focused investing? Is there anything else they should be thinking about when they’re going after this particular area of the market?",[12,3178,3179],{},"Stephen Lewis: I mean, the primary point is the one I sort of got into already is what impact does your investment have? And that’s my problem with the divestment movement of getting out of fossil fuels. Number one, fossil fuels are 2.5%, 3% of the index, like that’s not really changing your portfolio much. And that’s what the divestment campaign keeps going back to is like, you don’t have to give up your returns because it barely changes. But it also has no impact. Exxon and Chevron are going to be just fine whether you buy their shares or not. You know, that has no impact.",[12,3181,2747],{},[12,3183,3184],{},"Stephen Lewis: But a little bit into smaller companies, again, if you’re keeping it very small, it’s not going to change the overall like risk profile or return profile of your overall portfolio much.",[12,3186,2747],{},[12,3188,3189],{},"Stephen Lewis: So that’s what people need to be thinking about. And I really wish there was some fund that would like at least consider this or take it under consideration. And there’s nothing—",[12,3191,3192],{},"Josh Hile: You’re saying like a mutual fund or what?",[12,3194,3195],{},"Stephen Lewis: Yeah, ETF, something like that. Like a broadly diversified fund, you know, it’s even like, I don’t want to bash on like any specific fund manager, but there are some that even have names like, you know, climate solutions and things like that. I’m like, great. But you look in that and the the top holdings are GE Vernova, that’s a gas turbine manufacturer, or Waste Management, that’s basically a tip fee collector, a trash collector. And sure, they have a recycling business, but they’re not really a reusable materials business. They are driving around trash trucks and picking up your trash. That’s what their business is. But again, one fund manager, I talked to one of them saying, why is GE Vernova your number one holding when they basically make gas turbines. And like, well, more than 50% of the revenue comes from electrification because it’s also like wind turbine management.",[12,3197,2747],{},[12,3199,3200],{},"Stephen Lewis: And they make transformers, a lot of the like GE’s grid products. Like, well, it’s interesting that you’re okay with the 50% revenue cutoff because you tell me I shouldn’t invest in S&P 500 because it’s 3% oil and gas. So on a diversified fund, 3% oil and gas, nope, that’s too much. You should get out of that. But then on this impact fund, if they’re almost 50% gas turbines, that’s okay. But that goes back to my whole problem with the just ESG screens on portfolio funds, things like that.",[12,3202,3203],{},"Josh Hile: Yeah. So here’s a broader question for you now that you’re coming kind of from an outsider view and you’re kind of seeing what wealth management is, but like, where do you see wealth management heading over the next 3 to 5 years, especially with the implementation of like AI in a more general sense and how that will impact kind of like either your work or the— or how people get financial advice?",[12,3205,3206],{},"Stephen Lewis: I, I, I don’t think there’s going to be a massive change in the— in like the breakdown of the population that wants to be a DIYer versus wants, you know, to pay for advice, et cetera. I think that will probably stay steady because that’s more about people’s sort of comfort level, you know, with things like that. So I hope that AI brings down fees and sort of levels the playing field to some extent.",[12,3208,2747],{},[12,3210,3211],{},"Stephen Lewis: There’s some advisors that I think charge fees that are way too high. But so in 3 to 5 years, I, I don’t know. I don’t see a massive change other than sort of making firms more efficient in what they do, but it’s not gonna upend the whole industry in one way or another, I don’t think. Yeah.",[12,3213,3214],{},"Josh Hile: Yeah. Anything else you see from wealth management? Like, and here’s one, I’ll lead it a little bit with, like, I think there is this, like, which you’re essentially doing, this trend towards personalization of the individual investor and like their financial goals. Whereas previously it was like, okay, we’re just gonna put you in a 60\u002F40 portfolio and like, talk a few times a year and call it good. Whereas more it’s like, okay, well, it’s around the estate planning, tax planning, like your specific values and where you want to be from a values perspective of your portfolio. Anything else like related to that and like what you see like for your clients?",[12,3216,3217],{},"Stephen Lewis: From an AI impact perspective, you mean?",[12,3219,3220],{},"Josh Hile: More just from like a wealth management perspective. It doesn’t have to be AI related.",[12,3222,3223],{},"Stephen Lewis: I mean, those trends you talked about, like you said, have been underway for at least a decade and will just continue becoming more that way. I think people should expect more out of their advisor for that 1%. Like you said, putting you in a robo fund, basically 60\u002F40, and then charging 1%, I don’t know. Is that justified? Yes.",[12,3225,3226],{},"Josh Hile: What about, do you think that there will be an increase in like values, climate-focused clients in the future? And this goes to kind of like wealth transition, younger investors being more worried about climate potentially. That’s, there’s some statistics around that, but just curious what you see.",[12,3228,3229],{},"Stephen Lewis: I certainly hope so. I’ve seen a lot of data that points that way. Not all of it’s conclusive, but certainly, you know, that the baby boomer generation was like, just make me money, I don’t care. it’s burning down the world, you know. Um, but yeah, so I think it’s, I think it’s trending that way. I don’t think it’s going to be like a tsunami coming, but yes, I think there will be pressure just pushing it more and more that direction where people think about values and what they want to be investing in. Um, the one hesitation I have about that though is that just brings on sort of greenwashing, you know.",[12,3231,2747],{},[12,3233,3234],{},"Stephen Lewis: Like lots of different levels, because then all of a sudden everybody wants to be a values-based advisor when like, what does that even mean? What are your values? People have lots of different values, lots of things they value in different situations, and to put it all in your financial portfolio, I mean, it’s another thing I explain when I explain to clients why I’m so focused on climate. I say it’s a couple reasons. Number one, climate is the biggest long-term problem that affects everyone. It’s one of the only ones I see not generally trending in the right direction. A lot of other gender equity issues, racial equity, we go backwards sometimes, but we are making slow progress in the right direction. Whereas climate, we’re still increasing emissions every single year, number one. And number two, there are companies who their business model is focused on solving that problem. There’s no company focused on solving gender equity problems.",[12,3236,2747],{},[12,3238,3239],{},"Stephen Lewis: Oh, I, you know, want to invest in gender equity, then you get some fund like, well, all of these companies have at least 40% board representation from women. Like, okay, is that really like investing in gender equity? I don’t know. But then when you talk about investing your values, I’m like, yeah, but what values? And you can’t apply like everything you feel about the world on your financial portfolio. Like, that doesn’t, that doesn’t make sense to me. So. Yeah.",[12,3241,3242],{},"Josh Hile: Yeah. And then just one thing to close us out. So then this is a question I ask everybody, but like, what’s one thing that people don’t know about you or a hobby that you enjoy?",[12,3244,3245],{},"Stephen Lewis: I asked my wife this question ’cause again, she’s my sounding board for a lot of stuff. She came up with the firm name and she said, How about the fact that whenever we travel abroad, you always like to ask the taxi drivers about their politics or what they think about the political situation? And often have interesting conversations. Sometimes it’s a taxi driver or a tour bus driver or whatever. And, you know, the bad part about being in like developing countries is in India or in— sorry, in Argentina, our tour guide one day was a lawyer. And our tour guide in Costa Rica this past winter had a master’s in like political science. So you can sometimes get really, really good, educated, informed answers from these people. And it’s kind of an ear to the ground that I always appreciate. When I was, when I was living in Kenya in 2007, I was reading an article in The Economist about how the upcoming election in Kenya was going to be like a beacon for Africa. Democracy was really, really taking hold in a lot of these countries that have been rocky for decades. And no one I knew on the ground there was optimistic about the upcoming election. They were all terrified. And it ended up being very violent and like so violent that the US government had to come in and with private planes to evacuate all the citizens from Western Kenya.",[12,3247,2747],{},[12,3249,3250],{},"Stephen Lewis: And I’m like, come on, economists, are you like doing your research? And that’s kind of my approach. I like to have an ear to the ground on stuff, investments or otherwise, just get the local take. What doesn’t make it into media?",[12,3252,3253],{},"Josh Hile: Yeah. Yeah. No, I love that. Yeah. And it’s definitely getting that local flair is definitely a totally different thing from what you might see in the media. So, well, thank you so much for the time. Really appreciate it. really appreciate just all your thoughts around climate and climate impact. And we appreciate kind of the work you’re doing for those clients.",[12,3255,3256],{},"Stephen Lewis: I appreciate what you guys are doing too. You have offerings that are hard to find elsewhere.",[12,3258,3259],{},"Future First Finance is a registered investment adviser and the opinions expressed by Future First Finance on this show are their own and do not reflect the opinions of Citizen Mint. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.",[12,3261,2977],{},[12,3263,2980],{},{"title":59,"searchDepth":167,"depth":167,"links":3265},[],"2026-07-29","In our fifteenth episode, Stephen Lewis of Future First Finance shares his perspective on modern wealth management, discussing climate-focused investing, the energy transition, disciplined portfolio construction, and how advisors can thoughtfully incorporate private markets to build resilient, long-term client portfolios.","\u002Fimages\u002Fresources\u002Fstephen-lewis-future-first-finance.png",{},"\u002Fresources\u002Fstephen-lewis-future-first-finance",{"title":2995,"description":3267},"resources\u002Fstephen-lewis-future-first-finance","Uu4IPAuEZz6r4oMhxm-kLot9C3vPT0-HYxQO27BGITY",{"id":3275,"title":3276,"author":512,"body":3277,"category":2321,"date":3294,"description":3295,"extension":179,"image":3296,"imageAlt":3297,"meta":3298,"navigation":183,"path":3299,"seo":3300,"stem":3301,"topic":2991,"__hash__":3302},"resources\u002Fresources\u002Fchristina-kramlich-cantata-wealth.md","Christina Kramlich | Cantata Wealth",{"type":9,"value":3278,"toc":3292},[3279,3282,3286],[12,3280,3281],{},"In this episode, we sit down with Christina Kramlich of Cantata Wealth. Christina shares her path into wealth management and the story behind Cantata Wealth, offering insight into how the firm helps individuals and families navigate the complexities of preserving and growing wealth across generations.",[1224,3283],{"src":3284,"title":3285,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FoL8ogB0idPI","Christina Kramlich | Cantata Wealth on The Advisor View (video)",[12,3287,3288],{},[22,3289,2256],{"href":3290,"rel":3291},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=oL8ogB0idPI",[45],{"title":59,"searchDepth":167,"depth":167,"links":3293},[],"2026-07-23","Christina Kramlich of Cantata Wealth joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Fchristina-kramlich-cantata-wealth.jpg","Christina Kramlich of Cantata Wealth on The Advisor View",{},"\u002Fresources\u002Fchristina-kramlich-cantata-wealth",{"title":3276,"description":3295},"resources\u002Fchristina-kramlich-cantata-wealth","x0Khj1Si6_mLWZp6BanckKSnt7WBWJY4tCgyXP0s0E4",{"id":3304,"title":3305,"author":512,"body":3306,"category":2321,"date":3323,"description":3324,"extension":179,"image":3325,"imageAlt":3326,"meta":3327,"navigation":183,"path":3328,"seo":3329,"stem":3330,"topic":2991,"__hash__":3331},"resources\u002Fresources\u002Fjacob-tally-prospero-wealth.md","Jacob Tally | Prospero Wealth",{"type":9,"value":3307,"toc":3321},[3308,3311,3315],[12,3309,3310],{},"In this episode, we sit down with Jacob Tally of Prospero Wealth. Jacob shares his path into wealth management and the story behind Prospero Wealth, offering insight into why the firm was built specifically to serve tech professionals navigating the unique financial complexities of equity compensation, concentrated stock positions, and rapidly changing careers.",[1224,3312],{"src":3313,"title":3314,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002Fn2YuhoXOwPU","Jacob Tally | Prospero Wealth on The Advisor View (video)",[12,3316,3317],{},[22,3318,2256],{"href":3319,"rel":3320},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=n2YuhoXOwPU",[45],{"title":59,"searchDepth":167,"depth":167,"links":3322},[],"2026-07-22","Jacob Tally of Prospero Wealth joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Fjacob-tally-prospero-wealth.jpg","Jacob Tally of Prospero Wealth on The Advisor View",{},"\u002Fresources\u002Fjacob-tally-prospero-wealth",{"title":3305,"description":3324},"resources\u002Fjacob-tally-prospero-wealth","xnDVUAo-QWHQMaKc9esd4OD_kyrgpqbPy8iHpAgVHFY",{"id":3333,"title":3334,"author":512,"body":3335,"category":2321,"date":3352,"description":3353,"extension":179,"image":3354,"imageAlt":3355,"meta":3356,"navigation":183,"path":3357,"seo":3358,"stem":3359,"topic":2991,"__hash__":3360},"resources\u002Fresources\u002Flouis-green-prestiq-wealth.md","Louis Green | Prestiq Wealth",{"type":9,"value":3336,"toc":3350},[3337,3340,3344],[12,3338,3339],{},"In this episode, we sit down with Louis Green of Prestiq Wealth. Louis shares his path into wealth management and the story behind Prestiq Wealth, offering insight into how the firm delivers institutional-quality investment management through a highly personalized and planning-driven approach.",[1224,3341],{"src":3342,"title":3343,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002F0w2lUZwgzyI","Louis Green | Prestiq Wealth on The Advisor View (video)",[12,3345,3346],{},[22,3347,2256],{"href":3348,"rel":3349},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=0w2lUZwgzyI",[45],{"title":59,"searchDepth":167,"depth":167,"links":3351},[],"2026-07-06","Louis Green of Prestiq Wealth joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Flouis-green-prestiq-wealth.jpg","Louis Green of Prestiq Wealth on The Advisor View",{},"\u002Fresources\u002Flouis-green-prestiq-wealth",{"title":3334,"description":3353},"resources\u002Flouis-green-prestiq-wealth","P-01vQo-AxHCBIR01Fkh0mim_62r2Xoviw2t69Cgi1g",{"id":3362,"title":3363,"author":512,"body":3364,"category":2321,"date":3381,"description":3382,"extension":179,"image":3383,"imageAlt":3384,"meta":3385,"navigation":183,"path":3386,"seo":3387,"stem":3388,"topic":2991,"__hash__":3389},"resources\u002Fresources\u002Frubin-miller-peltoma-capital-partners.md","Rubin Miller | Peltoma Capital Partners",{"type":9,"value":3365,"toc":3379},[3366,3369,3373],[12,3367,3368],{},"In this episode, we sit down with Rubin Miller of Peltoma Capital Partners. Rubin shares his path into wealth management and the story behind Peltoma Capital Partners, offering insight into how the firm helps individuals and families navigate increasingly complex financial decisions through disciplined planning and long-term investment management.",[1224,3370],{"src":3371,"title":3372,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002F-KKd_VETzvw","Rubin Miller | Peltoma Capital Partners on The Advisor View (video)",[12,3374,3375],{},[22,3376,2256],{"href":3377,"rel":3378},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=-KKd_VETzvw",[45],{"title":59,"searchDepth":167,"depth":167,"links":3380},[],"2026-06-30","Rubin Miller of Peltoma Capital Partners joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Frubin-miller-peltoma-capital-partners.jpg","Rubin Miller of Peltoma Capital Partners on The Advisor View",{},"\u002Fresources\u002Frubin-miller-peltoma-capital-partners",{"title":3363,"description":3382},"resources\u002Frubin-miller-peltoma-capital-partners","tUq-PU_Dy05vxLuf3Q6M0pL9E5Nuhq3IBR_Q8_Emcj8",{"id":3391,"title":3392,"author":7,"body":3393,"category":176,"date":3788,"description":3789,"extension":179,"image":3790,"imageAlt":181,"meta":3791,"navigation":183,"path":3792,"seo":3793,"stem":3794,"topic":2330,"__hash__":3795},"resources\u002Fresources\u002Fprivate-market-performance-metrics.md","Reading Private Market Performance: A Guide to IRR, TWR, MOIC, and the Metrics That Matter",{"type":9,"value":3394,"toc":3778},[3395,3398,3406,3414,3418,3421,3426,3431,3434,3438,3444,3450,3453,3457,3460,3466,3472,3478,3484,3489,3494,3497,3501,3504,3509,3514,3517,3521,3528,3532,3535,3540,3545,3548,3554,3560,3566,3580,3586,3592,3596,3761,3765,3773],[12,3396,3397],{},"METRICS • CONTEXT • JUDGMENT",[12,3399,3400,3401,3405],{},"When an advisor evaluates a public mutual fund, the scorecard is familiar. Trailing returns, a benchmark, a Sharpe ratio, and an expense figure cover most of the conversation. Private markets do not work that way. A buyout fund and a ",[22,3402,3404],{"href":3403},"\u002Finvestments","private credit"," fund can both report strong performance while measuring it on entirely different scales, and a single fund can look excellent or unremarkable depending on which number you put first.",[12,3407,3408,3409,3413],{},"For ",[22,3410,3412],{"href":3411},"\u002Ffinancial-advisors","RIAs"," and family offices building allocations to private equity, private credit, real estate, and infrastructure, fluency in these metrics is part of the diligence itself. The numbers are not interchangeable, because each one answers a specific question and carries its own blind spot. What follows is a practical walk through the metrics that show up most often in fund materials, what they actually capture, and how they line up against the major asset classes.",[34,3415,3417],{"id":3416},"why-timing-changes-everything","Why Timing Changes Everything",[12,3419,3420],{},"The central complication in private markets is that investors do not put all of their money to work on day one. Capital is committed, then called over several years as the manager finds deals, and distributions come back unevenly as those deals are realized. A public market return assumes a clean start and end, while a private market return has to account for money moving in and out at irregular intervals, which is exactly where the two main return measures part ways. That same timing problem produces a pattern every private markets investor learns to recognize, the J-curve.",[12,3422,3423],{},[57,3424],{"alt":59,"src":3425},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-01_jcurve.png",[12,3427,3428],{},[343,3429,3430],{},"Early fees and conservative markdowns push reported returns negative before realizations drive them up. A fund judged in year three tells you almost nothing about where it lands.",[12,3432,3433],{},"In the first few years, a fund draws capital, charges fees, and carries young investments at or below cost, so the reported return sits in negative territory. As the portfolio matures and exits begin, the line turns and climbs, which is why an early-stage IRR is closer to a snapshot taken mid-story than a verdict on the fund.",[34,3435,3437],{"id":3436},"irr-and-twr-two-honest-answers-to-two-different-questions","IRR and TWR: Two Honest Answers to Two Different Questions",[12,3439,3440,3443],{},[30,3441,3442],{},"Internal rate of return (IRR)"," is the headline figure for most closed-end private funds. It is the annualized rate that accounts for the size and timing of every cash flow, the capital called, the distributions returned, and the value of whatever the fund still holds. Because it weights cash flows by when they happen, IRR rewards getting money back quickly and penalizes capital that sits idle, which cuts both ways. A manager who returns capital early posts a higher IRR and that is useful information, but a manager who delays capital calls by borrowing through a subscription credit line can lift the same number without improving anything underneath, which is why IRR should be read alongside the multiples rather than on its own.",[12,3445,3446,3449],{},[30,3447,3448],{},"Time-weighted return (TWR)"," answers a different question. It strips out the effect of when cash moved and isolates how the underlying assets performed period by period. TWR is the right tool when the manager does not control the timing of contributions and withdrawals, which is the case for public portfolios, separately managed accounts, and the growing set of open-end and evergreen private vehicles where investors enter and exit on their own schedule. It is the standard most advisors already use for the liquid side of a client’s portfolio.",[12,3451,3452],{},"IRR is money-weighted, reflecting the investor’s actual dollar-timed experience in a fund where the manager controls the cash. TWR is time-weighted, reflecting the manager’s performance independent of that timing. Comparing one fund’s IRR against another fund’s TWR is comparing two different rulers, and in a side-by-side that gap can quietly flatter the wrong fund.",[34,3454,3456],{"id":3455},"the-multiples-moic-tvpi-dpi-and-rvpi","The Multiples: MOIC, TVPI, DPI, and RVPI",[12,3458,3459],{},"If IRR captures the speed of return, multiples capture the magnitude. They answer the simplest question a client ever asks: how many times did we get our money back?",[12,3461,3462,3465],{},[30,3463,3464],{},"MOIC (multiple on invested capital)"," divides total value, both realized and still held, by the capital invested. It is usually quoted gross of fees and ignores time entirely. A 2.0x is a 2.0x whether it took two years or nine, which is why MOIC and IRR have to be read together.",[12,3467,3468,3471],{},[30,3469,3470],{},"TVPI (total value to paid-in)"," is the net-of-fees cousin most LPs track. It divides everything the fund has returned plus everything it still holds by the capital the investor has actually paid in. TVPI breaks cleanly into two parts.",[12,3473,3474,3477],{},[30,3475,3476],{},"DPI (distributions to paid-in)"," is the realized portion, the cash that has actually left the fund and landed in the investor’s account, which cannot be marked up or revised later. As a fund ages, DPI becomes the number that matters most, because it is the only one that reflects money in hand rather than an estimate.",[12,3479,3480,3483],{},[30,3481,3482],{},"RVPI (residual value to paid-in)"," is the unrealized portion, the value still sitting in the portfolio at the manager’s current marks. Early in a fund’s life almost all of the multiple is RVPI, and the quality of a track record is largely a question of how reliably that paper value has converted into cash over time.",[12,3485,3486],{},[57,3487],{"alt":59,"src":3488},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-02_tvpi.png",[12,3490,3491],{},[343,3492,3493],{},"A young fund’s multiple is almost entirely paper. A credible manager turns that residual value into distributions, which is why mature-fund diligence leans on DPI.",[12,3495,3496],{},"Two funds can both show a 1.8x TVPI, but the one carrying most of that as DPI has proven it can exit, while the one carrying most of it as RVPI is still asking you to trust the marks.",[34,3498,3500],{"id":3499},"when-irr-and-moic-disagree","When IRR and MOIC Disagree",[12,3502,3503],{},"Because IRR is time-sensitive and MOIC is not, the same investment can look very different through the two lenses. A quick flip that doubles capital in a year produces a spectacular IRR and a modest multiple, while a patient hold that triples capital over eight years produces a strong multiple and a far more ordinary IRR.",[12,3505,3506],{},[57,3507],{"alt":59,"src":3508},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-03_irr_moic.png",[12,3510,3511],{},[343,3512,3513],{},"A 2.0x earned in three years outpaces a 3.0x earned in eight on an annualized basis. Neither number is wrong, and neither is complete on its own.",[12,3515,3516],{},"The two belong together for that reason. A manager who leads with IRR may be highlighting fast, smaller wins, while one who leads with MOIC may be holding longer for larger absolute gains at a lower annualized rate. Both can be sound approaches, and the number a manager reaches for first usually tells you something about how the firm actually invests.",[34,3518,3520],{"id":3519},"measuring-against-the-alternative-pme","Measuring Against the Alternative: PME",[12,3522,3523,3524,3527],{},"Allocators lean on one more measure that rarely shows up in fund marketing: the ",[30,3525,3526],{},"public market equivalent (PME)",". It takes a fund’s actual cash flows and asks what the same money would have earned if it had been invested in a public index instead, over the same timeline. That converts an absolute return into an opportunity-cost comparison and answers the question a committee eventually asks, which is whether the private allocation actually beat what they could have bought in the public market with no lockup. For asset classes that compete directly with public equity, PME is often the most honest scorecard available.",[34,3529,3531],{"id":3530},"which-metric-fits-which-asset-class","Which Metric Fits Which Asset Class",[12,3533,3534],{},"No single metric is right across the board, because the strategies behind these funds generate returns in different ways. Buyout returns come from buying companies, improving them, and selling them; private credit returns come from contractual income; core real estate and infrastructure blend steady yield with slower appreciation. The metric that captures performance has to match the shape of the return.",[12,3536,3537],{},[57,3538],{"alt":59,"src":3539},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-04_matrix.png",[12,3541,3542],{},[343,3543,3544],{},"The right lens depends on how a strategy produces its return: income strategies are judged on yield, while equity-style strategies turn on multiples and annualized rates.",[12,3546,3547],{},"A few patterns stand out:",[12,3549,3550,3553],{},[30,3551,3552],{},"Buyout and private equity"," are the natural home of the IRR, MOIC, and DPI trio. The strategy is built on entry, value creation, and exit, so the annualized rate, the multiple, and the realized cash all carry weight, with PME as the right check against the public equity these funds compete with.",[12,3555,3556,3559],{},[30,3557,3558],{},"Venture capital"," leans hardest on multiples and DPI, because returns follow a power law where a small number of investments drive the result, and the holding periods are long enough that early IRRs are noisy to the point of being unreliable. A venture track record is best read through what it has actually returned, not what it is annualizing on paper in year four.",[12,3561,3562,3565],{},[30,3563,3564],{},"Private credit"," is an income story, so cash yield and a stable IRR do most of the work, and multiples are less informative here because debt has a capped upside by design. For the evergreen credit structures now common in the advisor channel, time-weighted return becomes the cleaner way to evaluate the manager, since investors move in and out continuously.",[12,3567,3568,3571,3572,3574,3576,3579],{},[30,3569,3570],{},"Core, open-end real estate"," is measured primarily on a time-weighted basis, the convention that underpins the major open-end property indices, paired with current income yield. The manager does not control investor cash flows, so TWR is the fair comparison. ",[1667,3573],{},[1667,3575],{},[30,3577,3578],{},"Value-add and opportunistic real estate",", by contrast, behaves more like private equity and is judged on IRR and the equity multiple, with cash-on-cash yield as a supporting figure.",[12,3581,3582,3585],{},[30,3583,3584],{},"Infrastructure"," sits between the two, since core infrastructure generates long-duration, contracted income, so cash yield carries real weight alongside IRR and the multiple over a longer horizon than most buyout funds.",[12,3587,3588,3591],{},[30,3589,3590],{},"Evergreen and semi-liquid structures",", the format reshaping how RIAs and family offices access these markets, deserve a closer look. Because investors subscribe and redeem on a rolling basis and the manager does not dictate the timing, the closed-end logic of IRR and DPI fits awkwardly, and time-weighted return becomes the appropriate lens, which is part of why these vehicles report performance in a way that looks more familiar to advisors used to evaluating public funds.",[34,3593,3595],{"id":3594},"a-working-reference","A Working Reference",[3597,3598,3599,3631],"table",{},[3600,3601,3602],"thead",{},[3603,3604,3605,3611,3616,3621,3626],"tr",{},[3606,3607,3608],"th",{},[30,3609,3610],{},"Metric",[3606,3612,3613],{},[30,3614,3615],{},"What it measures",[3606,3617,3618],{},[30,3619,3620],{},"Time-sensitive",[3606,3622,3623],{},[30,3624,3625],{},"Net of fees",[3606,3627,3628],{},[30,3629,3630],{},"Reads best for",[3632,3633,3634,3652,3669,3685,3700,3715,3730,3746],"tbody",{},[3603,3635,3636,3640,3643,3646,3649],{},[3637,3638,3639],"td",{},"IRR",[3637,3641,3642],{},"Annualized money-weighted return across all cash flows",[3637,3644,3645],{},"Yes",[3637,3647,3648],{},"Gross or net",[3637,3650,3651],{},"Closed-end PE, real estate, infrastructure",[3603,3653,3654,3657,3660,3663,3666],{},[3637,3655,3656],{},"TWR",[3637,3658,3659],{},"Return isolated from cash flow timing",[3637,3661,3662],{},"No",[3637,3664,3665],{},"Net",[3637,3667,3668],{},"Open-end, evergreen, marketable strategies",[3603,3670,3671,3674,3677,3679,3682],{},[3637,3672,3673],{},"MOIC",[3637,3675,3676],{},"Total value over capital invested",[3637,3678,3662],{},[3637,3680,3681],{},"Usually gross",[3637,3683,3684],{},"Magnitude check on any equity strategy",[3603,3686,3687,3690,3693,3695,3697],{},[3637,3688,3689],{},"TVPI",[3637,3691,3692],{},"Total value over capital paid in",[3637,3694,3662],{},[3637,3696,3665],{},[3637,3698,3699],{},"Overall fund-level multiple",[3603,3701,3702,3705,3708,3710,3712],{},[3637,3703,3704],{},"DPI",[3637,3706,3707],{},"Cash actually distributed over paid in",[3637,3709,3662],{},[3637,3711,3665],{},[3637,3713,3714],{},"Mature funds, realized track record",[3603,3716,3717,3720,3723,3725,3727],{},[3637,3718,3719],{},"RVPI",[3637,3721,3722],{},"Unrealized value over paid in",[3637,3724,3662],{},[3637,3726,3665],{},[3637,3728,3729],{},"Gauging how much return is still on paper",[3603,3731,3732,3735,3738,3741,3743],{},[3637,3733,3734],{},"Cash Yield",[3637,3736,3737],{},"Recurring income over invested capital",[3637,3739,3740],{},"Partial",[3637,3742,3665],{},[3637,3744,3745],{},"Private credit, core real estate, infrastructure",[3603,3747,3748,3751,3754,3756,3758],{},[3637,3749,3750],{},"PME",[3637,3752,3753],{},"Fund result versus a public index",[3637,3755,3645],{},[3637,3757,3665],{},[3637,3759,3760],{},"Testing private allocations against public markets",[34,3762,3764],{"id":3763},"the-point-of-all-of-it","The Point of All of It",[12,3766,3767,3768,3770,3772],{},"The reason to learn this vocabulary is not to win an argument about which metric is best, it is to know the right follow-up question. A striking IRR is an invitation to ask for the multiple and the realized DPI behind it. When most of a track record still sits in RVPI, the question is how the manager’s earlier funds actually converted paper marks into cash. And when two managers in the same strategy report on different measures, the job is simply to put them on the same one before judging either.",[1667,3769],{},[1667,3771],{},"\nPrivate markets reward investors who can read past the headline number. For advisors building durable allocations for their clients, that fluency is what separates evaluating a manager from being marketed to.",[12,3774,3775],{},[343,3776,3777],{},"This material is for educational and informational purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any security. Illustrative figures and charts are hypothetical, are provided to explain the metrics discussed, and do not represent the performance of any specific fund or investment. Past performance is not indicative of future results. Private market investments involve substantial risk, including the potential loss of capital and limited liquidity.",{"title":59,"searchDepth":167,"depth":167,"links":3779},[3780,3781,3782,3783,3784,3785,3786,3787],{"id":3416,"depth":167,"text":3417},{"id":3436,"depth":167,"text":3437},{"id":3455,"depth":167,"text":3456},{"id":3499,"depth":167,"text":3500},{"id":3519,"depth":167,"text":3520},{"id":3530,"depth":167,"text":3531},{"id":3594,"depth":167,"text":3595},{"id":3763,"depth":167,"text":3764},"2026-06-29","A guide to private market performance metrics for advisors: what IRR, TWR, MOIC, TVPI, and DPI measure, and which metric fits which asset class.","\u002Fimages\u002Fresources\u002Fprivate-market-performance-metrics.png",{},"\u002Fresources\u002Fprivate-market-performance-metrics",{"title":3392,"description":3789},"resources\u002Fprivate-market-performance-metrics","Hd5NNKKTDYOUlu4rKvv1T93d7UJ-UPWEh_lem11E2K8",{"id":3797,"title":3798,"author":512,"body":3799,"category":2321,"date":3816,"description":3817,"extension":179,"image":3818,"imageAlt":3819,"meta":3820,"navigation":183,"path":3821,"seo":3822,"stem":3823,"topic":2991,"__hash__":3824},"resources\u002Fresources\u002Ffrank-byskov-forty4-financial.md","Frank Byskov | Forty4 Financial",{"type":9,"value":3800,"toc":3814},[3801,3804,3808],[12,3802,3803],{},"In this episode, we sit down with Frank Byskov of Forty4 Financial. Frank shares his path into wealth management and the story behind Forty4 Financial, offering insight into how the firm helps clients simplify complex financial decisions through a planning-first approach centered on long-term relationships and personalized advice.",[1224,3805],{"src":3806,"title":3807,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FHikVNI16tIw","Frank Byskov | Forty4 Financial on The Advisor View (video)",[12,3809,3810],{},[22,3811,2256],{"href":3812,"rel":3813},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=HikVNI16tIw",[45],{"title":59,"searchDepth":167,"depth":167,"links":3815},[],"2026-06-11","Frank Byskov of Forty4 Financial joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Ffrank-byskov-forty4-financial.jpg","Frank Byskov of Forty4 Financial on The Advisor View",{},"\u002Fresources\u002Ffrank-byskov-forty4-financial",{"title":3798,"description":3817},"resources\u002Ffrank-byskov-forty4-financial","fbc9Y9GsOjwTHSCaWxEXjZURXVwqoTtq4kwqp4nKYto",{"id":3826,"title":3827,"author":7,"body":3828,"category":176,"date":3886,"description":3887,"extension":179,"image":3888,"imageAlt":181,"meta":3889,"navigation":183,"path":3890,"seo":3891,"stem":3892,"topic":3893,"__hash__":3894},"resources\u002Fresources\u002Fcitizen-mint-kitces-advisortech-map.md","Citizen Mint Joins the Kitces AdvisorTech Map",{"type":9,"value":3829,"toc":3881},[3830,3835,3838,3841,3846,3850,3856,3860,3863,3867,3870,3873],[12,3831,3832],{},[30,3833,3834],{},"RECOGNITION • ADVISORTECH • ADVISORS",[12,3836,3837],{},"If you have spent any time in wealth management, you know the Kitces AdvisorTech Map. Published monthly by Michael Kitces and the Kitces.com team, it has become the industry’s definitive reference for the technology advisors use to run their practices and serve their clients. It is also, famously, a lot of logos on one page.",[12,3839,3840],{},"This month, one of those logos is ours. We are proud to share that Citizen Mint has been added to the Kitces AdvisorTech Map in the Alternatives Marketplace category, and we want to take a moment to explain why this matters to us and, more importantly, why it should matter to the advisors we serve.",[12,3842,3843],{},[57,3844],{"alt":59,"src":3845},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-1780944720025.jpeg",[34,3847,3849],{"id":3848},"why-the-map-matters","Why the Map Matters",[12,3851,3852,3853,3855],{},"The AdvisorTech Map exists because advisors face an overwhelming number of technology decisions, and the Kitces team has spent years bringing rigor and curation to that landscape. Inclusion is not a participation trophy. It reflects a vetting process designed to surface solutions that genuinely address the needs of ",[22,3854,3412],{"href":3411}," and independent advisors. For a company built specifically for advisors, there are few better signals that you are solving a real problem for the people you set out to serve.",[34,3857,3859],{"id":3858},"what-it-says-about-private-markets","What It Says About Private Markets",[12,3861,3862],{},"We think our inclusion reflects something bigger than Citizen Mint. Private markets have moved from the edges of the advisor conversation to the center of it, and advisors increasingly expect the same quality of technology for alternatives that they have long had for public markets. Access alone was never the hard part. The hard part has been giving advisors the infrastructure to evaluate, allocate, and manage private market exposure with the same confidence and efficiency they bring to the rest of the portfolio. That is the problem we built Citizen Mint to solve, and being recognized alongside the tools advisors rely on every day tells us the industry sees it the same way.",[34,3864,3866],{"id":3865},"thank-you","Thank You",[12,3868,3869],{},"Our thanks to Michael Kitces and the entire Kitces.com team for the work they put into mapping this ecosystem month after month. The wealth management industry is better for it.",[12,3871,3872],{},"To the advisors who have partnered with us along the way: this recognition belongs to you as much as it does to us. Your feedback shapes what we build, and we are just getting started.",[12,3874,3875,3876,263],{},"You can view the latest version of the AdvisorTech Map at ",[22,3877,3880],{"href":3878,"rel":3879},"https:\u002F\u002Fwww.kitces.com\u002F",[45],"Kitces.com",{"title":59,"searchDepth":167,"depth":167,"links":3882},[3883,3884,3885],{"id":3848,"depth":167,"text":3849},{"id":3858,"depth":167,"text":3859},{"id":3865,"depth":167,"text":3866},"2026-06-10","Citizen Mint joins the Kitces AdvisorTech Map, reflecting the growing role of private markets technology in how RIAs and wealth advisors serve clients.","\u002Fimages\u002Fresources\u002Fcitizen-mint-kitces-advisortech-map.png",{},"\u002Fresources\u002Fcitizen-mint-kitces-advisortech-map",{"title":3827,"description":3887},"resources\u002Fcitizen-mint-kitces-advisortech-map","company","nqPcUuxP9I2nseV7SxwGF1LOZYMbprxZjbF8aJ5k75s",{"id":3896,"title":3897,"author":7,"body":3898,"category":176,"date":4088,"description":4089,"extension":179,"image":4090,"imageAlt":181,"meta":4091,"navigation":183,"path":4092,"seo":4093,"stem":4094,"topic":939,"__hash__":4095},"resources\u002Fresources\u002Fpowering-ai-through-private-markets.md","Powering the AI Revolution: Private Market Paths Beyond the Public Equity Trade",{"type":9,"value":3899,"toc":4081},[3900,3903,3906,3909,3915,3925,3929,3932,3935,3938,3941,3947,3952,3956,3959,3962,3965,3972,3977,3981,3984,3992,3998,4004,4010,4016,4022,4028,4033,4037,4055,4060,4064,4067,4070,4078],[12,3901,3902],{},"POWER • INFRASTRUCTURE • ACCESS",[12,3904,3905],{},"Artificial intelligence has become one of the defining investment themes of the past several years. The public market gains have been real, but they have also been concentrated. J.P. Morgan Asset Management noted that the “AI-spawned Magnificent 7” drove 63% of S&P 500 returns in 2023, 55% in 2024, and 43% in 2025, numbers that underscore how much AI exposure many clients already carry through traditional market-cap-weighted portfolios.",[12,3907,3908],{},"For advisors, that raises a practical question: what does it mean to add more AI exposure on top of what clients likely already own?",[12,3910,3911,3912,3914],{},"The more useful framing may not be whether AI matters as a theme. Most thoughtful investors have settled that question. The harder conversation is about the broader investment ecosystem behind the AI buildout, one that extends well beyond chips, models, and the handful of technology companies dominating public indexes. Power infrastructure, data center real estate, energy storage, grid interconnection, ",[22,3913,3404],{"href":3403},", and private companies that have not yet come to market all represent a different kind of participation in the same economy.",[12,3916,3917,3920,3921,3924],{},[22,3918,3919],{"href":24},"That is where"," private markets may offer something that public equities generally do not: differentiated exposure, with return profiles tied to income, collateral, ",[22,3922,3923],{"href":938},"real assets",", or selective equity upside rather than continued multiple expansion in a concentrated group of mega-cap names.",[34,3926,3928],{"id":3927},"ai-has-become-a-physical-infrastructure-story","AI Has Become a Physical Infrastructure Story",[12,3930,3931],{},"The most important constraint limiting AI deployment may not be compute but electricity.",[12,3933,3934],{},"The International Energy Agency projects that global data center electricity consumption will roughly double from 485 terawatt-hours in 2025 to approximately 950 TWh by 2030, representing close to 3% of total global electricity demand by that date. Within that, AI-focused data centers are growing considerably faster. The IEA estimates that electricity demand from AI-specific facilities will triple over the same period, as energy-intensive inference and training workloads scale. Data center electricity demand rose 17% in 2025 alone, more than five times the 3% growth in overall global electricity demand that year.",[12,3936,3937],{},"In the United States, the scale of the shift is even more pronounced. According to the IEA’s analysis, U.S. data centers are on track to consume more electricity for processing data in 2030 than all energy-intensive manufacturing combined, including aluminum, steel, cement, and chemicals. Data centers are projected to drive nearly half of all U.S. electricity demand growth between now and 2030.",[12,3939,3940],{},"McKinsey estimates that more than $500 billion of data center infrastructure investment may be required through the end of the decade, excluding upstream transmission and distribution needs. Lead times for new power access in high-demand markets such as Northern Virginia can exceed three years, while some electrical equipment orders have stretched to two years or more.",[12,3942,3943,3944,3946],{},"This creates a tangible investment dynamic. When electricity access becomes a binding constraint on AI deployment, the ",[22,3945,939],{"href":376}," that delivers it (power generation, transmission, storage, and interconnection) shifts from commodity infrastructure to something closer to strategic input.",[12,3948,3949],{},[57,3950],{"alt":59,"src":3951},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-112626-1.png",[34,3953,3955],{"id":3954},"the-bottleneck-behind-the-bottleneck-interconnection","The Bottleneck Behind the Bottleneck: Interconnection",[12,3957,3958],{},"Even when a developer has the capital, land, and signed demand to build a data center or power project, they still need to connect to the grid. That process has become a significant obstacle.",[12,3960,3961],{},"Lawrence Berkeley National Laboratory’s most recent data show that more than 2,060 gigawatts of total generation and storage capacity were actively seeking grid connection as of the end of 2025, representing roughly twice the installed generating capacity of the current U.S. power plant fleet. The typical project reaching commercial operation in 2024 spent an average of 55 months in the queue, up from less than two years for projects that reached operation in the early 2000s. And historically, only about 13% of the capacity that entered interconnection queues between 2000 and 2019 ever reached commercial operation.",[12,3963,3964],{},"For investors, those numbers are worth sitting with. They do not mean that the buildout stalls. They mean that projects with established interconnection positions, executed agreements, and experienced development teams occupy a materially different risk position than projects still waiting for clarity.",[12,3966,3967,3968,3971],{},"Private capital has historically found meaningful roles in exactly these kinds of financing gaps: ",[22,3969,3970],{"href":2349},"interconnection deposits",", equipment procurement, pre-construction bridge financing, and capital for grid upgrades tied to confirmed commercial demand. The bottleneck is real, but it also creates opportunity for structured, collateral-backed lending that is not correlated to technology sector multiples.",[12,3973,3974],{},[57,3975],{"alt":59,"src":3976},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-114556.png",[34,3978,3980],{"id":3979},"where-private-markets-can-fit-in-the-ai-economy","Where Private Markets Can Fit in the AI Economy",[12,3982,3983],{},"Public AI exposure is typically expressed through the same cluster of mega-cap technology companies. Private market exposure can be structured quite differently, closer to the implementation layer, and with returns that may be driven by contractual cash flow, asset-backed income, or selective equity upside rather than market sentiment.",[12,3985,3986,3987,3991],{},"The key distinction is capital structure. Downside protection in private market investing does not come from the AI theme itself. It comes from where an investor sits in the ",[22,3988,3990],{"href":3989},"\u002Fresources\u002Fwhat-is-the-capital-stack-in-real-estate-investing","capital stack",", what collateral exists, how contracts are structured, and whether underwriting is grounded in asset-backed income, project economics, or venture-style equity appreciation. Each approach carries meaningfully different risk and return characteristics.",[12,3993,3994,3997],{},[30,3995,3996],{},"Power infrastructure lending:"," Energy projects tied to data center demand often require financing at various stages of development, including interconnection deposits, equipment procurement, construction costs, and refinancing of completed assets. Secured lending in this space may offer income with collateral or contractual protections, though key risks include project delays, permitting challenges, and counterparty quality.",[12,3999,4000,4003],{},[30,4001,4002],{},"Renewable power and battery storage:"," The U.S. Energy Information Administration expects a record 86 gigawatts of utility-scale generating capacity to be added to the grid in 2026, with solar accounting for 51% of planned additions and battery storage for 28%. Developers plan to add 24 gigawatts of utility-scale battery storage in 2026, more than 60% above the 15 gigawatts added in 2025. Real asset exposure to this buildout may offer cash flow durability, though merchant power risk, equipment costs, and interconnection delays are important underwriting considerations.",[12,4005,4006,4009],{},[30,4007,4008],{},"Data center infrastructure:"," CBRE’s North America Data Center Trends H2 2025 report found that primary market vacancy fell to a record low 1.4% at year-end 2025, even as primary market supply increased 36% year over year to meet accelerated hyperscale demand. Primary markets posted record net absorption of approximately 2,498 megawatts in 2025. Exposure here can include real estate, power distribution, cooling infrastructure, and site development, areas that connect to AI demand through physical capacity rather than software economics. Concentration risk among hyperscale tenants and ongoing power access challenges are among the factors to underwrite carefully.",[12,4011,4012,4015],{},[30,4013,4014],{},"Interconnection and grid access:"," For projects that have secured or are pursuing their place in the grid queue, shorter-duration infrastructure-linked financing may offer an alternative profile tied to specific project milestones, with refundability provisions and documentation quality as key variables.",[12,4017,4018,4021],{},[30,4019,4020],{},"Venture and growth equity:"," Many of the companies building the AI stack are still private, including firms focused on enterprise workflow automation, cybersecurity, vertical AI applications, data infrastructure, developer tools, energy technology, and compute optimization. Access to these companies may offer upside that is not available in public markets. Liquidity constraints, valuation risk, and the competitive dynamics of a well-funded sector are important considerations in any evaluation.",[12,4023,4024,4027],{},[30,4025,4026],{},"Venture debt and specialty lending:"," Financing AI and technology companies through structured debt rather than pure equity may offer income combined with warrants or other upside participation. Revenue quality, cash burn trajectory, and refinancing risk warrant careful attention in this segment.",[12,4029,4030],{},[57,4031],{"alt":59,"src":4032},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-120310.png",[34,4034,4036],{"id":4035},"on-venture-exposure-the-case-for-selectivity","On Venture Exposure: The Case for Selectivity",[12,4038,4039,4040,4042,4044,4045,4047,4049,4050,4052,4054],{},"There is a compelling case for including some private venture or growth exposure in the broader AI theme. But the sector’s size and momentum do not automatically make individual investments attractive.",[1667,4041],{},[1667,4043],{},"\nAccording to the NVCA 2026 Yearbook, using PitchBook data, U.S. venture firms closed 15,352 deals worth $320 billion in 2025, a 51% increase in deal value from 2024 and the second-highest annual total on record. AI accounted for 65.4% of all deal value, up from roughly 50.9% in 2024. The top five AI companies collectively raised nearly $60 billion, and nontraditional investors (hedge funds, sovereign wealth funds, corporates, and endowments) participated in about 30% of deals while accounting for 83% of total investment value.",[1667,4046],{},[1667,4048],{},"\nThat concentration raises reasonable questions. Capital has flowed heavily toward a small number of large platforms, while the broader ecosystem of earlier-stage companies competes for a smaller share of the attention. Advisors evaluating private AI exposure should separate genuine innovation from momentum-driven capital formation. The underwriting question is whether a given company has durable customer relationships, a credible path to unit economics, defensible data or distribution advantages, and a valuation that leaves room for future return independent of sector sentiment.",[1667,4051],{},[1667,4053],{},"\nThe NVCA data also highlight a structural gap worth noting: 859 unicorn companies are currently valued at $4.34 trillion in aggregate, but only 30 to 40 actually achieved exits in 2025. Liquidity remains constrained, which matters for advisors managing clients against any timeline.",[12,4056,4057],{},[57,4058],{"alt":59,"src":4059},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-121516.png",[34,4061,4063],{"id":4062},"the-advisor-takeaway","The Advisor Takeaway",[12,4065,4066],{},"For many clients, AI exposure already exists, carried silently through market-cap-weighted equity allocations that have tilted heavily toward the same group of large technology companies. The planning question is whether that exposure is appropriately sized, whether it is too dependent on continued valuation expansion in public markets, and whether it leaves meaningful opportunity unaddressed.",[12,4068,4069],{},"Private markets offer a different way to participate in the same economic shift. The layers include secured lending tied to energy infrastructure, real assets serving data center demand, battery storage that supports grid reliability, interconnection-related financing, and selective exposure to private companies building the next wave of AI applications. Each layer carries a different combination of return potential, income, collateral, duration, liquidity, and risk.",[12,4071,4072,4073,4077],{},"None of this replaces careful due diligence or advisor judgment about suitability. Private market investments are complex, illiquid by nature, and appropriate only for investors who meet relevant eligibility requirements and can tolerate the associated risks. But for advisors thinking about the AI economy as a multi-layered investment theme rather than a single trade, the ",[22,4074,4076],{"href":4075},"\u002Finvest","opportunity set"," is considerably broader than most public market portfolios reflect.",[12,4079,4080],{},"At Citizen Mint, this is the conversation we are built to support, helping advisors identify the infrastructure, financing, and private company opportunities that may represent the next phase of the AI buildout, with the rigor that institutional allocations deserve.",{"title":59,"searchDepth":167,"depth":167,"links":4082},[4083,4084,4085,4086,4087],{"id":3927,"depth":167,"text":3928},{"id":3954,"depth":167,"text":3955},{"id":3979,"depth":167,"text":3980},{"id":4035,"depth":167,"text":4036},{"id":4062,"depth":167,"text":4063},"2026-06-05","Explore how advisors can access the AI revolution beyond public equities through private market infrastructure, power, storage, interconnection, and venture exposure.","\u002Fimages\u002Fresources\u002Fpowering-ai-through-private-markets.png",{},"\u002Fresources\u002Fpowering-ai-through-private-markets",{"title":3897,"description":4089},"resources\u002Fpowering-ai-through-private-markets","ZBEqppXePOCU91IVl1cWHqpes1TOmIa6hNHVYUtky8g",{"id":4097,"title":4098,"author":512,"body":4099,"category":2321,"date":4116,"description":4117,"extension":179,"image":4118,"imageAlt":4119,"meta":4120,"navigation":183,"path":4121,"seo":4122,"stem":4123,"topic":2991,"__hash__":4124},"resources\u002Fresources\u002Frebecca-white-harrington-investments.md","Rebecca White | Harrington Investments",{"type":9,"value":4100,"toc":4114},[4101,4104,4108],[12,4102,4103],{},"In this episode, we sit down with Rebecca White of Harrington Investments. Rebecca shares her path into wealth management and the story behind Harrington Investments, offering insight into how the firm approaches investing through a lens that integrates financial outcomes with broader social and environmental considerations.",[1224,4105],{"src":4106,"title":4107,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FrtQIHFV86xM","Rebecca White | Harrington Investments on The Advisor View (video)",[12,4109,4110],{},[22,4111,2256],{"href":4112,"rel":4113},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=rtQIHFV86xM",[45],{"title":59,"searchDepth":167,"depth":167,"links":4115},[],"2026-05-25","Rebecca White of Harrington Investments joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Frebecca-white-harrington-investments.jpg","Rebecca White of Harrington Investments on The Advisor View",{},"\u002Fresources\u002Frebecca-white-harrington-investments",{"title":4098,"description":4117},"resources\u002Frebecca-white-harrington-investments","0E0iYnObM-zUxs2d6TrD5i8tWINyvyUU1Ioc_gK4Jmk",{"id":4126,"title":4127,"author":7,"body":4128,"category":176,"date":4158,"description":4159,"extension":179,"image":4160,"imageAlt":181,"meta":4161,"navigation":183,"path":4162,"seo":4163,"stem":4164,"topic":3893,"__hash__":4165},"resources\u002Fresources\u002Fwelcoming-curtis-yasutake-director-of-investments.md","Welcoming Curtis Yasutake as Citizen Mint’s New Director of Investments",{"type":9,"value":4129,"toc":4156},[4130,4135,4138,4141,4144],[12,4131,4132],{},[30,4133,4134],{},"EXPERIENCE • DISCIPLINE • LEADERSHIP",[12,4136,4137],{},"We’re thrilled to announce that Curtis Yasutake has joined Citizen Mint as our new Director of Investments. Curtis brings a rare combination of institutional investment rigor and private markets expertise that will meaningfully strengthen how we source, evaluate, and execute investment opportunities for our clients.",[12,4139,4140],{},"Most recently, Curtis held senior private equity investment roles at New Catalyst Strategic Partners, an Apollo-backed private equity firm, and Pacific Current Group. At these firms, he was responsible for leading GP-stakes and seeding investments. This highly specialized discipline required deep diligence, strong manager relationships, and sharp underwriting judgment. Prior to that, he spent over a decade in manager research, primarily as a Senior Research Analyst at Russell Investments, where he helped manage multi-billion-dollar fund of funds and provided investment recommendations to institutional investors. Curtis is a CFA Charterholder, holds an MBA from UC Berkeley Haas School of Business, and earned a B.A. in Business Administration from Seattle University, where he graduated summa cum laude.",[12,4142,4143],{},"At Citizen Mint, our mission is to open the doors of private market investing to a broader range of investors and doing that well requires exceptional investment judgment at every step. Curtis’s extensive private markets network and experience evaluating fund managers and structuring complex deals makes him an ideal partner. We’re excited to have him on the team and look forward to the perspective and expertise he provides to everything we do.",[12,4145,4146,4147,4152,4153,263],{},"Connect with Curtis on ",[22,4148,4151],{"href":4149,"rel":4150},"https:\u002F\u002Fwww.linkedin.com\u002Fin\u002Fcurtisyasutake\u002F",[45],"LinkedIn"," or learn more about Citizen Mint at ",[22,4154,4155],{"href":1039},"citizenmint.com",{"title":59,"searchDepth":167,"depth":167,"links":4157},[],"2026-05-19","Citizen Mint welcomes Curtis Yasutake as Director of Investments. Learn more about his private markets experience and the expertise he brings to our investment platform.","\u002Fimages\u002Fresources\u002Fwelcoming-curtis-yasutake-director-of-investments.png",{},"\u002Fresources\u002Fwelcoming-curtis-yasutake-director-of-investments",{"title":4127,"description":4159},"resources\u002Fwelcoming-curtis-yasutake-director-of-investments","2-dMba7WVAgpPdqXQTq5ovWYtAI5ILOta5A4CQG-Wq8",{"id":4167,"title":4168,"author":512,"body":4169,"category":2321,"date":4186,"description":4187,"extension":179,"image":4188,"imageAlt":4189,"meta":4190,"navigation":183,"path":4191,"seo":4192,"stem":4193,"topic":2991,"__hash__":4194},"resources\u002Fresources\u002Fguillaume-decalf-oui-financial.md","Guillaume Decalf | Oui Financial",{"type":9,"value":4170,"toc":4184},[4171,4174,4178],[12,4172,4173],{},"In this episode, we sit down with Guillaume Decalf of Oui Financial. Guillaume shares his path into wealth management and the story behind Oui Financial, offering insight into how the firm approaches financial advice through a globally informed perspective and a focus on helping clients align their wealth with broader life goals.",[1224,4175],{"src":4176,"title":4177,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FgkY1OlHzkR4","Guillaume Decalf | Oui Financial on The Advisor View (video)",[12,4179,4180],{},[22,4181,2256],{"href":4182,"rel":4183},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=gkY1OlHzkR4",[45],{"title":59,"searchDepth":167,"depth":167,"links":4185},[],"2026-05-18","Guillaume Decalf of Oui Financial joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Fguillaume-decalf-oui-financial.jpg","Guillaume Decalf of Oui Financial on The Advisor View",{},"\u002Fresources\u002Fguillaume-decalf-oui-financial",{"title":4168,"description":4187},"resources\u002Fguillaume-decalf-oui-financial","BhbNDbHnelzcUV_oq77SU3LY3aVmIcTcMUQHKNkBbFg",{"id":4196,"title":4197,"author":512,"body":4198,"category":2321,"date":4215,"description":4216,"extension":179,"image":4217,"imageAlt":4218,"meta":4219,"navigation":183,"path":4220,"seo":4221,"stem":4222,"topic":2991,"__hash__":4223},"resources\u002Fresources\u002Fdale-shafer-life-moves-wealth-management.md","Dale Shafer | Life Moves Wealth Management",{"type":9,"value":4199,"toc":4213},[4200,4203,4207],[12,4201,4202],{},"In this episode, we sit down with Dale Shafer of Life Moves Wealth Management. Dale shares his path into wealth management and the story behind Life Moves, offering insight into how the firm helps clients navigate financial decisions through the lens of life’s biggest transitions.",[1224,4204],{"src":4205,"title":4206,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FpffEKAsy7zo","Dale Shafer | Life Moves Wealth Management on The Advisor View (video)",[12,4208,4209],{},[22,4210,2256],{"href":4211,"rel":4212},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=pffEKAsy7zo",[45],{"title":59,"searchDepth":167,"depth":167,"links":4214},[],"2026-05-15","Dale Shafer of Life Moves Wealth Management joins The Advisor View to share the story behind the firm and how it approaches planning and investing for clients.","\u002Fimages\u002Fresources\u002Fdale-shafer-life-moves-wealth-management.jpg","Dale Shafer of Life Moves Wealth Management on The Advisor View",{},"\u002Fresources\u002Fdale-shafer-life-moves-wealth-management",{"title":4197,"description":4216},"resources\u002Fdale-shafer-life-moves-wealth-management","bIY4a3XU83Mht2lUx6hKzbcnDJsyZKgmQIU7epDPrNU",{"id":4225,"title":4226,"author":7,"body":4227,"category":2983,"date":4215,"description":4412,"extension":179,"image":4413,"imageAlt":181,"meta":4414,"navigation":183,"path":4415,"seo":4416,"stem":4417,"topic":2991,"__hash__":4418},"resources\u002Fresources\u002Fmatthew-oberdorfer-obfi-com.md","Matthew Oberdorfer | ObFi.com",{"type":9,"value":4228,"toc":4410},[4229,4238,4241,4247,4251,4257,4260,4263,4266,4269,4271,4274,4277,4280,4283,4286,4289,4292,4294,4297,4300,4303,4306,4309,4312,4315,4318,4321,4324,4327,4330,4333,4336,4339,4342,4345,4347,4350,4353,4356,4359,4362,4365,4368,4371,4374,4377,4380,4383,4386,4389,4392,4395,4398,4400,4403,4406,4408],[12,4230,4231,4232,4237],{},"Read transcript highlights or listen to the full episode to hear Matthew Oberdorfer of ",[22,4233,4236],{"href":4234,"rel":4235},"https:\u002F\u002Fobfi.com\u002F",[45],"ObFi.com"," and Josh Hile discuss Matt’s background, the evolution of ObFi.com, the importance of personalized and planning-driven advice, and how tax-aware strategies and private markets can support stronger long-term portfolio outcomes.",[2724,4239],{"title":4226,"url":4240},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F19184786",[12,4242,4243],{},[22,4244,2734],{"href":4245,"rel":4246},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F19184786-matthew-oberdorfer-obfi-com",[45],[1224,4248],{"src":4249,"title":4250,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FrIw114-a5Nc","Matthew Oberdorfer | ObFi.com on The Advisor View (video)",[12,4252,4253],{},[22,4254,2256],{"href":4255,"rel":4256},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=rIw114-a5Nc",[45],[12,4258,4259],{},"Josh Hile: Hello all, this is Josh Hile, CEO of Citizen Mint, and this is the Advisor View podcast. Today we’re joined by Matt Oberdorfer. Is that how you pronounce your last name? Actually, sorry.",[12,4261,4262],{},"Matthew Oberdorfer: Yep. Oberdorfer. You got it.",[12,4264,4265],{},"Josh Hile: Okay. And Matt runs a firm called ObFin.com. And maybe, Matt, you can just talk about your background. How you started the firm, kind of, and I think also the interest of your background of being a veteran and kind of all that would be helpful.",[12,4267,4268],{},"Matthew Oberdorfer: Yeah. Okay. So first of all, thanks for having me on and I appreciate it. Excited to talk a little bit here. My background, I’ll do the short version. Okay. Is 24 years in the United States Marine Corps as an aviator. A planner at the operational level, and then at the end, space operations. So it was a really nice combination of kind of motivated, gung-ho type stuff coupled with nerdy analytical stuff. And for me, that was a great fit. So I got to touch like all four corners of the Marine Corps. you know, be all over the globe. I was, uh, active duty, I was enlisted, I was an officer, I was reserves. So I had like a really comprehensive experience. I loved it. Uh, we— I was in the, uh, EA-6B Prowler jet, awesome machine. Um, we would do electronic warfare. So basically our mission was to keep other people, uh, typically Marines, typically US service members, but a lot of times it was, uh, coalition forces to keep them safe. So for me, it was fantastic. Did a little under a decade of that, and then a little over a decade as an operational planner where you’re at the next highest level. Basically, simple version, you are assigning missions to the squadrons, right? So get the missions from higher headquarters, then I was assigning the missions to squadrons, and that requires allocation of resources and a lot of skills that ended up making a difference as a financial planner, a lot of, um, analyzing and mitigating risk. Um, so it was, it was kind of a nice precursor. Um, and then lastly finished off with about 3 years, um, at, uh, US Space Command.",[12,4270,2828],{},[12,4272,4273],{},"Matthew Oberdorfer: For the Marine Corps. So all the services have, uh, some responsibility there. For the assets that help, uh, around the world. And that was a really nice way to end the career. Kind of got nerdy again, got really high level. It goes beyond the operational level into the strategic level. And long story short, I loved serving others, and I knew that I kind of wanted to get back to it. That’s what gave me, like, my greatest sense of purpose.",[12,4275,4276],{},"Josh Hile: Yeah, yeah, that’s great. And so just because it’s so interesting, so what does Space Command do? What is— what does that actually, like, entail? Like, what are they looking— like, is that like satellite satellites?",[12,4278,4279],{},"Matthew Oberdorfer: Is—",[12,4281,4282],{},"Josh Hile: what is that?",[12,4284,4285],{},"Matthew Oberdorfer: Yeah, so it’s a lot of assets on orbit, but also there’s ground-based assets that help support the whole infrastructure, right? Um, and some of it is as simple as keeping GPS timing proper, because your position is basically a function of accurate timing. And, um, so that’s an oversimplified version, but yeah, mostly assets on orbit. And some of them have exquisite capabilities, as we say. And, uh, and just really trying to keep the country at the forefront of all that’s happening, which, which it is. Yeah. Okay.",[12,4287,4288],{},"Josh Hile: Super interesting. So what, so what kind of clients, um, do you serve? Are you looking to serve right now? Um, and kind of what’s your vision for the firm?",[12,4290,4291],{},"Matthew Oberdorfer: So I knew immediately I wanted to serve a certain type of individual, right? So not necessarily based on age, not necessarily based on net worth, although those are characteristics that a lot of firms use and I understand it. I was more interested in working with a mentality. So the way I say it is we put your money on a mission, right? So people that operate their day, their week on a mission. Oftentimes that is quite literally service members, which makes perfect sense. Business owners, right? This like win the hour, win the week mentality, like really speaks to them. Even if, you know, that term is new, like it makes sense. They’re trying to drive forward, make decisions that are going to generate revenue and control expenses and serve the public. And then professionals is a bit of a broad category, but especially professionals that are actively managing their career. So like their career is their mission, right? And oftentimes that comes with things like equity, right? Some type of ownership. And then it is similar but still different from, you know, a business owner. So that tends to be who we try to serve, that person who’s on a mission.",[12,4293,2828],{},[12,4295,4296],{},"Matthew Oberdorfer: Yeah, yeah.",[12,4298,4299],{},"Josh Hile: Um, and so maybe you can just talk about like your approach to advice and planning and investing. Um, where, where do you see like— what do you see as your kind of like differentiators within the market?",[12,4301,4302],{},"Matthew Oberdorfer: Yeah, so our approach is a combination of two things, I would say. One is best practices Right. So we try to live at the intersection of best practices and then 21st century mentality or design. And I’ll explain both of those. So best practices, things like people need financial planning, people need investment management, business owners need 401s. So we provide that. And then within each one of those domains, They need quality best practices, right? So we need to manage risk. We need to diversify. We need to understand your objectives overall if we’re going to build you a portfolio. When it comes to financial planning, we need to touch on all the big topics such as cash flow, liquidity. If you’re a business owner, is your business cyclical? Or not. So are you going to have cash flow crunches? And the list is long, right? So insurance, estate planning, right? So all these things fall into best practices. But then the intersection of best practices with a modern 21st century advisory is what I’m calling next-gen advisors. And I’m not the only one sort of in this arena with this mentality. But it’s a— so it’s the way that we charge fees or don’t charge fees. And the way that— the way I say it is it all boils down to how can we align with your mission as highly as possible. So I’ll give you a concrete example here. If you want to be strictly an investment management client with us, that’s perfectly fine. We do that. It’s an AUM fee, and that’s, you know, a best practice, that’s a common practice. But once you are interested in financial planning, we now use a flat fee model. And one of the things that we really love about the flat fee model is we feel like it’s very highly aligned with somebody’s financial goals. And I’ll just give you like some numbers. For instance, say we had an individual who was worth, um, maybe their business was worth $5 million. So they’re doing pretty well, you know, their business is growing. And let’s say that they’ve done a good job, um, growing their net worth in a second place. Let’s say the markets, all right, let’s say they’ve got $5 million of net worth in their business and $5 million of net worth in the markets. So if we are your financial advisor and we’re doing planning for you, we strictly charge a flat fee. And if you come to us and you want to have like a legitimate conversation, right, or you’re trying to make a decision in your personal life or your business life about maybe it’s time that your business buys the building that you typically lease, like you’ve leased since you were, you were a startup. Now you’ve got a lot more cash on hand, a lot more revenue, and maybe owning the building is starting to make sense, right? Now you’re going to diversify, you’re going to have tenants, right? Let’s say there is multiple spaces, you’ll take up 60%, the remaining 40% will be tenants. And, or maybe you want a second home in Florida, things like this, right? Real estate is just a simple example. If I— if our relationship is entirely AUM-based, then, you know, I instantly recognize that it’s going to be $2 or $3 million of exiting the market and purchasing the building, and that’s going to reduce my fees. Now, I don’t like— proactively, uh, work against the AUM model. Again, if you just want to be an investment management client, then we use it, right? But I think once I explain that the flat fee doesn’t really change the equation for us and it’s strictly about giving good quality advice, then clients and prospects, they really are very receptive to it. And So really, that’s the kind of high alignment that we wanted to create when designing our fee structure. Mm-hmm. Got it.",[12,4304,4305],{},"Josh Hile: That’s helpful. And so what do you think most advisors get wrong about working with high net worth clients?",[12,4307,4308],{},"Matthew Oberdorfer: So for high net worth clients, I would say probably two things. One, is so the fees that a high net worth client ends up having to pay start getting quite large. You know, frankly, if you have a— like in the previous example, if there’s $500,000 or if there’s $5 million in assets in the market, we’re looking at $50,000 a year if we’re at 1% AUM now, typically. Right? Um, advisories will start reducing their fees, but you’re still in that $35,000+ a year. Um, and that, that gets, you know, high net worth individuals’ attention. So like with a flat fee model, we tend to cap around $25,000 and that instantly cuts their bill in half. So I think that’s something that speaks, you to high net worth individuals. And a second thing is managing risk. So I think the way risk is managed is oversimplified. And I think there’s more due diligence that ought to be there. Thinking beyond the markets is pretty critical once someone’s net worth starts growing, growing, growing.",[12,4310,4311],{},"Josh Hile: Mm-hmm. And maybe you can talk about that risk and like, what does that look like for you and how do you think about that for your clients? Like, what are you looking at? What like specific metrics or things are you looking at for clients to help them with their risk profile?",[12,4313,4314],{},"Matthew Oberdorfer: Yeah, so overconcentration is pretty much a go-to answer because I think it ought to be, but if you are strictly in the market, And it’s got to be coupled with a few different things too. So what’s your time horizon? This stuff, this matters, right? What are your feelings about risk in the first place? This matters because what’ll end up happening is, um, it begins to feel like a roller coaster ride. So maybe, right, it’s a bumpy road for a month, maybe it’s a bumpy road for a year, Over the course of time, though, the charts start smoothing out. But if you make decisions because you’re overconcentrated and the pain looks or feels very significant at the time, it starts becoming more difficult to help a client through different market cycles. But if they are more diversified, right? So say they have, um, they’re invested in private deals, alts of some sort, right? Whether it’s real estate, private credit, um, and crypto, I know is a buzzword, but, um, there are benefits that are significant to managing risk the second you exit the market with the appropriate amount of money. Or the stock market, let’s say, and starts investing outside that market, it starts increasing your diversification, reducing your concentration. And I think there’s an unfortunate misconception that the second someone hears alts, it inherently feels more risky. And it’s just really not the case. You have to look at each deal or investment closely and decide, right, if it is actually more risky or not. You cannot just label alts risky, uh, broadly. That’s not very professional.",[12,4316,4317],{},"Josh Hile: So anyway, yeah, no, I, I 100% agree. And it’s, it’s funny because I think that is the broad— or people will say that, and then it’s like, well, You can invest in all these like, um, SPACs and that could be incredibly risky. You can invest in a hot tech stock that could be incredibly risky or biotech stock and that could be incredibly risky. And that can be completely different from an alt investment that has a lot of downside protection already embedded into it.",[12,4319,4320],{},"Matthew Oberdorfer: 1000%. Those are classic risky areas and there’s probably the list is really long of areas that are pretty darn solid, right? So yeah, yeah, yeah, the broad label is not good. I’ll also dovetail on that broad label thought, um, and it is an important sort of concept. I think oftentimes this probably happens, um, to all investors, um, regardless of their net worth. I think it’s probably quite common that advisors will give you a questionnaire. It tends to be quite nearly at the beginning of your relationship, you know, and it needs to be for compliance reasons, and then it’s repeated every so often, and it helps the advisor assess your level of tolerance for risk. And there’s a, you know, a handful of criteria that they’re going to ask you about, or the form, the questionnaire will ask you about, and that’s all well and good, that’s important, but what tends to happen is that’s as far as that conversation goes. So a label of cautious is applied to the entire individual or the entire household, and to me that’s not quite enough due diligence, to put it lightly. So I’ll give you an example. And if I were to ask somebody, what is your level of comfort for risk on your 401? And say you’re starting to get older, say you’re 45, so you’re not at retirement, typically speaking. You have significant time on the clock, but you’ve also spent significant time in your profession earning and trying to build a 401 so that you can go retire. Generally, people feel fairly cautious. They feel like they have to stick that one. They feel like they have to do a great job with that. And if that’s their mindset, I would encourage it. You know, that’s a pretty good mindset for most people on a 401. But if I were to say— if I were to continue the conversation and give it a little more due diligence and say, okay, your business is worth $5 million. You’ve got $5 million in investments in the stock market that have been growing. It’s been a great decade to 15 years. Um, what are your feelings about risk if we took $50,000 and created a new portfolio on the side? And you’re on— you could retire now if you wanted to, but you still have 20 years, you know, before you’d like to retire. Well, that $50,000 on the side, their feeling about risk is not going to be the same. They’re not going to express the same concerns, the same goals, the same objectives as they would with that heavy hitter, gotta stick it, gotta land this airplane right on the numbers, right where it counts, 401. There’s— right, so that’s where a level of You know, detail starts to matter, and, and you can get— and this is where alts become a beautiful thing, right? So it’s a fantastic tool, but the conversation needs to be, uh, thorough enough with your advisor that these topics even come up, and you can break out how would you feel about, you know, this amount of money in this asset class.",[12,4322,4323],{},"Josh Hile: No, definitely no. This is— that’s, that’s definitely a huge topic. Um, and you mentioned, um, the type of clients you serve are usually business owners, maybe servicemen or women. And anybody else that you’re serving kind of from a client perspective? And then, uh, how does the client you serve influence how you build the portfolio?",[12,4325,4326],{},"Matthew Oberdorfer: Yeah, so another So when it comes to professionals, that’s really kind of our third category— owners, service members, and professionals. It tends to be— so like we have an executive, a CFO, he’s been a COO at a number of companies. We have airline pilots, right? That’s a whole unique category, quite frankly, because they tend to have good income, but they also tend to have a lot of time. So then they tend—",[12,4328,4329],{},"Josh Hile: in a lot of cases.",[12,4331,4332],{},"Matthew Oberdorfer: Yeah, they can control their schedule and they, they tend to do a good bit of research on investments, but they tend to fixate on one particular thing and fall in love with it. So that, that’s a unique— just, just knowing that, that group of guys and gals, right? So how do you work them off of one idea that they think is going to make or break a portfolio? And those, those are like a couple good examples Um, and then, you know, we, we have, um, two doctors, and they tend to— they’re, they’re incredibly busy, right? So they’re very smart. If they had the time, right, to pour their energy into finances and investments, they would probably do well with it, but they don’t. And they know that their time is best served earning and working. As a surgeon, for instance. So yeah, yeah.",[12,4334,4335],{},"Josh Hile: What about, um, I, I’m not sure if this is like specific, but like, you know, you mentioned about risk and managing concentrated wealth, like whether it’s within like a particular stock or something else that the client’s holding. How do you think about that for the client, and what are ways you mitigate that?",[12,4337,4338],{},"Matthew Oberdorfer: Yeah, so I think the first thing I do is The first thing that comes to mind is I think about taxes and how do we do a good job of diversifying and managing this concentration without getting this client crushed by taxes. So that ends up becoming more complex. It’s very much dependent on what are they currently invested in, where is it invested, right? So a tax-advantaged account versus a taxable brokerage account, the approach is going to be different. Um, and then there’s other details too, right? If it’s equity, um, then there’s vesting schedules. Yeah, you know, they need to be considered. And once they start getting older, then there’s things like, um, you know, RMDs, right? What’s the best time to— do we want to delay the first year of RMDs? Um, I just went through that whole conversation with a client, and we decided that we weren’t gonna delay the first year, and that’s what ended up making sense by the time we ran the numbers. But the overconcentration piece— I come to taxes, that’s my first thought. I’m trying not to get a client hurt by taxes. Um, the overall net is more important, right? So if there is some sort of taxation that’s going to occur, um, but we’re going to be up 15% overall, Right. We’re not— I’m not necessarily inclined to pass on things that grow your net worth strictly, strictly to avoid taxation. Right. If you’re running a business, you’re going to sell a widget and just pay the taxes on it. So similar mindset in that regard. But, but yeah, that’s, that’s kind of the first thing that comes to mind when I have a client that is heavily concentrated is how do we carefully unwind this thoughtfully, um, and with especially being careful about taxation.",[12,4340,4341],{},"Josh Hile: Yeah, yeah. And then, um, just thinking about liquidity and like illiquidity and like what your clients are comfortable with based on their specific situation, is there a percentage that, that usually falls in for your clients specifically of their portfolio, like for private markets? Or alternatives in general?",[12,4343,4344],{},"Matthew Oberdorfer: So it, so it varies. So like, again, business owners, their profile tends to be different than what I see with service members, and that profile tends to be different than the professionals. So some of the service members, their paychecks are healthy. But once you’re a COO or a CFO, it tends to go, you know, 3x. And, and then once you’re a business owner, the sky’s the kind of the limit— is a little bit of an exaggeration, but it is kind of the big idea, uh, in the first place, generally, that, you know, you can make a significant amount of money. So the profiles on liquidity vary greatly across those, um, three different type of individuals. But what I end up seeing, like, is that service members, um, their liquidity tends to be, um, very appropriate for their financial situation, generally speaking. Um, the dollar amounts might be smaller dollar amounts, but based on the volatility of their income, which is not very volatile, right? Next year tends to always be your best— your next best year, right?",[12,4346,2747],{},[12,4348,4349],{},"Matthew Oberdorfer: 3% pay raise. So that they tend to be pretty in line with liquidity needs based on their expenses. And but then when you come to business owners, liquidity is much more all over the place. So, uh, that— it tends to be a bigger conversation, a bigger piece of the puzzle. Um, they’re making truthfully moderately difficult decisions about should I— how much should I reinvest in the business, right? So I have growth, I want to keep fueling growth. Um, so they have a bit of a fear oftentimes with not fueling the growth or not reinvesting in the business. And, and, and so their, their liquidity oftentimes it can become a little bit constrained, right? And then they— the problem is you’re going to hit, you’re going to hit bumps along the way, right? Some of these are macroeconomic bumps that are just not up to you. And you want to be in a position where you can weather the storm or even thrive, right, in an economic downturn. ’08, ’09, great financial crisis. COVID more recently. Um, and if you have an appropriate amount of liquidity, then you can make some significant moves during these downturns that enable you to accelerate, right? So maybe it’s buying out another company that is just a great fit for you. Maybe it’s hiring another person because you have an expertise. Like, I was talking with a CPA who has an ex— they had an expertise in PPP, um, because they poured themselves into it during COVID and business was booming. And because they had enough cash on hand, they could hire 2 more people right then and not, not wonder how they’re going to pay for it. And it really fueled growth, and it ended up absolutely defining their business, and it helped people through a very difficult time. And those are extremely loyal clients now. Uh, yeah, so the owner’s tent, their, their liquidity, um, sort of management is much more varied than, say, a service member’s, generally speaking.",[12,4351,4352],{},"Josh Hile: Got it, got it.",[12,4354,4355],{},"Matthew Oberdorfer: Yeah.",[12,4357,4358],{},"Josh Hile: And so, um, I guess just, um, switching topics a little bit, but where are you seeing the most compelling opportunities today, um, from a like alternative standpoint?",[12,4360,4361],{},"Matthew Oberdorfer: Yeah, so I think for as an advisor, what I noticed is I tend to work with people that are younger. So I’m 45. It tends to be people that are in their late 20s, 30s, 40s, and 50s. So it’s not really people that are in their last 5 years or about to retire, although I do have some of that. Um, if you can’t have an intelligent conversation about alts— or let me put it another way, if you can have an intelligent conversation about alts, it brings a lot of peace to the clients. And here’s what I’ve noticed. Is there’s a lot of information out there and people have a lot of access to information. So it tends to be they hear about crypto, they hear about private credit, they hear about data centers and infrastructure, they hear about do we have the energy to actually pull this off. They have— they hear about all these things, but they’re not a professional in that regard. So to not have the conversation about probably 15 hot topics in the world of finance and investing, um, I think it’s like a big white elephant in the room, and you just need to give it its due diligence. And if the answer is okay, this isn’t a good fit for you because you don’t like it or because of your financial, like, profile overall like it just doesn’t make sense for you. But you need to be able to talk to clients about it. Just to be quite frank, if it’s all stocks and bonds and like your big pitch is that you’ve got a high yield savings account, everybody can do that. Everybody can have that conversation. So the differentiator is, I think, or at least what I see, and I can’t speak for everyone, is the ability to talk about alts intelligently and then implement it thoughtfully, right? Suitably, right? To use a legal compliance term here. And I also think the structure of your fees in creating alignment. So I would say alignment and the world of alts, you really, really need to give it a lot of due diligence nowadays.",[12,4363,4364],{},"Josh Hile: Yeah, I know we agree. And we’re seeing that too. We’re talking to a lot of advisors and just their ability to offer something that they can get elsewhere. And, um, you know, it is going to be something that in a world of information they’ll want access to, especially if you’ve seen like the statistics about younger clients. They just don’t believe in the stock market as much as the older client generation has.",[12,4366,4367],{},"Matthew Oberdorfer: Yeah. So yeah, I could— yep, I see the same thing. Yeah.",[12,4369,4370],{},"Josh Hile: Um, so What’s, um, just looking back at our questions, so what, what is one thing that advisors should rethink or one thing they should do when they’re listening to this that think about improving how they, uh, help clients?",[12,4372,4373],{},"Matthew Oberdorfer: I think I’d come back to the way you’re charging clients, right? Like, we, you, we, we make no money on commissions. We have no, we have no hidden fees. Yeah, 1% is 1%. There’s nothing else. I think people appreciate that. Um, like, the fee schedule that you agree to when you onboard with us is the fee schedule you’ll have forever. I think that speaks to people. If we did generate a new fee schedule that applies to new clients, I think people like that. I think they’re tired of finding out later that it wasn’t quite what they thought it was. That’s one thing. And then I would say, again, the ability to add specialty advice or understanding, right? So for us specifically, like in this conversation, alts, I think you need to widen your scope and get educated and have the ability to have broader conversations about what’s out there. Um, again, somewhat tangential with the specialty advice is if you want to be able to speak about insurance, right? So now let’s not even talk alts for a second. If you want to be able to speak about insurance, You can go get an insurance license but not charge or sell the product, right? So this is just how you can add value to the relationship that you have with clients or prospective clients, um, the ability to have, again, educated, thorough, comprehensive conversations. So I, I think the way you charge someone and what you bring to the table. I think those are the two critical areas where, where, uh, the whole profession of advisory, um, can grow. Yeah.",[12,4375,4376],{},"Josh Hile: Okay. And then, um, this— and this kind of goes on a separate topic, but what do you think is the biggest opportunity over the next 3 to 5 years for you, wealth advisors, this space in general?",[12,4378,4379],{},"Matthew Oberdorfer: So for me as an advisor, you’re saying, or for clients?",[12,4381,4382],{},"Josh Hile: For me as an advisor, I think it’s, I think it’s both, kind of talking about the wealth management space in general. And like, what do you think wealth advisors’ biggest, uh, opportunity is over the next 3 to 5 years?",[12,4384,4385],{},"Matthew Oberdorfer: I think it’s the ability— I’ll use an analogy. So when, when MP3s came out, they caught fire. It was a fantastic value add to society, right? You’ve got a lot of music in your pocket. Yeah, right. Um, so we’ve got an app that does that. We’ve got multiple apps that do that. What ended up happening is two things coexisted at the same time. Um, you have that convenience and you have that breadth. That was cool. But there’s a reason why vinyl made a comeback. Vinyl made a comeback because it’s real, because it’s tangible, because there’s a connection there, because there’s like a relationship, right, with vinyl. And you can show someone your collection, um, it kind of demonstrates what you like the most, right? So long story short, there’s a lot of fintech apps out there now that are trying to provide clients or customers with financial solutions. And I respect that. And a lot— some of them do a good job, some of them don’t do a good job. But if you’re able to go fill that space where you’re both modern in the sense that you align with 21st century values and you can provide a relationship and build trust and be high touch, you know, with clients, then that is similar to, um, the sort of appeal, right, that vinyl ended up having. And like, why did it make a comeback? Because, um, because it had a place, right? So I think the advisor that can be both present and important in your life as a client, but also is willing to depart from like the legacy style of advising. And I think that’s really where there’s a tremendous opportunity. And I kind of, I got an expression and, you know, it’s like, I don’t think a lot of the younger clients, let’s say my age and younger, um, you know, I don’t think they need a mahogany office and a lecture. More so, they need wise advice and a coffee, right? Yeah, I would say that’s true of myself. If I was looking for something, I want wise advice and a coffee, right? If I’m gonna go make a decision, whether it’s financial or otherwise. So that’s kind of where I think the opportunity exists, is that filling the space. Um, there is no shortage of tech apps like fintech apps out there, um, and they’re going to keep coming. But if you can like be that human with a relationship, an actual meaningful impact on someone’s life— and we— I like to intercept someone like at a more meaningful part of their life that kind of directs their trajectory more so than, you know, coming in the last year or 5 and landing the airplane into retirement. That’s, that’s where I think the most opportunity is.",[12,4387,4388],{},"Josh Hile: Yeah, definitely. No, that’s super helpful. And so what about— here’s, here’s kind of my last question, a little bit different, but What’s one thing that people don’t know about you?",[12,4390,4391],{},"Matthew Oberdorfer: Hmm, well, I haven’t really thought much about that. I really like the question.",[12,4393,4394],{},"Josh Hile: A hobby that, that you do outside of work that you enjoy?",[12,4396,4397],{},"Matthew Oberdorfer: Oh yeah, I mean, uh, I’m really big on fitness and discipline. Like, discipline is like an overarching category for me, and like so many things fit in there. Um, fitness is, is just one of them. Um, General Mattis, I believe it was, you know, had this comment about fitness. He said, get on with it. Right. So it’s kind of like, the way I see it is, I personally enjoy it. I can’t really get enough of it. But I need to respect my body and do what’s healthy for it.",[12,4399,2747],{},[12,4401,4402],{},"Matthew Oberdorfer: But, but yeah, I think, I think, I think I’d probably go with something like, I’m kind of a— I love fitness.",[12,4404,4405],{},"ObFi.com is a registered investment adviser and the opinions expressed by ObFi.com on this show are their own and do not reflect the opinions of Citizen Mint. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.",[12,4407,2977],{},[12,4409,2980],{},{"title":59,"searchDepth":167,"depth":167,"links":4411},[],"In our seventh episode, Matthew Oberdorfer of ObFi.com shares his perspective on modern wealth management, discussing personalized financial planning, tax-aware portfolio construction, and how advisors can integrate alternative investments and private markets to support long-term client outcomes.","\u002Fimages\u002Fresources\u002Fmatthew-oberdorfer-obfi-com.png",{},"\u002Fresources\u002Fmatthew-oberdorfer-obfi-com",{"title":4226,"description":4412},"resources\u002Fmatthew-oberdorfer-obfi-com","KNyjMOfe0KyHpy_vYVDKBefHNkq8slg3Uaybhslgu4U",{"id":5,"title":6,"author":7,"body":4420,"category":176,"date":177,"description":178,"extension":179,"image":180,"imageAlt":181,"meta":4523,"navigation":183,"path":184,"seo":4524,"stem":186,"topic":187,"__hash__":188},{"type":9,"value":4421,"toc":4514},[4422,4424,4426,4430,4434,4436,4441,4443,4445,4449,4451,4453,4455,4457,4461,4463,4465,4467,4469,4473,4475,4477,4479,4481,4486,4490,4492,4496,4498,4502,4504,4506,4508,4510,4512],[12,4423,14],{},[12,4425,17],{},[12,4427,20,4428,26],{},[22,4429,25],{"href":24},[12,4431,4432],{},[30,4433,32],{},[34,4435,37],{"id":36},[12,4437,40,4438,47],{},[22,4439,46],{"href":43,"rel":4440},[45],[12,4442,50],{},[12,4444,53],{},[12,4446,4447],{},[57,4448],{"alt":59,"src":60},[34,4450,64],{"id":63},[12,4452,67],{},[12,4454,70],{},[12,4456,73],{},[12,4458,4459],{},[57,4460],{"alt":59,"src":78},[80,4462,83],{"id":82},[12,4464,86],{},[34,4466,90],{"id":89},[12,4468,93],{},[12,4470,4471],{},[57,4472],{"alt":59,"src":98},[34,4474,102],{"id":101},[12,4476,105],{},[12,4478,108],{},[12,4480,111],{},[12,4482,114,4483,120],{},[22,4484,119],{"href":117,"rel":4485},[45],[12,4487,4488],{},[57,4489],{"alt":59,"src":125},[34,4491,129],{"id":128},[12,4493,4494],{},[57,4495],{"alt":59,"src":134},[34,4497,138],{"id":137},[12,4499,141,4500,146],{},[22,4501,145],{"href":144},[12,4503,149],{},[12,4505,152],{},[34,4507,156],{"id":155},[12,4509,159],{},[12,4511,162],{},[12,4513,165],{},{"title":59,"searchDepth":167,"depth":167,"links":4515},[4516,4517,4518,4519,4520,4521,4522],{"id":36,"depth":167,"text":37},{"id":63,"depth":167,"text":64},{"id":89,"depth":167,"text":90},{"id":101,"depth":167,"text":102},{"id":128,"depth":167,"text":129},{"id":137,"depth":167,"text":138},{"id":155,"depth":167,"text":156},{},{"title":6,"description":178},{"id":4526,"title":4527,"author":7,"body":4528,"category":176,"date":4781,"description":4782,"extension":179,"image":4783,"imageAlt":181,"meta":4784,"navigation":183,"path":4785,"seo":4786,"stem":4787,"topic":2991,"__hash__":4788},"resources\u002Fresources\u002Fprivate-markets-operations-ria.md","The Operational Gap Holding Back Private Markets Adoption",{"type":9,"value":4529,"toc":4773},[4530,4533,4539,4542,4546,4552,4555,4562,4565,4568,4571,4575,4578,4592,4595,4598,4603,4607,4610,4613,4620,4623,4630,4633,4640,4643,4650,4653,4657,4662,4665,4677,4680,4685,4696,4701,4717,4720,4724,4727,4730,4737,4744,4747,4751,4754,4757,4770],[12,4531,4532],{},"OPERATIONS • EXECUTION • SCALE",[12,4534,4535,4536,4538],{},"For most ",[22,4537,3412],{"href":3411},", the question of whether to allocate to private markets has already been answered. Survey data cited by KKR, drawing from Cerulli, found that 28.7% of RIAs expected to increase private market allocations by 2026, even as average allocations sat at just 2.3%. The conviction is there. The intention is there. What often isn’t there is an operational foundation that makes it practical to act.",[12,4540,4541],{},"This piece is about that gap: what causes it, what it actually costs advisors, and what the path forward looks like for firms ready to move beyond the 2.3%.",[34,4543,4545],{"id":4544},"the-bottleneck-isnt-philosophical-its-operational","The Bottleneck Isn't Philosophical, It's Operational",[12,4547,4548,4549,4551],{},"Most advisors don’t need to be convinced that private markets belong in client portfolios. They already understand the case for ",[22,4550,1028],{"href":1027},", for accessing return streams that don’t move in lockstep with public markets, for building differentiated client relationships around a more complete portfolio.",[12,4553,4554],{},"The question they’re actually wrestling with is more practical: Can our team handle this cleanly?",[12,4556,4557],{},[343,4558,4559],{},[30,4560,4561],{},"For many firms, the honest answer is: not yet. Not with the systems and workflows they have today.",[12,4563,4564],{},"Private investments don’t behave like public ones. They come with subscription documents, capital calls, irregular distributions, inconsistent reporting formats, and a lifecycle that plays out over years. Each one has to be tracked, documented, and reconciled in ways that hold up to internal review and regulatory examination.",[12,4566,4567],{},"Without infrastructure designed specifically for this, those requirements fall on people, usually a small number of people who end up owning an ever-growing manual process. When those people are stretched, important things slip. And in a regulatory environment that has made private fund oversight a stated examination priority, slipping isn’t an option.",[12,4569,4570],{},"The SEC’s Examination Priorities are explicit: advisers to private funds remain a focus area, particularly around disclosures, fiduciary obligations, and the accuracy of fee and expense calculations. That’s not a distant concern. It’s the environment your operations team is already working in.",[34,4572,4574],{"id":4573},"what-actually-breaks-down-why-it-matters","What Actually Breaks Down & Why It Matters",[12,4576,4577],{},"The operational challenges in private markets aren’t mysterious. They tend to show up the same way across firms:",[960,4579,4580,4583,4586,4589],{},[536,4581,4582],{},"Documents live in too many places: drives, fund admin portals, inboxes, and spreadsheets that only certain people know how to navigate.",[536,4584,4585],{},"Capital activity is tracked manually, often by one or two people who’ve built their own system for keeping up.",[536,4587,4588],{},"Quarter-end reporting becomes a scramble to pull together information that was never organized to be reported on.",[536,4590,4591],{},"When an exam or internal review requires reconstructing a process, the work is painful because the documentation was never designed to be reproducible.",[12,4593,4594],{},"Individually, each of these is a nuisance. Collectively, they’re a ceiling on how much private market activity a firm can realistically support, and a liability if something goes wrong.",[12,4596,4597],{},"And this operational strain compounds as firms grow. Schwab’s 2024 RIA Benchmarking Study, drawing on data from 1,304 firms representing $2 trillion in AUM, projected that the industry would need to hire more than 70,000 new staff over the next five years at current growth rates. Headcount helps, but it doesn’t solve a process problem. If the underlying workflow is fragmented, adding people mostly adds more points of failure.",[12,4599,4600],{},[57,4601],{"alt":59,"src":4602},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-Screenshot-2026-04-20-164942.png",[34,4604,4606],{"id":4605},"what-good-operational-infrastructure-actually-looks-like","What Good Operational Infrastructure Actually Looks Like",[12,4608,4609],{},"The firms that have moved through this transition and made private markets a meaningful, manageable part of their practice; tend to share a few things in common. They’ve built or adopted infrastructure that treats private investments as a distinct operational category, not a variation of the public market workflows they already have.",[12,4611,4612],{},"In practice, that means four things:",[533,4614,4615],{},[536,4616,4617],{},[30,4618,4619],{},"A single source of truth for every investment",[12,4621,4622],{},"Not a folder, not an inbox thread. Each investment needs a coherent record that ties together diligence materials, subscription documents, capital activity, statements, and client participation from day one through the end of the investment lifecycle.",[533,4624,4625],{"start":167},[536,4626,4627],{},[30,4628,4629],{},"Standardized reporting inputs",[12,4631,4632],{},"Private funds report in inconsistent formats. Good infrastructure normalizes that by converting fund-level data into comparable fields that can actually support oversight, client reporting, and internal review.",[533,4634,4635],{"start":498},[536,4636,4637],{},[30,4638,4639],{},"Workflow visibility, not inbox dependence",[12,4641,4642],{},"Capital calls, distributions, and investor notices should live in a process with clear ownership and timing, not buried in someone’s email, dependent on that person being available and on top of it.",[533,4644,4645],{"start":943},[536,4646,4647],{},[30,4648,4649],{},"Reproducibility by design",[12,4651,4652],{},"Having the files isn’t enough. Firms need to be able to walk a regulator or a senior partner through the investment decision and the lifecycle that followed, consistently, from any investment, at any time. That only happens when the process was designed to be reproducible, not reconstructed after the fact.",[34,4654,4656],{"id":4655},"how-citizen-mint-is-built-to-close-this-gap","How Citizen Mint Is Built To Close This Gap",[12,4658,4659,4661],{},[22,4660,1040],{"href":1039}," was built on a straightforward premise: the private markets opportunity is real, but it only becomes accessible to RIAs when access and operations are solved together. Product availability alone doesn’t move the needle. Implementation capability does.",[12,4663,4664],{},"Our platform is designed around that reality. From the moment an advisor identifies an opportunity through Citizen Mint, from onboarding through investment completion, capital activity, and ongoing reporting, the experience is built to be intuitive and centralized. Advisors don’t have to stitch together a workflow from separate systems. The workflow is already there.",[12,4666,4667],{},[343,4668,4669],{},[30,4670,4671,4672,4676],{},"We review hundreds of investments annually and apply a rigorous five-step ",[22,4673,4675],{"href":4674},"\u002Fresources","diligence process"," before anything reaches the platform. But our diligence doesn’t stop at the investment itself. We evaluate operational considerations as part of that review, specifically to ensure that what we bring to advisors can actually be implemented cleanly within their existing practice.",[12,4678,4679],{},"The result, in practice, is a different kind of experience for the teams that work with us:",[12,4681,4682],{},[30,4683,4684],{},"For operations teams:",[960,4686,4687,4690,4693],{},[536,4688,4689],{},"Fewer disconnected systems and manual workarounds. Documentation lives in one place, organized consistently across every investment.",[536,4691,4692],{},"More predictable workflows for capital activity, reporting, and investor communications.",[536,4694,4695],{},"Greater visibility into the full investment record, so when a review comes, the work of preparation is minimal.",[12,4697,4698],{},[30,4699,4700],{},"For advisors:",[960,4702,4703,4706,4709],{},[536,4704,4705],{},"A shorter path from opportunity identification to implementation. The operational groundwork is already laid.",[536,4707,4708],{},"More confidence in client conversations, because materials and reporting are easier to pull together and easier to explain.",[536,4710,4711,4712,4716],{},"A ",[22,4713,4715],{"href":4714},"\u002Fresources\u002Falternatives-wealth-management-endowment-model","private markets practice"," that scales with the firm, rather than one that strains under its own weight.",[12,4718,4719],{},"Private markets shouldn’t require a firm to choose between investment quality and operational sanity. At Citizen Mint, we believe the best platforms deliver both.",[34,4721,4723],{"id":4722},"the-real-question-facing-rias-today","The Real Question Facing RIAs Today",[12,4725,4726],{},"The growth of private markets in advisor portfolios won’t be settled by product availability. There’s no shortage of private market products. What will determine which firms actually capitalize on this moment, and which ones stay stuck at 2.3%, is whether they’ve built the operational capacity to support implementation at scale.",[12,4728,4729],{},"That shifts the key question from “Should our clients have private market exposure?” to something more useful:",[12,4731,4732],{},[343,4733,4734],{},[30,4735,4736],{},"“Can our firm support private markets in a way that is clean, scalable, and repeatable?”",[12,4738,4739,4740,4743],{},"When the answer is yes, everything changes. Investment teams can focus on judgment rather than administration. Advisors can focus on client fit and ",[22,4741,4742],{"href":24},"portfolio construction"," rather than chasing paperwork. Operations can focus on oversight rather than document recovery. Compliance can focus on process integrity rather than trying to reconstruct what happened.",[12,4745,4746],{},"That’s not just a better operational experience. It’s a better model for building a durable private markets practice.",[34,4748,4750],{"id":4749},"a-closing-thought","A Closing Thought",[12,4752,4753],{},"Private markets get talked about as an access problem. In most RIA firms, they’re really an operations problem.",[12,4755,4756],{},"The firms that build meaningful, lasting private markets practices will be the ones that treat implementation as seriously as they treat investment selection. They’ll be the ones whose operations teams move with confidence, whose advisors can execute without friction, and whose compliance teams aren’t left stitching together a story after the fact.",[12,4758,4759,4760,4764,4765,4769],{},"At Citizen Mint, that’s what we’re here to support. Strong ",[22,4761,4763],{"href":4762},"\u002Fresources\u002Fhow-does-citizen-mint-select-investments","due diligence"," matters and we invest heavily in it. But so does making private markets genuinely usable for the people who have to execute, document, report on, and stand behind the process every day. When those pieces come together, private markets stop being an ",[22,4766,4768],{"href":4767},"\u002Fhow-it-works","operational burden"," and start being a competitive advantage.",[12,4771,4772],{},"That’s the opportunity in front of RIAs right now. We’d love to help you get there.",{"title":59,"searchDepth":167,"depth":167,"links":4774},[4775,4776,4777,4778,4779,4780],{"id":4544,"depth":167,"text":4545},{"id":4573,"depth":167,"text":4574},{"id":4605,"depth":167,"text":4606},{"id":4655,"depth":167,"text":4656},{"id":4722,"depth":167,"text":4723},{"id":4749,"depth":167,"text":4750},"2026-04-21","Private markets adoption often stalls at operations. Learn how RIAs can streamline workflows, reduce complexity, and scale private investments more effectively.","\u002Fimages\u002Fresources\u002Fprivate-markets-operations-ria.jpeg",{},"\u002Fresources\u002Fprivate-markets-operations-ria",{"title":4527,"description":4782},"resources\u002Fprivate-markets-operations-ria","tG8RzJMnW_iAiFnWokVF66Tn7DEKXXt1eQuaWBMG3s8",{"id":4790,"title":4791,"author":7,"body":4792,"category":176,"date":5041,"description":5042,"extension":179,"image":5043,"imageAlt":181,"meta":5044,"navigation":183,"path":24,"seo":5045,"stem":5046,"topic":2330,"__hash__":5047},"resources\u002Fresources\u002Fhow-much-should-clients-allocate-to-private-markets.md","Sizing Private Market Allocations: How Liquidity, Diversification, and Opportunity Should Shape the Conversation",{"type":9,"value":4793,"toc":5034},[4794,4797,4803,4806,4811,4819,4823,4835,4838,4843,4851,4856,4863,4870,4874,4877,4880,4889,4894,4897,4902,4905,4909,4912,4915,4918,4921,4924,4929,4932,4960,4964,4967,4970,4974,4977,4982,4985,4990,4993,4997,5004,5009,5012,5015,5019,5022,5025,5028,5031],[12,4795,4796],{},"PRIVATE ALLOCATIONS • LIQUIDITY • DIVERSIFICATION",[12,4798,4799,4800,4802],{},"For many advisors, private markets have become a practical tool for building portfolios that are designed to seek differentiated return streams, broader ",[22,4801,1028],{"href":1027},", and in some cases more durable income. BlackRock’s 2026 outlook for wealth advisors makes that shift clear, arguing that private markets are moving from niche allocations to more essential components of resilient portfolios.",[12,4804,4805],{},"Still, one of the most common questions from clients is also one of the hardest to answer simply:",[12,4807,4808],{},[30,4809,4810],{},"How much should I actually allocate to private markets?",[12,4812,4813,4814,4818],{},"The right answer is rarely a fixed number. In practice, allocation decisions should be driven by three things: the client’s liquidity needs, the role private assets are meant to play in the broader portfolio, and the ",[22,4815,4817],{"href":4816},"\u002Fresources\u002F2026-outlook-on-private-market-opportunities","opportunity set across private market strategies today",". Thoughtful allocation is less about maximizing an alternatives bucket and more about building a portfolio that can hold up across different environments. Cambridge Associates, BlackRock, MSCI, and J.P. Morgan all point in the same general direction: portfolio construction matters more than labels, and private assets can improve outcomes when they are sized with discipline.",[34,4820,4822],{"id":4821},"how-much-should-clients-allocate-to-private-markets","How Much Should Clients Allocate to Private Markets?",[12,4824,4825,4826,4829,4830,4834],{},"For some clients, private markets may be a return enhancer. For others, they may serve as a source of current income, access to sectors underrepresented in public markets, or exposure to long-duration secular themes like ",[22,4827,4828],{"href":2349},"infrastructure and energy",". BlackRock’s capital market framework explicitly ties private market sizing to ",[22,4831,4833],{"href":4832},"\u002Fresources\u002Fwhy-liquidity-is-not-equal-to-risk-in-investing","liquidity risk"," and the cash flow requirements of the investor, rather than treating private assets as a standalone target.",[12,4836,4837],{},"That is an important shift. It means the question is not whether a client “should” have a 10% or 20% allocation in the abstract. It means the allocation should reflect the client’s total balance sheet, expected spending needs, time horizon, and tolerance for capital being tied up for years rather than days.",[12,4839,4840],{},[30,4841,4842],{},"An illustrative framework",[12,4844,4845,4846,4850],{},"Below is a simple way to think about ",[22,4847,4849],{"href":4848},"\u002Fasset-allocation-planner","private market sizing",". This is not a universal prescription, but a portfolio construction guide for discussion:",[12,4852,4853],{},[57,4854],{"alt":59,"src":4855},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-10b4b4c8-7064-41c3-a1c9-1ac03758c7a6.png",[12,4857,4858,4859,4862],{},"The key idea is simple: ",[30,4860,4861],{},"the stronger the client’s liquidity profile, the larger the potential role private markets can play."," That is broadly consistent with BlackRock’s private market allocation matrix and with the wider institutional shift toward whole-portfolio construction.",[12,4864,4865,4866,4869],{},"For many advisors, the practical takeaway is that a private markets allocation should usually be ",[30,4867,4868],{},"earned",", not assumed. Starting smaller, pacing commitments, and increasing exposure only when the client has demonstrated comfort with capital calls, distributions, and reporting complexity can lead to better long-term outcomes than jumping immediately to a headline target.",[34,4871,4873],{"id":4872},"how-liquidity-profiles-should-influence-private-market-allocations","How Liquidity Profiles Should Influence Private Market Allocations",[12,4875,4876],{},"This may be the most underappreciated part of the conversation.",[12,4878,4879],{},"Private assets may improve portfolio construction, but they also change the client experience. The timing of capital calls, limited redemption windows, distribution uncertainty, and the inability to rebalance instantly all matter. A client with meaningful near-term spending needs, tax payments, real estate plans, or concentrated business exposure should be sized differently from a client with substantial excess liquidity and a long investment runway.",[12,4881,4882,4883,4888],{},"BlackRock’s framework explicitly emphasizes cash flow requirements when determining strategic private market allocations. ",[22,4884,4887],{"href":4885,"rel":4886},"https:\u002F\u002Fcaia.org\u002F",[45],"CAIA"," has similarly highlighted that portfolio construction around illiquidity should be driven by total portfolio thinking, not by treating alternatives as an isolated sleeve.",[12,4890,4891],{},[30,4892,4893],{},"A practical liquidity test for advisors",[12,4895,4896],{},"Before increasing a client’s private allocation, it can help to pressure-test a few questions:",[12,4898,4899],{},[57,4900],{"alt":59,"src":4901},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-Liquidity-questions-for-private-market-investments.png",[12,4903,4904],{},"That last point matters. Illiquidity is not automatically a benefit. It only becomes a potential advantage when the client has the ability and willingness to be paid for locking capital away. In other words, the illiquidity premium is only useful if the portfolio and the client can actually bear the illiquidity.",[34,4906,4908],{"id":4907},"why-private-markets-can-improve-portfolio-diversification","Why Private Markets Can Improve Portfolio Diversification",[12,4910,4911],{},"The diversification case for private markets is not just about lower reported volatility. In fact, sophisticated allocators know to be cautious here, because appraisal-based pricing and stale marks can make private assets look smoother than they really are.",[12,4913,4914],{},"The stronger diversification case is broader than that.",[12,4916,4917],{},"Private markets can provide access to different cash flow streams, financing structures, business models, and sector exposures that may not be easily replicated in traditional public market portfolios. BlackRock’s 2026 private markets outlook frames private assets as increasingly relevant in a world shaped by structural inflation, greater dispersion, and long-duration investment themes like infrastructure and the energy transition.",[12,4919,4920],{},"Cambridge Associates makes a related point in its 2025 strategic portfolio construction work, noting that higher expected return for more diversified portfolios can come from access to incremental return sources, including private investments and more diverse market risks.",[12,4922,4923],{},"MSCI also found that private assets contributed to portfolio diversification in its 2025 analysis of wealth portfolios. And J.P. Morgan’s alternatives work shows that private markets sit in a different part of the risk\u002Freturn and manager-dispersion landscape than traditional stocks and bonds, which helps explain why manager selection and portfolio role matter so much.",[12,4925,4926],{},[30,4927,4928],{},"What this means in practice",[12,4930,4931],{},"Private markets can diversify portfolios in at least three ways:",[533,4933,4934,4942,4952],{},[536,4935,4936,4939,4941],{},[30,4937,4938],{},"Broader opportunity set",[1667,4940],{},"\nAdvisors can access areas of the economy that are less represented in public markets, including direct lending, infrastructure, specialized real assets, and smaller private businesses.",[536,4943,4944,4947,4949,4951],{},[30,4945,4946],{},"Different return drivers",[1667,4948],{},[22,4950,3564],{"href":3403}," may be driven more by contractual cash flows, seniority, collateral, and underwriting discipline than by daily equity market sentiment. Infrastructure and real assets may benefit from long-term contracted revenues or inflation-linked characteristics.",[536,4953,4954,4957,4959],{},[30,4955,4956],{},"Potentially better portfolio balance",[1667,4958],{},"\nDiversification is not just owning more things. It is owning exposures that behave differently enough to improve total portfolio resilience. That is the logic behind the institutional move toward whole-portfolio construction.",[34,4961,4963],{"id":4962},"private-credit-private-equity-real-estate-and-infrastructure-where-the-opportunity-is-today","Private Credit, Private Equity, Real Estate, and Infrastructure: Where the Opportunity Is Today",[12,4965,4966],{},"Once an advisor determines that private markets deserve a role in the portfolio, the next question becomes where to lean today.",[12,4968,4969],{},"That matters because private credit, private equity, real estate, and infrastructure are not interchangeable. Each can play a different role depending on whether the client is seeking income, growth, inflation sensitivity, portfolio resilience, or exposure to long-term structural themes.",[12,4971,4972],{},[30,4973,3564],{},[12,4975,4976],{},"Private credit often makes the most sense for clients prioritizing current income, seniority in the capital structure, and more defined downside protections. In today’s environment, it can be an appealing fit for investors looking for contractual cash flows and yield premiums relative to traditional fixed income.",[12,4978,4979],{},[30,4980,4981],{},"Private equity",[12,4983,4984],{},"Private equity remains more growth-oriented and operationally driven. It is typically better suited for clients with longer time horizons, greater tolerance for illiquidity, and an interest in capital appreciation rather than immediate income. While the return potential can be compelling, it usually comes with more dependence on exit timing, manager execution, and the broader deal environment.",[12,4986,4987],{},[30,4988,4989],{},"Real estate",[12,4991,4992],{},"Private real estate can sit somewhere between income and appreciation, depending on the strategy. Core and income-oriented real estate may appeal to clients seeking cash flow and tangible asset exposure, while opportunistic or value-add strategies may be better suited for clients willing to take on more business-plan and execution risk. Real estate can also add diversification through property-level cash flows and sector-specific drivers that differ from public equities and bonds.",[12,4994,4995],{},[30,4996,3584],{},[12,4998,4999,5000,5003],{},"Infrastructure deserves a place in this conversation because it often offers a very different return profile from both private equity and traditional fixed income. In many cases, infrastructure investments can provide long-duration cash flows, essential-service exposure, and in certain segments a degree of ",[22,5001,5002],{"href":376},"inflation sensitivity",". For clients seeking portfolio ballast, income, and exposure to secular growth areas like energy, power, and transportation, infrastructure can be a particularly compelling part of the private markets toolkit.",[12,5005,5006],{},[57,5007],{"alt":59,"src":5008},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-Professional-investment-strategy-table-1.png",[12,5010,5011],{},"The practical implication is that a private markets allocation should not simply be a single line item. A client seeking income and stability may warrant more exposure to private credit, infrastructure, or certain real estate strategies. A client with longer-dated capital and higher tolerance for lockups may be better positioned to lean more heavily into private equity.",[12,5013,5014],{},"That is why allocation decisions work best when they start with the role each strategy is meant to play in the portfolio, rather than treating all private market exposure as if it serves the same purpose.",[34,5016,5018],{"id":5017},"final-thought","Final Thought",[12,5020,5021],{},"Private markets should not be treated as a single bucket, and they do not belong in every portfolio at the same weight.",[12,5023,5024],{},"The better question is whether a client’s portfolio would benefit from thoughtfully sized exposure to private strategies with different liquidity, cash flow, and return characteristics than traditional public markets.",[12,5026,5027],{},"For the right client, the answer is often yes.",[12,5029,5030],{},"But the process should start with liquidity. From there, diversification and opportunity set should shape the allocation mix across private credit, private equity, real estate, and infrastructure based on the role each strategy is meant to play.",[12,5032,5033],{},"That is when private markets stop being a product discussion and start becoming a more effective portfolio construction tool.",{"title":59,"searchDepth":167,"depth":167,"links":5035},[5036,5037,5038,5039,5040],{"id":4821,"depth":167,"text":4822},{"id":4872,"depth":167,"text":4873},{"id":4907,"depth":167,"text":4908},{"id":4962,"depth":167,"text":4963},{"id":5017,"depth":167,"text":5018},"2026-04-13","Learn how advisors can size private market allocations based on liquidity needs, diversification goals, and today’s opportunity set.","\u002Fimages\u002Fresources\u002Fhow-much-should-clients-allocate-to-private-markets.png",{},{"title":4791,"description":5042},"resources\u002Fhow-much-should-clients-allocate-to-private-markets","G1-b_x2s5cA_fC_8z_snbJ2d0iCqclby1h_WsCMzZzM",{"id":5049,"title":5050,"author":7,"body":5051,"category":2983,"date":5432,"description":5433,"extension":179,"image":5434,"imageAlt":181,"meta":5435,"navigation":183,"path":5436,"seo":5437,"stem":5438,"topic":2991,"__hash__":5439},"resources\u002Fresources\u002Fdave-obrien-evo-advisors-advisor-view.md","Dave O’Brien | Evo Advisors",{"type":9,"value":5052,"toc":5430},[5053,5066,5070,5076,5080,5086,5089,5092,5095,5098,5100,5103,5105,5108,5110,5113,5115,5118,5120,5123,5125,5128,5130,5133,5135,5138,5140,5143,5145,5148,5150,5152,5154,5157,5159,5162,5164,5172,5174,5176,5178,5181,5183,5186,5188,5191,5193,5195,5197,5200,5202,5208,5210,5213,5215,5218,5220,5223,5225,5228,5230,5233,5235,5238,5240,5243,5245,5248,5250,5253,5255,5258,5260,5263,5265,5267,5269,5272,5274,5277,5279,5282,5284,5287,5289,5292,5294,5297,5299,5302,5304,5307,5309,5312,5314,5317,5319,5322,5324,5327,5329,5332,5334,5336,5338,5341,5343,5345,5347,5350,5352,5355,5357,5360,5362,5365,5367,5370,5372,5375,5377,5380,5382,5384,5386,5389,5391,5394,5396,5399,5401,5403,5405,5408,5410,5413,5415,5418,5420,5423,5426,5428],[12,5054,5055,5056,5061,5062,263],{},"Read transcript highlights or listen to the full episode to hear Dave O’Brien of ",[22,5057,5060],{"href":5058,"rel":5059},"https:\u002F\u002Fevoadvisors.co\u002F",[45],"Evo Advisors"," and Josh Hile discuss Dave’s background, the evolution of Evo Advisors, the importance of a planning-first and tax-aware approach, and how private markets can enhance portfolio construction for ",[22,5063,5065],{"href":5064},"\u002Fresources\u002Fwinning-high-net-worth-clients-strategies","high-net-worth clients",[2724,5067],{"title":5068,"url":5069},"Dave O'Brien | EvoAdvisors","https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F18996746",[12,5071,5072],{},[22,5073,2734],{"href":5074,"rel":5075},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F18996746-dave-o-brien-evoadvisors",[45],[1224,5077],{"src":5078,"title":5079,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FaS2uMJNbBWU","Dave O’Brien | Evo Advisors on The Advisor View (video)",[12,5081,5082],{},[22,5083,2256],{"href":5084,"rel":5085},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=aS2uMJNbBWU",[45],[12,5087,5088],{},"Josh Hile:",[12,5090,5091],{},"Hello everyone, this is Josh Hile, CEO of Citizen Mint, and, welcome to the Advisor View podcast. We are so excited to have, Dave O’Brien of Evo Advisors with us today. Maybe Dave, you can just give a quick background on yourself as well as your firm and kind of what also what led you to being a financial planner in general.",[12,5093,5094],{},"Dave O’Brien:",[12,5096,5097],{},"Well, cool. I’ll try to be brief. Thanks for having me on the podcast, Josh. I spent 20 years, almost 20 years at GE back when GE was kind of the Google or the Apple. You know, we were in all different types of businesses around the world and had a great run, but realized for a number of years there was something that wasn’t there for me, something that was kind of lacking in a personal fulfillment standpoint. And I started learning about the CFP® credentials and started planning to leave the corporate world and earn my CFP® marks. And back in 2006, I did that, and I started the firm that ultimately became Evo Advisors. And, uh, one of my business partners, John Clare, was also at GE with me and he did the same. And after about 10 years, we decided to get the band back together and we formed from both of our firms Evo Advisors. We are a fee-only registered investment advisory firm. We’re based in Richmond, Virginia. We serve clients around the country and, um, kind of have a type. Our team of 7 planners are CFP professionals. We view ourselves as truly a financial planning firm, even though we’re managing about $400 million of other people’s money. We also are very tax planning focused and are kind of intentionally small when it comes to our number of clients served, because one of the things that’s really important to our clients— they’re, they’re choosy people. We’re kind of choosy on who we work with as well. So we’re looking to work with clients who are great at being collaborative, and I think everybody likes to say they like to work with clients who actually take their advice. So we serve a lot of medical professionals, both nurses and doctors, as well as a good number of people who own closely held businesses and find that they all come with some unique financial challenges, but especially some more complex tax planning challenges. And they appreciate the collaborative approach to helping them focus on what’s most important to them and understanding that we’re behind the scenes working for them so that they can not have to deal with a lot of what we do. They’re smart people. They could do what we do if this was their, their passion, but it just isn’t. So that, that works out well. Um, a bit of background on us too. We’re, uh, pretty active members of NAPFA, the National Association of Personal Financial Advisors. I think if it weren’t for our NAPFA involvement, uh, I wouldn’t be standing here talking to you today. It’s just a wonderful community. That, you know, has about 4,500 colleagues who help each other out around the country. And a couple of us have been extremely active in volunteering there too. Also work with CFP Board. I was a commissioner on one of their commissions for a couple years and got to work with some really talented CFP professionals from all different business models for years. So I think this is a dynamic profession. It’s challenging and it’s quite rewarding, especially when your clients show you that the difference that you have worked to enable is appreciated. So long story short, that’s who we are.",[12,5099,5088],{},[12,5101,5102],{},"Oh, and so Um, I guess we had a quick conversation about this, but you mentioned, you know, your, uh, your— the differentiation between wealth management and financial planning. And maybe just for our crowd, just in general, because those terms can get thrown around in the same sentences, and even conferences saying this is a wealth management conference, not a financial planning conference. Uh, what’s— what’s— what are those differences to you?",[12,5104,5094],{},[12,5106,5107],{},"You think after 20 years I’d know. I don’t know. I know what financial planning is. You could argue that financial planning has wealth management as a subset. You could probably argue the opposite. To our firm, financial planning encompasses all of the components where life and a dollar sign are tethered. Wealth is about more than money anyway. I mean, I think that it’s having excess opportunity. I think a lot of consumers don’t really know exactly what wealth management or financial planning are. We like to say here, you know it when you see it, or, you know, you don’t get it until you get it. So once you’ve been the beneficiary of a really good, robust process that looks at all of the various aspects of your financial life, from your cash flow to really identifying what you want out of life and making sure that money isn’t the barrier to getting there and making sure that you have achieved those goals in the most tax-optimal way possible. Um, along the way that your, you know, risks are appropriately managed, which also includes making sure that your employee benefits are working for you. I think a lot of folks just kind of sign up annual enrollment, but don’t really know what their choices are and may not make an informed decision. Um, You know, if for anybody who’s had to see health insurance in action, good health insurance is really, really valuable. And not using it the right way or not taking advantage of, say, using a high deductible plan with a health savings account can mean the difference between, you know, exchanging some current cash flow for a lot more future tax-free cash flow. Same with education planning. There are an awful lot of components to that. And then estate planning, which is not just about when you die, but it’s about what could happen while you’re living. I think all of those things— well, I know all of those things are a part of financial planning, and maybe to others, they’re a part of wealth management as well. But of course, investment management’s a critical part. To us, it’s not the, the focus of the relationship we have with our clients. Sometimes we’ll use the analogy, it’s like, you know, having energy in the battery. You need to make sure that there’s enough to last at least as long as you do, and that allows you to do all of the things that you want to do. Yeah, but our primary discussion with our clients aren’t just about that. So I think all of those things together, that’s wealth.",[12,5109,5088],{},[12,5111,5112],{},"Yeah.",[12,5114,5094],{},[12,5116,5117],{},"But it’s also financial planning.",[12,5119,5088],{},[12,5121,5122],{},"So yeah. Yeah. No, definitely. And like when, and this is maybe a two-sided question. It’s like, uh, you kind of mentioned a lot of the stuff, uh, around how you position yourself with clients around tax efficiency and kind of, you know, looking at their whole financial picture. But if you had a client who’s referring somebody to you? What are you— what do you think they’re calling out as your differentiation?",[12,5124,5094],{},[12,5126,5127],{},"We’ve heard that time and availability, uh, and then personal relationship are a big differentiator that our clients have enjoyed. Um, there are a lot of firms that take a more transactional approach. Sometimes internally we have a saying, come see us second, because sometimes clients have had a relationship with another firm where it really wasn’t about them. It was more about like, you know, you get your one meeting a year and then, you know, you get a newsletter. So I think that understanding what makes the client tick, and also just being a match, right? We’re not right for everybody, and not every prospective client is right for our team either. But when you do have that match, you, you see each other for, you know, who you really are, and then can get down to the work of, okay, Josh, if you’re my client, I need to understand what you and your family need and want and what you come with, both on the balance sheet, but as far as your attitudes and your history, that guides an awful lot of the choices that you’re going to make. And our advice has to be informed by that. So I think most of our clients have been here long enough that they appreciate that. That’s what we’ve been told.",[12,5129,5088],{},[12,5131,5132],{},"Yeah, no, that’s actually, I think, a key differentiator, and I think something that’s going to continue to differentiate you from others. As you know, you know, firms sometimes just like to take on a lot of clients because it brings cash flow, But they’re not all good clients. We all know, um, we’ve always had some, I’ve had some tough clients in the past.",[12,5134,5094],{},[12,5136,5137],{},"Um, so that we took on, we’ve all kissed some frogs and sometimes we’ve been the frog.",[12,5139,5088],{},[12,5141,5142],{},"Yeah. Yeah. Um, maybe, uh, you mentioned, so you serve, um, business owners, you serve, um, nurses, doctors, uh, any other kind of specialties, uh, that you kind of go after from A, you know, uh, I, I think the concept of a niche is, is one that, you know, we’ve all read about or heard people talk about, and certainly is one that, um, I feel like Michael Kitces always talks about it, like a lot of firms.",[12,5144,5094],{},[12,5146,5147],{},"Yeah, one of my, you know, best friends only works with, you know, high-end, uh, technology professionals. Um, I’m a former tech professional myself, so I work with some, but we don’t have a niche as far as like we work with certified registered nurse anesthetists. We do work with a number of certified registered nurse anesthetists, which is why I know how to say that term. But, um, you know, we have more of a psychographic niche. You know, here we are in Richmond, Virginia, which is pretty funky, cool town. We don’t serve clients only in Richmond, Virginia, but our, like, our office is in this very cool brewery and restaurant kind of section, old industrial core of the city. We kind of like have a type, right? So it’s like, you know, if people come into our office or they go to our website, they kind of can tell they’re not walking into an office in a tower with lots of brass and walnut, and we sit behind desks wearing suits. Um, if that’s what somebody wants, that’s probably where they should be. Um, so our type is you might be in Richmond, but you’re not of Richmond, like old old money, old Richmond, more of a global orientation. Worked with a number of same-sex client couples. The fact that a lot of those clients all fall within certain professions is probably more a matter of those folks want a collaborative working environment. And they want to work with a team of people who show that they really do know their stuff and can prove that because they, in their own work, whether they own a, you know, closely held business, uh, or they’re a medical professional or they’re a tech professional, um, they rely on people in their own work who know what they’re doing, um, and they need to rely on us to show that we know what we’re doing so that then they can, as I said earlier, go back to living their life knowing that we’re doing our jobs properly and we can show the work.",[12,5149,5088],{},[12,5151,5112],{},[12,5153,5094],{},[12,5155,5156],{},"So that’s a long, long way around to say we don’t have a niche based on what you do. We have more of a niche on, you know, kind of how you like to work and what your expectations are for working with us.",[12,5158,5088],{},[12,5160,5161],{},"Yeah. And you mentioned earlier, you know, tax is a primary consideration and, you know, it’s not what you— the returns you get, it’s what you get to take home, which ultimately matters. And so how does that impact how you think about portfolios for your clients?",[12,5163,5094],{},[12,5165,5166,5167,5171],{},"Well, I’ll just give a shout out to Jeff Levine, CPA, who has been instrumental in a certification program called the Tax Planning Certified Professional. I’m nearing the end of that. One of my colleagues, Stephen, has just finished that. It’s really, really geeky, in-depth tax planning, and it’s informed a lot of what we’ve done, and it’s also validated a lot of what we’ve been doing for years, because tax planning when it interfaces with your portfolio is more than just location optimization or making sure that we’re, you know, taking advantage of the tax laws on things like what type of Roth conversion to make, when to do it. But it’s also just to maybe get to the Citizen Mint approach. When a client has enough, they’re an ",[22,5168,5170],{"href":5169},"\u002Fresources\u002Faccredited-investor-versus-qualified-purchaser","accredited investor",", they may have assets that aren’t easy to just sell and invest in an efficient, globally diversified, market-weighted ETF portfolio. And that’s where we do look to, say, Citizen Mint to assist with what’s right for that client so that some of their assets that are taxable can be invested in a manner that fits within their unique tax plan that’s going to last years.",[12,5173,5088],{},[12,5175,5112],{},[12,5177,5094],{},[12,5179,5180],{},"So all clients have location optimization where we want to have the, you know, tax-inefficient assets held within qualified accounts. We want to have really high-growth assets held in Roths. We want to rebalance within tolerance range. A lot of the things that people already have heard and read over the past, say, 10 to 20 years. I would hope that all of the listeners are, you know, heeding the guidance of the most recent research on things like, you know, when’s the right time to rebalance. But everybody has their own investment philosophy. Ours is that over the long period of time, nobody’s beaten the market consistently, but a lot of people have lost money trying. So paying tax is a form of negative return. And if we can make the portfolio as tax efficient as possible, that is certainly going to show up in the long term in the client’s net worth, as well as helping them achieve all of these goals, like sending their kids or grandchildren to college and, you know, making sure that they can pay their Medicare supplement insurance. Most tax-efficient way, uh, and using some alternative investments appropriately, um, can do more than just help them from a tax standpoint. It can help them from an investment return standpoint and help them from a personal standpoint as well.",[12,5182,5088],{},[12,5184,5185],{},"Yeah, and maybe this is a good topic just to touch on a little bit more because for, for you you’re, for the most part, you’re utilizing, um, other low-cost providers for the alternatives. And maybe you can just talk about that process of like what clients you put alternatives in. And because I, I know for a bulk majority of your clients, alts aren’t something that you’re looking at, but for some it makes sense.",[12,5187,5094],{},[12,5189,5190],{},"Yes. So, you know, our portfolios that our clients benefit from are based on the CRSP, Center for Research in Securities Prices, of Buschgold at University of Chicago. Using low-cost ETFs, so globally diversified portfolio. And then there’s a point where we will determine, could this client benefit from alternative investments? And I kind of have to just go down our checklist. Are they an accredited investor? And do they have sufficient liquidity, specifically, you know, a non-retirement investment in bank accounts. And then if those two are met, we would consider up to about 10% of the portfolio in alternative investments. We then look to the timeframe for the illiquid portion of the investment. We want to make sure the client understands understand extremely well that this is not something that they’re going to be able to cash in within the next few years. Yeah. And then do they understand the unique risks of private equity investing, like illiquidity, lack of marketability? We want the client to understand this specific investment and how it works. And if they’re comfortable with all of what I just said, then, and by the way, if we’re comfortable with it, then we would recommend that they proceed and invest. And we have with quite a number of clients to their satisfaction. And since we’re, I’d say, you know, earlier in some of these investments, it’s kind of fun to follow along at home, so to speak, with the client to see like, how that project is being built out. Yeah. So I, I think, you know, let’s check back in a few years when the project’s finished and it’s closed out and they’ve gotten their money back and they’ve reinvested that in something else, and then we’ll see their, their perspective and being able to say, hey, I helped create that. Yes, I think it when we talk with a client about an alternative investment, um, of course what their unique financial, like, arrangement is and, like, the type of assets that they have and so forth and the tax treatment of it, that’s a really important piece. But clients don’t care about that as much as they care about, okay, so I’ve got this portfolio between my employer retirement accounts, my health savings account, my IRAs, my Roth IRAs, you know, our joint account, 529s. Yeah, that’s all kind of boring, which is exactly the way that we think it should be.",[12,5192,5088],{},[12,5194,5112],{},[12,5196,5094],{},[12,5198,5199],{},"But this type of investing is something where, oh, they understand I’m investing in that thing and they can kind of determine, does that— do I find that there’s a values match? And that’s one of the more important parts for us, is that the client connects with what they’re investing in. And if they do, then I think there’s a lot more interest in that investment. It’s actually probably where they’re going to have the most involvement in knowing what they own. Because if you own the S&P 500 index fund, you’re not tracking all those companies in the headlines and seeing what’s going on. But if you own a piece of a project, you’re going to get a quarterly update from Citizen, and it’s cool to watch.",[12,5201,5088],{},[12,5203,5204,5205,5207],{},"Yeah, no, definitely. And I think, yeah, and to your point around values alignment, that could be whether it’s like affordable ",[22,5206,372],{"href":371}," and be able to like bring that to fruition. It could be around energy transition and being able to help with that. Yeah. Yeah. And you can also feel like you’re, you’re actually doing something like you’re putting your money in and it’s matching your values and you’re actually creating this thing. You can be like, yeah, this is going to, this is going to power this many homes and it’s going to take us a little bit further away from, you know, oil drilling. Which is actually important right now given the price of oil.",[12,5209,5094],{},[12,5211,5212],{},"So yeah, yeah, we want to make sure that our clients, um, are comfortable with where their money is. And I think connecting your values to where you invest is important to some people, and to a lot but not all of our clients it is. And it’s okay if it’s not too. Yeah, yeah, of course, you know, in those cases it’s like, well, This is still a very prudent investment. You know, I like the way the numbers are put together. I’m comfortable with taking the risk. And if it all plays out the way that it’s expected, that’s going to be good for me. And by the way, I’m doing good for this particular part of the economy. That’s even better. So it depends where the icing on the cake is for the client.",[12,5214,5088],{},[12,5216,5217],{},"Yeah, yeah, yeah, definitely. And And also the tax benefits can also play through, which is huge for some clients. Like when there’s accelerated depreciation, that can offset something else, especially if they hold business interest or other real estate or something of that nature. Um, and people love saving money on taxes. Everybody does. And that’s where you get the most referrals, usually when you’re saving people money on taxes.",[12,5219,5094],{},[12,5221,5222],{},"We, we, um, we work with some clients and their very good CPAs. And given that it’s in the middle of— just not in the middle, in the final stretch of tax season right now. Gosh, that’s a hard job to be a CPA. And you don’t get to see your client nearly as much as that client’s financial planner gets to see the client. So we’re in a unique position to do, you know, working with their CPA to make sure that the tax preparation is not overly complex or, um, complicated for the CPA, but the actual tax planning falls much more on our side of the fence. And understanding what type of investments are appropriate for that client is something that their CPA just does not have the time to do. Now, if they did, I’m sure that would be a much more interesting thing than some of the things they have to do.",[12,5224,5088],{},[12,5226,5227],{},"Yeah. And I think that’s what— Some people expect their CPAs to be their tax strategist, and unfortunately that’s not what CPAs believe they are.",[12,5229,5094],{},[12,5231,5232],{},"Yeah, yeah. In most cases they just can’t do it. Even if they’d like to do it, they can’t. They don’t have the time. So working, working as a team, we find it works out just great because the CPA really finds it helpful that we’re taking, you know, ideas to the client and, and looping them in. And the client likes the fact that the 3 parties are all working so nicely together.",[12,5234,5088],{},[12,5236,5237],{},"Yeah, exactly. So switching gears a little bit here because it’s a hot topic within the industry, how are you utilizing AI currently and where do you see it going into the future?",[12,5239,5094],{},[12,5241,5242],{},"So currently, and by the way, the video just kind of stopped. Can you hear me all right?",[12,5244,5088],{},[12,5246,5247],{},"Yes. Yep.",[12,5249,5094],{},[12,5251,5252],{},"Oh, okay.",[12,5254,5088],{},[12,5256,5257],{},"All right.",[12,5259,5094],{},[12,5261,5262],{},"I can hear you. So we may have been somewhat pre-adopters, uh, with AI. And, uh, earlier I said, you know, everybody kisses some frogs. Uh, we sure did. Um, but learned a lot a few years ago when we did a, a little trial trying to get an AI tool to, um, do some meeting summarization. But now we have for about a year and a half been very pleased with working with one of the, you know, more robust AI note-taking tools that connects into our Salesforce system and Outlook, and that works very nicely, helps us do more thorough meeting preparation, and assignment of post-meeting activities. We are really happy to have a very close relationship with our custodian Altruist. I won’t go too far into like an ad for Altruist, but they really are serious about their investment in technology and enabling advisory firms to be more thorough in their work. So I’m looking forward to some really exciting things coming down the pike, and we may be beneficiaries of the work that they’re doing. Certainly we’re trying to share our ideas with them and help inform the, the strategy that they have, which I think is excellent. So today we use AI for meeting summarization, and meeting prep. It doesn’t do any thinking for us. It just makes sure that we spend less time going through reams and reams of pages of who said what and taking better notes. Where I see it going down the path is answering a lot of questions around how many of our clients are within, you know, 5 years of being being Medicare eligible and have this ratio of money in qualified versus taxable versus Roth accounts. Uh, it’s going to enable us to, with hope, um, get out of the world of APIs between systems, um, so that data speaks to each other a lot faster. And can automate some of the work we do. We’re also big fans of our tax planning tool, HolistaPlan. There is some AI there that has— I think that’s a great example of how a really good technology tool can not do your job for you, but can do a lot of the grunt work for you so that you can spend more time thinking and developing what-if scenarios. So down the path, I think that there are some opportunities for financial planning firms, wealth management firms, what have you, to enable their teams to spend more time thinking about the work and thinking about the client and less time looking for the answer in the work that they’ve already done and preparing for things and making sure that, you know, if the data is in this system that you get it correctly in about.",[12,5264,5088],{},[12,5266,5112],{},[12,5268,5094],{},[12,5270,5271],{},"So it’ll be an interesting ride.",[12,5273,5088],{},[12,5275,5276],{},"Yeah, it will be. It’s interesting just the ability of like what you can do and what you will be able to do in the future. And it’s also what you shouldn’t be doing. And that’s also the question of like, what should we not be using AI for? And we’ll have to decide that as we go forward.",[12,5278,5094],{},[12,5280,5281],{},"Yeah, I think as the CFP Board has updated in the Code and Standards, a good section on, you know, selection and use of technology by CFP professionals. And kind of to summarize it, it’s like if you’re a CFP professional, you need to understand how that software works.",[12,5283,5088],{},[12,5285,5286],{},"Yes.",[12,5288,5094],{},[12,5290,5291],{},"And you need to know if it’s making recommendations that those recommendations have to be yours. So I think that’s kind of an obvious guiding principle that everybody should apply. I was listening to a story about how some attorneys are using AI in preparing, you know, briefs that go to the court. And there’s like a whole website that has some of these disastrous briefs that went to a court and that, you know, the judge pulled out and said, you know, this isn’t factual. So I think the same applies in financial planning. We need to make sure that the work that’s presented to a client is our work. I think something that’s going to be interesting too with AI, I’m sure a lot of the listeners take advantage of a lot of these annual surveys, whether it’s, you know, the Schwab survey or FA Insights, the T3, but all of these surveys are asking similar questions in different ways, like how many clients do you have between 25 and 35? Another one asks you, how many clients do you have between 28 and 38? You know, AI should be able to just like go answer this and then show me the answers so I can make sure that they’re right. And it can take filling out one of those surveys from like, you know, days to literally just like a half an hour. So you can spend more time reviewing the results of it. But I think there’s a lot of like firm management stuff, like business planning and analysis that AI will be able to do. Or almost be like, you know, your finance associate so that the CFO can do their job faster.",[12,5293,5088],{},[12,5295,5296],{},"Yeah, definitely, definitely. So, and you’re, you know, given your role on like these large organizations that look over, you know, financial planners, where do you see the industry going over the next 3 to 5 years? What’s some insights we can take from, you know, the firms you’re talking to kind of broadly, what the conversation is? Is there anything that we should note or look for over the next 3 to 5 years?",[12,5298,5094],{},[12,5300,5301],{},"That’s an interesting topic. We have seen over the past, definitely since the pandemic, an increase, certainly in the fee-only world, seen a lot of aggregation. So solo firms or smaller firms being acquired by a larger RIA. And in some cases, this is, you know, because that firm did not have in place an internal succession plan, or they did, but it just, it didn’t have enough time to take. I think that that is going to be a very big continued component. We’ve seen it with veterinarian practices as an example, primary care physicians. There aren’t too many solos out there still because private equity is getting in and buying them. And what we’ve seen with veterinarians is it drives up the cost of veterinary care and it drives down the salaries of the people who work in the veterinarian’s office. And from direct experience, I know it’s also reduced the level of happiness of the people who work there. I don’t know about anybody listening, but I love my dog very much. He’s a member of our family, and I want whoever is working on my dog to be very happy and providing care for my dog. So I think the same can be said within RIA firms. As firms are acquired, I have heard some— great stories that have gone quite well, and I have sadly had some colleagues who felt it really didn’t go very well for them or their clients. So I think that’s going to be a headline story for the continued, you know, years this decade to see what happens, because as small firms, you know, firms with like maybe under 50 employees, I think is still small, find that they are not able to sell internally because the value of the firm keeps getting higher and higher. What do the owners of the firm have? They either have a lifestyle practice and they just retire, or they sell it. And if they sell it, to whom that firm is sold matters emotionally to the owners, to the founders. It matters to the employees and to the clients. So I think that’s going to be a really interesting thing. It’s also interesting from a fee-only firm standpoint because you can’t be fee-only if the company that owns you isn’t. So I think there’s some, some planning to be done both by the acquirers and the acquired.",[12,5303,5088],{},[12,5305,5306],{},"Interesting.",[12,5308,5094],{},[12,5310,5311],{},"Yeah, it’s going to have an impact on clients too. It also means that clients sometimes will say, you know what, now it’s time for me to find a different firm.",[12,5313,5088],{},[12,5315,5316],{},"Yeah. And I think, yeah, into the succession planning, I think it’s difficult because, you know, the numbers that they’re throwing out with these RIA are crazy numbers. And so for the succession, or the person who’s essentially built the firm, they’re like, well, I want that number. Am I willing to sell it a lower number to my current employees? And it’s kind of this like push and pull, and hopefully— and it depends. Um, but even at a lower number, it’s expensive.",[12,5318,5094],{},[12,5320,5321],{},"So yeah, yeah, I mean, it’s, you know, we, we have an internal succession plan at Evo Advisors. We put it in place about 4 years ago. But it’s hard. And, you know, we’re not done yet. So, I think there’s always the risk in any small business that you’re just like financial planning. You can’t plan the future, but you can plan for it. So, you always have to have more than one outcome.",[12,5323,5088],{},[12,5325,5326],{},"Yes. Yeah. So how, how can advisors looking into the future better position themselves going forward? What do you think is like 1 or 2 things that you would tell advisors to do to position themselves better?",[12,5328,5094],{},[12,5330,5331],{},"Well, I think education is a little biased, but I think, you know, education is an investment you make in yourself. The more that you develop your expertise, the better the work you can do for your clients. And I think that applies to, you know, firm owners, to sole practitioners, and to the employees in firms, because learning cultures are successful. I think that’s probably one of the most important things. But you can be the smartest, most educated, knowledgeable planner out there and not know how to communicate that to the world so that you attract and retain people who would be great clients and benefit greatly from your work. So you also have to know enough about how to, you know, for some of us it’s like icky, but like how to market, uh, or at least hire somebody or a marketing firm who can do that for you. Yeah, you know, I think there’s a big decision point for a lot of sole practitioners of, you know, hey, you know, you run your own show, you make all the decisions, you know, there’s nobody to blame but you, but there’s nobody to have to confer with and, you know, influence other than yourself. So decisions— yeah, um, and there’s a point which I think a lot of sole practitioners need to look and say, um, Am I good with this? Because there’s a limit to how much you can grow. There’s a limit to how much you can make. And there’s a limit to the total lifetime income that you’ll get because it’s a little different selling a sole practitioner than it is, you know, internal sale or external sale of an enterprise firm that’s, you know, a number of people.",[12,5333,5088],{},[12,5335,5112],{},[12,5337,5094],{},[12,5339,5340],{},"So I think strategic planning for your own business and making sure that whatever plan you have in place is one that you’re comfortable with, uh, is probably the third area. So, you know, education to be as good as possible, marketing so that you can get that word out and help the clients who are really going to benefit from your knowledge, and then know what the future is for your firm.",[12,5342,5088],{},[12,5344,5112],{},[12,5346,5094],{},[12,5348,5349],{},"Yeah, so survive because we have a, I think, a moral duty to the clients that we serve.",[12,5351,5088],{},[12,5353,5354],{},"Yeah, it’s their financial future, you know, a big moral duty. Um, no, that’s— those are great points. Um, so last question, and this is going to be a little bit of a, uh, something a little bit different, but what’s one thing that people may not know about you or a hobby that you like?",[12,5356,5094],{},[12,5358,5359],{},"Well, this is my hobby. I like to say this is my second career. I’ve been doing it longer than the first career, but I still feel like this is my hobby. You know, there’s that silly saying, but it’s so true, that if, you know, you love what you do, you never work a day in your life. Gosh, that, that should be an easy question to answer. I guess, you know, for me, I’m kind of an open book, but geez, I don’t know. I don’t know. You know, I have a pretty simple life in a lot of ways. You know, I live here in Richmond and I have for 20 years. My wife and I are empty nesters now, and it’s the two of us and our dog. Our son and his fiancée live in Richmond. Our son actually works for the firm. He’s our portfolio manager, which is really special to be able to work together.",[12,5361,5088],{},[12,5363,5364],{},"Oh yeah, that’s amazing.",[12,5366,5094],{},[12,5368,5369],{},"Our daughter lives in Boston and has a great career and life up there. So I think a lot of early empty nesters, you kind of I like to get out and travel a lot, and I don’t have any, you know, like, it’s not like I’m— like, one of my business partners, John, is in a band, you know, he plays bass, and I don’t have any of that kind of stuff going on.",[12,5371,5088],{},[12,5373,5374],{},"Where’s your favorite travel destination then?",[12,5376,5094],{},[12,5378,5379],{},"Spain. Yep. Love the West Indies as well, but we’re going back to Spain in a month. Definitely such a cool culture. I love the language. The food is amazing. Culture is plural. I mean, it’s, uh, it’s just fascinating. But traveling the world is, I think, one of the best forms of education. I think it’s really important as an American to get out and travel. I would say it’s a lot harder to do that now, but I think a lot of the folks that I’ve met, whether it’s in South America or Europe, kind of get it.",[12,5381,5088],{},[12,5383,5112],{},[12,5385,5094],{},[12,5387,5388],{},"And are very nice to us. So yeah, but travel is great. As I had said to you earlier, I took quite a lot of vacation time last year, and I think better for it.",[12,5390,5088],{},[12,5392,5393],{},"Yes, definitely love travel. Well, thank you so much, Dave. Really appreciate this time, and great to be partners with you all.",[12,5395,5094],{},[12,5397,5398],{},"Yeah, well, it’s been great. As I don’t know if I’ll just add, you know, for anybody listening, it’s like we put you through the wringer. We watched you for a few years, learned about you, didn’t put any money with CitizenM.",[12,5400,5088],{},[12,5402,5286],{},[12,5404,5094],{},[12,5406,5407],{},"You know, and then, you know, and then we started and I was the first investor because we always go first. And it’s really been a great relationship. We really value the expertise that you and your team bring as well as, you know, it’s like The access to you and your team, the availability, you guys never make us feel like you’re too busy. I emailed you about something as silly as K1 schedule and you emailed me back the same day from a conference in Dubai. So it’s, it’s great working with folks who know what they’re doing and are experts at it and are also really cool to work with, but are also just like an extension of our team. So thank you. For what you’re— and our clients with.",[12,5409,5088],{},[12,5411,5412],{},"Well, and that’s really what we want to be, is like, you know, full extension of your team and just be a great partner to the people we work with. And we love to work with teams like you. Just like you have to pick, you know, clients to work with, we want to work with great firms. So, um, and it’s been amazing to see you all grow.",[12,5414,5094],{},[12,5416,5417],{},"So life is short, and it’s, uh, it’s best to, uh, work with people that you like.",[12,5419,5088],{},[12,5421,5422],{},"Yeah, exactly. Yeah. Well, thank you. And we will talk to you all later. Thank you for joining today and let us know if you have any comments or questions.",[12,5424,5425],{},"EVO Advisors is a registered investment adviser and the opinions expressed by EVO Advisors on this show are their own and do not reflect the opinions of Citizen Mint. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.",[12,5427,2977],{},[12,5429,2980],{},{"title":59,"searchDepth":167,"depth":167,"links":5431},[],"2026-04-11","In our fifth episode, Dave O’Brien of Evo Advisors shares his perspective on modern wealth management, highlighting a planning-first approach, tax-aware portfolio construction, and how private markets can enhance diversification and after-tax outcomes for high-net-worth clients.","\u002Fimages\u002Fresources\u002Fdave-obrien-evo-advisors-advisor-view.png",{},"\u002Fresources\u002Fdave-obrien-evo-advisors-advisor-view",{"title":5050,"description":5433},"resources\u002Fdave-obrien-evo-advisors-advisor-view","HCQFbA-V6PKZEnEZGXX_qQpDUF9Wvrzq4Ngfr5oavgc",{"id":5441,"title":5442,"author":7,"body":5443,"category":176,"date":5884,"description":5885,"extension":179,"image":5886,"imageAlt":181,"meta":5887,"navigation":183,"path":4714,"seo":5888,"stem":5889,"topic":2330,"__hash__":5890},"resources\u002Fresources\u002Falternatives-wealth-management-endowment-model.md","Why the Next Decade of Wealth Management Will Be Built on Alternatives",{"type":9,"value":5444,"toc":5873},[5445,5449,5452,5456,5463,5466,5480,5483,5490,5494,5497,5502,5506,5509,5512,5520,5523,5528,5532,5535,5543,5546,5551,5559,5564,5569,5574,5579,5584,5589,5592,5596,5599,5605,5608,5628,5631,5635,5638,5643,5646,5657,5660,5665,5671,5674,5685,5690,5693,5696,5701,5704,5722,5725,5730,5733,5736,5747,5753,5757,5762,5766,5769,5772,5784,5789,5800,5808,5816,5829,5833,5836,5839,5850,5853,5864,5867,5870],[34,5446,5448],{"id":5447},"and-what-advisors-can-learn-from-how-endowments-actually-invest","And What Advisors Can Learn from How Endowments Actually Invest",[12,5450,5451],{},"PORTFOLIO CONSTRUCTION • ALTERNATIVES • ENDOWMENT MODEL",[34,5453,5455],{"id":5454},"a-structural-shift-is-already-underway","A Structural Shift Is Already Underway",[12,5457,5458,5459,5462],{},"For decades, the ",[22,5460,5461],{"href":921},"60\u002F40 portfolio"," served as the foundation of wealth management. Today, that framework is being quietly replaced.",[12,5464,5465],{},"Not because it failed overnight, but because the underlying market structure has changed.",[960,5467,5468,5471,5474,5477],{},[536,5469,5470],{},"Fewer public companies",[536,5472,5473],{},"Longer private company life cycles",[536,5475,5476],{},"Greater concentration in public indices",[536,5478,5479],{},"Persistent inflation and rate volatility",[12,5481,5482],{},"At the same time, institutional investors have already moved on.",[12,5484,5485,5486,5489],{},"Large endowments are no longer debating whether to ",[22,5487,5488],{"href":255},"allocate to alternatives",". They are building portfolios around them.",[34,5491,5493],{"id":5492},"the-data-institutions-are-already-there","The Data: Institutions Are Already There",[12,5495,5496],{},"Consider how leading endowments allocate capital today:",[12,5498,5499],{},[57,5500],{"alt":59,"src":5501},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-Screenshot-2026-04-06-180330.png",[80,5503,5505],{"id":5504},"sources-yale-investments-office-imd-mpi-transparency-lab","Sources: Yale Investments Office, IMD, MPI Transparency Lab",[12,5507,5508],{},"In fact, Yale has at times allocated close to 95% of its portfolio to alternative assets, a direct reflection of the “Yale Model” pioneered under David Swensen.",[12,5510,5511],{},"Even more telling:",[960,5513,5514,5517],{},[536,5515,5516],{},"Ivy League endowments often allocate 39–48% to private equity alone",[536,5518,5519],{},"Some portfolios now hold over 80% in alternatives overall",[12,5521,5522],{},"This is not a marginal shift. It is a complete redefinition of portfolio construction.",[12,5524,5525],{},[57,5526],{"alt":59,"src":5527},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-chart.png",[34,5529,5531],{"id":5530},"why-the-6040-portfolio-is-breaking-down","Why the 60\u002F40 Portfolio Is Breaking Down",[12,5533,5534],{},"The traditional model assumed two things:",[533,5536,5537,5540],{},[536,5538,5539],{},"Bonds would provide income and downside protection",[536,5541,5542],{},"Public equities would drive long-term growth",[12,5544,5545],{},"Both assumptions are now less reliable.",[12,5547,5548],{},[30,5549,5550],{},"Bonds Are No Longer a Reliable Hedge",[960,5552,5553],{},[536,5554,5555,5556,5558],{},"Rising rates and inflation have reduced the ",[22,5557,1028],{"href":1027}," benefit of fixed income. Correlations between stocks and bonds have become less predictable.",[12,5560,5561],{},[30,5562,5563],{},"Public Markets Are More Concentrated",[960,5565,5566],{},[536,5567,5568],{},"A handful of mega-cap stocks increasingly drive index returns. This creates hidden concentration risk.",[12,5570,5571],{},[30,5572,5573],{},"Value Creation Has Moved Private",[960,5575,5576],{},[536,5577,5578],{},"Companies are staying private longer, meaning a larger portion of growth happens before IPO.",[12,5580,5581],{},[30,5582,5583],{},"Investors Are Paying for Liquidity They Do Not Need",[960,5585,5586],{},[536,5587,5588],{},"Public markets offer daily liquidity, but most long-term investors do not require it. That liquidity comes at a cost.",[12,5590,5591],{},"As Harvard’s endowment highlights, permanent capital can tolerate illiquidity and earn a premium for doing so .",[34,5593,5595],{"id":5594},"the-illiquidity-premium-is-not-a-theory","The Illiquidity Premium Is Not a Theory",[12,5597,5598],{},"Institutional portfolios are built on a simple premise:",[5600,5601,5602],"blockquote",{},[12,5603,5604],{},"Illiquidity, complexity, and access constraints can create excess return.",[12,5606,5607],{},"Private markets offer exposure to:",[960,5609,5610,5613,5620,5625],{},[536,5611,5612],{},"Direct company growth before public markets",[536,5614,5615,5616],{},"Contractual income streams in ",[22,5617,5619],{"href":5618},"\u002Fresources\u002Fbuilding-smarter-portfolios-with-alternatives","private credit and infrastructure",[536,5621,5622],{},[22,5623,5624],{"href":935},"Real assets tied to inflation",[536,5626,5627],{},"Structural inefficiencies in niche strategies",[12,5629,5630],{},"Yale’s endowment has outperformed a traditional 70\u002F30 portfolio by over 2% annually over a decade, driven largely by this approach.",[34,5632,5634],{"id":5633},"how-large-endowments-actually-build-portfolios","How Large Endowments Actually Build Portfolios",[12,5636,5637],{},"Endowments are not just allocating to alternatives. They are structuring portfolios differently.",[12,5639,5640],{},[30,5641,5642],{},"1. They Build Around Outcomes, Not Asset Classes",[12,5644,5645],{},"Endowments focus on:",[960,5647,5648,5651,5654],{},[536,5649,5650],{},"Real return after inflation",[536,5652,5653],{},"Consistent distributions",[536,5655,5656],{},"Downside protection",[12,5658,5659],{},"Asset classes are simply tools to achieve those outcomes.",[12,5661,5662],{},[30,5663,5664],{},"2. They Lean Into Private Markets as Core Holdings",[12,5666,5667,5668,5670],{},"Private equity, ",[22,5669,3404],{"href":3403},", and real assets are not satellite positions.",[12,5672,5673],{},"They are foundational.",[960,5675,5676,5679,5682],{},[536,5677,5678],{},"Private equity drives growth",[536,5680,5681],{},"Private credit generates income",[536,5683,5684],{},"Real assets provide inflation protection",[12,5686,5687],{},[30,5688,5689],{},"3. They Accept Illiquidity as a Feature, Not a Risk",[12,5691,5692],{},"Illiquidity is not avoided. It is targeted.",[12,5694,5695],{},"Endowments recognize that long-term capital does not require daily liquidity, and they are compensated for that tradeoff.",[12,5697,5698],{},[30,5699,5700],{},"4. They Diversify Beyond Traditional Labels",[12,5702,5703],{},"Endowment portfolios include:",[960,5705,5706,5710,5716,5719],{},[536,5707,5708],{},[22,5709,3584],{"href":376},[536,5711,5712],{},[22,5713,5715],{"href":5714},"\u002Fresources\u002Fthe-hidden-infrastructure-behind-the-power-surge","Energy transition assets",[536,5717,5718],{},"Niche credit strategies",[536,5720,5721],{},"Venture and growth equity",[12,5723,5724],{},"These are areas where inefficiencies persist and competition is lower.",[12,5726,5727],{},[30,5728,5729],{},"5. They Focus on Manager Selection, Not Just Allocation",[12,5731,5732],{},"Access matters.",[12,5734,5735],{},"Endowments invest with:",[960,5737,5738,5741,5744],{},[536,5739,5740],{},"Specialized managers",[536,5742,5743],{},"Capacity-constrained strategies",[536,5745,5746],{},"Direct and co-investments",[12,5748,5749,5750,5752],{},"The dispersion between top and bottom managers in ",[22,5751,931],{"href":255}," is significantly wider than in public markets.",[34,5754,5756],{"id":5755},"a-simple-comparison-traditional-vs-endowment-model","A Simple Comparison: Traditional vs. Endowment Model",[12,5758,5759],{},[57,5760],{"alt":59,"src":5761},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-04-Screenshot-2026-04-06-183707.png",[34,5763,5765],{"id":5764},"what-this-means-for-advisors","What This Means for Advisors",[12,5767,5768],{},"This shift is not theoretical. It is already happening. The key question is not whether alternatives belong in portfolios. It is how to incorporate them thoughtfully.",[12,5770,5771],{},"Practical Takeaways:",[12,5773,5774,5777,5779,5780,5783],{},[30,5775,5776],{},"1. Reframe Portfolio Construction",[1667,5778],{},"\nThink beyond asset classes. Focus on outcomes such as income, ",[22,5781,5782],{"href":327},"h","i, and volatility management.",[12,5785,5786],{},[30,5787,5788],{},"2. Use Alternatives to Fill Specific Roles",[960,5790,5791,5794,5797],{},[536,5792,5793],{},"Income: private credit",[536,5795,5796],{},"Growth: private equity",[536,5798,5799],{},"Inflation protection: infrastructure and real assets",[12,5801,5802,5805,5807],{},[30,5803,5804],{},"3. Be Intentional About Liquidity",[1667,5806],{},"\nNot all capital needs to be liquid. Segment portfolios accordingly.",[12,5809,5810,5813,5815],{},[30,5811,5812],{},"4. Prioritize Access and Diligence",[1667,5814],{},"\nManager quality is one of the largest drivers of outcomes in private markets.",[12,5817,5818,5821,5823,5824,5828],{},[30,5819,5820],{},"5. Start with Curated Exposure",[1667,5822],{},"\nA smaller number of ",[22,5825,5827],{"href":5826},"\u002Fresources\u002Fchicory-wealth-ria-private-markets-platform","high-quality opportunities"," can be more impactful than broad exposure.",[34,5830,5832],{"id":5831},"the-bottom-line","The Bottom Line",[12,5834,5835],{},"The future of wealth management will not look like the past.",[12,5837,5838],{},"Institutional investors have already rebuilt their portfolios around:",[960,5840,5841,5844,5847],{},[536,5842,5843],{},"Private markets",[536,5845,5846],{},"Structural diversification",[536,5848,5849],{},"Long-term capital deployment",[12,5851,5852],{},"Advisors who adapt early will be better positioned to:",[960,5854,5855,5858,5861],{},[536,5856,5857],{},"Differentiate their offering",[536,5859,5860],{},"Deliver more resilient portfolios",[536,5862,5863],{},"Align with how sophisticated capital is already being deployed",[12,5865,5866],{},"The 60\u002F40 portfolio is not disappearing overnight.",[12,5868,5869],{},"But it is no longer the destination.",[12,5871,5872],{},"It is the starting point.",{"title":59,"searchDepth":167,"depth":167,"links":5874},[5875,5876,5877,5878,5879,5880,5881,5882,5883],{"id":5447,"depth":167,"text":5448},{"id":5454,"depth":167,"text":5455},{"id":5492,"depth":167,"text":5493},{"id":5530,"depth":167,"text":5531},{"id":5594,"depth":167,"text":5595},{"id":5633,"depth":167,"text":5634},{"id":5755,"depth":167,"text":5756},{"id":5764,"depth":167,"text":5765},{"id":5831,"depth":167,"text":5832},"2026-04-07","Discover how the endowment model pioneered by Yale and Harvard uses private markets to generate superior returns, and how advisors can apply it for their clients.","\u002Fimages\u002Fresources\u002Falternatives-wealth-management-endowment-model.png",{},{"title":5442,"description":5885},"resources\u002Falternatives-wealth-management-endowment-model","wzarWFG5QfsFGKOf2CSDWKI8tb6ZRocfojuSSorrLic",{"id":5892,"title":5893,"author":7,"body":5894,"category":2983,"date":5936,"description":5937,"extension":179,"image":5938,"imageAlt":181,"meta":5939,"navigation":183,"path":5940,"seo":5941,"stem":5942,"topic":2991,"__hash__":5943},"resources\u002Fresources\u002Fadvisor-view-lucas-wennersten-cross-border-wealth-management.md","Lucas Wennersten | 49th Parallel Wealth Management",{"type":9,"value":5895,"toc":5934},[5896,5905,5908,5914,5918,5924,5927,5930,5932],[12,5897,5898,5899,5904],{},"Read transcript highlights or listen to the full episode to hear Lucas Wennersten of ",[22,5900,5903],{"href":5901,"rel":5902},"https:\u002F\u002F49thparallelwealthmanagement.com\u002F",[45],"49th Parallel Wealth Management"," and Josh Hile, founder of Citizen Mint, discuss Lucas’s background, the evolution of his cross-border advisory practice, the importance of tax-aware planning, and how globally integrated portfolios can better serve internationally minded clients.",[2724,5906],{"title":5893,"url":5907},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F18948544",[12,5909,5910],{},[22,5911,2734],{"href":5912,"rel":5913},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F18948544-lucas-wennersten-49th-parallel-wealth-management",[45],[1224,5915],{"src":5916,"title":5917,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FN856Dx0r0hk","Lucas Wennersten | 49th Parallel Wealth Management on The Advisor View (video)",[12,5919,5920],{},[22,5921,2256],{"href":5922,"rel":5923},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=N856Dx0r0hk",[45],[12,5925,5926],{},"Josh Hile:Welcome to the Advisor View. I’m Josh Hile, CEO and founder of Citizen Mint, and we’re a platform providing simple access to exclusive tax-advantaged private market investments for wealth advisors, family offices, and foundations. And I’m really excited to be joined by Lucas at 49th Parallel. And maybe Lucas, you can just tell us about your background and how you created the firm and kind of we can start there.Lucas Wennersten:Yeah, absolutely. So my name is Wenersten. I own 49th Parallel Wealth Management, which is a portfolio management firm in Canada and a registered investment advisor in the US. I have both the US and Canadian certified financial planner designations. And so basically I got into the cross-border business. I just had an opportunity to join a cross-border firm. I ended up joining and getting both of my CFPs. Fell in love with cross-border financial planning. I had been doing mortgages before, but I already kind of had my eye on the financial planning industry. And so I ended up getting both the CFPs, ended up going to another larger firm that was Canadian-based. So I moved my family up to Canada after I was hired as a management consultant, spent about 3 years in Canada, and ultimately ended up moving back to the U.S. because COVID. We weren’t permanent residents in Canada, so I had had my 6-year-old a few months after getting there and we couldn’t leave the country because we couldn’t get back in because we weren’t permanent residents and we couldn’t have any visitors. So a couple years later, my son still hadn’t met his grandparents, and we, you know, everything was in lockdown in Ontario that whole time. And, uh, Omicron hit really was what happened, and I just thought that they were never going to open the border again. You know, we hadn’t seen family in a long time, and we’re realizing how important it is. And, and we have 4 kids, so it was a long time with no breaks and no date nights and stuff like that. So we ended up throwing in the towel and moving back south. I’m originally from Arizona, um, and we came back here in 2022, and then I decided, I decided to launch 49th Parallel Wealth Management in September of 2024.Josh Hile:Yeah, that’s, that’s amazing. And I, I think, um, one of the things is like, you know, for US-based firms, which is the majority of our clients, uh, it’s pretty unique to have that ability to work both with Canadian clients as well as US-based clients and kind of that cross-border. Maybe you can talk about that different differentiation and how you’re seeing clients go across borders, how it’s changed more recently or not changed, and kind of what you provide to those clients.Lucas Wennersten:Yeah. So one of the things that’s unique about our firm is that we are registered and licensed on both sides of the border. So traditionally, advisors need to be licensed and registered in the jurisdiction where the account is and also where the client lives. And so when you have clients who move across the border and might have IRAs or other qualified accounts here in the U.S., And then of course they’re going to be, you know, hopefully building more savings or might have other, you know, retirement plans in their home country. Um, it’s really helpful, you know, to be able to manage assets on both sides of the border and have a really good feel for what’s available and just the overall investment market on both sides of the border. Um, when people move across the border, everything changes. Uh, there’s tax treaties that override domestic tax law. The taxation of your different accounts is going to change. Estate planning gets a lot more complicated. Even things like insurance can get a lot more complicated. You introduce currency exchange risk, and so there’s a lot of different things that you have to kind of navigate between. In general, Josh, I think that most of the time people move for reasons other than politics and, you know, things like that. Usually it’s because they have family on the other side of the border, or they were here, you know, on a temporary work visa, you know, like a TN visa. Um, you know, things like that. It’s usually family related, work related, you know. Um, but more and more I am getting a lot more interest because of people, you know, primarily being interested in moving to Canada because of political reasons and social reasons here in the States. So that is a trend I’m seeing more and more of.Josh Hile:Yeah. And so, and is there a higher demographic of Canadian citizens versus U.S. citizens or dual citizens that you’re working with in most cases?Lucas Wennersten:The US is a much bigger country, and, you know, there’s a lot more opportunity here from a just a business, you know, even educational standpoint. So in general, I think that there’s more— just among the general population, I think there’s more desire in Canada for people to come down to the US to, you know, take advantage of business opportunities or, you know, just to get into a warmer climate. Um, so yeah, I see, um, on the US side Usually it’s people wanting to move up for family reasons and things like that. It’s a lot more common that businesses are expanding into the US than the other way around. It’s more common that tech companies, for example, are buying Canadian startup companies, and that, that, uh, brings a lot of cross-border movement.Josh Hile:Yeah, and I, uh, maybe, um, that kind of goes into types, like what kind of types of clients are you usually serving, um, in, um, both in Canada and in the US?Lucas Wennersten:As far as sectors that we work with and age groups and stuff like that, it’s pretty much everything all across the board. We do have some domestic-only clients on both sides of the border that don’t have any cross-border, you know, complications, but our expertise is in cross-border financial planning and investment management. So the majority, I’d say probably 80 to 90% of our clients, do have cross-border complexities. It’s everything from, you know, people that are in their early 20s, um, all the way into, you know, later stages of life that are retired and things like that. A lot of our clients are coming to us kind of around retirement age as well. So we do get the clients who either inherit money on the other side of the border, they move up for work, or, you know, sell a business on the other side of the border. But it’s very common that people will move for work purposes, spend a chunk of their career here. Sometimes it’s planned to be temporary, and then they end up making it, you know, more longer term. But people moving back to their home country around retirement is very common.Josh Hile:And maybe since you touched on it earlier, you can talk about kind of the tax work, because I, I would assume that’s the most complicated part of this, other than like probably tax and estate planning. But like, how do portfolios differ when taxes are involved, and how do you have to change essentially portfolios based on if the client’s living in Canada versus the US?Lucas Wennersten:So tax, as you probably realize, kind of reaches its fingers into everything. It touches everything in your financial life, and that’s even more so true when you look at the border context. And yeah, it does get a lot more complicated. Um, for one thing, I mean, probably the most important thing when you look at the U.S. tax system versus the Canadian tax system is that in Canada there’s no such thing as a joint tax return. Everybody files their own tax return in Canada. So there’s different strategies that you can use to income split, is what they call it. It’s called income splitting, where you’re trying to basically shift income from a higher income spouse to a lower income spouse so that that income is exposed to lower tax brackets. And it also extends into things like investments through what they call passive foreign investment companies. So any kind of foreign pooled investment vehicle like an ETF, private fund, mutual fund, anything like that is going to be considered a PFIC. And when you have a PFIC, you have to fill out Form 8621. And most of the time there’s going to be a mark-to-market election that’s made on that form, which basically means that you don’t really get any more tax deferral as a result of not selling securities because the growth in those securities is going to be taxed on an annual basis. Also, the interest, dividends, all the other investment income is going to be taxed on an annual basis, and it’s much higher tax rates than what you would experience on the personal level. So that’s something you want to really avoid. And I think so, just to—Josh Hile:and maybe I’m understanding this wrong— so you’re taxed on an annual basis even if you don’t sell the asset? So if you own a mutual fund and it goes up by 10%, you would be taxed on that 10% increase in value in for Canadian taxation.Lucas Wennersten:So yeah, if you take the mark-to-market election, that’s basically what it means is that you’re marking the value to market every year and then you’re paying capital gains. Well, it’s not even capital gains tax in this case, but you’re paying tax on those capital gains annually.Josh Hile:And because, yeah, they’re— I mean, they’re unrealized. And so What’s the other election you can do then?Lucas Wennersten:Not really up to you. There’s what’s called a QEF election. And in order to take the QEF election, first of all, it’s almost exclusively— I think it might be exclusively with mutual funds. And the fund company has to produce the QEF information that you need. So without the information and the slip that comes from the company, you can’t take the QEF election. You won’t be able to get the information that you need for that, for that election. So that’s very rare. I mean, there are funds out there that do provide the QEF information, but they’re not very common. And obviously there’s other things to take into consideration, you know, as far as exposures and performance and stuff like that as well.Josh Hile:Hmm. So essentially you’re going to be paying taxes on those unrealized gains no matter what. And then you— but on the back end of that, it makes it easier to rebalance your portfolio on a more consistent basis because you’re already paying taxes. And so you already have a higher cost basis on everything.Lucas Wennersten:That’s true. But like I said, the tax rates are a lot higher. Yeah, paying at the top marginal tax bracket rather than 15% or even where your normal marginal tax bracket would be. So it’s going to be very punitive. And for U.S. citizens living in Canada, you’ve really got two options. Assuming that you’re not going to use mutual funds that have the QEF election, which like I said, is very rare, you can invest in individual securities in Canada. So individual stocks and bonds. Which obviously limits your diversification a lot. Canada, last time I checked, was only about 3% of the world’s equity value. So typically in Canada, you’ll see with Canadian portfolios, they still have a really large exposure to the US market through Canadian ETFs and mutual funds, sometimes individual stocks. And that’s fine for Canadians, but for US citizens living in Canada, then those are all considered PFIX unless it’s the individual stock route. So when you have, you know, when you’re living in Canada, number one, you have to think about diversification. And then when you diversify globally, you have currency exchange exposure, and you got to start thinking about hedging. Obviously, hedging introduces new costs to the portfolio. And so trying to balance all that, you know, with people have assets on both sides of the border, um, can be challenging at times. You know, you can plan around it, and, and there’s ways to make it work, but it’s not as easy as just doing it, you know, on a domestic perspective.Josh Hile:And how does that change kind of like your traditional model portfolios between— like, or does it— like between borders? Like, if it’s like citizen or U.S. citizens who are living in Canada or vice versa and how much you’re going to wait to municipal bonds or fixed income or privates or whatever it might be. Is there any big differences there?Lucas Wennersten:Yeah, most of it’s regulatory. I mean, obviously if you’re living in Canada and you’re a US citizen, munis are not going to do a whole lot of good for you. First of all, you’re in Canada and it’s a higher tax jurisdiction. They’ve got more compressed tax brackets. And so it’s the Canadian deferral that you really need. You don’t need that US deferral. You’re going to have foreign tax credits that’s going to offset all that. So one of the things that people don’t realize is that ETFs are considered equities. They’re exchange traded. And so Canadian custodians can buy US ETFs through our exchanges and custody them in Canada. So for some people that are here in the US temporarily, they’re not US citizens and they’ll be severing their US tax ties when they leave. It’s helpful to invest in ETFs exclusively if you can, so that they can transfer those securities back up to Canada. You know, once they sever their tax ties with the US, they don’t have to report capital gains anymore, and they get a step-up in basis. So in other words, their, their new cost basis when they enter Canada is whatever the market value was on that date of entry. So, you know, that’s— that kind of thing works out pretty slick. And we’ve talked about this before a little bit in that both for mutual funds and for privates, you pretty much need to have a U.S. address, like you need to be a U.S. resident. And so Canadian custodians are not going to be able to hold those securities to begin with. And so, you know, if you have people that are moving to Canada, that’s something that needs to be taken into consideration. If you have clients that have qualified accounts and you want to buy those types of funds in a qualified account, you can do that as long as you do it before they leave. Fund companies are not going to make you sell or do any kind of forced liquidation, but what’ll happen is you’re not going to be able to buy anymore. So you can try to kind of nail that allocation up front, but obviously it’s going to move around a little bit over time and you’re not going to be able to add to it. So you have to kind of build around over time. So those are some of the things that we run into. Obviously, we’ve got currency exchange issues that we deal with and we try to mitigate currency exchange risk as much as possible by migrating to the currency that people are going to need. For their retirement. But you want to be smart about that. And obviously you don’t want to convert when the currency exchange rate is not advantageous to you. But like what I was telling you about with, with PFIX, you know, sometimes it’s kind of pick your poison. Do you want to continue to invest in Canadian dollars or do you want to convert to US dollars and get access to the bigger US market? There’s a lot more funds available on the US market. I would argue that there’s probably better fund managers on the US side and that there’s more depth of experience and different types of alternatives that are available, different funds, different investing styles and stuff like that. Historically, the US market, if you look back around the last 50 years or so, the US market has outpaced the Canadian market by almost 2%. So when you’re looking at long-term portfolios that might be invested for 20, 30, 40 years, even though you might take a hit on the currency exchange upfront, it still might be better for you to have US access, you know, where you might have access to more funds, you know, different types of investments and potentially higher returns.Josh Hile:Yeah. And then I guess this is kind of a two-sided question. Do you use any privates right now? And then where are you seeing opportunities for clients and their portfolios?Lucas Wennersten:Yeah, we, we do use privates. Across the board, we pretty much use private debt. Not across the board do we use private equity, but we do have some exposure to that. We added some infrastructure exposure recently. We have a lot of managed futures exposure, commodities, gold, you know, other precious metals, things like that are part of our portfolios.Josh Hile:And what, what percentage of portfolios are usually in privates?Lucas Wennersten:It depends. I mean, most of the time it’s around 20%. Sometimes it’ll be higher than that. You know, it kind of depends on what the objectives are of the client. Yeah. And, you know, when they come over, I think is kind of important as well, you know, with what’s going on with the market and the economy and stuff like that. So I’ve had some clients that have been a little bit heavy in alternatives for the last year or so, you know, with Liberation Day and, you know, uncertainty around tariffs and stuff like that. They wanted to take a little bit more conservative approach. And as you know, with privates, you’re going to, at least on paper, you’re going to get a little bit less volatility. And from a yield standpoint on, you know, like private debt holdings, you’re going to get a significantly better yield than what you’ll get with, you know, most public bond funds.Josh Hile:Yep. Yep. And what, what are you most excited about from like a portfolio standpoint, or where are you looking to like allocate capital for the next year based on the current market environment?Lucas Wennersten:Yeah, I mean, I believe in diversification highly, and I’m always looking to diversify amongst, you know, new sectors, different trading styles, obviously geographically. So I think there’s been a lot of good headway that’s been made, you know, over the last several years as far as alternative strategies becoming available more publicly, either through ticker symbols or in a mutual fund structure. So I’m excited about that. And I expect that to continue. I think there’s obviously a lot of opportunity there for fund companies, probably more and more demand from investment managers over time. I think AI is going to take a bigger, bigger role in the market, you know, in general, how practices are run, you know, communication and all that kind of stuff. One of the good things about, you know, tech and as it develops is the capabilities that we have as advisors to be able to access information, model portfolios, optimize portfolios, you know, and that kind of thing. So, um, I expect that alternatives will become a bigger and bigger piece of portfolios going forward. We’re already seeing that with institutional money. You know, institutional funds typically have much higher higher allocations to alternatives than retail investors do. And I’m not saying that allocations should be too high, but alternatives do offer different return streams than public equities. A lot of them have low correlation levels and lower volatility. So I think they’re a really important part of portfolios and can really help improve risk-adjusted returns and help investors to have a better investing experience overall.Josh Hile:Yeah, yep, definitely 100% agree on all those points about just especially on the like really when you’re trying to get into privates, you’re really looking for that diversification, volatility dampers, um, also like income orientation and even the tax-advantaged nature of some of these privates that you can get into and really take advantage of non-taxable income within those. Um, one of the things you mentioned before we were jumping on this call is adding kind of, you know, CPA like, or tax planning services to your practice. And maybe you can talk about like how that is impactful both for your clients as well as from a growth perspective, essentially. Like, I would assume that’s incredibly valuable to your clients and can be a referral source for you to be like, hey, we can add tax planning and really help you on these tax situations because clients love saving money on taxes.Lucas Wennersten:Yeah, absolutely. I mean, we were already doing tax planning, you know, as part of our comprehensive financial planning, but really our tax preparation assistance service was born out of a demand from clients. You know, it’s a lot more difficult to find cross-border CPAs than it is domestic-only CPAs, obviously. And the cross-border CPAs tend to get very busy. Sometimes the communication is not the best. And so, you know, our clients were telling us, we wish you guys were doing taxes. We wish it was more of a one-stop shop. And so that’s really what we, what we aim to offer. The only things that we don’t offer are banking, insurance, and legal, legal work. And so we went out and we found a few different relationships that are, you know, reliable, that we can depend on, where we’ll have priority with them and, you know, preferential pricing. And, um, so we basically facilitate the tax prep. We, you know, work with the client, gather all the information, make sure the file is complete. Once it’s complete and we’ve got all the information we need, we hand it over to our CPA partners, they prepare the returns, and then we kind of take it from there. If there’s any questions, we answer it the client. And it has been really great. To your point, it’s, you know, it’s very insightful as far as what’s going on in clients’ situations. It’s led to a lot of new prospects coming in. It started out where we were just going to offer it to existing clients, and we decided to expand beyond that. So we’re offering, you know, just tax prep only for some new prospects. That has led to a lot of financial planning. I do hourly consultations, personal planning consultations. So obviously when you’re running across tax stuff, it’s going to lead to other conversations about, you know, why is this being taxed this way? And, you know, what should I do about it? So yeah, from a growth perspective, it’s been great for our firm. It’s been great for raising awareness and everything. All the other services that we offer, you know, have benefited from new prospects that are coming in because of tax. Everybody needs tax, you know what I mean?Josh Hile:So yes, they do. And I think that’s actually one of the best value adds financial advisors can add. And I think a lot of people underlook what people can do from a tax perspective because for some reason, um, there’s a lot of, uh, or there’s a lot of clients who think that their CPA should automatically be looking for like tax savings. And it’s like, well, that’s not their job in most cases. Like, that’s not what they’re trying to do. They’re trying to like— you tell them what to do and they’re going to file your taxes, but they’re not tax strategists in a lot of cases. And usually you have to bring in a financial advisor to really help on that side of things.Lucas Wennersten:So yeah, yeah. And, you know, not all advisors can talk about tax for licensing and registration because of limitations there. And from my personal perspective, like, I did prepare tax returns on both sides of the border for the first 8 or 9 years of my career. And I would not feel comfortable doing this, you know, even as a tax prep assistance service if I didn’t have, you know, more experience and was aware of what should be on there and how to, you know, could, could find things that were incorrect and things like that. I mean, our CPA partners are fantastic, but— and I’m learning a lot, you know, particularly about like corporate structure planning and stuff like that in the cross-border sense. Um, there’s always room to learn, but you got to be careful. I mean, if you’re going to offer a tax prep assistance program, you know, make sure that you find reliable CPA partners that are going to be, um, not only good with you but also, you know, will answer questions for you and stuff. And, uh, you know, make sure that it’s something you’re going to be comfortable Yeah.Josh Hile:So maybe looking forward, where do you see your business going? And maybe just like financial planning in general going over the next 3 to 5 years, what do you think that looks like?Lucas Wennersten:I hope in general that the industry moves more towards a fiduciary standard where, you know, the sales and the advice are kind of separated either regulatory-wise or, you know, through different job titles and stuff like that. You know, but in general, I think that in markets there’s always things to be worried about. You know, there’s always bad news on the TV, but I expect markets to continue to grow. I expect, you know, more and more investment options to be made available to investors. You know, I think it’s great that alternatives are growing and even on the equities side of things, there’s always things that are changing. You know, factor investing has grown a lot over the years. I’m a big fan of factor investing. So, you know, we’re always looking for new opportunities and grateful for firms like yours that are out there finding them and, you know, bringing them to market.Josh Hile:Yeah, definitely. And just to close out, and I always like to ask something a little bit interesting. So what do you do outside of work? What’s your go-to?Lucas Wennersten:Really? I mentioned I have 4 kids and I do a lot of coaching, uh, probably more than I’d like to do. So I’m really a family man.Josh Hile:What sports?Lucas Wennersten:So my kids are 6, 9, 10, and 11. Last season, uh, they all played basketball, and I signed up to head coach one team and to assistant coach another, but the city was having a hard time getting enough coaches. And then, you know, at the end of the day, after several emails, I ended up taking on 4 teams as the head coach. So I had, you know, a 5-6 team, I had 9-year-old boys, and I had 10-year-old girls and 11-year-old girls. So that was fun. This season we’re all doing baseball stuff. I’ve done soccer, volleyball. I played baseball and basketball growing up, so that’s— those are what I know. But, you know, it’s— when kids are that young, you don’t have to know a whole lot. It’s more about wrangling them together, keeping them focused, you know, and trying to teach them a little bit while, while having fun.Josh Hile:Yeah, definitely. Wow, 4 basketball teams. I can’t even imagine the practice schedule there. That’s crazy.Lucas Wennersten:It was hectic. Yeah, Saturdays were just completely shot, you know, as 4 games spread out all day. So I’m glad that’s not the case this year. But you know, I have— it’s not that I have to, I want to go to their games. Yeah, I don’t need to put it like that. But you know, if I’m going to be there, particularly with practice and stuff, if I have to be there, I want to be there. I want to get involved, you know, I want to help out, you know, do what I can to help the kids. So it’s fun. And that’s, to be honest, I mean, that’s really all I do. I work quite a bit at this point, probably more than, you know, most people. And thankfully I work at home. Most of the time. My kids are homeschooled. Uh, another quick story, I’ll try to make it quick, is—Josh Hile:yeah, yeah, no, no, go for it.Lucas Wennersten:When we moved to Canada, my older two were in what they call JK and SK, which is kindergarten and preschool. So they have French immersion programs there, and so we were like, cool, we’re gonna put the girls in a French immersion program, they’ll know French fluently by third grade. A couple months after school started, uh, COVID hit, they went to remote learning, which is a complete waste of time, you know, for 5 and 6-year-olds. And then on top of that, the teacher was speaking French the whole time, which we don’t have any, any exposure to before that. So that’s when we ended up pulling them. Uh, we’ve been homeschooling them ever since. So even though I said I work a lot, I do, you know, I spend a lot of time with my kids and they’re here all the time as well. So yeah, I see them all the time.Josh Hile:That’s amazing. I love it. And, um, I thank you so much for coming on and, uh, talking us through this. And, um, we’ll definitely include, uh, information about your firm so that people can find you, especially those looking for these specialty kind of tax services and just what you can provide them there.Lucas Wennersten:Excellent, Joshua. I appreciate you having me. It was fun talking to you.",[12,5928,5929],{},"49th Parallel Wealth Management is a registered investment adviser and the opinions expressed by 49th Parallel Wealth Management on this show are their own and do not reflect the opinions of Citizen Mint. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.",[12,5931,2977],{},[12,5933,2980],{},{"title":59,"searchDepth":167,"depth":167,"links":5935},[],"2026-04-02","In our fourth episode, we highlight Lucas Wennersten, Founder of 49th Parallel Wealth Management. Lucas shares his journey building a cross-border advisory firm, emphasizing his focus on tax-aware planning and integrated portfolio construction for clients with global financial lives. He discusses how his firm navigates the complexities of U.S. and Canadian tax and regulatory frameworks, the importance of structuring portfolios for after-tax outcomes, and how private markets can enhance diversification. The conversation also explores how advisors can better serve increasingly sophisticated, internationally focused clients.","\u002Fimages\u002Fresources\u002Fadvisor-view-lucas-wennersten-cross-border-wealth-management.png",{},"\u002Fresources\u002Fadvisor-view-lucas-wennersten-cross-border-wealth-management",{"title":5893,"description":5937},"resources\u002Fadvisor-view-lucas-wennersten-cross-border-wealth-management","GGcxyf1EcJPepy8sFE5nW4DENg0UVbyiHut6Gu2yBU8",{"id":5945,"title":5946,"author":7,"body":5947,"category":176,"date":6166,"description":6167,"extension":179,"image":6168,"imageAlt":181,"meta":6169,"navigation":183,"path":5064,"seo":6170,"stem":6171,"topic":2991,"__hash__":6172},"resources\u002Fresources\u002Fwinning-high-net-worth-clients-strategies.md","Winning High-Net-Worth Clients in Today’s Market",{"type":9,"value":5948,"toc":6153},[5949,5952,5955,5958,5961,5965,5968,5974,5978,5981,5984,5999,6002,6006,6009,6012,6016,6019,6025,6029,6032,6038,6042,6045,6048,6052,6055,6058,6072,6075,6079,6082,6085,6089,6092,6095,6106,6109,6113,6116,6119,6129,6133,6136],[12,5950,5951],{},"CLIENT ACQUISITION • DIFFERENTIATION • PRIVATE MARKETS",[12,5953,5954],{},"High-net-worth clients are evolving. Expectations are higher, portfolios are more complex, and differentiation matters more than ever.",[12,5956,5957],{},"Traditional approaches alone are no longer enough. Advisors who win in this environment are those who think beyond products and toward outcomes.",[12,5959,5960],{},"Below are a few key themes shaping how top advisors are attracting and retaining HNW and UHNW clients today:",[34,5962,5964],{"id":5963},"_1-move-beyond-the-6040-mindset","1. Move Beyond the 60\u002F40 Mindset",[12,5966,5967],{},"Many HNW investors recognize that a traditional stock and bond portfolio may not fully meet their long-term objectives.",[12,5969,5970,5971,5973],{},"They are looking for broader opportunity sets, including ",[22,5972,931],{"href":255},", to access growth happening outside public indices and improve risk-adjusted outcomes.",[34,5975,5977],{"id":5976},"_2-lead-with-tax-aware-portfolio-construction","2. Lead with Tax-Aware Portfolio Construction",[12,5979,5980],{},"Taxes are often the largest drag on long-term wealth.",[12,5982,5983],{},"HNW clients are actively seeking strategies that improve after-tax returns through:",[960,5985,5986,5989,5996],{},[536,5987,5988],{},"Depreciation and passive loss flow-through",[536,5990,5991,5995],{},[22,5992,5994],{"href":5993},"\u002Fresources\u002Fopportunity-zone-investments-guide","Opportunity Zones"," and 1031 exchanges",[536,5997,5998],{},"Tax-advantaged income structures",[12,6000,6001],{},"Advisors who incorporate tax strategy into portfolio construction stand out immediately.",[34,6003,6005],{"id":6004},"_3-deliver-true-diversification","3. Deliver True Diversification",[12,6007,6008],{},"Diversification today means more than just stocks and bonds.",[12,6010,6011],{},"Private markets can introduce return streams that are less correlated to public markets, helping reduce volatility and improve resilience during drawdowns.",[34,6013,6015],{"id":6014},"_4-provide-access-not-just-advice","4. Provide Access, Not Just Advice",[12,6017,6018],{},"Access is a major differentiator.",[12,6020,6021,6022,6024],{},"HNW clients want exposure to opportunities they cannot easily source on their own, whether that’s ",[22,6023,3404],{"href":3403},", infrastructure, real estate, or niche private equity strategies.",[34,6026,6028],{"id":6027},"_5-focus-on-income-and-stability","5. Focus on Income and Stability",[12,6030,6031],{},"For many affluent investors, consistent income and capital preservation matter just as much as growth.",[12,6033,6034,6035,6037],{},"Private credit and ",[22,6036,3923],{"href":938}," can offer contractual income, asset-backed structures, and built-in downside protections that traditional portfolios may lack.",[34,6039,6041],{"id":6040},"_6-tell-a-better-story","6. Tell a Better Story",[12,6043,6044],{},"This is often overlooked.",[12,6046,6047],{},"HNW clients want to understand and talk about what they own. Unique investments create “cocktail conversation” moments that deepen engagement and reinforce perceived sophistication.",[34,6049,6051],{"id":6050},"_7-personalization-over-standardization","7. Personalization Over Standardization",[12,6053,6054],{},"Generic portfolios don’t win high-value clients.",[12,6056,6057],{},"Winning advisors tailor portfolios to:",[960,6059,6060,6063,6066,6069],{},[536,6061,6062],{},"Growth vs. income objectives",[536,6064,6065],{},"Liquidity needs",[536,6067,6068],{},"Tax situations",[536,6070,6071],{},"Time horizons",[12,6073,6074],{},"This is where a whole-portfolio mindset becomes critical.",[34,6076,6078],{"id":6077},"_8-integrate-estate-planning-into-the-portfolio","8. Integrate Estate Planning into the Portfolio",[12,6080,6081],{},"Estate planning should not be treated as a separate conversation.",[12,6083,6084],{},"The most effective advisors integrate estate planning into a cohesive portfolio strategy alongside investments, ensuring alignment across tax strategy, wealth transfer, and long-term client objectives.",[34,6086,6088],{"id":6087},"_9-simplify-complexity-through-education","9. Simplify Complexity Through Education",[12,6090,6091],{},"Private markets can feel complex.",[12,6093,6094],{},"Advisors who win take the time to clearly explain:",[960,6096,6097,6100,6103],{},[536,6098,6099],{},"How these investments work",[536,6101,6102],{},"The role they play in a portfolio",[536,6104,6105],{},"The trade-offs involved",[12,6107,6108],{},"Clarity builds trust and drives adoption.",[34,6110,6112],{"id":6111},"_10-use-private-markets-as-a-strategic-edge","10. Use Private Markets as a Strategic Edge",[12,6114,6115],{},"Ultimately, private markets are not just an allocation decision.",[12,6117,6118],{},"They are a business development tool that helps advisors:",[960,6120,6121,6123,6126],{},[536,6122,5857],{},[536,6124,6125],{},"Deliver better outcomes",[536,6127,6128],{},"Build deeper client relationships",[34,6130,6132],{"id":6131},"going-deeper-the-whole-portfolio-approach","Going Deeper: The Whole-Portfolio Approach",[12,6134,6135],{},"For advisors looking to implement this in practice, we’ve put together a detailed framework:",[12,6137,6138,6148,6149],{},[30,6139,6140,6144,6146],{},[22,6141,6143],{"href":6142},"\u002Fresources\u002Fwinning-high-net-worth-clients-guide","Guide to Winning High-Net-Worth Clients: A Whole-Portfolio Approach Utilizing Private Investments",[1667,6145],{},[1667,6147],{},"\nIt walks through how to size allocations, align strategies with client goals, and integrate private markets into a scalable advisory practice.",[30,6150,6151],{},[1667,6152],{},{"title":59,"searchDepth":167,"depth":167,"links":6154},[6155,6156,6157,6158,6159,6160,6161,6162,6163,6164,6165],{"id":5963,"depth":167,"text":5964},{"id":5976,"depth":167,"text":5977},{"id":6004,"depth":167,"text":6005},{"id":6014,"depth":167,"text":6015},{"id":6027,"depth":167,"text":6028},{"id":6040,"depth":167,"text":6041},{"id":6050,"depth":167,"text":6051},{"id":6077,"depth":167,"text":6078},{"id":6087,"depth":167,"text":6088},{"id":6111,"depth":167,"text":6112},{"id":6131,"depth":167,"text":6132},"2026-03-31","Actionable strategies for financial advisors to attract high-net-worth clients through differentiated service, private market access, and personalized wealth management.","\u002Fimages\u002Fresources\u002Fwinning-high-net-worth-clients-strategies.png",{},{"title":5946,"description":6167},"resources\u002Fwinning-high-net-worth-clients-strategies","rahVGMwakFEUavWyNWyK2o2ejBgcO6UZobEdvGrC6kE",{"id":6174,"title":6175,"author":7,"body":6176,"category":1248,"date":6239,"description":6240,"extension":179,"image":6241,"imageAlt":181,"meta":6242,"navigation":183,"path":6142,"seo":6243,"stem":6244,"topic":2991,"__hash__":6245},"resources\u002Fresources\u002Fwinning-high-net-worth-clients-guide.md","Guide to Winning High‑Net‑Worth Clients",{"type":9,"value":6177,"toc":6235},[6178,6181,6191,6195,6198,6201,6204,6227,6230],[34,6179,6175],{"id":6180},"guide-to-winning-highnetworth-clients",[12,6182,6183,6186,6187,6190],{},[22,6184,6185],{"href":5064},"High-net-worth clients"," are reshaping what they expect from advisors. This guide outlines how a whole-portfolio approach, integrating private markets, ",[22,6188,6189],{"href":327},"tax-efficient strategies",", and differentiated sources of return, can help deliver stronger outcomes and position advisors to win and retain sophisticated clients.",[34,6192,6194],{"id":6193},"whats-inside","What's inside",[12,6196,6197],{},"High-net-worth clients increasingly expect more than a traditional 60\u002F40 portfolio. This guide makes the case for a whole-portfolio approach that places private markets alongside public holdings, then walks through how an advisory practice can put that approach into action in a scalable, prudent way.",[12,6199,6200],{},"It draws on third-party research and industry surveys to frame the conversation, and pairs the investment case with the practical side of implementation: structures, sizing, client education, and operations. It is written for RIAs, family offices, and independent advisors who want a clear framework for discussing alternatives with sophisticated clients.",[12,6202,6203],{},"Inside, you will find:",[960,6205,6206,6209,6212,6215,6218,6221,6224],{},[536,6207,6208],{},"How demographic shifts and the coming generational wealth transfer are changing what HNW clients expect from their advisor",[536,6210,6211],{},"Why private markets have moved from a niche allocation to a core part of modern portfolio construction",[536,6213,6214],{},"A framework for sizing an alternatives allocation around each client's objectives, risk tolerance, liquidity needs, and tax situation",[536,6216,6217],{},"How to tailor the private markets mix for growth-focused, income-focused, and balanced clients",[536,6219,6220],{},"The potential benefits the guide outlines for HNW portfolios (diversification, income, inflation hedging, downside risk mitigation, and tax efficiency), along with the trade-offs clients should understand, such as illiquidity, fees, and complexity",[536,6222,6223],{},"The pros and cons of the main access routes: diversified multi-alternative funds, single-asset-class funds, direct investments, and co-investments",[536,6225,6226],{},"Practical steps for integrating alternatives into your practice, from unified reporting and model portfolios to client education and operational and compliance readiness",[12,6228,6229],{},"Complete the form below to download the full guide.",[6231,6232],"guide-gate",{"guide":6233,"pdf":6234,"title":6175},"winning-high-net-worth-clients-guide","\u002Fdownloads\u002Fguides\u002Fwinning-high-net-worth-clients-guide.pdf",{"title":59,"searchDepth":167,"depth":167,"links":6236},[6237,6238],{"id":6180,"depth":167,"text":6175},{"id":6193,"depth":167,"text":6194},"2026-03-30","Learn proven strategies for attracting and retaining high-net-worth clients, from building trust to offering tax-efficient private market investments.","\u002Fimages\u002Fresources\u002Fwinning-high-net-worth-clients-guide.png",{},{"title":6175,"description":6240},"resources\u002Fwinning-high-net-worth-clients-guide","G9YmP0d0NHkuGt2Oy5heseRnunLKJ4Vtait9LnNaRw4",{"id":6247,"title":6248,"author":7,"body":6249,"category":176,"date":6528,"description":6529,"extension":179,"image":6530,"imageAlt":181,"meta":6531,"navigation":183,"path":371,"seo":6532,"stem":6533,"topic":6534,"__hash__":6535},"resources\u002Fresources\u002Fmultifamily-workforce-housing-investing-current-market-cycle.md","Why Multifamily and Workforce Housing Deserve a Place in Your Portfolio Today",{"type":9,"value":6250,"toc":6520},[6251,6254,6261,6268,6272,6279,6305,6310,6314,6320,6325,6330,6334,6349,6358,6362,6365,6372,6380,6387,6401,6408,6413,6420,6425,6429,6432,6437,6446,6451,6460,6465,6470,6475,6480,6484,6491,6494,6508,6517],[12,6252,6253],{},"REAL ESTATE • WORKFORCE HOUSING • MULTIFAMILY",[12,6255,6256,6257,6260],{},"The U.S. housing market is undergoing a structural shift that is creating a compelling backdrop for private real estate investing, especially in ",[30,6258,6259],{},"multifamily and workforce housing",". Fundamental trends that once looked cyclical have become durable drivers of rentership, and institutional investors are actively positioning capital where demand remains resilient.",[12,6262,6263,6264,6267],{},"In this environment, disciplined allocations to private real estate, including ",[30,6265,6266],{},"multifamily, skilled nursing\u002Fassisted living, and mixed-use residential assets",", can offer income stability, demographic-driven growth, and downside protection compared to many traditional equity and fixed income exposures.",[34,6269,6271],{"id":6270},"market-fundamentals-the-era-of-rentership","Market Fundamentals: The Era of Rentership",[12,6273,6274,6275,6278],{},"Recent research from Bridge Investment Group highlights that the U.S. has entered “another era of rentership,” with demand for multifamily housing increasingly ",[30,6276,6277],{},"structural rather than cyclical",". Bridge finds that:",[960,6280,6281,6287,6293,6299],{},[536,6282,6283,6286],{},[30,6284,6285],{},"New construction growth is slowing meaningfully",", reducing supply pressures across core markets.",[536,6288,6289,6292],{},[30,6290,6291],{},"Occupancy levels are stabilizing",", reflecting healthier absorption after recent delivery waves.",[536,6294,6295,6298],{},[30,6296,6297],{},"The economics of homeownership remain elevated",", sustaining rental demand because many households face high all-in ownership costs relative to renting.",[536,6300,6301,6302],{},"As a result, ",[30,6303,6304],{},"rentership is becoming an embedded feature of the housing market rather than a temporary phase.",[12,6306,6307],{},[57,6308],{"alt":59,"src":6309},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-02-Screenshot-2026-02-17-165707.png",[34,6311,6313],{"id":6312},"demand-is-shifting-permanently-toward-rental-housing","Demand Is Shifting Permanently Toward Rental Housing",[12,6315,6316,6317,569],{},"Beyond this research, broader market data confirm that ",[30,6318,6319],{},"multifamily rentals now represent the largest share of the U.S. rental stock",[960,6321,6322],{},[536,6323,6324],{},"Large multifamily buildings overtook single-family rentals as the dominant rental product, reflecting demographic shifts, urbanization, and lifestyle preferences — a trend likely to persist as housing affordability pressures continue.",[12,6326,6327],{},[57,6328],{"alt":59,"src":6329},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-02-Screenshot-2026-02-17-171259.png",[34,6331,6333],{"id":6332},"institutional-confidence-blackstones-perspective","Institutional Confidence: Blackstone’s Perspective",[12,6335,6336,6337,6340,6341,6348],{},"Even the world’s largest alternative asset manager is signaling confidence in real estate’s potential. In its latest commentary, Jon Gray, President of Blackstone, reiterated that the firm views ",[30,6338,6339],{},"real estate and related infrastructure as a key part of capital deployment in the current environment",". Gray’s underlying message is clear: ",[30,6342,6343,6344],{},"identify where durable demand intersects with structural ",[22,6345,6347],{"href":6346},"\u002Fresources\u002Fmultifamily-set-to-benefit-from-tight-supply","supply constraints"," and invest with a long-term lens.",[12,6350,6351,6352,6357],{},"Gray’s comments reflect a broader institutional recognition that ",[30,6353,6354,6356],{},[22,6355,3923],{"href":938}," — especially those with strong income characteristics — serve as anchors in diversified portfolios"," amid macro uncertainty.",[34,6359,6361],{"id":6360},"workforce-housing-and-mixed-use-assets-a-tiered-opportunity","Workforce Housing and Mixed-Use Assets: A Tiered Opportunity​",[12,6363,6364],{},"While traditional Class A multifamily remains attractive, workforce housing and mixed-use developments offer unique growth characteristics:",[12,6366,6367,6370],{},[30,6368,6369],{},"Workforce Housing",[1667,6371],{},[960,6373,6374,6377],{},[536,6375,6376],{},"These assets serve renters priced out of both homeownership and high-end rentals, anchoring them in resilient demand even as markets soften.",[536,6378,6379],{},"Workforce housing performance tends to correlate closely with employment growth and wage trends, which is supportive given ongoing labor market tightness.",[12,6381,6382],{},[30,6383,6384,6385],{},"Assisted Living \u002F Age-Aligned Residential",[1667,6386],{},[960,6388,6389,6392],{},[536,6390,6391],{},"Demographic tailwinds from aging populations are creating structural demand for senior-oriented living.",[536,6393,6394,6395,6398,6399,263],{},"These assets often have ",[30,6396,6397],{},"different lease structures and demand drivers than multifamily",", enhancing portfolio ",[22,6400,1028],{"href":1027},[12,6402,6403],{},[30,6404,6405,6406],{},"Mixed-Use Residential",[1667,6407],{},[960,6409,6410],{},[536,6411,6412],{},"Urban and suburban mixed-use developments capture ancillary income (retail, hospitality, amenities) while anchoring high-occupancy residential demand.",[12,6414,6415,6416,6419],{},"These property types share a common theme: ",[30,6417,6418],{},"underserved demand plus limited supply",", which can translate into stable income streams and potential appreciation as rents normalize and capital flows return.",[12,6421,6422],{},[57,6423],{"alt":59,"src":6424},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-02-Screenshot-2026-02-17-180242-2.png",[34,6426,6428],{"id":6427},"the-investment-case-in-the-current-cycle","The Investment Case in the Current Cycle",[12,6430,6431],{},"Here’s how these themes translate into a compelling investment backdrop:",[12,6433,6434],{},[30,6435,6436],{},"1. Structural Demand Meets Supply Discipline",[960,6438,6439],{},[536,6440,6441,6442,6445],{},"Rentership is not merely a cyclical reaction but a ",[30,6443,6444],{},"long-term shift in how Americans live",", driven by affordability, mobility, and lifestyle choice. With new starts decelerating and occupancy recovering, the fundamentals favor owners who can hold quality assets through the next cycle.",[12,6447,6448],{},[30,6449,6450],{},"2. Risk-Adjusted Income in a Volatile Landscape",[960,6452,6453],{},[536,6454,6455,6456,6459],{},"Private real estate can offer ",[30,6457,6458],{},"higher risk-adjusted income"," than many public market alternatives, particularly when underlying cash flows are backed by essential housing demand.",[12,6461,6462],{},[30,6463,6464],{},"3. Institutional Capital Validates Long-Term Value",[960,6466,6467],{},[536,6468,6469],{},"Firms like Blackstone are signaling that allocations to core real estate remain part of balanced deployment strategies, even amid macro crosscurrents.",[12,6471,6472],{},[30,6473,6474],{},"4. Demographics Amplify Demand",[960,6476,6477],{},[536,6478,6479],{},"Young household formation remains robust and aging populations are demanding specialized housing, both of which increase demand for purpose-built rental assets.",[34,6481,6483],{"id":6482},"a-window-of-opportunity","A Window of Opportunity",[12,6485,6486,6487,6490],{},"The current cycle may be a rare moment where ",[30,6488,6489],{},"disciplined capital deployment in multifamily and workforce housing aligns with both secular demand and improving fundamentals",". Structural rentership, demographic tailwinds, and institutional conviction converge to create a narrative that merits serious consideration within diversified portfolios.",[12,6492,6493],{},"These investments offer:",[960,6495,6496,6499,6502,6505],{},[536,6497,6498],{},"Income generation with contracted rental cash flows",[536,6500,6501],{},"Exposure to long-term demographic megatrends",[536,6503,6504],{},"Potential inflation-hedged attributes in a rising cost environment",[536,6506,6507],{},"Portfolio diversification outside of public market volatility",[12,6509,6510,6511,6516],{},"Citizen Mint is actively looking for unique opportunities in the market where supply issues and strong regional demographics will drive returns for real estate investments. If you would like to see where we have found these opportunities currently, ",[22,6512,6515],{"href":6513,"rel":6514},"https:\u002F\u002Fapp.citizenmint.com\u002Flogin",[45],"log in to the platform"," to see current offerings.",[12,6518,6519],{},"To discover more about Citizen Mint and how we can help you and your clients achieve their financial goals, schedule a call with our team today.",{"title":59,"searchDepth":167,"depth":167,"links":6521},[6522,6523,6524,6525,6526,6527],{"id":6270,"depth":167,"text":6271},{"id":6312,"depth":167,"text":6313},{"id":6332,"depth":167,"text":6333},{"id":6360,"depth":167,"text":6361},{"id":6427,"depth":167,"text":6428},{"id":6482,"depth":167,"text":6483},"2026-02-18","Structural housing shortages and rising rentership are reshaping real estate. Learn why multifamily and workforce housing may offer resilient, income-focused opportunities.","\u002Fimages\u002Fresources\u002Fmultifamily-workforce-housing-investing-current-market-cycle.jpg",{},{"title":6248,"description":6529},"resources\u002Fmultifamily-workforce-housing-investing-current-market-cycle","real-estate","CG6IaDMPlhHXv7JRI5FMosjSrozUGPgMXSS7J7MXL10",{"id":6537,"title":6538,"author":7,"body":6539,"category":2983,"date":7929,"description":7930,"extension":179,"image":7931,"imageAlt":181,"meta":7932,"navigation":183,"path":7933,"seo":7934,"stem":7935,"topic":939,"__hash__":7936},"resources\u002Fresources\u002Finterconnection-capital-infrastructure-energy-transition.md","The Infrastructure Behind the Energy Transition: Unlocking the Grid with Interconnection Capital",{"type":9,"value":6540,"toc":7927},[6541,6548,6551,6557,6563,6569,6575,6581,6587,6593,6599,6605,6611,6617,6623,6629,6635,6641,6647,6653,6659,6665,6671,6677,6683,6689,6695,6701,6707,6713,6719,6725,6731,6737,6743,6749,6755,6761,6767,6773,6779,6785,6791,6797,6803,6809,6815,6821,6827,6833,6842,6848,6854,6860,6866,6872,6878,6884,6890,6896,6902,6908,6914,6920,6926,6932,6938,6944,6950,6956,6962,6968,6974,6980,6986,6992,6998,7004,7010,7016,7022,7028,7034,7039,7045,7051,7057,7063,7069,7075,7081,7087,7093,7098,7104,7110,7116,7122,7128,7134,7140,7146,7152,7158,7167,7173,7179,7185,7191,7197,7203,7209,7215,7221,7227,7233,7239,7245,7251,7257,7263,7269,7274,7279,7285,7291,7297,7303,7309,7315,7321,7327,7333,7339,7345,7351,7357,7363,7369,7375,7381,7387,7393,7399,7405,7411,7417,7423,7429,7435,7441,7447,7453,7459,7465,7471,7477,7483,7489,7495,7501,7507,7513,7519,7525,7531,7537,7543,7549,7555,7561,7567,7573,7579,7585,7591,7597,7603,7609,7615,7621,7627,7633,7639,7645,7651,7657,7662,7668,7674,7680,7686,7692,7698,7704,7710,7716,7722,7728,7734,7740,7746,7752,7758,7764,7770,7776,7782,7788,7794,7800,7806,7812,7818,7824,7830,7836,7842,7848,7854,7860,7866,7872,7878,7884,7890,7896,7902,7908,7914,7920,7923,7925],[12,6542,6543,6544,6547],{},"Listen to a discussion on the emerging opportunity of ",[22,6545,6546],{"href":2349},"interconnection"," capital: a short-duration strategy designed to address critical grid bottlenecks while offering structural downside protection through regulatory refundability.",[2724,6549],{"title":6538,"url":6550},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F18615307",[12,6552,6553],{},[22,6554,2734],{"href":6555,"rel":6556},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F18615307-the-infrastructure-behind-the-energy-transition-unlocking-the-grid-with-interconnection-capital",[45],[12,6558,6559,6560,6562],{},"0:00",[1667,6561],{},"\nSo let’s just look at the scoreboard for a second.",[12,6564,6565,6566,6568],{},"0:01",[1667,6567],{},"\nIf you read the headlines, you’d think the energy transition is, well, basically won, the Capitol’s there.",[12,6570,6571,6572,6574],{},"0:07",[1667,6573],{},"\ntrillions of dollars in ESG funds, infrastructure, private equity, all just sitting there ready to go.",[12,6576,6577,6578,6580],{},"0:14",[1667,6579],{},"\nThe tech is mature.",[12,6582,6583,6584,6586],{},"0:15",[1667,6585],{},"\nSolar and wind are cheaper than coal in most places.",[12,6588,6589,6590,6592],{},"0:18",[1667,6591],{},"\nThe public will is largely there.",[12,6594,6595,6596,6598],{},"0:20",[1667,6597],{},"\nSo my question is, why does the data show that the actual deployment of new energy onto the grid is slowing down?",[12,6600,6601,6602,6604],{},"0:28",[1667,6603],{},"\nIt’s the difference between having a Ferrari in the garage and having a road to drive it on.",[12,6606,6607,6608,6610],{},"0:33",[1667,6609],{},"\nAnd right now that road is closed, and we’re not talking about supply chain issues or lithium shortages today.",[12,6612,6613,6614,6616],{},"0:38",[1667,6615],{},"\nWe’re looking at this invisible wall that thousands of perfectly Good renewable projects are just crashing into the interconnection queue.",[12,6618,6619,6620,6622],{},"0:45",[1667,6621],{},"\nThe queue, it sounds so administrative, like a line at the DMV, right?",[12,6624,6625,6626,6628],{},"0:48",[1667,6627],{},"\nExactly.",[12,6630,6631,6632,6634],{},"0:49",[1667,6633],{},"\nBut based on the stack of research we’ve got in front of us from Citizen Mint, Lawrence Berkeley National Laboratory, recent FERC filings, this queue is actually where billions of dollars of value are being created or, you know, destroyed.",[12,6636,6637,6638,6640],{},"1:02",[1667,6639],{},"\nIt is the single biggest bottleneck in the US energy market today.",[12,6642,6643,6644,6646],{},"1:07",[1667,6645],{},"\nAnd what’s so fascinating is that while everyone’s focused on the hardware, the panels, the turbines.",[12,6648,6649,6650,6652],{},"1:15",[1667,6651],{},"\nThe smart money is looking at the friction.",[12,6654,6655,6656,6658],{},"1:17",[1667,6657],{},"\nThey’re looking at something called interconnection capital.",[12,6660,6661,6662,6664],{},"1:20",[1667,6663],{},"\nSo that’s our mission for this deep dive.",[12,6666,6667,6668,6670],{},"1:21",[1667,6669],{},"\nWe’re going to strip away the green energy hype and look at the, the brutal mechanics of grid infrastructure and finance.",[12,6672,6673,6674,6676],{},"1:29",[1667,6675],{},"\nWe need to understand why 300 acre solar farm can have the land, the permits, the funding, but still sit totally dead in the water for 4 years because of a PDF file on some utility engineer’s desktop.",[12,6678,6679,6680,6682],{},"1:42",[1667,6681],{},"\nAnd specifically we’re talking about the capital you need just to survive that wait.",[12,6684,6685,6686,6688],{},"1:47",[1667,6687],{},"\nAll right, so let’s start with what you call the great gridlock.",[12,6690,6691,6692,6694],{},"1:49",[1667,6693],{},"\nI think most people, you know, generalists, have this misconception that the electric grid is kind of an open platform like the internet.",[12,6696,6697,6698,6700],{},"1:56",[1667,6699],{},"\nYeah, you build a server, you plug it in, you’re live.",[12,6702,6703,6704,6706],{},"1:58",[1667,6705],{},"\nThat analogy just falls apart immediately because the internet doesn’t have thermal limits.",[12,6708,6709,6710,6712],{},"2:03",[1667,6711],{},"\nThe grid is a physical machine.",[12,6714,6715,6716,6718],{},"2:05",[1667,6717],{},"\nI mean, it’s the largest machine in the world, and it operates in real time.",[12,6720,6721,6722,6724],{},"2:09",[1667,6723],{},"\nSupply has to match demand perfectly every single millisecond.",[12,6726,6727,6728,6730],{},"2:14",[1667,6729],{},"\nSo when you propose adding say 500 megawatts of solar in rural Texas, you’re not just plugging in.",[12,6732,6733,6734,6736],{},"2:21",[1667,6735],{},"\nNo, not at all.",[12,6738,6739,6740,6742],{},"2:22",[1667,6741],{},"\nYou are potentially changing voltage stability, thermal loading, reactive power flows, maybe 3 counties over, which is why we have this whole study phase right before you can connect the grid operator, the RTO or ISO, they have to run a whole series of engineering studies, feasibility studies, system impact studies, facility studies.",[12,6744,6745,6746,6748],{},"2:40",[1667,6747],{},"\nThey have to literally model the grid to see if your project breaks it.",[12,6750,6751,6752,6754],{},"2:44",[1667,6753],{},"\nAnd this is where that Lawrence Berkeley National Lab data comes in.",[12,6756,6757,6758,6760],{},"2:47",[1667,6759],{},"\nThe volume of requests isn’t just up, it’s like vertical.",[12,6762,6763,6764,6766],{},"2:50",[1667,6765],{},"\nOh, it’s staggering.",[12,6768,6769,6770,6772],{},"2:51",[1667,6771],{},"\nBetween 2019 and 2023, interconnection requests spiked by 325%, and the grid operators, I mean, they were not staffed for that, not even close.",[12,6774,6775,6776,6778],{},"3:00",[1667,6777],{},"\nThey were built for a world where you’d add one giant coal plant every 5 years or so, not 4000 small solar projects every single year.",[12,6780,6781,6782,6784],{},"3:08",[1667,6783],{},"\nAnd so the system just choked.",[12,6786,6787,6788,6790],{},"3:11",[1667,6789],{},"\nYeah, the data shows the median time from just the initial request to actually starting commercial operation has pushed out by nearly 30 months.",[12,6792,6793,6794,6796],{},"3:19",[1667,6795],{},"\n30 months.",[12,6798,6799,6800,6802],{},"3:20",[1667,6801],{},"\nThat’s 2.5 years of added delay.",[12,6804,6805,6806,6808],{},"3:23",[1667,6807],{},"\nBut think about what that delay actually does.",[12,6810,6811,6812,6814],{},"3:25",[1667,6813],{},"\nThe second order effects are brutal.",[12,6816,6817,6818,6820],{},"3:27",[1667,6819],{},"\nIf you’re a developer, you’ve got option agreements on that land.",[12,6822,6823,6824,6826],{},"3:31",[1667,6825],{},"\nYou’re paying landowners every year just to hold the site.",[12,6828,6829,6830,6832],{},"3:33",[1667,6831],{},"\nYou’ve got overhead.",[12,6834,6835,6836,6838,6839,6841],{},"3:35",[1667,6837],{},"\nYou have investors who are expecting an ",[22,6840,3639],{"href":3792},", so a 30 month delay doesn’t just push your revenue back, it burns your pre-development capital.",[12,6843,6844,6845,6847],{},"3:42",[1667,6846],{},"\nIt can completely kill the project’s economics before you even stick a shovel in the ground.",[12,6849,6850,6851,6853],{},"3:47",[1667,6852],{},"\nSo the queue isn’t just a waiting room, it’s more like a death valley, exactly.",[12,6855,6856,6857,6859],{},"3:50",[1667,6858],{},"\nAnd to manage this, the grid operators had to install a filter.",[12,6861,6862,6863,6865],{},"3:54",[1667,6864],{},"\nThey couldn’t just let anyone with a map and a dream submit a request because it was just clogging up all the modeling software.",[12,6867,6868,6869,6871],{},"4:00",[1667,6870],{},"\nThey need a way to screen for only the serious projects, which brings us to the financial gatekeeper.",[12,6873,6874,6875,6877],{},"4:07",[1667,6876],{},"\nThe deposit.",[12,6879,6880,6881,6883],{},"4:09",[1667,6882],{},"\nThis feels like the crux of it.",[12,6885,6886,6887,6889],{},"4:10",[1667,6888],{},"\nIt is.",[12,6891,6892,6893,6895],{},"4:12",[1667,6894],{},"\nTo get into the queue and keep your spot, you have to post a really substantial financial deposit.",[12,6897,6898,6899,6901],{},"4:18",[1667,6900],{},"\nAnd this is not some nominal application fee.",[12,6903,6904,6905,6907],{},"4:21",[1667,6906],{},"\nWe are talking millions of dollars per project, and you’re posting this capital while the outcome is still totally uncertain.",[12,6909,6910,6911,6913],{},"4:28",[1667,6912],{},"\nThat’s the kicker.",[12,6915,6916,6917,6919],{},"4:30",[1667,6918],{},"\nYou’re posting this capital just to find out if you can even connect.",[12,6921,6922,6923,6925],{},"4:33",[1667,6924],{},"\nThe deposit is meant to fund the utility’s network upgrades, you know, new substations, bigger power lines, if you end up proceeding.",[12,6927,6928,6929,6931],{},"4:40",[1667,6930],{},"\nBut for the whole time you’re in the study process, which we just said can take years, that cash is just trapped, trapped.",[12,6933,6934,6935,6937],{},"4:47",[1667,6936],{},"\nThis sounds like a massive balance sheet advantage for the big incumbent players.",[12,6939,6940,6941,6943],{},"4:51",[1667,6942],{},"\nIt is the defining asymmetry of this market.",[12,6945,6946,6947,6949],{},"4:53",[1667,6948],{},"\nIf you are a huge utility like Nextterra or Duke Energy, you have a massive balance sheet.",[12,6951,6952,6953,6955],{},"4:59",[1667,6954],{},"\nYou can post a $5 million deposit with a letter of credit or just cash on hand, and for you that’s a rounding error.",[12,6957,6958,6959,6961],{},"5:04",[1667,6960],{},"\nYou can just absorb the opportunity cost of that capital for sure.",[12,6963,6964,6965,6967],{},"5:07",[1667,6966],{},"\nBut if you’re a mid-market independent.",[12,6969,6970,6971,6973],{},"5:10",[1667,6972],{},"\nPower producer and IPP.",[12,6975,6976,6977,6979],{},"5:12",[1667,6978],{},"\nMaybe you’re more innovative.",[12,6981,6982,6983,6985],{},"5:13",[1667,6984],{},"\nMaybe you’ve got a better site picked out, but you don’t have $50 million in cash just sitting around to park in restricted accounts for 10 different projects, precisely.",[12,6987,6988,6989,6991],{},"5:21",[1667,6990],{},"\nAnd so it forces this premature consolidation.",[12,6993,6994,6995,6997],{},"5:25",[1667,6996],{},"\nReally efficient, smart developers are forced to sell their project to the giants at a huge discount simply because they can’t handle the capital requirements of the Q.",[12,6999,7000,7001,7003],{},"5:34",[1667,7002],{},"\nOK, but the regulators, they’re not blind to this.",[12,7005,7006,7007,7009],{},"5:37",[1667,7008],{},"\nThe Federal Energy Regulatory Commission, FERC, they dropped what looks like a bombshell in July 2023.",[12,7011,7012,7013,7015],{},"5:45",[1667,7014],{},"\nOrder number 2023.",[12,7017,7018,7019,7021],{},"5:46",[1667,7020],{},"\nThe interconnection reforms.",[12,7023,7024,7025,7027],{},"5:48",[1667,7026],{},"\nI mean, this is the most significant regulatory shift in the space in probably two decades.",[12,7029,7030,7031,7033],{},"5:53",[1667,7032],{},"\nThe big headline.",[12,7035,7030,7036,7038],{},[1667,7037],{},"\nwas that it creates cluster studies.",[12,7040,7041,7042,7044],{},"5:56",[1667,7043],{},"\nSo instead of studying projects one by one serially, they study them in batches, which just makes sense from an engineering perspective.",[12,7046,7047,7048,7050],{},"6:02",[1667,7049],{},"\nIf you have 10 projects in the same county, you should model their combined impact, right?",[12,7052,7053,7054,7056],{},"6:06",[1667,7055],{},"\nBut the mechanism FERC used is what matters for our deep dive today.",[12,7058,7059,7060,7062],{},"6:10",[1667,7061],{},"\nThey moved from first come, first served to first ready, first served, first ready.",[12,7064,7065,7066,7068],{},"6:16",[1667,7067],{},"\nThat sounds efficient, but usually ready in this industry is just another word for well funded.",[12,7070,7071,7072,7074],{},"6:21",[1667,7073],{},"\nYou absolutely nailed it.",[12,7076,7077,7078,7080],{},"6:22",[1667,7079],{},"\nTo be considered ready, you now have to prove you have exclusive site control.",[12,7082,7083,7084,7086],{},"6:27",[1667,7085],{},"\nYou own the land or have a binding lease before you even enter the queue, and you have to post much higher deposits, significantly higher, and those deposits become at risk much, much faster.",[12,7088,7089,7090,7092],{},"6:38",[1667,7091],{},"\nSo they basically raised the stakes to fold the people who are bluffing.",[12,7094,7095,7096,6628],{},"6:42",[1667,7097],{},[12,7099,7100,7101,7103],{},"6:43",[1667,7102],{},"\nThey wanted to purge all the speculative projects from the queue, and to be fair, it worked, at least partially, but the paradox, and the sources are very clear on this.",[12,7105,7106,7107,7109],{},"6:51",[1667,7108],{},"\nIs that by raising the bar to get in, they drastically increase the short-term capital needs for the legitimate developers.",[12,7111,7112,7113,7115],{},"6:58",[1667,7114],{},"\nSo FERC solved the traffic jam by raising the toll to a price that a lot of the mid-market just can’t afford.",[12,7117,7118,7119,7121],{},"7:04",[1667,7120],{},"\nIt creates a liquidity crisis.",[12,7123,7124,7125,7127],{},"7:05",[1667,7126],{},"\nCorrect.",[12,7129,7130,7131,7133],{},"7:06",[1667,7132],{},"\nThe need for this interconnection capital didn’t go away with Order 2023.",[12,7135,7136,7137,7139],{},"7:11",[1667,7138],{},"\nIt actually intensified.",[12,7141,7142,7143,7145],{},"7:13",[1667,7144],{},"\nThe developer now needs to bridge a larger amount of money for a clearer, yes, but also much more strictly enforced timeline.",[12,7147,7148,7149,7151],{},"7:20",[1667,7150],{},"\nOK, so let’s break down the anatomy of this investment then.",[12,7153,7154,7155,7157],{},"7:24",[1667,7156],{},"\nCitizen Mint calls this interconnection capital.",[12,7159,7160,7161,7163,7164,7166],{},"7:27",[1667,7162],{},"\nWhere does this actually sit in the ",[22,7165,3990],{"href":3989},"?",[12,7168,7169,7170,7172],{},"7:30",[1667,7171],{},"\nIt’s not construction finance and it’s not early stage VC.",[12,7174,7175,7176,7178],{},"7:33",[1667,7177],{},"\nThink of the project life cycle in, say, 3 phases.",[12,7180,7181,7182,7184],{},"7:37",[1667,7183],{},"\nPhase one is development.",[12,7186,7187,7188,7190],{},"7:38",[1667,7189],{},"\nThat’s land acquisition, permitting, zoning.",[12,7192,7193,7194,7196],{},"7:42",[1667,7195],{},"\nIt’s super high risk.",[12,7198,7199,7200,7202],{},"7:43",[1667,7201],{},"\nYou might find an endangered bird on the land or the county board denies your permit.",[12,7204,7205,7206,7208],{},"7:47",[1667,7207],{},"\nThat’s binary risk.",[12,7210,7211,7212,7214],{},"7:48",[1667,7213],{},"\nYou lose, the value is zero, right?",[12,7216,7217,7218,7220],{},"7:50",[1667,7219],{},"\nThen you have phase 3, which is the long-term hold.",[12,7222,7223,7224,7226],{},"7:53",[1667,7225],{},"\nThe solar farm is built.",[12,7228,7229,7230,7232],{},"7:54",[1667,7231],{},"\nIt’s selling power to Amazon for 30 years.",[12,7234,7235,7236,7238],{},"7:57",[1667,7237],{},"\nThat’s basically a bond, low risk, low return.",[12,7240,7241,7242,7244],{},"8:00",[1667,7243],{},"\nSo interconnection capital is phase 2, the narrow band, as they call it.",[12,7246,7247,7248,7250],{},"8:04",[1667,7249],{},"\nThe developer has already secured the land and the permits, so that binary development risk is gone.",[12,7252,7253,7254,7256],{},"8:10",[1667,7255],{},"\nBut they haven’t started construction yet.",[12,7258,7259,7260,7262],{},"8:11",[1667,7261],{},"\nThey just need to post the deposit to finalize that grid connection.",[12,7264,7265,7266,7268],{},"8:15",[1667,7267],{},"\nSo an investor’s coming in after the project is de-risk from a permitting standpoint, but before the huge capital expense of construction.",[12,7270,7271,7272,6628],{},"8:23",[1667,7273],{},[12,7275,7271,7276,7278],{},[1667,7277],{},"\nIt’s a 12 to 24 month bridge.",[12,7280,7281,7282,7284],{},"8:25",[1667,7283],{},"\nYou’re essentially renting your balance sheet to the developer so they can get through this one administrative gate.",[12,7286,7287,7288,7290],{},"8:31",[1667,7289],{},"\nOK, let me play the skeptic here.",[12,7292,7293,7294,7296],{},"8:33",[1667,7295],{},"\nI’m an investor.",[12,7298,7299,7300,7302],{},"8:34",[1667,7301],{},"\nI put up $5 million for a deposit on a solar project.",[12,7304,7305,7306,7308],{},"8:38",[1667,7307],{},"\nThe study comes back.",[12,7310,7311,7312,7314],{},"8:39",[1667,7313],{},"\nAnd the grid operator says, Sure, you can connect, but it’s going to cost you $40 million in upgrades.",[12,7316,7317,7318,7320],{},"8:45",[1667,7319],{},"\nAnd the developer says, I can’t afford that.",[12,7322,7323,7324,7326],{},"8:47",[1667,7325],{},"\nRight?",[12,7328,7329,7330,7332],{},"8:48",[1667,7331],{},"\nThe Project dies.",[12,7334,7335,7336,7338],{},"8:50",[1667,7337],{},"\nMy $5 million is sitting with the utility.",[12,7340,7341,7342,7344],{},"8:52",[1667,7343],{},"\nIs it gone?",[12,7346,7347,7348,7350],{},"8:53",[1667,7349],{},"\nAnd this is the most critical part of the entire thesis refundability.",[12,7352,7353,7354,7356],{},"8:58",[1667,7355],{},"\nThis whole asset class relies on the regulatory obligation of the utility to return unspent funds.",[12,7358,7359,7360,7362],{},"9:04",[1667,7361],{},"\nRegulatory obligation sounds nice, but you know, regulations can have loopholes.",[12,7364,7365,7366,7368],{},"9:08",[1667,7367],{},"\nHow solid is this really?",[12,7370,7371,7372,7374],{},"9:09",[1667,7373],{},"\nIt’s surprisingly robust, and that’s because it’s not based on whether the project succeeds or fails.",[12,7376,7377,7378,7380],{},"9:14",[1667,7379],{},"\nIt’s based on the custody of the funds.",[12,7382,7383,7384,7386],{},"9:16",[1667,7385],{},"\nWhen you post that deposit, it goes into a restricted account held by the utility.",[12,7388,7389,7390,7392],{},"9:21",[1667,7391],{},"\nIt is not revenue for the utility, it’s a liability on their books.",[12,7394,7395,7396,7398],{},"9:24",[1667,7397],{},"\nSo if the developer just walks away, the utility can’t just keep it as some kind of cancellation fee.",[12,7400,7401,7402,7404],{},"9:30",[1667,7403],{},"\nUnder FERC rules and specifically in the tariffs for regions like New York, California, PJM.",[12,7406,7407,7408,7410],{},"9:37",[1667,7409],{},"\nThe utility can only keep the costs they’ve actually incurred, you know, the engineering hours they spent running the study.",[12,7412,7413,7414,7416],{},"9:43",[1667,7415],{},"\nI did see that FERC increased the withdrawal penalties to discourage speculation.",[12,7418,7419,7420,7422],{},"9:47",[1667,7421],{},"\nThey did, and they can be significant, but relative to the principal amount, we’re usually talking about a penalty structure that ramps up over time.",[12,7424,7425,7426,7428],{},"9:56",[1667,7427],{},"\nBut the vast majority of the capital, often 85 to 95% of it, must be returned by law.",[12,7430,7431,7432,7434],{},"10:02",[1667,7433],{},"\nThe sources mention the PG&E bankruptcy as kind of the ultimate stress test for this idea.",[12,7436,7437,7438,7440],{},"10:07",[1667,7439],{},"\nThat’s the in case of emergency break glass scenario.",[12,7442,7443,7444,7446],{},"10:11",[1667,7445],{},"\nI mean, when PG&E went under one of the biggest utility bankruptcies in history, there’s a real fear that these interconnection deposits would just get swept up by all the other creditors, right, treated like any other unsecured creditor.",[12,7448,7449,7450,7452],{},"10:21",[1667,7451],{},"\nBut the courts and the regulators held the line.",[12,7454,7455,7456,7458],{},"10:24",[1667,7457],{},"\nThey deemed those deposits to be customer funds, not utility property, and they were returned.",[12,7460,7461,7462,7464],{},"10:31",[1667,7463],{},"\nThat precedent suggests this capital is bankruptcy remote from the utility itself.",[12,7466,7467,7468,7470],{},"10:36",[1667,7469],{},"\nOK, so you have a regulated floor.",[12,7472,7473,7474,7476],{},"10:38",[1667,7475],{},"\nSo what about the upside?",[12,7478,7479,7480,7482],{},"10:39",[1667,7481],{},"\nExplain the return mechanics, because if I’m tying up my capital for 2 years, I need more than a savings account return.",[12,7484,7485,7486,7488],{},"10:45",[1667,7487],{},"\nOf course, the return profile is a kind of hybrid.",[12,7490,7491,7492,7494],{},"10:49",[1667,7493],{},"\nFirst, you often get the interest on the deposit itself.",[12,7496,7497,7498,7500],{},"10:52",[1667,7499],{},"\nIn a lot of places, Kansas, Oklahoma, New Mexico are examples.",[12,7502,7503,7504,7506],{},"10:56",[1667,7505],{},"\nThe utility is actually required to pay interest on those held funds.",[12,7508,7509,7510,7512],{},"10:59",[1667,7511],{},"\nOK, so that’s the base layer, a small return.",[12,7514,7515,7516,7518],{},"11:02",[1667,7517],{},"\nThen you have your deal with the developer.",[12,7520,7521,7522,7524],{},"11:04",[1667,7523],{},"\nThe developer will usually pay a coupon or an interest rate for the use of your capital.",[12,7526,7527,7528,7530],{},"11:08",[1667,7529],{},"\nBut the real upside comes from the equity kicker, the sweetener.",[12,7532,7533,7534,7536],{},"11:12",[1667,7535],{},"\nWhen the project successfully gets through the queue and reaches what’s called notice to proceed, it’s usually sold to a big long-term owner or it gets recapitalized at that liquidity event.",[12,7538,7539,7540,7542],{},"11:22",[1667,7541],{},"\nThe interconnection investor gets a percentage of the project’s total value.",[12,7544,7545,7546,7548],{},"11:26",[1667,7547],{},"\nThe sources estimate that at around 1.5 to 2% of the project value, which sounds small, but on a $100 million project, that’s up to $2 million straight to your bottom line on top of all the interest you already earned, right?",[12,7550,7551,7552,7554],{},"11:39",[1667,7553],{},"\nAnd this brings us to the scenario modeling in the source material, which I found really counterintuitive.",[12,7556,7557,7558,7560],{},"11:44",[1667,7559],{},"\nThey modeled a portfolio of 40 projects.",[12,7562,7563,7564,7566],{},"11:47",[1667,7565],{},"\nI have the numbers right here.",[12,7568,7569,7570,7572],{},"11:48",[1667,7571],{},"\nKA 100% success rate.",[12,7574,7575,7576,7578],{},"11:51",[1667,7577],{},"\nEvery single project gets built.",[12,7580,7581,7582,7584],{},"11:52",[1667,7583],{},"\nThe IRR is 16.8%, which is very strong for what is essentially a secured asset.",[12,7586,7587,7588,7590],{},"11:59",[1667,7589],{},"\nBut look at Case B.",[12,7592,7593,7594,7596],{},"12:01",[1667,7595],{},"\nA 40% success rate.",[12,7598,7599,7600,7602],{},"12:03",[1667,7601],{},"\nSo that means 60% of the projects in the portfolio fail.",[12,7604,7605,7606,7608],{},"12:06",[1667,7607],{},"\nThey get canceled, they die in the queue.",[12,7610,7611,7612,7614],{},"12:08",[1667,7613],{},"\nIn venture capital, if 60% of your portfolio dies, you are out of business.",[12,7616,7617,7618,7620],{},"12:12",[1667,7619],{},"\nAbsolutely.",[12,7622,7623,7624,7626],{},"12:13",[1667,7625],{},"\nBut in interconnection capital, the model shows a 14.6% IRR in that failure scenario.",[12,7628,7629,7630,7632],{},"12:19",[1667,7631],{},"\nWait, walk me through that.",[12,7634,7635,7636,7638],{},"12:20",[1667,7637],{},"\nHow does the return only drop by 200 basis points when the failure rate more than doubles?",[12,7640,7641,7642,7644],{},"12:25",[1667,7643],{},"\nBecause of the refundability.",[12,7646,7647,7648,7650],{},"12:27",[1667,7649],{},"\nWhen a project fails, you don’t lose the principal.",[12,7652,7653,7654,7656],{},"12:30",[1667,7655],{},"\nYou get the vast majority of your deposit back minus maybe a small penalty, and you probably still collected some interest during the time it was held.",[12,7658,7659,7660,6628],{},"12:38",[1667,7661],{},[12,7663,7664,7665,7667],{},"12:39",[1667,7666],{},"\nThe only thing you miss out on is that equity kicker.",[12,7669,7670,7671,7673],{},"12:41",[1667,7672],{},"\nI see.",[12,7675,7676,7677,7679],{},"12:42",[1667,7678],{},"\nSo the floor is really high because the capital is preserved, not burned.",[12,7681,7682,7683,7685],{},"12:47",[1667,7684],{},"\nIt’s this asymmetry where your downside is capped at the cost of your time and some small fees, but your capital recycled.",[12,7687,7688,7689,7691],{},"12:56",[1667,7690],{},"\nIt creates a portfolio resilience that is completely decoupled from the price of electricity or the weather.",[12,7693,7694,7695,7697],{},"13:02",[1667,7696],{},"\nYou’re not an energy speculator.",[12,7699,7700,7701,7703],{},"13:03",[1667,7702],{},"\nYou’re an arbitrager of bureaucratic process.",[12,7705,7706,7707,7709],{},"13:06",[1667,7708],{},"\nYou’re effectively turning the grid’s biggest bottleneck into a yield generating asset.",[12,7711,7712,7713,7715],{},"13:12",[1667,7714],{},"\nI want to zoom out for a second though.",[12,7717,7718,7719,7721],{},"13:13",[1667,7720],{},"\nWe’ve talked about the mechanics.",[12,7723,7724,7725,7727],{},"13:14",[1667,7726],{},"\nWhat does this all mean for the energy transition at large?",[12,7729,7730,7731,7733],{},"13:17",[1667,7732],{},"\nI think it means we’re moving from the innovation phase to the implementation phase, meaning the tech is basically done.",[12,7735,7736,7737,7739],{},"13:22",[1667,7738],{},"\nNow we just have to actually build it.",[12,7741,7742,7743,7745],{},"13:24",[1667,7744],{},"\nAnd building it is boring.",[12,7747,7748,7749,7751],{},"13:26",[1667,7750],{},"\nIt’s plummits, it’s easements, it’s cube positions.",[12,7753,7754,7755,7757],{},"13:29",[1667,7756],{},"\nThe sexy part of the energy transition is kind of over.",[12,7759,7760,7761,7763],{},"13:32",[1667,7762],{},"\nThe hard part has just begun.",[12,7765,7766,7767,7769],{},"13:34",[1667,7768],{},"\nIt feels like a shift in the power dynamics too.",[12,7771,7772,7773,7775],{},"13:37",[1667,7774],{},"\nYou know, 10 years ago, the power was with the person in the lab coat who was inventing a better solar cell.",[12,7777,7778,7779,7781],{},"13:42",[1667,7780],{},"\nFor sure.",[12,7783,7784,7785,7787],{},"13:44",[1667,7786],{},"\nToday, the power is with the person who understands FERC Order 2023 and has the balance sheet to endure a 4 year wait time.",[12,7789,7790,7791,7793],{},"13:53",[1667,7792],{},"\nIt’s a pretty sobering thought.",[12,7795,7796,7797,7799],{},"13:54",[1667,7798],{},"\nWe often frame the energy transition as this, this inevitable technological wave.",[12,7801,7802,7803,7805],{},"14:00",[1667,7804],{},"\nBut listening to this, it sounds like the whole thing could just stall out in a spreadsheet.",[12,7807,7808,7809,7811],{},"14:03",[1667,7810],{},"\nIt absolutely could.",[12,7813,7814,7815,7817],{},"14:05",[1667,7816],{},"\nIn fact, I would argue that without liquidity mechanisms like interconnection to capital, the transition will stall.",[12,7819,7820,7821,7823],{},"14:11",[1667,7822],{},"\nIf we restrict grid access to only the players with billion dollar balance sheets, we lose all the dynamism of the market.",[12,7825,7826,7827,7829],{},"14:17",[1667,7828],{},"\nWe need those mid-market developers to push boundaries and find new sites and drive costs down.",[12,7831,7832,7833,7835],{},"14:23",[1667,7834],{},"\nSo in a way this financial engineering is just as critical as the electrical engineering.",[12,7837,7838,7839,7841],{},"14:26",[1667,7840],{},"\nIt’s the lubricant.",[12,7843,7844,7845,7847],{},"14:28",[1667,7846],{},"\nThe grid is the engine, but capital is the oil.",[12,7849,7850,7851,7853],{},"14:30",[1667,7852],{},"\nWithout it, the engine seizes.",[12,7855,7856,7857,7859],{},"14:32",[1667,7858],{},"\nSo to wrap this up, if you’re a listener trying to understand where the energy market is really going, Maybe stop looking at the solar panels.",[12,7861,7862,7863,7865],{},"14:39",[1667,7864],{},"\nStop looking at the panels.",[12,7867,7868,7869,7871],{},"14:40",[1667,7870],{},"\nLook at the queue.",[12,7873,7874,7875,7877],{},"14:42",[1667,7876],{},"\nLook at the regulatory filings.",[12,7879,7880,7881,7883],{},"14:43",[1667,7882],{},"\nThat’s where the constraints are.",[12,7885,7886,7887,7889],{},"14:45",[1667,7888],{},"\nAnd in finance, profit is always found at the constraint.",[12,7891,7892,7893,7895],{},"14:49",[1667,7894],{},"\nThe constraint is the opportunity.",[12,7897,7898,7899,7901],{},"14:51",[1667,7900],{},"\nAlways a fascinating look into the plumbing of the grid.",[12,7903,7904,7905,7907],{},"14:55",[1667,7906],{},"\nLeave it there.",[12,7909,7910,7911,7913],{},"14:56",[1667,7912],{},"\nThanks for diving deep with us.",[12,7915,7916,7917,7919],{},"14:57",[1667,7918],{},"\nMy pleasure.",[12,7921,7922],{},"First Pacific Financial is a registered investment adviser and the opinions expressed by First Pacific Financial on this show are their own and do not reflect the opinions of Citizen Mint. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.",[12,7924,2977],{},[12,7926,2980],{},{"title":59,"searchDepth":167,"depth":167,"links":7928},[],"2026-02-03","Listen to a discussion on the emerging opportunity of interconnection capital—a short-duration strategy designed to address critical grid bottlenecks while offering structural downside protection through regulatory refundability","\u002Fimages\u002Fresources\u002Finterconnection-capital-infrastructure-energy-transition.png",{},"\u002Fresources\u002Finterconnection-capital-infrastructure-energy-transition",{"title":6538,"description":7930},"resources\u002Finterconnection-capital-infrastructure-energy-transition","IvxpSXp11pKvrxwBPtb3IFmASDqyiQ6vMHcfY0lcViQ",{"id":7938,"title":7939,"author":7,"body":7940,"category":1248,"date":7961,"description":7962,"extension":179,"image":7963,"imageAlt":181,"meta":7964,"navigation":183,"path":2349,"seo":7965,"stem":7966,"topic":939,"__hash__":7967},"resources\u002Fresources\u002Fguide-to-interconnection-capital.md","Guide to Interconnection Capital",{"type":9,"value":7941,"toc":7958},[7942,7945,7948,7953],[34,7943,7939],{"id":7944},"guide-to-interconnection-capital",[12,7946,7947],{},"Interconnection capital is emerging as a compelling energy infrastructure opportunity, where refundable utility deposits, regulatory protections, and constrained grid access create a defined duration, structurally protected pathway for capital deployment in the power development process.",[12,7949,7950],{},[22,7951,1222],{"href":7952},"\u002Fdownloads\u002Fguides\u002Fguide-to-interconnection-capital.pdf",[1224,7954],{"className":7955,"src":7956,"title":7957,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Fguide-to-interconnection-capital.pdf#navpanes=0&view=FitH","Guide to Interconnection Capital (PDF)",{"title":59,"searchDepth":167,"depth":167,"links":7959},[7960],{"id":7944,"depth":167,"text":7939},"2026-01-16","As grid access becomes a critical constraint in power development, understanding interconnection capital matters more than ever. A closer look at the infrastructure, regulatory structure, and capital dynamics shaping this emerging opportunity.","\u002Fimages\u002Fresources\u002Fguide-to-interconnection-capital.png",{},{"title":7939,"description":7962},"resources\u002Fguide-to-interconnection-capital","YT7foO8-_4MxSVTHBF5ZJfshrElvQD7aj5yEd6D5-Pc",{"id":7969,"title":7970,"author":512,"body":7971,"category":1248,"date":8021,"description":8022,"extension":179,"image":8023,"imageAlt":8024,"meta":8025,"navigation":183,"path":8026,"seo":8027,"stem":8028,"topic":2991,"__hash__":8029},"resources\u002Fresources\u002Fwealth-advisor-guide.md","Citizen Mint Advisor Guide",{"type":9,"value":7972,"toc":8018},[7973,7976,7978,7981,7984,7986,8012,8014],[12,7974,7975],{},"A short overview for advisors evaluating Citizen Mint as their private markets partner.",[34,7977,6194],{"id":6193},[12,7979,7980],{},"This guide is a concise introduction to how Citizen Mint works with wealth advisors, family offices, and foundations. It outlines the challenges advisors often face in accessing private markets and how the platform is designed to address them, from sourcing and due diligence through client reporting.",[12,7982,7983],{},"It is intended for advisors evaluating a private markets partner who want a quick view of the model, the offering set, and the day-to-day workflow before a deeper conversation.",[12,7985,6203],{},[960,7987,7988,7991,7994,7997,8000,8003,8006,8009],{},[536,7989,7990],{},"An overview of Citizen Mint's sourcing and due diligence capabilities, plus its educational resources for advisors and clients",[536,7992,7993],{},"Why advisors are adding alternatives, including results from a Mercer survey (550 responses) on how access to private investments can help an advisory business",[536,7995,7996],{},"The historical barriers to private markets for high-net-worth individuals and smaller institutions, such as limited manager access, lack of transparency, and tax-inefficient investing",[536,7998,7999],{},"How Citizen Mint curates a focused set of 4 to 6 thoroughly diligenced offerings across infrastructure, private credit, real assets, and private equity",[536,8001,8002],{},"Why the platform accepts no fund manager compensation, and how that independence keeps its incentives aligned with advisors rather than product providers",[536,8004,8005],{},"How offerings are approved on Schwab and Fidelity and integrate with major performance-reporting systems",[536,8007,8008],{},"A side-by-side comparison with other private markets platforms on conflicts of interest, offering set, minimums, focus areas, and reporting",[536,8010,8011],{},"The workflow from creating a client account to executing subscription documents to receiving quarterly performance reports",[12,8013,6229],{},[6231,8015],{"guide":8016,"pdf":8017,"title":7970},"wealth-advisor-guide","\u002Fdownloads\u002Fguides\u002Fwealth-advisor-guide.pdf",{"title":59,"searchDepth":167,"depth":167,"links":8019},[8020],{"id":6193,"depth":167,"text":6194},"2026-01-15","How Citizen Mint works with wealth advisors, family offices, and foundations: sourcing and diligence, portfolio construction, client education, and implementation through the custodians you already use.","\u002Fimages\u002Fresources\u002Fwealth-advisor-guide.webp","Cover of the Citizen Mint advisor guide",{},"\u002Fresources\u002Fwealth-advisor-guide",{"title":7970,"description":8022},"resources\u002Fwealth-advisor-guide","Aw8obYliLe9Oj8KHvw2mZL-Q7zn0Wb0TWHGpLuZtEHw",{"id":8031,"title":8032,"author":192,"body":8033,"category":1248,"date":8085,"description":8040,"extension":179,"image":8086,"imageAlt":181,"meta":8087,"navigation":183,"path":4816,"seo":8088,"stem":8089,"topic":2330,"__hash__":8090},"resources\u002Fresources\u002F2026-outlook-on-private-market-opportunities.md","2026 Outlook on Private Market Opportunities",{"type":9,"value":8034,"toc":8081},[8035,8038,8041,8043,8046,8049,8051,8074,8077],[34,8036,8032],{"id":8037},"_2026-outlook-on-private-market-opportunities",[12,8039,8040],{},"As private markets become central to portfolio construction, understanding their role matters more than ever. A 2026 outlook across major private asset classes.",[34,8042,6194],{"id":6193},[12,8044,8045],{},"This outlook examines the structural forces shaping private markets heading into 2026 and the distinct, complementary roles of four major asset classes: infrastructure, private credit, real estate, and private equity. The guide notes, citing McKinsey, that private markets now represent more than $30 trillion in assets globally.",[12,8047,8048],{},"It is an educational resource built on third-party research from sources including McKinsey, JPMorgan Asset Management, Preqin, PitchBook, RealPage, and the U.S. Census Bureau. The views and projections it summarizes come from those cited sources and reflect conditions at the time of writing. They are not guarantees, forecasts by Citizen Mint, or investment recommendations.",[12,8050,6203],{},[960,8052,8053,8056,8059,8062,8065,8068,8071],{},[536,8054,8055],{},"Why private markets have become a core pillar of portfolio construction, and how capital formation has shifted away from public markets",[536,8057,8058],{},"Infrastructure: how aging assets, electrification, AI-driven data center power demand, and manufacturing onshoring are shaping a multi-year investment cycle, and the growing role of private capital",[536,8060,8061],{},"Private credit: how bank pullback from middle-market and specialty lending has expanded the asset class, and what senior secured structures, covenants, and collateral mean for lenders",[536,8063,8064],{},"Real estate: the U.S. housing shortage, rental demand trends, and why the guide focuses on workforce housing",[536,8066,8067],{},"Private equity: public market concentration, how many large U.S. companies remain privately owned, and the themes managers are pursuing heading into 2026",[536,8069,8070],{},"How each asset class differs in its portfolio role, from income to long-term growth, including the higher volatility and longer duration the guide notes for private equity",[536,8072,8073],{},"A closing perspective on how these sectors may complement traditional stocks and bonds",[12,8075,8076],{},"Complete the form below to download the full outlook.",[6231,8078],{"guide":8079,"pdf":8080,"title":8032},"2026-outlook-on-private-market-opportunities","\u002Fdownloads\u002Fguides\u002F2026-outlook-on-private-market-opportunities.pdf",{"title":59,"searchDepth":167,"depth":167,"links":8082},[8083,8084],{"id":8037,"depth":167,"text":8032},{"id":6193,"depth":167,"text":6194},"2026-01-05","\u002Fimages\u002Fresources\u002F2026-outlook-on-private-market-opportunities.jpg",{},{"title":8032,"description":8040},"resources\u002F2026-outlook-on-private-market-opportunities","VtFY3nFQgNWHp5tJtkVPsFdyUd9GRUMlYOBp65QTPiY",{"id":8092,"title":8093,"author":7,"body":8094,"category":176,"date":8283,"description":8284,"extension":179,"image":8285,"imageAlt":181,"meta":8286,"navigation":183,"path":5714,"seo":8287,"stem":8288,"topic":939,"__hash__":8289},"resources\u002Fresources\u002Fthe-hidden-infrastructure-behind-the-power-surge.md","The Hidden Infrastructure Behind the Power Surge",{"type":9,"value":8095,"toc":8274},[8096,8099,8103,8106,8113,8118,8124,8128,8131,8143,8148,8151,8155,8158,8161,8164,8169,8172,8177,8189,8193,8211,8215,8228,8232,8235,8247,8250,8257,8261],[12,8097,8098],{},"POWER • INFRASTRUCTURE BOTTLENECKS • INTERCONNECTION",[34,8100,8102],{"id":8101},"power-is-becoming-the-scarce-resource","Power Is Becoming the Scarce Resource",[12,8104,8105],{},"For decades, electricity was treated as a solved problem. Power was reliable, relatively inexpensive, and largely invisible to most businesses and investors. That assumption is now breaking down.",[12,8107,8108,8109,8112],{},"The rapid rise of artificial intelligence, ",[22,8110,8111],{"href":4092},"data center"," expansion, electrification of transportation, and domestic manufacturing reshoring are colliding with an electric grid that was never designed for this level of load growth. Global electricity demand is accelerating meaningfully, with data centers alone expected to more than double their share of consumption over the coming decade. In the United States, certain regions are already seeing power constraints become a gating factor for economic growth.",[12,8114,8115],{},[57,8116],{"alt":59,"src":8117},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-Picture1_12.22.25.png",[12,8119,8120,8121,8123],{},"At ",[22,8122,1040],{"href":1039},", we view this moment as a structural inflection point. Power is no longer just a utility expense. It is becoming a strategic asset. The markets that enable power to be generated, moved, and connected efficiently are where we believe long-term value will increasingly concentrate.",[34,8125,8127],{"id":8126},"demand-is-surging-faster-than-the-grid-can-respond","Demand Is Surging Faster Than the Grid Can Respond",[12,8129,8130],{},"AI workloads are uniquely energy intensive. Training large models requires massive bursts of power, while inference demands constant, reliable electricity close to population centers. At the same time, electric vehicles, heat pumps, and industrial electrification are adding steady baseline demand. These forces are layering on top of each other.",[12,8132,8133,8134,8138,8139,8142],{},"The challenge is that ",[22,8135,8137],{"href":8136},"\u002Fresources\u002Fwhy-is-infrastructure-compelling-and-defensive","grid infrastructure"," has not kept pace. A large portion of transmission and distribution assets in developed markets are more than twenty years old and were built for a centralized, fossil fuel-oriented system. Today’s grid must accommodate intermittent ",[22,8140,8141],{"href":376},"renewables",", distributed generation, and highly sensitive digital infrastructure, all while maintaining reliability.",[12,8144,8145],{},[57,8146],{"alt":59,"src":8147},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-Picture2_12.22.25.png",[12,8149,8150],{},"Permitting timelines compound the issue. Large transmission projects often take seven to ten years from planning to completion, while data centers can be built in under two. This mismatch is creating bottlenecks that cannot be solved simply by building more generation.",[34,8152,8154],{"id":8153},"interconnection-is-where-theory-meets-reality","Interconnection Is Where Theory Meets Reality",[12,8156,8157],{},"This is where interconnection becomes critical.",[12,8159,8160],{},"Interconnection is the physical and contractual link between a power project and the broader electric grid. It includes the studies, upgrades, and infrastructure required to safely deliver power from a generation asset into homes, businesses, and data centers. Without interconnection, even fully permitted and financed projects cannot operate.",[12,8162,8163],{},"Across the U.S. and globally, interconnection queues have grown dramatically.",[12,8165,8166],{},[57,8167],{"alt":59,"src":8168},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-Picture3_12.22.25.png",[12,8170,8171],{},"In many major markets, projects now spend years waiting for studies, approvals, and grid upgrades before they can come online. The queue itself has become a scarce resource.",[12,8173,8174],{},[57,8175],{"alt":59,"src":8176},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-Picture4_12.22.25.png",[12,8178,8179,8180,8182,8184,8185,8188],{},"Interconnection deposits exist to manage this congestion. Utilities require developers to place refundable deposits once system impact and facility studies are completed. These deposits fund future grid upgrades and serve as a filter against speculative projects, ensuring that only developers with real commitment and capital advance through the process.",[1667,8181],{},[1667,8183],{},"\nFor smaller and mid-sized developers, these deposits can be a meaningful constraint. Capital that could otherwise be used to expand a project pipeline becomes locked up for extended periods. This dynamic has created a compelling opportunity set around financing ",[22,8186,8187],{"href":2349},"interconnection capital"," in a structured, risk-aware way.",[34,8190,8192],{"id":8191},"why-interconnection-capital-is-structurally-different","Why Interconnection Capital Is Structurally Different",[12,8194,8195,8196,8198,8200,8201,8203,8205,8206,8208,8210],{},"Interconnection deposits are not typical development capital. They are held by utilities in restricted accounts governed by federal regulation, including oversight from FERC. Until a project is constructed and the funds are used for grid upgrades, deposits are generally refundable if a project is withdrawn due to economic or technical barriers.",[1667,8197],{},[1667,8199],{},"\nThis structure creates several important characteristics:",[1667,8202],{},[1667,8204],{},"\nFirst, capital is secured by utility held cash rather than project level execution risk. Second, deposits are tied to regulated infrastructure processes, not merchant power exposure. Third, refundability provides a defined downside profile that is uncommon in early-stage energy development.",[1667,8207],{},[1667,8209],{},"\nAt Citizen Mint, we believe this combination of scarcity, regulatory structure, and capital constraint is precisely what makes interconnection such a compelling area to study closely.",[34,8212,8214],{"id":8213},"policy-is-reinforcing-the-trend","Policy Is Reinforcing the Trend",[12,8216,8217,8218,8220,8222,8223,8225,8227],{},"Regulatory reform is also reshaping the interconnection landscape. In 2023, FERC implemented sweeping changes designed to address queue backlogs, improve transparency, and enforce stricter study timelines. These reforms introduced clustered study windows, gated readiness deposits, and penalties for missed deadlines.",[1667,8219],{},[1667,8221],{},"\nWhile these changes are intended to improve system efficiency, they also increase the capital intensity required to advance projects through the queue. In practice, developers with access to flexible capital are better positioned to move forward, while others are forced to sell or slow development.",[1667,8224],{},[1667,8226],{},"\nWe see this as a reinforcing loop. Rising demand increases congestion. Congestion increases capital requirements. Capital constraints create opportunities for specialized solutions.",[34,8229,8231],{"id":8230},"our-broader-power-thesis","Our Broader Power Thesis",[12,8233,8234],{},"Interconnection is not a standalone theme. It sits at the intersection of several structural forces we find compelling:",[12,8236,8237,8238,8240,8241,8243,8244,8246],{},"• The electrification of everything",[1667,8239],{},"\n• AI driven load growth",[1667,8242],{},"\n• Grid modernization and resilience",[1667,8245],{},"\n• Regulatory driven infrastructure investment",[12,8248,8249],{},"Across these areas, we consistently see the same pattern. The bottleneck is rarely generation alone. It is the ability to connect power reliably, quickly, and at scale.",[12,8251,8252,8253,8256],{},"We believe the most ",[22,8254,8255],{"href":4075},"attractive opportunities"," are often found one layer below the headlines, in the enabling infrastructure that allows megatrends to materialize. Interconnection is a clear example of this dynamic at work.",[34,8258,8260],{"id":8259},"a-long-term-disciplined-lens","A Long-Term, Disciplined Lens",[12,8262,8263,8264,8266,8268,8269,8271,8273],{},"None of this eliminates risk. Grid policy evolves. Technology changes. Project timelines can extend. That is why discipline, structure, and downside awareness matter more than ever.",[1667,8265],{},[1667,8267],{},"\nOur approach at Citizen Mint is grounded in understanding how capital behaves under stress, not just how it performs in ideal conditions. We spend significant time evaluating where protections exist, how incentives are aligned, and what happens when assumptions break.",[1667,8270],{},[1667,8272],{},"\nIn a world where power is becoming a limiting factor, we believe thoughtful exposure to the infrastructure that enables electricity to flow will remain increasingly relevant. Interconnection is not flashy, but it is foundational. And in markets like these, foundations tend to matter.",{"title":59,"searchDepth":167,"depth":167,"links":8275},[8276,8277,8278,8279,8280,8281,8282],{"id":8101,"depth":167,"text":8102},{"id":8126,"depth":167,"text":8127},{"id":8153,"depth":167,"text":8154},{"id":8191,"depth":167,"text":8192},{"id":8213,"depth":167,"text":8214},{"id":8230,"depth":167,"text":8231},{"id":8259,"depth":167,"text":8260},"2025-12-23","Discover why surging power demand, aging grids, and interconnection bottlenecks are reshaping energy infrastructure, and how these dynamics are creating new opportunities across private markets.","\u002Fimages\u002Fresources\u002Fthe-hidden-infrastructure-behind-the-power-surge.jpeg",{},{"title":8093,"description":8284},"resources\u002Fthe-hidden-infrastructure-behind-the-power-surge","DfR5Hheuv2ESDQs-LlUExG-jdwgeDqYna0FZSH5vkeY",{"id":8291,"title":8292,"author":192,"body":8293,"category":176,"date":8479,"description":8480,"extension":179,"image":8481,"imageAlt":181,"meta":8482,"navigation":183,"path":255,"seo":8483,"stem":8484,"topic":2330,"__hash__":8485},"resources\u002Fresources\u002Falternative-investments-are-no-longer-alternative.md","Alternative Investments Are No Longer “Alternative”",{"type":9,"value":8294,"toc":8469},[8295,8298,8302,8305,8312,8315,8319,8322,8325,8330,8333,8337,8342,8345,8351,8354,8358,8368,8371,8374,8377,8381,8387,8390,8393,8397,8400,8410,8413,8416,8420,8427,8430,8436,8440,8443,8446,8449,8455,8460,8464],[12,8296,8297],{},"CAPITAL ALLOCATION • GROWTH • PRIVATE MARKETS",[34,8299,8301],{"id":8300},"how-advisors-are-allocating-client-capital-in-2026","How Advisors Are Allocating Client Capital in 2026",[12,8303,8304],{},"Alternative investments have crossed a meaningful threshold.",[12,8306,8307,8308,8311],{},"What was once viewed as a niche allocation or an institutional-only tool is now firmly embedded in how advisors construct portfolios. Allocations are deeper, more durable, and increasingly supported by structures that allow ",[22,8309,8310],{"href":5064},"private markets to scale"," across a broader client base.",[12,8313,8314],{},"At Citizen Mint, this evolution mirrors what we see across RIAs and family offices every day. The conversation is no longer about whether alternatives belong in portfolios. It is about how they are implemented and what role they play alongside traditional assets.",[34,8316,8318],{"id":8317},"advisors-are-allocating-meaningfully-and-staying-invested","Advisors Are Allocating Meaningfully and Staying Invested",[12,8320,8321],{},"Nearly half of advisors now allocate more than 10 percent of client portfolios to alternative investments, with a growing segment allocating over 20 percent.1Even more telling, these allocation levels have remained consistent year over year.",[12,8323,8324],{},"That stability matters. It signals that alternatives are no longer a short-term response to volatility or a reaction to public market drawdowns. They are a structural component of modern portfolios.",[12,8326,8327],{},[57,8328],{"alt":59,"src":8329},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-blogpicture1.png",[12,8331,8332],{},"For advisors, this represents a shift in mindset. Private markets are increasingly viewed as foundational building blocks rather than optional sleeves. For investors, it reflects a desire for differentiated return drivers, income generation, and portfolio resilience that public markets alone may struggle to provide.",[34,8334,8336],{"id":8335},"diversification-is-the-primary-driver-behind-adoption","Diversification Is the Primary Driver Behind Adoption",[12,8338,8339,8340,263],{},"The reason alternatives have earned a permanent place in portfolios is not novelty. It is ",[22,8341,1028],{"href":1027},[12,8343,8344],{},"As correlations rise within public markets and equity leadership becomes more concentrated, advisors are looking for return drivers that behave differently across market environments. Alternatives are increasingly used to introduce differentiated sources of return and risk.",[12,8346,8347],{},[57,8348],{"alt":8349,"src":8350},"Volatility to Return","\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-blogpicture2-1.png",[12,8352,8353],{},"For advisors, this is not an academic exercise. It is about improving portfolio resilience and giving clients confidence that their capital is not dependent on a single market regime.",[34,8355,8357],{"id":8356},"independent-rias-and-family-offices-are-leading-the-way","Independent RIAs and Family Offices Are Leading the Way",[12,8359,8360,8361],{},"Not all firms are adopting alternatives at the same pace. Independent RIAs and family offices continue to lead the industry in allocation depth, with a significantly higher percentage allocating more than 20 percent of client portfolios to private markets.",[8362,8363,8364],"sup",{},[22,8365,8367],{"href":8366},"#ref_3","3",[12,8369,8370],{},"This gap highlights a structural advantage. Firms with greater discretion and flexibility are better positioned to thoughtfully integrate alternatives into portfolio construction. Broker-dealers, by contrast, still have meaningful room to expand access in a controlled and compliant manner.",[12,8372,8373],{},"Citizen Mint is built with this exact audience in mind. Advisors who want curated access to private markets without sacrificing rigor, simplicity, or client experience.",[12,8375,8376],{},"Advisor survey data summarized from a 2026 Mercer alternative investments study conducted across RIAs, broker-dealers, and family offices.",[34,8378,8380],{"id":8379},"where-advisors-are-allocating-capital","Where Advisors Are Allocating Capital",[12,8382,8383,8384,8386],{},"Despite the growing breadth of alternative strategies available, advisor capital remains concentrated in a small number of core asset classes. Private equity, ",[22,8385,3404],{"href":3403},", and real estate continue to dominate allocations across portfolios.",[12,8388,8389],{},"This concentration reflects discipline rather than inertia. Advisors are prioritizing asset classes with proven roles across market cycles. Long-term value creation in private equity. Contractual cash flows and income in private credit. Inflation sensitivity and diversification in real assets.",[12,8391,8392],{},"At Citizen Mint, our approach mirrors this philosophy. We focus on a curated set of high-conviction private market strategies rather than overwhelming advisors with excessive choice.",[34,8394,8396],{"id":8395},"interval-and-evergreen-funds-are-enabling-scale","Interval and Evergreen Funds Are Enabling Scale",[12,8398,8399],{},"One of the most important developments in private markets adoption has been the rise of interval, tender-offer, and evergreen-style vehicles as conduits for scale.",[12,8401,8402,8403,8409],{},"Unlisted closed-end funds, including interval and tender-offer funds, have grown from under $40 billion in assets in 2016 to more than $200 billion by mid-2025.",[8362,8404,8405],{},[22,8406,8408],{"href":8407},"#ref_4","4"," This growth has been driven by advisor demand for structures that balance access to illiquid strategies with defined liquidity, operational simplicity, and portfolio integration.",[12,8411,8412],{},"The rapid growth of evergreen and interval-style vehicles has also prompted deeper examination of their tradeoffs. While these structures improve accessibility and allow private markets to scale, they also raise important questions around valuation discipline, liquidity management, and whether long-duration assets are well suited to perpetual fund formats. Structure matters, and the right approach ultimately depends on the strategy, client profile, and portfolio role.",[12,8414,8415],{},"Even so, their sustained growth suggests many advisors are treating these vehicles as long-term portfolio tools, though whether that role proves durable across market cycles remains an open question.",[34,8417,8419],{"id":8418},"credit-and-income-are-driving-the-next-phase-of-growth","Credit and Income Are Driving the Next Phase of Growth",[12,8421,8422,8423,8426],{},"A closer look at asset growth reveals where demand is strongest. ",[22,8424,8425],{"href":2580},"Interval funds"," have become the preferred structure for credit and income-oriented strategies, which now represent some of the fastest-growing segments in private markets.",[12,8428,8429],{},"Loan and structured credit strategies alone account for tens of billions in assets, with the vast majority housed in interval funds. This reflects advisor demand for yield, income consistency, and downside protection in a market environment where traditional fixed income has faced meaningful challenges.",[12,8431,8432],{},[57,8433],{"alt":8434,"src":8435},"Interval and Tender Offer Funds","\u002Fimages\u002Fresources\u002Fmedia\u002F2025-12-blogpicture3-1.png",[34,8437,8439],{"id":8438},"what-this-means-for-advisors-and-clients","What This Means for Advisors and Clients",[12,8441,8442],{},"The takeaway is clear. Alternative investments are now embedded in how advisors think about portfolio construction, client outcomes, and long-term planning.",[12,8444,8445],{},"The next phase of private market adoption will not be driven by access alone. It will be defined by curation, structure, and execution. Advisors need solutions that simplify implementation while preserving institutional-quality exposure.",[12,8447,8448],{},"That is exactly where Citizen Mint fits. A curated private market platform built for advisors who treat alternatives as a permanent component of modern portfolio construction.",[12,8450,8451,8454],{},[8362,8452,8453],{},"1"," Advisor survey data summarized from a 2026 Mercer alternative investments study conducted across RIAs, broker-dealers, and family offices.",[12,8456,8457,8459],{},[8362,8458,902],{}," Partners Group analysis of data from: NACUBO US Endowment peer average portfolio 2023; 2023 Fidelity Institutional Insights: A Study of Allocations to Alternative Investments by Institutions and Financial Advisers; S&P Capital IQ; McKinsey Global private Markets Review 2024: Private markets in a slower era. For illustrative purposes only. Returns for hypothetical portfolios above is backtested.",[12,8461,8462,8454],{},[8362,8463,8367],{},[12,8465,8466,8468],{},[8362,8467,8408],{}," UMB \u002F FUSE analysis via interval & tender-offer fund market data.",{"title":59,"searchDepth":167,"depth":167,"links":8470},[8471,8472,8473,8474,8475,8476,8477,8478],{"id":8300,"depth":167,"text":8301},{"id":8317,"depth":167,"text":8318},{"id":8335,"depth":167,"text":8336},{"id":8356,"depth":167,"text":8357},{"id":8379,"depth":167,"text":8380},{"id":8395,"depth":167,"text":8396},{"id":8418,"depth":167,"text":8419},{"id":8438,"depth":167,"text":8439},"2025-12-22","Private markets have gone mainstream. Learn why alternative investments are now essential portfolio building blocks for advisors and accredited investors.","\u002Fimages\u002Fresources\u002Falternative-investments-are-no-longer-alternative.jpg",{},{"title":8292,"description":8480},"resources\u002Falternative-investments-are-no-longer-alternative","f5K2SMlvkI9YGt-82KJ5_T6ydhrjOx6WCcUwcHka4tU",{"id":190,"title":191,"author":192,"body":8487,"category":176,"date":323,"description":324,"extension":179,"image":325,"imageAlt":181,"meta":8567,"navigation":183,"path":327,"seo":8568,"stem":329,"topic":187,"__hash__":330},{"type":9,"value":8488,"toc":8555},[8489,8491,8493,8495,8497,8499,8501,8503,8505,8507,8511,8513,8517,8519,8521,8528,8530,8534,8536,8538,8540,8542,8544,8546,8548,8550],[12,8490,197],{},[12,8492,200],{},[12,8494,203],{},[12,8496,206],{},[34,8498,210],{"id":209},[12,8500,213],{},[34,8502,217],{"id":216},[12,8504,220],{},[34,8506,224],{"id":223},[12,8508,8509,231],{},[22,8510,230],{"href":229},[34,8512,235],{"id":234},[12,8514,8515,242],{},[22,8516,241],{"href":240},[34,8518,246],{"id":245},[12,8520,249],{},[12,8522,252,8523,257,8525,263],{},[22,8524,256],{"href":255},[22,8526,262],{"href":260,"rel":8527},[45],[34,8529,267],{"id":266},[12,8531,270,8532,275],{},[22,8533,274],{"href":273},[34,8535,279],{"id":278},[12,8537,282],{},[34,8539,286],{"id":285},[12,8541,289],{},[34,8543,293],{"id":292},[12,8545,296],{},[34,8547,300],{"id":299},[12,8549,303],{},[12,8551,306,8552,263],{},[22,8553,310],{"href":260,"rel":8554},[45],{"title":59,"searchDepth":167,"depth":167,"links":8556},[8557,8558,8559,8560,8561,8562,8563,8564,8565,8566],{"id":209,"depth":167,"text":210},{"id":216,"depth":167,"text":217},{"id":223,"depth":167,"text":224},{"id":234,"depth":167,"text":235},{"id":245,"depth":167,"text":246},{"id":266,"depth":167,"text":267},{"id":278,"depth":167,"text":279},{"id":285,"depth":167,"text":286},{"id":292,"depth":167,"text":293},{"id":299,"depth":167,"text":300},{},{"title":191,"description":324},{"id":8570,"title":8571,"author":192,"body":8572,"category":176,"date":8776,"description":8777,"extension":179,"image":8778,"imageAlt":181,"meta":8779,"navigation":183,"path":5826,"seo":8780,"stem":8781,"topic":2991,"__hash__":8782},"resources\u002Fresources\u002Fchicory-wealth-ria-private-markets-platform.md","How Chicory Wealth Scaled Impact and Alternatives Through a Curated Private Markets Platform",{"type":9,"value":8573,"toc":8769},[8574,8577,8580,8583,8586,8590,8593,8638,8641,8645,8655,8660,8663,8668,8671,8676,8679,8684,8687,8691,8697,8705,8723,8726,8730,8733,8748,8756,8760,8763,8766],[12,8575,8576],{},"PRIVATE MARKETS • GROWTH • RETENTION",[12,8578,8579],{},"Registered investment advisors are facing a growing challenge. Clients want more than traditional portfolios built with public stocks and bonds. They want meaningful diversification, consistent income, and investment opportunities that better align with their values. Yet for many firms, building a scalable and compliant private markets program can feel out of reach.",[12,8581,8582],{},"This was the inflection point for Chicory Wealth, an Atlanta-based RIA with approximately $800 million in AUM. As their client base grew more sophisticated and impact-driven, their advisors needed institutional-quality private investments that were transparent, vetted, and simple to implement. They also wanted to expand access to clients who had been underserved by the private markets due to minimums, operational complexity, or opaque fee structures.",[12,8584,8585],{},"Citizen Mint partnered with Chicory Wealth to deliver a turnkey solution that helped the firm deepen client engagement, strengthen differentiation, and scale private markets without adding operational burdens.",[34,8587,8589],{"id":8588},"the-challenge-meeting-demand-for-impact-transparency-and-advisor-efficiency","The Challenge: Meeting Demand for Impact, Transparency, and Advisor Efficiency",[12,8591,8592],{},"Chicory Wealth saw clear shifts in client expectations. Investors were seeking alternatives that delivered diversification, real impact, and income. Advisors wanted to meet that demand but lacked the right tools, structures, and streamlined access. The firm needed a partner that could enhance capability without expanding internal operational load. Their specific challenges included:",[960,8594,8595,8603,8611,8619,8630],{},[536,8596,8597,8600,8602],{},[30,8598,8599],{},"Limited alternatives with transparent fees",[1667,8601],{},"\nThey needed access to high-quality private market opportunities supported by independent diligence and free of manager pay-to-play dynamics.",[536,8604,8605,8608,8610],{},[30,8606,8607],{},"Too many offerings on legacy platforms",[1667,8609],{},"\nTraditional platforms often required advisors to sift through 50 or more funds in a single asset class. Chicory Wealth wanted a curated lineup that saved time and delivered consistent quality.",[536,8612,8613,8616,8618],{},[30,8614,8615],{},"Custodial and reporting requirements",[1667,8617],{},"\nAny alternative investment needed to be approved on Schwab and Fidelity and connect cleanly with systems like Addepar, Black Diamond, Envestnet, and Orion to avoid operational friction.",[536,8620,8621,8624,8626,8627,8629],{},[30,8622,8623],{},"A growing need for scalable education",[1667,8625],{},"\nAdvisors needed materials and programs that helped clients understand private credit, infrastructure, ",[22,8628,3923],{"href":938},", and other less familiar strategies.",[536,8631,8632,8635,8637],{},[30,8633,8634],{},"Clients asking for impact-oriented alternative opportunities",[1667,8636],{},"\nChicory Wealth’s investors were increasingly motivated by values and wanted alternative investments tied to real-world outcomes and community benefit.",[12,8639,8640],{},"These challenges aligned directly with the pain points described in their internal assessment and created a strong need for a partner built for advisor workflow and client alignment.",[34,8642,8644],{"id":8643},"the-solution-a-curated-advisor-centric-private-markets-platform","The Solution: A Curated, Advisor-Centric Private Markets Platform",[12,8646,8647,8648,8651,8652,8654],{},"Citizen Mint provided Chicory Wealth with an ",[22,8649,8650],{"href":3403},"integrated platform"," designed specifically for ",[22,8653,3412],{"href":3411}," seeking high-quality, impact-aligned private investments.",[12,8656,8657],{},[30,8658,8659],{},"Curated Investment Lineup",[12,8661,8662],{},"Chicory advisors gained access to a focused menu of 4 to 6 institutional-grade offerings at any given time. These opportunities spanned private credit, infrastructure, real assets, and private equity, all backed by thorough diligence and transparent fee structures.",[12,8664,8665],{},[30,8666,8667],{},"Seamless Custodial and Reporting Integration",[12,8669,8670],{},"Every offering was approved on Schwab and Fidelity and connected directly to reporting systems such as Addepar, Black Diamond, Envestnet, and Orion. This allowed the firm to expand its capabilities without disrupting existing workflows.",[12,8672,8673],{},[30,8674,8675],{},"Advisor and Client Education",[12,8677,8678],{},"Citizen Mint delivered advisor-friendly content, co-branded webinars, and client-facing materials that made it simple to explain private market strategies and their potential benefits.",[12,8680,8681],{},[30,8682,8683],{},"Accessible Minimums and User-Friendly Onboarding",[12,8685,8686],{},"Lower minimums and a streamlined onboarding process helped the firm bring private market access to a broader group of clients.",[34,8688,8690],{"id":8689},"results-stronger-client-relationships-and-scalable-differentiation","Results: Stronger Client Relationships and Scalable Differentiation",[12,8692,8693,8694,263],{},"Through the partnership, Chicory Wealth strengthened its position as a leader in private market access for values-driven ",[22,8695,8696],{"href":5169},"accredited investors",[12,8698,8699,8700,8702],{},"According to Chicory CEO Maggie Kulyk:",[1667,8701],{},[30,8703,8704],{},"“Our clients see us as innovators in the alternative investment space now. We do not just talk about diversification. We deliver it through real-world assets that resonate with their values.”",[12,8706,8707,8708,8710,8711,8713,8714,8716,8717,8719,8720,8722],{},"Advisors reported several benefits:",[1667,8709],{},"\n• Increased client engagement and satisfaction",[1667,8712],{},"\n• A more efficient diligence process",[1667,8715],{},"\n• A repeatable and consistent approach to discussing alternatives",[1667,8718],{},"\n• Enhanced differentiation when competing for new clients",[1667,8721],{},"\n• Deeper client relationships and increased asset consolidation",[12,8724,8725],{},"Chicory also saw meaningful business results including higher client referral activity and larger allocations from clients who valued access to institutional-quality impact investments.",[34,8727,8729],{"id":8728},"why-the-partnership-works","Why the Partnership Works",[12,8731,8732],{},"The success of the partnership stems from combining Chicory Wealth’s mission-driven philosophy with a platform designed to remove friction from private markets while maintaining transparency and independence.",[12,8734,8735,8736,8738,8739,8741,8742,8744,8745,8747],{},"Key drivers included:",[1667,8737],{},"\n• A fee model without manager-paid incentives",[1667,8740],{},"\n• A curated menu of high-quality offerings",[1667,8743],{},"\n• Technology and integration that created efficiency for advisors",[1667,8746],{},"\n• A shared commitment to education, impact, and tax efficiency",[12,8749,8750,8751,8753],{},"As Kulyk noted:",[1667,8752],{},[30,8754,8755],{},"“Citizen Mint gave us an institutional-level solution without needing an internal alternatives desk. It has become a differentiator in every client meeting.”",[34,8757,8759],{"id":8758},"moving-forward","Moving Forward",[12,8761,8762],{},"Chicory Wealth’s experience demonstrates the power of offering a curated, transparent, and advisor-first private markets solution. As investors continue seeking income, impact, and stability in a changing market environment, RIAs that deliver efficient access to private investments are positioned to lead.",[12,8764,8765],{},"Citizen Mint is committed to helping advisors offer better diversification, better education, and better access to private markets.",[12,8767,8768],{},"If you would like to learn more, visit our Resource Center or connect with our team to see how our platform can support your practice.",{"title":59,"searchDepth":167,"depth":167,"links":8770},[8771,8772,8773,8774,8775],{"id":8588,"depth":167,"text":8589},{"id":8643,"depth":167,"text":8644},{"id":8689,"depth":167,"text":8690},{"id":8728,"depth":167,"text":8729},{"id":8758,"depth":167,"text":8759},"2025-11-18","Learn how Chicory Wealth leveraged Citizen Mint's platform to offer private market investments to clients, streamline operations, and scale their impact investing practice.","\u002Fimages\u002Fresources\u002Fchicory-wealth-ria-private-markets-platform.png",{},{"title":8571,"description":8777},"resources\u002Fchicory-wealth-ria-private-markets-platform","TauSHOQ4vRdUTnC39cc9uDQW6oCZkrEZBd7ZWVE2bxQ",{"id":8784,"title":8785,"author":192,"body":8786,"category":2321,"date":8800,"description":8801,"extension":179,"image":8802,"imageAlt":181,"meta":8803,"navigation":183,"path":5618,"seo":8804,"stem":8805,"topic":2330,"__hash__":8806},"resources\u002Fresources\u002Fbuilding-smarter-portfolios-with-alternatives.md","Building Smarter Portfolios with Alternatives",{"type":9,"value":8787,"toc":8798},[8788,8794],[12,8789,8790],{},[22,8791,2256],{"href":8792,"rel":8793},"https:\u002F\u002Fyoutu.be\u002FM5CwH-G5Yrw",[45],[1224,8795],{"src":8796,"title":8797,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FM5CwH-G5Yrw","Building Smarter Portfolios with Alternatives (video)",{"title":59,"searchDepth":167,"depth":167,"links":8799},[],"2025-11-07","Learn how to build more resilient, diversified portfolios by incorporating alternative investments including private real estate, infrastructure, and impact strategies.","\u002Fimages\u002Fresources\u002Fbuilding-smarter-portfolios-with-alternatives.png",{},{"title":8785,"description":8801},"resources\u002Fbuilding-smarter-portfolios-with-alternatives","QLY5NTPAsmaXCG8Pj7VIhpkWfgK5yfz4Vzk3dJ_klMs",{"id":8808,"title":8809,"author":512,"body":8810,"category":176,"date":8945,"description":8946,"extension":179,"image":8947,"imageAlt":181,"meta":8948,"navigation":183,"path":6346,"seo":8949,"stem":8950,"topic":6534,"__hash__":8951},"resources\u002Fresources\u002Fmultifamily-set-to-benefit-from-tight-supply.md","Multifamily Set to Benefit from Tight Supply",{"type":9,"value":8811,"toc":8940},[8812,8815,8830,8835,8839,8843,8846,8851,8855,8858,8863,8867,8870,8875,8879,8918,8925,8928,8932,8938],[12,8813,8814],{},"REAL ESTATE • GROWTH • MULTIFAMILY",[12,8816,8817,8818,8821,8822,8825,8826,8829],{},"After years of overbuilding and a surge in multifamily supply across the U.S., a ",[22,8819,8820],{"href":371},"seismic shift"," began to take hold in 2024. Annual net absorption reached ",[30,8823,8824],{},"667,000 units",", marking the second‑highest total since 2000—and outpacing new supply by ",[30,8827,8828],{},"78,000 units",". This underscores how demand is not only robust—it’s overwhelming the market’s ability to keep pace.",[12,8831,8832],{},[57,8833],{"alt":59,"src":8834},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-06-Bridge-Receding-Headwinds.png",[34,8836,8838],{"id":8837},"three-forces-are-creating-unprecedented-rental-demand","Three forces are creating unprecedented rental demand",[384,8840,8842],{"id":8841},"_1-household-formation-surge","1. Household Formation Surge",[12,8844,8845],{},"270% increase between 2020-2025 vs. 2015-2019 as Millennials and Gen Z form households",[12,8847,8848],{},[57,8849],{"alt":59,"src":8850},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-06-2.7.png",[384,8852,8854],{"id":8853},"_2-homeownership-out-of-reach","2. Homeownership out of reach",[12,8856,8857],{},"Mortgage payments up 109% while rents rose just 20%—creating a permanent renter class",[12,8859,8860],{},[57,8861],{"alt":59,"src":8862},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-06-Mortgage-Payment.png",[384,8864,8866],{"id":8865},"_3-supply-cant-keep-up","3. Supply can't keep up",[12,8868,8869],{},"We’re heading into severe supply constraints with 3.6x more renters expected in 2025 compared to 2019",[12,8871,8872],{},[57,8873],{"alt":59,"src":8874},"\u002Fimages\u002Fresources\u002Fmedia\u002F2025-06-Renters.png",[34,8876,8878],{"id":8877},"the-outlook-rent-growth-investment-and-risks","The Outlook: Rent Growth, Investment and Risks",[533,8880,8881,8889,8910],{},[536,8882,8883,8886,8888],{},[30,8884,8885],{},"Rents Poised to Climb",[1667,8887],{},"\nWith vacancy falling and deliveries tapering, CBRE forecasts rent gains, especially in higher density metropolitan areas.",[536,8890,8891,8894,8896,8897,8900,8901,8904,8905,263],{},[30,8892,8893],{},"Investor Confidence Strengthens",[1667,8895],{},"\nMultifamily has captured over ",[30,8898,8899],{},"35% of commercial real estate (CRE) sales volume"," in 2024. Q4 2024 saw a ",[30,8902,8903],{},"59% surge in investment",", totaling $43.4 billion ",[22,8906,8909],{"href":8907,"rel":8908},"https:\u002F\u002Fwww.cbre.com\u002Fpress-releases\u002Fus-multifamily-recovery-gains-momentum-as-vacancy-rate-falls-absorption-surges?utm_source=chatgpt.com",[45],"cbre.com",[536,8911,8912,8915,8917],{},[30,8913,8914],{},"Underbuilding Risks Loom",[1667,8916],{},"\nWith starts down ~37% from recent highs (and 2025 delivering just ~70,600 units in Q1), supply pressures are building (source: CBRE). If household formation remains elevated, the shortfall could spark rapid rent escalation",[12,8919,8920,8921,8924],{},"Demand for multifamily housing isn’t cyclical—it’s ",[30,8922,8923],{},"structural",". A demographic wave of young renters, combined with homeownership challenges and shrinking starts, is propelling demand. With absorption rates near record highs, and minimal new starts underbuilding risks intensify.",[12,8926,8927],{},"Multifamily could be entering its next boom—but this time, job growth and demographics are compounding, not recovering. As the renter class scales and supply trails, multifamily could potentially define U.S. housing for the next decade.",[34,8929,8931],{"id":8930},"how-we-are-looking-to-capitalize-on-this-change-in-the-market","How we are looking to capitalize on this change in the market",[12,8933,8934,8935,6516],{},"Citizen Mint is actively looking for unique opportunities in the market where supply issues and strong regional demographics will drive returns for real estate investments. If you would like to see where we have found this opportunities currently, ",[22,8936,6515],{"href":6513,"rel":8937},[45],[12,8939,6519],{},{"title":59,"searchDepth":167,"depth":167,"links":8941},[8942,8943,8944],{"id":8837,"depth":167,"text":8838},{"id":8877,"depth":167,"text":8878},{"id":8930,"depth":167,"text":8931},"2025-06-20","Multifamily real estate looks to be at a positive inflection point where demand is about to dramatically outpace supply at household formations surge.","\u002Fimages\u002Fresources\u002Fmultifamily-set-to-benefit-from-tight-supply.jpg",{},{"title":8809,"description":8946},"resources\u002Fmultifamily-set-to-benefit-from-tight-supply","FGlqItQF7MjBDekx58W29IXTdpdMfNYg6bBiR9vNZYw",{"id":8953,"title":8954,"author":192,"body":8955,"category":176,"date":9029,"description":9030,"extension":179,"image":9031,"imageAlt":181,"meta":9032,"navigation":183,"path":9033,"seo":9034,"stem":9035,"topic":6534,"__hash__":9036},"resources\u002Fresources\u002Ftrace-4001-ground-breaking.md","Trace 4001 Ground Breaking",{"type":9,"value":8956,"toc":9024},[8957,8961,8964,8968,8971,8975,8982,8985,8988,8998,9001,9007,9014],[34,8958,8960],{"id":8959},"press-release","Press Release",[12,8962,8963],{},"Main logoPartner logos",[34,8965,8967],{"id":8966},"breaking-ground","BREAKING GROUND",[12,8969,8970],{},"Daniel Gallagher (Nitze-Stagen) Seattle City Councilmember Sara Nelson, Peter Nitze (Nitze-Stagen), King County Councilmember Girmay Zahilay, Lily Kim (Amazon Housing Equity Fund), Josh Hile (Citizen Mint)",[34,8972,8974],{"id":8973},"trace-4001-will-bring-195-affordable-workforce-apartments-to-othello","Trace 4001 Will Bring 195 Affordable Workforce Apartments to Othello",[12,8976,8977,8978,8981],{},"Seattle, WA – Nitze-Stagen, Housing Diversity Corporation, Amazon Housing Equity Fund, Forbright Bank and Citizen Mint are pleased to announce that construction will soon commence on ",[30,8979,8980],{},"Trace 4001"," located at 4001 South Willow Street in Seattle's Othello neighborhood.",[12,8983,8984],{},"The project will include 195 one-and-two-bedroom units with rents restricted for residents earning between 50% and 80% of area median income (AMI) for 99-years.",[12,8986,8987],{},"\"We are excited to announce this groundbreaking because it represents significant partnerships with social impact investors to keep Seattle affordable while also contributing to the vibrancy of the neighborhood and environmental stewardship,\" said Peter Nitze, CEO of Nitze-Stagen.",[5600,8989,8990,8993],{},[12,8991,8992],{},"\"We're excited to partner with Nitze-Stagen, Amazon's Housing Equity Fund and Forbright on this meaningful project, tackling the urgent need for housing in the Seattle area. In addition, we're proud to provide our clients with distinctive alternative investment opportunities like this one that is truly unique given the partnership with Amazon.\"",[960,8994,8995],{},[536,8996,8997],{},"Josh Hile, CEO and CIO of Citizen Mint",[12,8999,9000],{},"The building will include amentized indoor\u002Foutdoor rooftop spaces with views of Mt. Rainier and a ground-floor fitness center, designed to be flexible for a variety of uses. At the corner of South Willow Street and Martin Luther King Jr. Way, adjacent to the building, Nitze-Stagen has designed a landscaped public plaza for resident and community use.",[12,9002,9003,9004,9006],{},"\"Public private partnerships aimed at building affordable ",[22,9005,372],{"href":371}," are crucial in addressing our region's housing crisis and maintaining neighborhood diversity,\" commented King County Councilmember Girmay Zahilay, who represents South Seattle. \"By adding 195 attainably priced apartment homes, this project ensures that families of all incomes can continue to call Othello home. Othello is not only a wonderful and diverse neighborhood but for generations has been ground zero in providing housing for those economically displaced. I'm proud to support this important work and look forward to seeing the positive impact that partnerships like this will have for our community.\"",[12,9008,9009,9010,9013],{},"Artist Markel Uriu was selected to build upon her abstract weaving process to create a large-scale collage comprised of images sourced from historic and contemporary migrations and changing physical and cultural landscapes of the Othello neighborhood. The project's name is derived from her blend of images that ",[30,9011,9012],{},"Trace"," the relationships and histories of the Othello community.",[12,9015,9016,9018,9019,263],{},[30,9017,8980],{}," is anticipated to open in late 2026. For more information about the project and Nitze-Stagen's affordable workforce housing initiatives, visit the ",[22,9020,9023],{"href":9021,"rel":9022},"https:\u002F\u002Fnitze-stagen.com\u002F",[45],"Nitze-Stagen website",{"title":59,"searchDepth":167,"depth":167,"links":9025},[9026,9027,9028],{"id":8959,"depth":167,"text":8960},{"id":8966,"depth":167,"text":8967},{"id":8973,"depth":167,"text":8974},"2024-10-25","Nitze-Stagen, Housing Diversity Corporation, Amazon Housing Equity Fund, Forbright Bank and Citizen Mint are pleased to announce the groundbreaking of Trace 4001, a 195-unit affordable workforce housing project in Seattle's Othello neighborhood.","\u002Fimages\u002Fresources\u002Ftrace-4001-ground-breaking.jpg",{},"\u002Fresources\u002Ftrace-4001-ground-breaking",{"title":8954,"description":9030},"resources\u002Ftrace-4001-ground-breaking","Tm6-Hi6gbefmgdDESIw-Dw96ZV-B7RSXQAidrV8jvG4",{"id":9038,"title":9039,"author":192,"body":9040,"category":2983,"date":9085,"description":9086,"extension":179,"image":9087,"imageAlt":181,"meta":9088,"navigation":183,"path":9089,"seo":9090,"stem":9091,"topic":2991,"__hash__":9092},"resources\u002Fresources\u002Fadam-wishard-first-pacific-financial.md","Adam Wishard | First Pacific Financial",{"type":9,"value":9041,"toc":9083},[9042,9056,9059,9064,9068,9074,9077,9079,9081],[12,9043,9044,9045,9050,9055],{},"Read transcript highlights or listen to the full episode to hear Adam Wishard of ",[22,9046,9049],{"href":9047,"rel":9048},"https:\u002F\u002Ffp-financial.com\u002F",[45],"First Pacific Financial",[22,9051,9054],{"href":9052,"rel":9053},"https:\u002F\u002Fwww.sunnybranchwealth.com\u002F",[45],","," and Josh Hile, founder of Citizen Mint, discuss Adam’s background, the evolution of First Pacific Financial, the importance of giving genuine advice, and the firm’s unique team approach",[2724,9057],{"title":9039,"url":9058},"https:\u002F\u002Fwww.buzzsprout.com\u002F2378225\u002Fepisodes\u002F15520839",[12,9060,9061],{},[22,9062,2734],{"href":9058,"rel":9063},[45],[1224,9065],{"src":9066,"title":9067,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FgBydlWq4ce4","Adam Wishard | First Pacific Financial on The Advisor View (video)",[12,9069,9070],{},[22,9071,2256],{"href":9072,"rel":9073},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=gBydlWq4ce4",[45],[12,9075,9076],{},"Josh Hile 0:02Hello, my name is Josh Hile and I’m the co -founder and CEO of Citizen Mint, a platform that provides simple access to exclusive private market investments. This is our second episode of the Advisors View podcast, where we will highlight exceptional wealth management firms, including what led them to the space, how they built their business, how they may use alternative investments in their client portfolios, and what trends they are seeing in wealth management. Our guest today is Adam Wisher, co -chief investment officer and advisor at the First Pacific Financial.where he has worked for almost two decades. He’s a founding member of the investment committee, the senior advisor for his team and plays an integral role in many facets of the firm. Adam’s ambitions as an advisor is to advocate for simplicity. He does this by turning complicated financial problems into understandable solutions that clients can implement with confidence. Welcome Adam to the advisors view podcast.Adam Wishard 00:53Thanks for having me, Josh. Appreciate it.Josh Hile 00:55So what led you to be a financial advisor?Adam Wishard 01:01Yeah, I have a math and statistics background. So coming out of school, I wasn’t sure what I was going to do. I actually kind of thought I’d go back into teaching or become a professor or something and then just happened to stumble along a financial advisory practice, which happened to be for a specific financial way back when, close to 20 years ago now. But I had a much more focus on investments when I first started out. It wasn’t until five or six years in that I decided to actually be.an advisor and work directly with clients. I was more on the investment research, doing trades for the office, and that’s kind of where my passion initially started. And then five or six years in, I decided I really wanted to be working with people and trying to help. So that’s when I obtained my CFP. So was until a few years in and then kind of transitioned to primarily working with clients day to day.Josh Hile 01:59And just out of curiosity, so how many people were at the firm when you first joined? Because that’s a long time. And so it’s like a big difference from where you are today.Adam Wishard 02:08Yeah, I think we were at five or six or so and then a few advisors were retiring and going in different directions. So I think at one point for specific from where it is today, over 30 people, I think it was like three and a half. And that was.2007, 2008 time period and so much different firm way back then but kind of hit our stream and grow in the 2010, 2012 and started to kind of have a different approach and where we’re working in teams and kind of where we’re at today.Josh Hile 02:57Yeah. And what’s your favorite part of your job? I mean, you made that transition. You kind of mentioned, you know, working with clients as kind of a big motivator, but what is that favoriteAdam Wishard 03:09Yeah, that’s exactly right. just noticed early on in my career that I didn’t as much as I love spreadsheets, I didn’t want to be sitting behind a computer screen, you know, doing spreadsheets, place and trades. I really wanted to work with people and help people. It’s amazing over the years, you know, the type of impact you can have on on clients lives and seeing.You know, people send their kids to college or, you know, retire early, know, way earlier than they initially thought they could, or pass on wealth between generations. And there’s so much areas where we’re helping clients. And that’s really ultimately what I want to do is serve people. So that’s what I do enjoy most and just helping people.Josh Hile 03:57Mm -hmm. Yeah, that’s great. you know, wealth management, there’s a lot of firms out there. So what really differentiates First Pacific from other wealth managers?Adam Wishard 04:09This is going to sound really funny or probably kind of dumb from anyone that’s not in our industry. But I think the biggest differentiator is that we actually give good advice. It’s kind of sad. know, our industry, you know, has a history of, know, whether it’s, you know, stockbrokers or people just selling stuff, selling investments to end clients. And really, it was all about that.sort of transaction. Whereas from, you know, basically the beginning of my career and the approach that we’ve had is, like I said, helping people. And we’ve give tons of advice over the years that isn’t, you know, definitely affects the way that we’re compensated, whether it’s recommending clients give away significant portion of their wealth to charities or onto the next generation.Whether it’s, I think with this huge amount of money that you’re getting from selling a business, I don’t think it makes sense to invest all that. I think it makes sense to maybe buy rentals or have a real estate portfolio that were, it’s not just all about the assets that are management or anything like that. soI’d say it’s very hard to market. And why most of our new business and growth over the years is from referrals and you can’t say, you know, do an advertisement on TV and say, hey, we give good advice. You should come to us. It’s quite cheesy. I’d say the other thing that differentiates us is this team approach that is really ultimately best for clients and not having.just a single point of contact that they’re looking to for advice and having that kind of financial partnership, but also, you know, a whole team to lean on, you know, and then on the flip side, that also is what provides a career path for an industry that’s really hard to get into and for some of those younger advisors that are either just at a school or making a career change, they don’t have to go outAdam Wishard 06:28you know, from day one be 99 % business development and try to bring on, you know, their aunts and uncles and grandparents as clients, they can actually learn the craft of financial planning and work in that team approach. And ultimately, yes, they might eventually bring on their own clients and all that, but, you know, have a career path for advisors and then also the other teams within the firm. We’ve got a client service teamand investment team that I think is a little bit unique in our industry. I think we’re at the scale now where we can really do a great job for clients, but on the flip side, also have a really awesome place to work and where advisors want to start their careers or transition their careers to.Josh Hile 07:16Yeah, no, and I think that’s really important, especially on the advice side, because, you know, I obviously talked to a lot of advisors and, know, having that kind of fiduciary standard of what’s what is in the best interest of clients, but also understanding what you’re doing from a recommendation standpoint, because I hear a lot of things where where advisors do tell me something I’m like, well, that’s not actually accurate. I mean, I worked at a large wealth manager and I hear these things. like, well, no.Josh Hile 07:46That’s not true. And so there is unfortunately just some bad advice out there or advisors working towards their own goals rather than the client’s goals, which is ultimately what matters.Adam Wishard 08:00Absolutely, yeah, it is kind of unfortunate, but it also just takes experience and even being in the industry this long, I’m learning new things every day. And the nice thing is there’s resources when you have a firm our size that you can go to and an advisor that, hey, have you dealt with this type of situation before?Josh Hile 08:20Yeah. How have you seen the financial advising space kind of evolve over the last decade?Adam Wishard 08:28Yeah, I think the biggest thing that I’ve seen is just the services that we give to clients just keeps growing. And I think it’s going to continue to grow in a good way where, you know, I think there are still firms out there or advisors out there that are just primarily giving investment advice and managing a portfolio. But over time, we’ve we’ve definitely prioritized, you know, financial planning.whether it’s estate or tax planning and really looking at that whole picture is one thing, but above and beyond that, seeing clients need help with digital protection and privacy and areas that we maybe didn’t necessarily know that we’d be going down or didn’t initially get educated in just to become a financial advisor.Real estate transactions, complicated business, succession planning. And then one of the things that comes up very often is just almost like counseling. know, money is so emotional for people and there’s a lot of behavioral finance that goes into just working with a couple and helping them.you know, unify their goals and be able to have a venue for them to talk about money, which sometimes may not happen in people’s busy lives. So I think that service list of what we do for clients is just gonna continue to grow. But I think that’s the biggest thing that I’ve seen over the last 10 years is, you know, with technology’s help, the ability to kind of leverage our face time with clients and continue to dowhat’s needed and it’s kind of exciting to know what’s gonna, or to not know what’s gonna come next, what areas we’re gonna continue to help clients with.Josh Hile 10:32Yeah, and I think that’s a great point. think you can’t like, because, know, wealth management firms in traditionally is like, hey, we did investments, we do financial planning. But I think, you know, it comes down to this, comprehensive wealth management and, you know, taking all that into one bucket, especially as you move upstream, and you’re helping these clients with more significant wealth, theyexpect you to be there for kind of all financial aspects of their life and how they’re going to plan it out, whether it’s charitable giving or estate planning or whatever it might be. And really for you to be that kind of quarterback for them. How do you see your business evolving over the next few years?Adam Wishard 11:17I think this is really an extension of my previous answer and kind of starting to, I mean, we’re already leveraging technology. I still remember the days of placing trades by hand and typing in dollar amounts for placing trades or doing data entry into financial planning software. there’s just artificial intelligence definitely coming in our industry.programs that will read tax returns and fill out all the tax information from every box on a tax return to programs that will read estate plans, complicated wills and trusts, and give us a clear picture and a diagram of here’s what the beneficiary looks like based on AI’s read of what the will says and who’s the key players, the executors, and all that.Adam Wishard 12:14that allows us to really do more and more for clients. you know, maybe this is also just something that we probably take for granted after the pandemic, but we were starting to use Zoom quite a bit in late 2018, 2019. And so the fact that we actually onboarded, we helped an advisor retire up in Juneau, Alaska during the pandemic.Just doing complete virtual meetings and getting to know these clients, doing joint meetings with that retiring advisor. mean, that 10 years ago wasn’t even possible. So to kind of think five, 10 years from now where that’s going to take us, are we going to be basically with VR in the same room as them?Adam Wishard 13:06know, giving advice all over the world. You know, we’ve got clients that do plenty of travel internationally and we’re trying to coordinate time zones to have a meeting and do their regular review when they’re, you know, across the world, which is pretty neat. I’d say technology is exciting to me and, you know, it’s amazing how much science fiction is just becoming reality.Josh Hile 13:33Yeah, no, definitely. And I think that technology will continue to play a role in kind of your communication styles with your clients. And especially as people are busy, especially as the world is becoming more borderless. so clients aren’t going to necessarily be living right next to your firm, but could be anywhere. And you’re also going to get those referrals that might be their friends from the new place they’re living. So that’s great for your business.So discuss your views on alternative investments and how you kind of think about them, how you incorporate them into the portfolios where it makes sense, where it doesn’t make sense for your clients.Adam Wishard 14:11Yeah, for us, I think there’s definitely some that may view alternative investments as a return enhancer or a way to get returns above and beyond the public markets. But we really see those types of investments as value for their lack of correlation to the public markets and really a diversifier, I think, especially forYou know, clients that have super long time horizons or maybe they’re we’re talking about multi -generational wealth where, you know, they’re selling a business and or they’re de -leveraging out of out of real estate. you know, we don’t want to just put everything in public stocks or stocks and bonds. I think that’s a great use for alternative investments. And, you know, there we kind of more reference them as private assets.It’s kind of one and the same, but I do think there’s a distinction there because alternative investments these days can mean anything. So that’s really what we’re referencing when we think about alternative investments is really just that private asset pool that brings a diversified different type of asset that’s going to have some lack of correlation with the rest of their stock and bond portfolio.Josh Hile 15:39Yeah, yeah. And I think that’s it is it goes to a little bit of behavioral issues that clients experience and how you’re trying to reduce those over time. Like if you can create some diversifiers in their portfolio, maybe like reduce potentially volatility within their portfolio, like from a mental standpoint, it does help clients to stay invested to know that like their portfolio is secure and just likereducing that volatility can help from a behavioral standpoint. And what solutions I guess like, we’ve been kind of thinking about this from a firm level citizen mint, like thinking about client solutions. What, what solutions do you hear clients asking about whether like, tax savings, income, reduced volatility growth, like what are you hearing from clients?Adam Wishard 16:35Yeah, I know that’s primarily an investment question, but I think the answer that any wealth advisor would probably or should tell you is tax planning. I think that’s just front and center for our clients. And I think there’s plenty of industry studies that are starting to see that tax planning, tax efficiency within the portfolio is becoming just as important, if not more importantretirement planning or some of the other areas that we were helping clients with. So whether it’s tax strategies related to their portfolio, doing exchanges from real estate into DSTs, for example. I think tax, the other issue I think with that is that CPAs, and I think I’m talking to a recovering CPA. Josh, don’t you have your CPA? Okay.Josh Hile 17:31Yeah, yes I do.Adam Wishard 17:34Yeah, I think there’s not a lot of young people going into the tax prep or tax planning profession. I think, you know, you’re seeing just like you’re seeing advisors retire left and right, you’re seeing CPA firms sell their business or decide to retire without much of a plan in place. so that’s leaving a lot of that good tax planning and lookingyou know, what’s this year’s tax gonna look like? What’s tax gonna look like five years from now, 10 years from now? What’s it gonna look like for my heirs? They’re not getting any of that from their tax preparer, so we’re needing to fill that role, absolutely. So I think.Josh Hile 18:19And I think that is such a key point. And I just want to highlight that because of how busy these CPAs are at this current point in time, it’s kind of just keeping up with what they’re essentially told to do. So it’s like, hey, we need you to figure this out. But it’s not the extra work of being like, hey, here’s the tax strategy you should actually implement over the next five years for you to save a ton of money on taxes. That’s just not coming into the conversation.because they’re so busy and because they just don’t have time to work individually with each client on that unless you’re like massive and really requiring that. But I think that can be such a huge benefit for you on the other side of it to think about these tax planning situations and really become the advocate. there’s even, I think what clients are now experiencing and what they’ll continue to experience while interest rates are high.is they’re paying a lot more taxes on that side of the portfolio and they didn’t really realize it, think about it. And even though it’s great, we’re getting higher rates and you’re getting more income in your portfolio. You are starting to move up tax brackets. You are starting to pay a lot more taxes out of your portfolio every single year just to catch up with that.Adam Wishard 19:37Yeah, that’s 100% right. And being able to be proactive, it’s just not something that a tax preparer is going to be able to check in with a client mid -year and say, hey, have you had any big events? Or have you sold anything in your portfolio that is going to produce a large capital gain, warranty, a change in your estimated payments? I it’s something that I think we can definitely step in and help.either in collaboration with their tax preparer or just, or do on our own to be a little bit more proactive. And then there’s other strategies like, your recent opportunity zone. I mean, there’s definitely things that we can look at to continue to, you know, provide a ton of value and ultimately, you know, over a lifetime, you know, specifically in retirement, youtheir biggest expense is going to be taxes. So we absolutely should be trying to provide value there and I think we do.Josh Hile 20:42Yeah, no, that’s great. We’re trying to always figure out new strategies and ways to utilize different investments for tax savings. And how do we get higher income that’s non -taxable and those different opportunities that can be really impactful for clients, especially retired clients who want income but maybe don’t want that big tax hit at the end of the year at the same time. What do you think advisory firms are facing?challenges like just like any other industry whether it’s on the talent side the tech cost side what are you seeing as the biggest challenges that advisors are facing rightAdam Wishard 21:23Yeah, I think the biggest thing is, you know, when you really think about five, 10 plus years from now, our industry is going to, I think, struggle to stay, both stay relevant to those retiring baby boomers and the services they need, while also becoming relevant or being attractive for those younger clientele that are either going to need help.on their own, through their own wealth creation or when then those inheritance starts being passing down in generations. I think, you know, our firm’s been around a long time and we have clients kind of all over the spectrum, but we definitely, you know, the majority of our clients fit within that typical age range of nearing retirement or recently retired or, you know, kind of that primarybaby boomer population. And so just thinking about how, you know, our industry’s been pretty slow to adopt technology. It’s hard to onboard with some of the rules and regulations in place. Even just the custodians are slow to adopt, you know, what seems like pretty basic technology. And I think if we’re not careful, we cannot be relevant to that next generation. And so that’s something we think about a lot and okay, is this new service we’re offering really just to help, you know, that baby boomer that’s trying to retire or do we need to be thinking outside the box and maybe going into other areas that we haven’t explored before. So guess that’s what keeps me up at night and making sure we’re still relevant 10 years from now.Josh Hile 23:16Yeah, no, that’s, that’s huge. And I think, there’s a lot of advisors out there who are running their businesses in annuity where it’s just like, Hey, I got my book of business. I’m not going to really worry about growth. And then there’s the next set of advisors, like in your cohort where you’re saying, okay, well, these next generation is going to want something probably a little bit different from what their parents wanted. And so how dolike reposition our business to hit what they want. Like they’re not gonna want really long meetings. They’re not gonna probably want in -person meetings. There’s just like a lot of things in there. They’re gonna want like possibly investments that align with their values or other things like where it’s like, hey, like kind of that coach mentality as you were saying earlier, like being their financial coach. So I think that is gonna change. And what excites you about kind of the future of the financial advisory space and your specific practice?Adam Wishard 24:12Yeah, mentioned technology and I think that’s just exciting to see how our industry continues to adopt it. I think one area that you just hit on too is thinking about that younger clientele and whether it’s aligning their investments in terms of sustainability or ESG, which we’ve got a lot of clients that care about those kind of issues. And I think above and beyond that ismaking impact. You know, we’re in a position to really help clients make huge impact, whether it’s on their own families, whether it’s on the environment or the communities that they live or the communities that we operate in too. You know, impact is huge. know impact investing is a term in our industry that actually means something, but I think in some ways, everyEvery dollar that you spend, every dollar that you invest is making an impact somehow. so helping clients align their values with the impact that they want to make is hugely exciting to me.Josh Hile 25:25Yeah, no, definitely. And I think that can also be to a lot of their goals, like their impact on their grandkids through paying for college or the future college, their impact on their community through DAFs or other charitable giving. I think it can be a huge impact. So where would individuals find more information about your capabilities?Adam Wishard 25:48Yeah, I think one area is LinkedIn. I’m fairly active on LinkedIn. So you can search Adam Wichert and then our websites. Pretty, pretty decent amount of information, but definitely don’t hesitate to reach out. fp -financial .com is a good place to start.Josh Hile 26:09great. Well, and if anybody wants to find out more about citizenment, what we’re providing to wealth advisors, can go to citizenment .com. And we’ll also have some info at the end of this podcast on it. But thank you so much, Adam, for your time really appreciate it and excited to continue talking to you and seeing how this whole thing evolves.Adam Wishard 26:31Great, thanks Josh and congrats on the launch of the podcast.Josh Hile 26:35Thank you.",[12,9078,7922],{},[12,9080,2977],{},[12,9082,2980],{},{"title":59,"searchDepth":167,"depth":167,"links":9084},[],"2024-08-02","In our second episode, we highlight Adam Wishard, Co-Chief Investment Officer at First Pacific Financial. Adam shares his journey from a math and statistics background to becoming a financial advisor, emphasizing his passion for simplifying complex financial issues for clients. He discusses the evolution of First Pacific Financial, the importance of giving genuine advice, and the firm’s unique team approach. 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Join us as we explore the origins, business journeys and unique insights of exceptional wealth management firms. My name is Josh Heil and I’m the co-founder and CEO of Citizen Mint, a platform that provides access to exclusive private market investments. This is our inaugural episode of the Advisor’s View podcast, where we’ll highlight exceptional wealth management firms, including what led them to the space, how they built their business, how they may use alternative investments in their client portfolios and what trends they are seeing in wealth management.Josh Hile: 0:35Our first guest is Bruce Herbert, who founded Newground Social Investments in 1994, the first social purpose corporation and a pioneering sustainable impact money management firm for individuals and institutions. He is also co-founded and served as first director of the Northwest Coalition for Responsible Investment and has served on the governing boards of the Interface Center on Corporate Responsibility, sustainable Seattle and Northwest Board of US CIF. He has also served overseas as a human rights observer and has been a shareholder engagement consultant to public funds, mutual funds, student organizations and legislators Trained on Wall Street with Merrill Lynch. Bruce grew up in Virginia Farm that has just celebrated its 200th year in the family. There he learned the value of hard work as well as the importance of accountability and sacrifice for the common good. Welcome, bruce, to the inaugural episode of the Advisor View podcast.Bruce Herbert: 1:32Thank you, Josh. It’s a pleasure to be with you.Josh Hile: 1:34So let’s just start out with what led you to be a financial advisor.Bruce Herbert: 1:40Well, I got to Wall Street in the typical way, really by studying Buddhism in an Asian monastery for half a year.Bruce Herbert: 1:50But, seriously, I did spend a half a year traveling and studying in Sri Lanka and Nepal and Thailand, pakistan and India, and I found myself in countries that were dictatorships and in places where people enjoyed none of the rights or prerogatives that we so take for granted here in the United States.Bruce Herbert: 2:07And so, after my return, in addition to teaching English to Asian refugees, I decided that I really wanted to learn something more about both our business and our political systems, and so a long story, just a little bit longer. Just then, my southern grandmother turned 90 and I wanted to spend more time with her while I could. So I pulled up stakes here in Seattle and moved to Columbia, south Carolina, where I live with and help care for her until her death at age 92. And we had such fun. It really was one of the best things I’ve ever decided to do in my life, things I’ve ever decided to do in my life, and this was circa 1984. And it was during that time I was introduced to the head of Merrill Lynch there in the state and he hired me, and the rest, as I say, is history.Josh Hile: 2:55And so what do you love about your job? What gets you up every single day and gets you ready for work?Bruce Herbert: 3:02Well, after the alarm clock, it’s first and foremost certainly is the satisfaction of really helping individuals, families and institutions to meet really important financial goals, but in a way that aligns with their ideals and hopes for the future. A close second in terms of motivation, and one which directly supports the values aligned investment is using our rights as shareholders to negotiate with companies about improving their operations, whether from a fairness, equity, human rights or sustainability perspective.Josh Hile: 3:37And I need not tell you, josh, that this can all be accomplished without sacrifice to a company’s long-term profitability or financial return, and I think that’s such a big, important point, because I think everybody assumes well, you’re going to give something up there and I don’t think you have to, and I think that’s our philosophy as well. So what differentiates Newground from other wealth managers? I mean, there’s so many wealth managers out there at the current point in time, a new shop coming up every single day, so what is your really differentiation from the others?Bruce Herbert: 4:13Well, where to start. I was thinking about this and I think there may be six things that actually really come to mind, and the first one pivots off of what you just said new startups and its longevity. You know, in just February of this year 2024, Newground celebrated its 30th anniversary, and now I have 40 years in the business, and since inception Newground has really had an exclusive focus on what’s currently called ESG impact investing, and I think that might make us now the oldest still independent registered investment advisor in the country, and so that kind of storied tenure can be seen as a proxy for high conviction, which certainly separates us from other firms in the crowd of advisors who, frankly, either don’t understand ESG at all or maybe just keep some small ESG product offering gathering dust on their shelves until somebody comes along asking about it. So that’s one. Being a fee-only fiduciary, I mean 30 years ago, that totally set us apart from other firms and even now still distinguishes us from many advisors and, of course, all broker-dealers, insurance agents and the like, who continue to earn most, if not all, of their income by selling product and third shareholder engagement. I mentioned that earlier and that really makes Newground totally unique among wealth advisory firms and even kind of stand out among our ESG peers and colleagues.Bruce Herbert: 5:44An advocacy of this sort also constitutes a second key indicator of high conviction. We do a lot of policy work, wading into the legislative fray, to ensure that the rules of the investment road don’t just benefit Wall Street but actually are fair, just and equitable for all, and one can probably count on fewer than two hands the number of advisory firms that devote time and resources to this kind of policy work, particularly if you’re just on the progressive good-for-all side that we act upon. And financial planning is still somewhat unusual across the broker-advisor spectrum. And lastly, tax planning. Tax planning for clients is now really the cutting edge and Newground has been involved with that since 2019. So there may be our other things, but these six considerations we think constitute the real highlights that listeners should consider and be aware of when they’re when they’re considering any firm.Josh Hile: 6:46And I think that’s key, like just how long you’ve been in the space and your longevity in the space and your knowledge of these policy issues is so important. And can you talk about you know you’ve been pretty active in your work with companies and just talk about that activism and what you’re most proud of, or an example of ways you were able to change things at a corporate level.Bruce Herbert: 7:12Thankfully, over the 30 years there have been a lot of ways. Political spending, the disclosure of political spending and use of corporate money has been a real hallmark of our work. We got started in that in colleague with friends at the Center for Political Accountability in Washington DC, bruce Freed and cohort, and we got started about five years, half decade before the Citizens United case came down. And thank goodness that we did, because now quite a large number, about 60% of the S&P 100 have signed very thoroughgoing disclosure policies and are doing that. And had that happened after Citizens United, not a single company would be there. And I think that Newground has filed more shareholder proposals in this arena than any other firm in the country and I believe we’ve been successful with everyone we filed at. So probably about 10 or 15 percent of the S&P 100 have adopted these kind of policies as a result of our efforts.Bruce Herbert: 8:13Mcdonald’s is another case and NPR actually did a feature on this work and it resulted in a global reduction of the use of highly toxic pesticides, starting in their potato supply chain but then reaching out into all their other agricultural products and then actually reaching from there to their peer and competitor companies. They thought what they were doing was so important that it shouldn’t just be a McDonald’s initiative, it should be an industry-wide one. I think, about Starbucks. They actually were one of the companies that designed thoroughgoing disclosure policies around political spending. But they also one time went out and trademarked some place names, some area region names in Ethiopia, the birthplace of coffee and the Ethiopian government was really outraged by this and said these are our patrimony, these are our country and countrymen’s property, not yours, starbucks. And so the government reached out to Oxfam America and Oxfam America reached out to Newground and we put together a shareholder campaign in concert with Oxfam, and that led to Starbucks returning the patents on the trademarks rather to the Ethiopian government, and also pledging that they would never engage in that kind of activity again.Bruce Herbert: 9:35And I might last mention just DuPont. Dupont had a strip mining plan, an operation to mine along the entire eastern border of the Okefenokee National Wildlife Refuge, and this is an internationally known gem. People come from all over the world to study the unique ecology of that region, and this 50-year-long dredge mining operation would have really wrecked the ecosystem in some irretrievable ways, and so through shareholder action we got them to permanently retire the mining rights and start to mine elsewhere. I didn’t mention they were mining for titanium dioxide, which is the seventh most common mineral on the planet. So those are a few of the things that we’ve been able to accomplish some lasting and enduring benefits, both in policy realm, in terms of political spending, but also in really tangible terms in terms of things like the okie-finokie and lowering pesticide use.Josh Hile: 10:33That’s amazing and it just kind of shows you can make like a very strong difference, like just the work you’ve done has real, like real impact. So that’s awesome. And so how have you seen the financial advising space evolve over the last decade? We kind of are in this realm of like new technology, but also different demographics are impacting financial advising, and so what have you seen kind of as the big changes?Bruce Herbert: 11:03Mm-hmm. Well, there’s clearly been a decided shift toward fee-only and operating under a legal fiduciary standard or framework. However, we shouldn’t be mistaken although rhetoric may be spoken so-called best interest and suitability and hybrid model this sort of terminology there still is a furious backlash from the usual suspects against being held to a truly higher standard of fiduciary care. Now, that said, there are widening pools of fiduciary care opening up, and this, along with what you mentioned new pricing models and significant leaps forward in technology have really allowed an increasing what I like to think of as a democratization of the planning services, and this makes these kinds of tools and assistance really available to many, many more people at lower dollar thresholds, lower wealth thresholds, and you know perhaps the people who need it most in my book, the folks who are well, very well off. They don’t they. They benefit from financial planning, but they don’t need it as much as people who are playing their cards closer to the chest. I think that’s been one or two of the main things that we’ve noticed.Josh Hile: 12:20Yeah, and I think that’s so true this democratization and just better tools that even democratizes. The capabilities of firms at different sizes and what they can serve and how fast they can serve clients is huge.Bruce Herbert: 12:34Exactly.Josh Hile: 12:35So how do you see your business evolving over the next few years? What are you concerned about? What are you thinking about?Bruce Herbert: 12:43Well, I hope it won’t seem immodest to say that Newground has always been somewhat ahead of the curve I mean significantly so in becoming the nation’s first social purpose corporation and, 30 years ago, choosing an exclusively ESG impact focus for the company and becoming very early on a registered investment advisor, which eliminates the conflicts of interest that commission-driven product sales has.Bruce Herbert: 13:08We also were early in adopting a holistic financial planning approach, as opposed to just being a money manager, investing portfolios and then also again actively engaging in shareholder dialogue and negotiation, which, as noted above, clearly separates the wheat from the chaff in terms of high levels of conviction. And so, from that perspective, the future certainly holds more of the same, as other firms really try to catch up in certain ways with Newground. But beyond that, we continue to deepen our tax practice, rather our tax expertise and advanced planning services and capabilities. We’re building on our team and building on my own law school experience and four decades of being active in the field. And, yeah, we’re also building on and forging new strategic alliances, like ours with Citizen, mint and others, which allow us really to broaden our scope and also deepen our level of service to clients.Josh Hile: 14:11Yeah, and I think that’s you know kind of. One of the keys for us is, you know, coming and being that partner to wealth advisors like yourself. They want to have an extension of their investment capabilities and we can be that extension to provide those kind of investment solutions for clients. What are your views on alternative investments and how have you incorporated them into client portfolios in the past? And how do you think about that going forward?Bruce Herbert: 14:39Well, there might not be any universally accepted definition of what constitutes an alternative investment, in the mean we think of them as investments or asset classes that don’t typically correlate to the equity or fixed income components of a portfolio. So for this reason, they tend to dampen volatility and improve the consistency of portfolio performance, though, it has to be said, they can sometimes create a little more of a heavy lift in terms of regulatory scrutiny, performance and tax reporting and occasional client questions over fees and manner of billing. But where clients are accredited and therefore qualified and they don’t mind some modest level of additional complexity, alternatives can really benefit the investment experience over the long haul while also providing meaningful and enduringly positive impacts on the ground.Josh Hile: 15:36From an investment standpoint. What drew you to utilizing a platform like us CitizenVent?Bruce Herbert: 15:43Oh well, you’re kind to say it that way. I don’t think there are any platforms like you, and so the answer to this question is really quite simple. There are four things really. You know the integrity of the principles of you, josh and others, your founders, co-founders, the ingenuity, I think, of the platform. You know the impact of the investments, as mentioned, and also the democratization of access, with the lowering of both cost and minimums. You know thresholds to entry. I think Citizen Mint has really taken a complex. I think Citizen Mint has really taken a complex, opaque and potentially risky area of investing and made it quite approachable, scalable and also more safe for institutional investors like Newground. And then, when you add to that, the foundational model of your enterprise, as well as your consideration of each project along the way, is infused with the real values and positive impact orientation. That’s why we feel Citizen Mint, you know, is a powerful and almost, really almost ideal sort of strategic partner.Josh Hile: 16:49Yeah, and that’s what we’re ultimately trying to be is just a great partner to the wealth advisors we work with, like you, bruce, and you guys do great work for your clients and we’re trying to do also that great work where we can provide solutions for your clients at both on financial security point of view, but also from an impact point of view and really hitting their values and the things they care about. What are your clients asking for? Just this is a great like curiosity question. I always ask this what are your clients asking for solutions? Are they asking for income, reduced volatility, growth? What are they asking about?Bruce Herbert: 17:22Yes. Well, first and foremost, values alignment is what draws clients to new ground. They seek us out. That’s what they’re seeking and they find us. And then I’ll sort of separate.Bruce Herbert: 17:33For older clients it’s retirement and estate planning, drawdown efficiency, meaning what’s the optimal sequence of disbursement from accounts, how to maximize the tax benefits of philanthropy, and then integrating each of these things into considerations of lowering the lifetime taxes paid. Now for younger clients, it’s a different set of things. They’re navigating and making sense of really a myriad of life stage transitions, all of which are new and so sometimes quite daunting Marriage, children, homes, businesses, jobs, including some very complex compensation plan packages. Sometimes you know, college planning, elder care for their own parents and then also eventually their own retirement, and you have to start early to make sure that works out as well. So I mean, when you lay it all out and think about it in one fell swoop like this, it can almost seem really daunting and tiring. But what it means is that there’s really never a dull moment and, importantly, almost never a point in a person’s financial life when trusted counsel and expert financial and excellent financial planning can’t really improve a person’s well-being and their outcome and their outlook.Josh Hile: 18:52And I think that’s you know it, and it’s a little bit different for everybody, but essentially, like what I would always tell clients is like you know, I lose sleep, so you don’t have to like that, you know it’s. It’s their biggest concern is their finances. In a lot of cases. I mean, if you can be that trusted advisor, to be like Bruce has got it, he’s taking care of it, he’s setting us up for success over a long period of time. That gives people so much security and they can live their life which they’ve worked so hard for, for that retirement or maybe even just like my kids going to college or that big purchase, and so knowing that you’re alongside them is such a value add.Bruce Herbert: 19:33What are the?Josh Hile: 19:34biggest challenges advisors are facing today.Bruce Herbert: 19:39What are the biggest challenges advisors are facing today?Bruce Herbert: 19:59Well, you know, there’s quite a list, but I think one of the biggest is the perpetual need for advisors to remember what our role as advisors truly is.Bruce Herbert: 20:02My view is coming up with hot stock tips, or predicting the daily gyrations of the market, or frenetically changing course in response to every piece of new news.Bruce Herbert: 20:06And, yes, we do analyze trends and markets, as well as specific investments, when we’re making portfolio allocation recommendations. But the most important job of an advisor falls into the realm that’s called behavioral finance, and it involves really coaching clients through their fears and misapprehensions toward really staying faithful to, and invested in, a well-grounded and well-thought out plan, financial plan. And, from this perspective, a huge challenge to both investors and advisors alike is the 24-hour news cycle you know, populated by a plethora of titillating but inaccurate, short-term and scaremongering information, and all this does, frankly, is feed anxiety, and it causes clients to take short-term steps that will almost always be detrimental to their long-term best interest, and so, for this reason, we always advise clients to adapt a media diet when it comes to both economic as well as political news. And I’ll just stop there. I think that that’s one of the biggest things. You know, getting the right mindset is the most important setup to successful investing.Josh Hile: 21:19And that is so true, and I think that, honestly, is number one. You see, clients make the biggest mistakes in the news cycle or things are happening, and it’s like you’re investing for the long run, you’re not investing for today or tomorrow, and so you can make way too big of mistakes if you start moving that plan around. And I think that there’s an expression for that it’s time in the market is more important than timing the market. You know so Exactly so. So what excites you about the future of the advisor space in your practice’s future specifically?Bruce Herbert: 21:56Well, let’s see. I think there are several lenses one can take from a financial perspective. The more complex the world gets, the more beneficial a qualified advisor becomes, and add to this that technology as well as pricing models can and have democratized and lowered the point of entry for larger, ever larger cohorts of people. I think that’s very exciting for the industry as a whole, and together these things evidence real growth potential for the industry From a values perspective. In our experience, every piece of bad news awakens a new cohort of people to a desire to use their money and resources in profoundly different, much more sustainability and fairness-oriented kinds of ways, and so that means that there’s growth of the ESG impact advisory field generally, but even more for the most respected and tenured industry pioneers like Newground. That gives us even more opportunity as people understand the nuances and distinctions between different forms and practices of ESG.Bruce Herbert: 23:00You know, for decades many of us have said that the goal of responsible investment was to simply have it become investment, that these practices and levels of analysis would just become what everyone does because it makes good financial sense. And really interestingly, that is becoming the case as ESG considerations are becoming more and more mainstream. And why? Because they allow a deeper understanding of a company’s operations and the opportunities that they have, as well as, perhaps, the liabilities that they may face. And it also provides really enhanced insight into the numbers.Bruce Herbert: 23:40And everybody crunches the numbers first, but ESG analysis it gives a different tone, different sheds, different light, even on the numbers. And so then, lastly, from an impact perspective, each of the trends just mentioned, you know, multiplied by an increase in the number of investors exercising their shareholder engagement rights, should greatly leverage our influence on companies and the ability to influence them toward the good, to act with high standards of transparency and accountability. And, frankly, we view transparency and accountability as the true bottom line of responsible investment, being the metrics that both advance all milestones and also the tide that raises all boats. So, from each of these perspectives, there certainly is quite a lot, I think, to look forward to.Josh Hile: 24:30Yeah, that’s amazing, and so where can individuals find out more information about your capabilities? Where can individuals find out?Bruce Herbert: 24:37more information about your capabilities.Josh Hile: 24:38Well, probably our website is the best placehttp:\u002F\u002F",[22,9308,9311],{"href":9309,"rel":9310},"http:\u002F\u002Fwww.newgroundnetN-E-W-G-R-O-U-N-D",[45],"www.newgroundnetN-E-W-G-R-O-U-N-D"," dot net, and we’ll also have a link to that in the description so that individuals can grab that. And then, if you’re ever interested in finding out more information about CitizenMint, we have ours at CitizenMintcom. And Bruce, this has been amazing. I’m so excited for what you have going on and the way you treat your clients. You talk about integrity and you live it each day with how you treat your clients and their wishes, and just the way you work with them.Josh Hile: 25:12So thank you again, and we look forward to having many more conversations like this in the future. We do as well. Thank you for everything you. We look forward to having many more conversations like this in the future.Bruce Herbert: 25:19We do as well. Thank you for everything you have done in the industry or doing for us as a company, and for being who you are. All right, thanks, bruce.",{"title":59,"searchDepth":167,"depth":167,"links":9314},[],"2024-07-04","In our inaugural episode of the Advisor View, we highlight Bruce Herbert, founder of Newgrounds Social Investments. Bruce shares his remarkable journey from studying Buddhism in Asia to training on Wall Street, and how he integrates values-aligned investments into his clients’ portfolios. Discover how Bruce’s firm leverages shareholder engagement to drive corporate accountability and sustainability, setting a benchmark in impact investing.","\u002Fimages\u002Fresources\u002Fbruce-herbert-newground-social-investment.jpg",{},"\u002Fresources\u002Fbruce-herbert-newground-social-investment",{"title":9271,"description":9316},"resources\u002Fbruce-herbert-newground-social-investment","impact","A5QpeLFCMPnIlGwpKwLq95tAG54xXaR_HhXr8F5YypE",{"id":332,"title":333,"author":192,"body":9325,"category":176,"date":502,"description":503,"extension":179,"image":504,"imageAlt":181,"meta":9429,"navigation":183,"path":273,"seo":9430,"stem":507,"topic":187,"__hash__":508},{"type":9,"value":9326,"toc":9417},[9327,9329,9336,9338,9340,9342,9344,9350,9352,9354,9358,9360,9362,9364,9366,9368,9370,9372,9376,9378,9380,9382,9386,9390,9392,9394,9396,9398,9400,9404,9409,9413],[34,9328,339],{"id":338},[12,9330,9331],{},[343,9332,345,9333,351],{},[22,9334,350],{"href":348,"rel":9335},[45],[12,9337,354],{},[34,9339,358],{"id":357},[12,9341,361],{},[34,9343,365],{"id":364},[12,9345,368,9346,373,9348,378],{},[22,9347,372],{"href":371},[22,9349,377],{"href":376},[34,9351,382],{"id":381},[384,9353,387],{"id":386},[12,9355,390,9356,395],{},[22,9357,394],{"href":393},[384,9359,399],{"id":398},[12,9361,402],{},[384,9363,406],{"id":405},[12,9365,409],{},[34,9367,413],{"id":412},[415,9369,418],{"id":417},[12,9371,421],{},[12,9373,9374],{},[57,9375],{"alt":59,"src":426},[34,9377,430],{"id":429},[432,9379,435],{"id":434},[432,9381,439],{"id":438},[12,9383,9384],{},[57,9385],{"alt":59,"src":444},[12,9387,9388],{},[57,9389],{"alt":59,"src":449},[34,9391,453],{"id":452},[12,9393,456],{},[34,9395,460],{"id":459},[12,9397,463],{},[12,9399,466],{},[12,9401,9402],{},[57,9403],{"alt":59,"src":471},[12,9405,9406],{},[22,9407,478],{"href":476,"rel":9408},[45],[12,9410,9411],{},[57,9412],{"alt":59,"src":483},[12,9414,9415],{},[57,9416],{"alt":59,"src":488},{"title":59,"searchDepth":167,"depth":167,"links":9418},[9419,9420,9421,9422,9423,9426,9427,9428],{"id":338,"depth":167,"text":339},{"id":357,"depth":167,"text":358},{"id":364,"depth":167,"text":365},{"id":381,"depth":167,"text":382},{"id":412,"depth":167,"text":413,"children":9424},[9425],{"id":417,"depth":498,"text":418},{"id":429,"depth":167,"text":430},{"id":452,"depth":167,"text":453},{"id":459,"depth":167,"text":460},{},{"title":333,"description":503},{"id":9432,"title":9433,"author":192,"body":9434,"category":176,"date":9643,"description":9644,"extension":179,"image":9645,"imageAlt":181,"meta":9646,"navigation":183,"path":9647,"seo":9648,"stem":9649,"topic":6534,"__hash__":9650},"resources\u002Fresources\u002Fan-update-on-hard-costs.md","An Update On Hard Costs",{"type":9,"value":9435,"toc":9638},[9436,9440,9443,9451,9460,9464,9467,9471,9474,9478,9481,9484,9488,9492,9495,9500,9503,9506,9511,9514,9517,9522,9525,9538,9542,9545,9548,9551,9556,9559,9562,9565,9570,9573,9576,9582,9585,9588,9593,9596,9599,9604,9607,9610,9616,9620,9624,9633],[34,9437,9439],{"id":9438},"hard-costs-and-contracts","Hard Costs and Contracts",[12,9441,9442],{},"HARD COSTS • REAL ESTATE • INVESTMENTS",[12,9444,9445,9446,263],{},"This following is a guest post by Riley Coleman, CFA, Director of Acquisitions at ",[22,9447,9450],{"href":9448,"rel":9449},"https:\u002F\u002Fnitze-stagen.com\u002Four-team\u002F",[45],"Nitze-Stagen",[12,9452,9453,9454,9459],{},"In real estate development, Hard Cost is the money spent on the physical construction of a project. In a development project, the Hard Cost line item is huge, typically 65-70% of the Total Development Cost. Some examples of standard Hard Costs include construction labor, lumber for framing, concrete for the foundation, a crane rental, electrical wiring, the list goes on and on. On a typical development project, the developer will hire a General Contractor (GC) to execute the construction phase of the project. The GC is responsible for coordinating and spending all the Hard Costs and is responsible for putting together a hard cost budget based on their expectations for what the project will cost to build. It’s typical for a developer to go “out to bid” to multiple contractors prior to construction and only decide on a GC after seeing the numerous proposed budgets. Once a GC is selected, then the paperwork gets started. There are multiple different types of construction contracts with different pros and cons depending on if you are a developer or a GC (",[22,9455,9458],{"href":9456,"rel":9457},"https:\u002F\u002Fwww.procore.com\u002Flibrary\u002Fconstruction-contract-types",[45],"Link","). Let’s review the three most common below.",[384,9461,9463],{"id":9462},"cost-plus","Cost-Plus",[12,9465,9466],{},"Under this contract, the GC is paid for all the costs of construction plus an agreed-upon amount for profit which can be fixed or a percentage of final cost. The profit is the “plus”. These contracts are often used when the full scope of a project hasn’t been fully defined and, thus, a GC is unable to accurately forecast all project costs. The GC is reimbursed by the project’s owner for all approved costs incurred which means that these contracts require detailed cost tracking and supervision from the developer. As this type of contract leaves the final cost of construction open-ended, it carries the most risk for developers and least amount of risk for the GC.  Because of this, Nitze-Stagen doesn’t sign Cost-Plus contracts.",[384,9468,9470],{"id":9469},"stipulated-sum","Stipulated Sum",[12,9472,9473],{},"This contact is also known as a “Hard Bid” or “Lump Sum” contract. With a Stipulated Sum the General Contractor provides a hard cost budget that will be the cost of the project, not a penny more or penny less. This requires a clearly defined scope, with well-developed drawings as any “scope gap” can still result in change orders to the owner. The payment for this contract is on a percentage completion basis, which does not provide any transparency into the actual costs incurred. In the case where costs are lower than originally expected then the costs savings are kept by the GC. Alternatively, if the project costs are higher than originally expected and the scope remained the same then the Contractor must cover the cost. This contract type could provide incentives for a contractor to cut corners to decrease the cost and increase their profit. That fact, together with the lack of transparency and limited flexibility in terms of cost savings is why it’s not industry standard.",[384,9475,9477],{"id":9476},"guaranteed-maximum-price","Guaranteed Maximum Price",[12,9479,9480],{},"The industry standard construction contract is the Guaranteed Maximum Price (GMP) or “GMAX”. This contract is similar to the Stipulated Sum in that the GC provides a maximum price for the project. However, one key difference is that in many cases cost savings on the project are split between the developer and the GC. This dynamic adds to the flexibility of the project; if a project comes in under budget, then the developer can adjust their plans or spend the cost savings on some additional value-creating items. As well, the monthly reporting requirements for a GMP are stringent for the GC, typically including backup for every dollar spent during the billing period. Considering the savings split, this contract does well in aligning the incentives of both the developer and contractor. A lot of construction lenders will require a GMP due to their desired level of detail in tracking the project budget. At Nitze-Stagen we typically require a GMP contract for our projects.",[12,9482,9483],{},"Given the size of most Hard Cost budgets relative to the Total Development Budget, these contracts are extremely critical and must go through a rigorous review process by lenders and institutional investors.",[34,9485,9487],{"id":9486},"hard-costs-changes-over-the-past-three-years","Hard Costs Changes Over the Past Three Years",[384,9489,9491],{"id":9490},"inflationary-impact","Inflationary Impact",[12,9493,9494],{},"Over the past three years, the US economy has experienced a historic run up of inflation across all parts of the economy. Levels of inflation, measured by the Consumer Price Index (CPI), haven’t been this elevated since the early 1980s. Covid-19 was the critical event causing a global supply chain shock and a substantial influx on liquidity from the federal government that triggered lower supply and higher demand, resulting in a rapid increase in costs and prices across all industries. After years of low inflation leading up to 2021, all industries in the economy felt the impacts of inflation and commercial real estate development was no exception.",[12,9496,9497],{},[57,9498],{"alt":59,"src":9499},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-Historical-Consumer-Price-Index-CPI.png",[12,9501,9502],{},"Source:US Inflation Calculator",[12,9504,9505],{},"As costs increased over the past three years the math related to development projects was going in the wrong direction. All things being equal, rising costs lowers the projected returns on any project. Previous editions of Nitze Stagen Real Commentary have touched on the metrics that a developer considers when deciding to start a construction project. As a reminder, the most important metric used, regardless of asset class, is Un-trended Yield on Cost (UYOC).",[12,9507,9508],{},[57,9509],{"alt":59,"src":9510},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-image002.png",[12,9512,9513],{},"Within the denominator of the above fraction, and as mentioned above, the largest line item for any project is going to be Hard Costs. This means that the increases to the costs of material and labor over the past three years made ground-up development more difficult; higher costs result in lower projected returns which in turn makes raising the capital required (both debt and equity) to finance construction a challenge. Rising costs has put strong downward pressure on new supply, which is evidenced by the below chart showing how permit applications in Seattle fell dramatically as inflation picked up in 2021.",[12,9515,9516],{},"New Unit Applications 2018-2023:",[12,9518,9519],{},[57,9520],{"alt":59,"src":9521},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-image003.png",[12,9523,9524],{},"Source:City of Seattle",[12,9526,9527,9528,9532,9533,9537],{},"Developers have been in a holding pattern waiting for one or two things: rents to increase or costs to drop. We’ve discussed in the previous “Houston We Have A Supply Problem” newsletter that we expect rents to increase in the years to come (",[22,9529,9458],{"href":9530,"rel":9531},"https:\u002F\u002Fwww.axios.com\u002Flocal\u002Fseattle\u002F2024\u002F01\u002F12\u002Fhousing-shortages-last-decades",[45],"). In terms of costs, the first chart above shows that CPI peaked in June 2022 and has been on a steady track down since then (",[22,9534,9458],{"href":9535,"rel":9536},"https:\u002F\u002Fwww.cnn.com\u002F2024\u002F01\u002F11\u002Feconomy\u002Fcpi-inflation-december\u002Findex.html",[45],"). The key question is whether or not Hard Cost prices have behaved similarly.",[384,9539,9541],{"id":9540},"where-are-hard-costs-now","Where are Hard Costs now?",[12,9543,9544],{},"At Nitze-Stagen, we prioritize bringing a GC onto the project as early as possible to help ensure constructability of the projects we design. The benefits that come from doing so are numerous. Their perspective allows the project team to identify efficiencies that can reduce costs while providing real-time pricing feedback to confirm the design is staying within budget. We have found that the more work we do up front in this regard, the more we can avoid value-engineering at a future date which will result in less savings and costly redesign fees. Lastly, GCs early engagement on a project allows Nitze-Stagen to track Hard Cost data over time more effectively than just following a CPI chart. For purposes of this newsletter, let’s look at an example Nitze-Stagen project that has received numerous GMP budget updates during the design process over the past few years.",[12,9546,9547],{},"The below table shows three separate pricing exercises completed on the same project from late 2021 to early 2023. Each “% Change” amount represents the change in budget from the budget immediately preceding. For example, Structure\u002FEnvelope line item below increased by 12% from Q4 2021 to Q3 2022 and it was flat with 0% growth from Q3 2022 to Q1 2023.",[12,9549,9550],{},"Example Project Budget Changes Q4 2021- Q1 2023:",[12,9552,9553],{},[57,9554],{"alt":59,"src":9555},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-Screen-Shot-2024-03-25-at-1.08.36-PM.png",[12,9557,9558],{},"As you can see, there was a significant increase of 14% in the Hard Cost budget from Q4 2021 to Q3 2022. This jump is consistent with the dramatic spike in CPI that you can see in Chart #1. The two largest Cost Categories by amount in the above budget are Structure\u002FEnvelope and Mechanical Electrical Plumbing and Fire Suppression (MEPF).",[12,9560,9561],{},"Structure\u002FEnvelope costs consists of the concrete, metals, woods and plastics among other things that are required for the physical structure of the building. MEPF costs include the plumbing, HVAC ventilation, and all the required electrical wiring. Simply, the two largest cost categories of the budget are materials and equipment that were directly affected by the inflationary pulse through the economy. That is why we saw a 12% increase in both Cost Categories from Q4 2021 to Q3 2022.",[12,9563,9564],{},"So, what has happened since Q1 2023? The CPI chart above shows a softening in inflation. Has that been seen in Hard Cost pricing estimates for this project? See the below table which includes the latest pricing exercise from Q4 2023 (just a few months ago):",[12,9566,9567],{},[57,9568],{"alt":59,"src":9569},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-Screen-Shot-2024-03-25-at-2.14.28-PM.png",[12,9571,9572],{},"The Hard Cost budget for this example project went down by 5 % over the course of 2023. The largest line item, Structure\u002FEnvelope decreased by an impressive 26% over the course of 12 months. As mentioned above, that line item consists of many materials and commodities used to build the physical structure of the building. As we’ve seen across the economy, commodity prices have been dropping steadily since early 2022, and these drops in prices are now making their way through the supply chain. This is a macro trend that can been seen in the Bloomberg Commodity Index, shown below, which is now at the lowest level it’s been since 2021.",[12,9574,9575],{},"Bloomberg Commodity Index:",[12,9577,9578],{},[57,9579],{"alt":9580,"src":9581},"Bloomberg Commodity Index","\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-image004.jpg",[12,9583,9584],{},"Source:Bloomberg",[12,9586,9587],{},"As well, the National Association of Home Builders (NAHB), reported that the price of materials required for homebuilders (lumber, concrete, steel) plummeted during 2023 after significant increases in the years prior.",[12,9589,9590],{},[57,9591],{"alt":59,"src":9592},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-image005.jpg",[12,9594,9595],{},"Something interesting to note is that the Structure\u002FEnvelope Cost Category decreased while the MEPF Category stayed practically the same. As mentioned above, MEPF contains the cost of plumbing and electrical which includes material such steel, plastics, and aluminum. Given the above trends, we would expect that the MEPF Cost Category will follow a similar path to Structure\u002FEnvelope over the next several quarters.",[12,9597,9598],{},"While falling commodity and materials prices have an impact on the Hard Cost budget, there is another important aspect of the Budget that is much harder to track: the subcontractor’s profit. When a General Contractor puts together a Hard Cost budget, they first canvass their network of subcontractors to get estimates for their work. Subcontractors perform most of the physical work on a given site as very little of a project scope is performed by General Contractor employees. The pricing estimates received from the subcontractors will include the cost of the materials and labor but also, and very importantly, it includes their profit (you can think of it as their mark-up). When the demand for subcontractors is high, their profit margins will increase as developers will pay up to compete for the best subcontractors. This was a dynamic that has played out over the past 4 years as the number of construction projects exploded to all-time highs. Below you’ll see a repeat chart from previous newsletters which shows how in 2020-2022 demand for subcontractors peaked as projects were started. However, the combined increase in project cost of the materials along with the labor reached a tipping point in 2023 where development projects were no longer feasible and new supply fell off a cliff.",[12,9600,9601],{},[57,9602],{"alt":59,"src":9603},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-03-image006.gif",[12,9605,9606],{},"With the pipeline of multi-family projects drying up, the demand for subcontractors is doing the same. In Nitze-Stagen’s opinion, this dynamic is equally relevant to commodity prices dropping when looking at the change in Hard Cost pricing over the past 12 months. Subcontractors are being forced to trim their profits margins to win jobs – the negotiating leverage is shifting to developers. This is a trend that is expected to continue through 2025 as investors remain on the sidelines for development projects, which will lead to diminished demand for subcontractors.",[12,9608,9609],{},"The question will be, how far do the cost of materials and labor need to drop before development becomes increasingly attractive? We believe there is still more room but will be monitoring the situation closely.",[12,9611,9612],{},[22,9613,9615],{"href":476,"rel":9614},[45],"Review Opportunity Zone Investments",[12,9617,9618],{},[57,9619],{"alt":59,"src":483},[34,9621,9623],{"id":9622},"get-the-guide-to-real-estate-investing","Get the Guide to Real Estate Investing",[12,9625,9626,9627,9158,9630],{},"Sign up to download the full ",[30,9628,9629],{},"Guide to",[30,9631,9632],{},"Investing in Real Estate",[12,9634,9635],{},[57,9636],{"alt":59,"src":9637},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-Guide-to-Real-Estate-Investing.png",{"title":59,"searchDepth":167,"depth":167,"links":9639},[9640,9641,9642],{"id":9438,"depth":167,"text":9439},{"id":9486,"depth":167,"text":9487},{"id":9622,"depth":167,"text":9623},"2024-03-25","Get the latest update on construction hard costs and how they affect real estate investment returns in the current market environment.","\u002Fimages\u002Fresources\u002Fan-update-on-hard-costs.jpg",{},"\u002Fresources\u002Fan-update-on-hard-costs",{"title":9433,"description":9644},"resources\u002Fan-update-on-hard-costs","3qI1Lpl0lAovRWC3P4kjmkzyBtD1sOZtz-gAuUmQUO0",{"id":9652,"title":9653,"author":192,"body":9654,"category":2321,"date":9673,"description":9674,"extension":179,"image":9675,"imageAlt":181,"meta":9676,"navigation":183,"path":9677,"seo":9678,"stem":9679,"topic":939,"__hash__":9680},"resources\u002Fresources\u002Fhow-a-renewable-infrastructure-allocation-can-bolster-investment-portfolios.md","How a Renewable Infrastructure Allocation Can Bolster Investment Portfolios",{"type":9,"value":9655,"toc":9670},[9656,9662,9666],[12,9657,9658],{},[22,9659,2256],{"href":9660,"rel":9661},"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=1LLnlMdQR3I",[45],[1224,9663],{"src":9664,"title":9665,"allow":2249,"allowFullScreen":183,"loading":1230},"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002F1LLnlMdQR3I","How a Renewable Infrastructure Allocation Can Bolster Investment Portfolios (video)",[34,9667,9669],{"id":9668},"request-presentation-slides","Request Presentation Slides",{"title":59,"searchDepth":167,"depth":167,"links":9671},[9672],{"id":9668,"depth":167,"text":9669},"2024-02-08","Explore why Renewable Infrastructure is being utilized by more investors to bolster clients' portfolios","\u002Fimages\u002Fresources\u002Fhow-a-renewable-infrastructure-allocation-can-bolster-investment-portfolios.png",{},"\u002Fresources\u002Fhow-a-renewable-infrastructure-allocation-can-bolster-investment-portfolios",{"title":9653,"description":9674},"resources\u002Fhow-a-renewable-infrastructure-allocation-can-bolster-investment-portfolios","ZLaqRjf-UcrC8uX4VyJgrzcTus8LpITa4FKnLEi1O3g",{"id":9682,"title":9683,"author":192,"body":9684,"category":2983,"date":9938,"description":9939,"extension":179,"image":9940,"imageAlt":181,"meta":9941,"navigation":183,"path":9942,"seo":9943,"stem":9944,"topic":9322,"__hash__":9945},"resources\u002Fresources\u002Fvalues-aligned-investing-in-private-markets.md","Values Aligned Investing in private Markets",{"type":9,"value":9685,"toc":9931},[9686,9689,9711,9718,9722,9727,9730,9733,9738,9741,9744,9747,9750,9753,9756,9759,9762,9768,9770,9775,9778,9781,9786,9789,9792,9795,9798,9801,9807,9810,9813,9816,9819,9823,9828,9831,9834,9837,9842,9845,9848,9851,9854,9857,9860,9863,9866,9869,9874,9877,9880,9885,9888,9891,9894,9897,9900,9903,9908,9911,9914,9919,9922,9925,9928],[12,9687,9688],{},"Read transcript highlights or listen to the full episode to hear Katherine Fox ofSunnybranch wealth, investment advising for inheritors,and Josh Hile, founder of Citizen Mint, discuss:",[960,9690,9691,9699,9702,9705,9708],{},[536,9692,9693,9694,9698],{},"The difference between ",[22,9695,9697],{"href":9696},"\u002Fresources\u002Fwhat-is-impact-investing","impact investing",", ESG, and SRI",[536,9700,9701],{},"Impact investing in the stock market versus private markets",[536,9703,9704],{},"Key issues with ESG investing",[536,9706,9707],{},"Impact investing and risk versus return in public and private markets",[536,9709,9710],{},"How quarterly returns can work against investor’s impact goals in public markets",[12,9712,9713],{},[22,9714,9717],{"href":9715,"rel":9716},"https:\u002F\u002Fwww.buzzsprout.com\u002F2311481\u002F14451897-episode-1-why-investing-in-the-stock-market-falls-short-on-impact?client_source=small_player&iframe=true&referrer=https:\u002F\u002Fwww.buzzsprout.com\u002F2311481\u002F14451897-episode-1-why-investing-in-the-stock-market-falls-short-on-impact.js?container_id=buzzsprout-player-14451897&player=small",[45],"Embedded media",[34,9719,9721],{"id":9720},"the-difference-between-impact-investing-esg-and-sri","The difference between impact investing, ESG, and SRI",[12,9723,9724],{},[30,9725,9726],{},"Katherine (01:11.471)",[12,9728,9729],{},"As a little bit of background for our listeners, I asked Josh to join me hosting this podcast because as an advisor, I have struggled with the kinds of questions that we’re going to be discussing, and that Citizen Mint is really finding solutions for advisors, but more importantly, for me, for my clients, and for the everyday person who is interested in impact investing and wants to feel like their money is really creating positive impact, but just feels stuck because they’re invested in public markets and they just see story after story after story of big companies doing bad things and feeling how, even if I’m in these ESG funds, how is my money actually creating positive impact when I’m just surrounded by bad actors?",[12,9731,9732],{},"I know that’s what I hear a lot from my clients, from the investor side of things, but Josh, from your side over on the other side of the table, why do you think that the public markets or the stock market fall short on impact?",[12,9734,9735],{},[30,9736,9737],{},"Josh Hile (02:16.49)",[12,9739,9740],{},"Yeah, definitely. And I think maybe I can just start us out with kind of this broad understanding of what all these terms mean, because sometimes it can be confusing.",[12,9742,9743],{},"So really, it started with socially responsible investing or SRI, where essentially people said, Hey, I don’t want to invest in certain things that are against my values, whether it’s an alcohol or gambling or weapons manufacturing, though that was kind of the first. So it was",[12,9745,9746],{},"And then came ESG, which is environmental social governance. And it’s essentially saying what are the negative operating or negative operating externalities of this specific business and how it’s impacting their shareholders or society.",[12,9748,9749],{},"And then trying to assess can this is there some businesses who can do better than other businesses. But ultimately the goal of that business is profit making. It’s not actually impact.",[12,9751,9752],{},"Whereas, you know, impact investing to us and why kind of the differential between the stock market and what we’re trying to do is really solving these big global challenges that we’re facing in so many different areas, whether it’s around housing affordability, whether it’s around climate change, education, healthcare, and saying, hey, these are massive opportunities that we need to solve over the next few decades.",[12,9754,9755],{},"But you can also say there are also investment opportunities because when there’s something that big, there’s always investment opportunities to help solve it.",[12,9757,9758],{},"So I’m trying to say we can be the solution, but we can also find financial security in that.",[12,9760,9761],{},"But it’s just very different from, you know, just doing screens on companies or comparing them to one another to say, this one’s just a tad bit better than this one. And so it should be in this category called ESG or in this fund.",[12,9763,9764,9765,9767],{},"That is just a bigger differential there that compared to say, we’re gonna invest in ",[22,9766,394],{"href":393},", real estate opportunity, and we’re gonna impact affordability in the region and the Portland region and all these other places that have massive inequality.",[12,9769,9701],{},[12,9771,9772],{},[30,9773,9774],{},"Katherine (04:25.935)",[12,9776,9777],{},"Could you give us an example of what that might actually look like? And I’m putting you on the spot a little bit here because I gave you no preview of this.",[12,9779,9780],{},"But so if you have a company that is a publicly traded company that is in some way investing in a clean energy future, like our shared clean energy future, could you give a brief example of kind of how that company might be investing in a clean energy future? And then contrast that to if I was looking at an impact company in private markets. What is that company doing for our clean energy future?",[12,9782,9783],{},[30,9784,9785],{},"Josh Hile (05:04.266)",[12,9787,9788],{},"Yeah, yeah, I mean, there is a few companies that you could consider broadly impact in the public markets.",[12,9790,9791],{},"It’s just fewer and far between. So one company that usually is talked about within that space is Orsted, a large European company produces a lot of wind energy off the coast of major European countries. And, but Orsted really was a coal company previously. And then they said, Hey, this industry is dying. We need to reinvest ourselves, reinvent ourselves, have a positive impact and seven impact.",[12,9793,9794],{},"They essentially closed down a lot of their coal mines, sold off a lot of assets, and then said, okay, we’re investing fully in renewable energy because we know that’s the future of where we’re going. So that is more of an impact-like investment.",[12,9796,9797],{},"Some other places within public markets where it’s hard to find that impact investment is real estate. There’s just not a publicly traded affordable real estate fund.",[12,9799,9800],{},"Maybe those big REITs have something related to affordable, but it’s just a small percentage of the portfolio and then compare this to on the private market side where you can invest directly in solar and wind opportunities in private markets to have that direct impact to say, you know, let’s take less, let’s use less oil and let’s electrify our grid and let’s use more EV cars that are powered off renewable energy.",[12,9802,9803,9804,263],{},"And I mean, most of the big companies are investing alongside you in some way in this regard. Think of Amazon, Microsoft, Google. They’re probably the largest purchasers of energy from these private market opportunities that are invested in solar and wind, but they’re ultimately buying the energy off them to power their ",[22,9805,9806],{"href":4092},"data centers",[12,9808,9809],{},"Other kind of investment opportunities that we see in the private markets is really like, hey, let’s build more affordable housing and let’s house these individuals that don’t have housing. So lets do a few deals in that specific area where, you know, we know that housing affordability is an issue where we live and, you know.",[12,9811,9812],{},"But it’s an affordability issue across the whole US. Interest rates, when they go up to 7%, most people can’t buy that starter home that they thought they might be able to buy, like say a couple of years ago.",[12,9814,9815],{},"Plus at the same time, housing prices have gone up significantly. And so there’s gonna be more people renting and there’s gonna be, and that causes actually a supply crunch and it actually causes rents to go up.",[12,9817,9818],{},"And so we need to be able to house our teachers, our nurses, our retail workers near where they live so they’re not driving 40, 50 miles at a time to get to a job. And that’s what we’re trying to really support. But at the same time, we want to find good deals and get opportunities for investors.",[415,9820,9822],{"id":9821},"the-key-issues-with-esg-investing","The key issues with ESG investing",[12,9824,9825],{},[30,9826,9827],{},"Katherine (08:05.655)",[12,9829,9830],{},"Moving a little bit backwards and looking more at private markets for those listeners who are just maybe not thinking about alternatives at all but are still kind of focused on impact in the public markets. Let’s talk about just ESG investing. Can you talk about the some of the issues in that space? Something that I run into a lot as an advisor, something I really struggle with, is just the lack of data that exists.",[12,9832,9833],{},"To actually appropriately screen companies. And in particular, I’m thinking of a recent New York Times article talking about the use of child labor in American factories and how basically the auditing firms that are supposed to be catching it have no incentive to catch factories using child labor because that would make the companies paying them who are the companies using factories that make use of child labor angry.",[12,9835,9836],{},"And as an advisor who is promoting ESG funds, I have to say to my clients, well, you might not want to invest in companies that use child labor, but we don’t have the data. So I can tell you with the data that we have that you’re not, but what the real picture is, I can’t tell you. So could you expand on that in a more technical and less anecdotal sense?",[12,9838,9839],{},[30,9840,9841],{},"Josh Hile (09:26.346)",[12,9843,9844],{},"Yeah, definitely. I mean, I’ve spent a lot of time looking at this over.",[12,9846,9847],{},"There’s a lot of different research out there. There’s Sustainlytics, which is one of the main research providers for ESG data. And then there’s other providers that do something similar, but what they found is there’s no correlation and ratings over these providers. I mean, they’re almost uncorrelated, whereas the same company will be scored completely differently on the same metrics. And you’re kind of like, how are they getting to these specific scores?",[12,9849,9850],{},"So there’s no great industry standards. At the same time, it’s a lot of self-reporting by the companies, and they can report what they want, again, because there’s no industry standard. Essentially, there’s people working on that and thinking about it, but there hasn’t been definitive, this is how we’re going to do it. So companies have a lot of leeway. And what we have seen is the companies that have the best resources or reporting get marked up higher, even though what they’re doing might not be necessarily good. And so, just as an example, Exxon’s considered one of the highest ESG companies out there.",[12,9852,9853],{},"And it’s obviously what it’s producing, it has some very large negative impacts. Whereas it would rate higher than a solar or wind company. Why would that make sense? Um, well, it’s cause they put a lot of money into their reporting of it. And so they can sway things in certain ways and make things look maybe better than they might otherwise.",[12,9855,9856],{},"There’s a lot of issues around that where the biggest companies have the best scores, whether what they’re underlying producing is good for the society as a whole. I think you’re going to find that over time, unfortunately, it’s going to take years to get to some level of consistency within the industry.",[12,9858,9859],{},"I think the best way to think about it though is, because you know it’s obviously been in the news a lot, but it’s these are actual risk for the companies and that’s how I see the best investors thinking about this. It’s like you know you have brand risk, that’s a real risk. You have environmental risk, that is a real risk to your business.",[12,9861,9862],{},"You have employee risk because employees want to know that their companies are doing good things and they want to work for companies that are doing good things. So if you want to hire the best employees, you also need to think about all these things. Those are all risk. They might not be perfect balance sheets risk that you can understand at the current point in time.",[12,9864,9865],{},"But it’s like if Nike does something bad or Adidas is associated with certain stars who say not great stuff then you’re gonna have a big risk to your brand and it’s gonna impact your revenues and ultimately your profitability So you have to think about all those kind of when assessing ESG risk",[415,9867,9707],{"id":9868},"impact-investing-and-risk-versus-return-in-public-and-private-markets",[12,9870,9871],{},[30,9872,9873],{},"Katherine (12:47.699)",[12,9875,9876],{},"I like this discussion of risk and I want to turn to its partner, Return. Right? Can you talk about how from a sort of return risk and return horizon perspective, how that looks different maybe for publicly traded companies who are obviously quarterly, they’re responsible to their shareholders, right?",[12,9878,9879],{},"Those short-term profits versus when maybe look in the impact space in private markets, what types of different risks are you addressing and dealing with? And how does that change your return horizon?",[12,9881,9882],{},[30,9883,9884],{},"Josh Hile (13:34.366)",[12,9886,9887],{},"Yeah, yeah, I think a little bit of it is there’s this thing between public and private markets called the illiquidity premium. And that’s one of the biggest things you deal with.",[12,9889,9890],{},"When you invest in private markets, you have illiquidity. So that means you can’t just take your money out like you can the stock market. You’re like, I just want to sell this company. I’m done with it. Whereas in private markets you say, well, here’s when we’re going to sell or here’s when you expect your money back and it’s in two, five, 10 years at a time. But you get paid to take that. That’s the premium. You get paid because you’re taking that illiquidity risk.",[12,9892,9893],{},"Now companies in the private market have less pressure to perform on a quarterly basis so they can invest in their employees. If it’s that, they can invest in making a property better and understand that that’s going to lead to longer term returns even if it’s more expensive in the near term compared to public market companies. You hope they’re investing for the future and most great companies do, but not all do.",[12,9895,9896],{},"And they might be saying, hey, we’re going to cut employee count because we need to hit this profitability number. Which might have an impact on morale and that might cause us to lose good employees. I mean, those kind of things that need to always come into the understanding of what you’re investing in. And so, I think from a returns perspective, just, just to make sure it’s very clear, the returns should be a little bit higher in private markets.",[12,9898,9899],{},"In some cases you will be taking more risks than public markets, but not in all cases, and I think people misassociate risk or illiquidity with higher risk because there is parts of public or private markets where it can be illiquid but it it’s gonna be definitely less volatile and less risky then Sometimes your hot tech stock in public markets that a lot of people might be jumping into So it’s just, I just want to make that distinction",[415,9901,9710],{"id":9902},"how-quarterly-returns-can-work-against-investors-impact-goals-in-public-markets",[12,9904,9905],{},[30,9906,9907],{},"Katherine (15:38.123)",[12,9909,9910],{},"Yeah. And can you talk a little bit more kind of talking about that pressure, like those, you know, the decisions that have to be made when you are reporting on a quarterly basis. One of the issues that I run into and that frustrates clients and myself is you’re sort of playing this whack-a-mole game when you’re in the public markets with impact where it’s like, okay, well, you know, I really like this company because I really care about climate.",[12,9912,9913],{},"And I think that they are, you know, doing more good than bad from a long-term climate perspective, but it’s not a diverse company. It’s all run by white men, or they have some hiring practices that I don’t support. So it feels like you’re always sacrificing. So can you talk a little bit more about when you are investing in companies that are impact focused companies, how those trade-offs can be reduced?",[12,9915,9916],{},[30,9917,9918],{},"Josh Hile (16:44.03)",[12,9920,9921],{},"Yeah, I mean, it’s a little bit more difficult in public markets in the sense of, you need shareholder resolutions to essentially push the management team to do this stuff in a lot of cases. Not all teams, but if you’re really going for impact and you’re like, hey, I want more diverse board. I want a more diverse management team. That takes time and you have to have a commitment from management to do that.",[12,9923,9924],{},"And so that’s a big thing to focus on in public markets and it might not be as fast as you want and it might take time. I think some of the things we look at when we’re thinking about private markets is, you know, going into it being, okay, do they have a diverse investment team? Are they thinking about this? In most cases, like the teams we’re working with are thinking about this already. You know, they’re reporting on their impact. They have really thoughtful measurement.",[12,9926,9927],{},"We kind of agree on what we they’re going to measure for us going into it so that essentially report that to our investors. And so you shouldn’t see much inconsistency over time. It’s like, hey, maybe they won’t hit their impact metrics. And that might happen and that’s okay as long as we understand why that happened and how we can make it better in the future. But, and maybe they’ll outperform their impact metrics, but at least we have some agreement. We have some understanding with them.",[12,9929,9930],{},"And we’re on the same page because we’re a capital allocator to them and have more, I guess, influence compared to a public market company where, you know, you have to get more buy-in from the whole Invest shareholder group to really push the company to do something and change their ways.",{"title":59,"searchDepth":167,"depth":167,"links":9932},[9933],{"id":9720,"depth":167,"text":9721,"children":9934},[9935,9936,9937],{"id":9821,"depth":498,"text":9822},{"id":9868,"depth":498,"text":9707},{"id":9902,"depth":498,"text":9710},"2024-02-07","Read transcript highlights or listen to the full episode to hear Katherine Fox and Josh Hile, founder of Citizen Mint","\u002Fimages\u002Fresources\u002Fvalues-aligned-investing-in-private-markets.png",{},"\u002Fresources\u002Fvalues-aligned-investing-in-private-markets",{"title":9683,"description":9939},"resources\u002Fvalues-aligned-investing-in-private-markets","HOeAHcdloPy6o_IV1zEiN-WXgTcM2C3jLv_gGKUS9Zc",{"id":9947,"title":9948,"author":512,"body":9949,"category":176,"date":10145,"description":10146,"extension":179,"image":10147,"imageAlt":181,"meta":10148,"navigation":183,"path":5993,"seo":10149,"stem":10150,"topic":6534,"__hash__":10151},"resources\u002Fresources\u002Fopportunity-zone-investments-guide.md","The Ins and Outs of Opportunity Zone Investments: A Comprehensive Guide",{"type":9,"value":9950,"toc":10120},[9951,9954,9958,9967,9971,9974,9977,9982,9987,9991,9995,9998,10002,10005,10009,10012,10016,10019,10023,10027,10031,10034,10038,10041,10045,10048,10052,10055,10059,10064,10068,10071,10075,10078,10082,10085,10089,10095,10099,10104,10108,10110,10116],[12,9952,9953],{},"DIVERSIFICATION • ASSET ALLOCATION • INVESTMENTS",[34,9955,9957],{"id":9956},"introduction","Introduction",[12,9959,9960,9961,9966],{},"In recent years, Opportunity Zone investments have garnered significant attention within the real estate sector. These ",[22,9962,9965],{"href":9963,"rel":9964},"https:\u002F\u002Fapp.citizenmint.com\u002Fsignup",[45],"investments offer unique"," tax incentives that can be incredibly appealing to investors looking to reduce their future tax liabilities while simultaneously participating in the development of economically disadvantaged communities. In this comprehensive blog post, we will delve into the history of Opportunity Zone legislation, the rules governing these investments, as well as their benefits and drawbacks.",[34,9968,9970],{"id":9969},"a-brief-history-of-opportunity-zone-legislation","A Brief History of Opportunity Zone Legislation",[12,9972,9973],{},"The Opportunity Zone program was established as part of the Tax Cuts and Jobs Act of 2017, signed into law by President Donald Trump. The program aimed to stimulate economic development in distressed communities across the United States by providing tax incentives to investors who funnel their capital into these designated areas.",[12,9975,9976],{},"Opportunity Zones were created as a means to encourage long-term investments in low-income urban and rural communities. The legislation allowed states to nominate certain census tracts as Opportunity Zones, with approval from the U.S. Department of the Treasury. Once designated, these zones became eligible for investments through Qualified Opportunity Funds (QOFs), which are investment vehicles that pool money from multiple investors to fund projects within the Opportunity Zones.",[12,9978,9979],{},[30,9980,9981],{},"BACKGROUND:",[12,9983,9984],{},[30,9985,9986],{},"The Economic Innovation Group, tech entrepreneur Sean Parker’s Think Tank, developed the initial policy concept for the Opportunity Zone program. Says Parker, “the incentive needs to be powerful enough that it can unlock large amounts of capital, aggregate the capital into funds and encourage the funds to invest in distressed areas.”",[34,9988,9990],{"id":9989},"the-rules-governing-opportunity-zone-investments","The Rules Governing Opportunity Zone Investments",[415,9992,9994],{"id":9993},"_1-capital-gains-reinvestment","1. Capital Gains Reinvestment",[12,9996,9997],{},"To take advantage of the tax benefits, investors must reinvest capital gains from a previous investment into a Qualified Opportunity Fund within 180 days of realizing those gains.",[415,9999,10001],{"id":10000},"_2-substantial-improvement","2. Substantial Improvement",[12,10003,10004],{},"Investors must make substantial improvements to properties located within Opportunity Zones. This typically means investing an amount equal to or greater than the original purchase price of the property within a 30-month period.",[415,10006,10008],{"id":10007},"_3-holding-period","3. Holding Period",[12,10010,10011],{},"To maximize the tax benefits, investors are encouraged to hold their investment in a QOF for at least 10 years. This allows them to qualify for significant tax advantages upon exit.",[415,10013,10015],{"id":10014},"_4-investment-deadline","4. Investment Deadline",[12,10017,10018],{},"The Opportunity Zone program has a set timeline, and investors must act within it. The program is scheduled to end in 2047, with the last year for investors to receive maximum tax benefits being 2026.",[34,10020,10022],{"id":10021},"benefits-of-opportunity-zone-investments","Benefits of Opportunity Zone Investments",[415,10024,10026],{"id":10025},"opportunity-zone-investments-offer-several-enticing-benefits-to-investors-making-them-an-attractive-option-for-those-looking-to-reduce-their-tax-liability-and-contribute-to-community-development","Opportunity Zone investments offer several enticing benefits to investors, making them an attractive option for those looking to reduce their tax liability and contribute to community development.",[415,10028,10030],{"id":10029},"_1-deferral-of-capital-gains-taxes","1. Deferral of Capital Gains Taxes",[12,10032,10033],{},"One of the primary benefits of Opportunity Zone investments is the deferral of capital gains taxes. By reinvesting capital gains into a QOF, investors can defer paying taxes on those gains until December 31, 2026, or when they sell their interest in the QOF, whichever comes first.",[415,10035,10037],{"id":10036},"_2-reduction-of-capital-gains-taxes","2. Reduction of Capital Gains Taxes",[12,10039,10040],{},"If investors hold their investment in a QOF for at least 5 years, they become eligible for a 10% reduction in their deferred capital gains tax liability. Holding the investment for 7 years results in an additional 5% reduction, totaling a 15% reduction in capital gains taxes.",[415,10042,10044],{"id":10043},"_3-tax-free-growth","3. Tax-Free Growth",[12,10046,10047],{},"Perhaps the most significant advantage of Opportunity Zone investments is the potential for tax-free growth. If an investor holds their investment in a QOF for at least 10 years, any appreciation in the value of their investment becomes tax-free when it is sold.",[415,10049,10051],{"id":10050},"_4-community-impact","4. Community Impact",[12,10053,10054],{},"Investors also have the satisfaction of knowing that their investments are contributing to the revitalization of economically distressed communities. These investments can lead to job creation, improved infrastructure, and increased economic activity in Opportunity Zones.",[34,10056,10058],{"id":10057},"example-of-investing-in-opportunity-zone-project-versus-non-opportunity-zone-investment","Example of Investing in Opportunity Zone Project Versus Non-Opportunity Zone Investment",[12,10060,10061],{},[57,10062],{"alt":59,"src":10063},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-01-Op-Zone-Investment.png",[34,10065,10067],{"id":10066},"potential-drawbacks-of-opportunity-zone-investments","Potential Drawbacks of Opportunity Zone Investments",[12,10069,10070],{},"While Opportunity Zone investments offer substantial tax benefits, they are not without their drawbacks and risks.",[415,10072,10074],{"id":10073},"_1-long-term-commitment","1. Long-Term Commitment",[12,10076,10077],{},"To fully realize the tax advantages, investors must commit to holding their investments in Opportunity Zones for at least 10 years. This long-term commitment may not align with the goals or preferences of all investors.",[415,10079,10081],{"id":10080},"_2-uncertain-returns","2. Uncertain Returns",[12,10083,10084],{},"Investing in long-term real estate carries inherent risks, including uncertain returns. The success of an Opportunity Zone investment depends on various factors, including local economic conditions and the skill of the project developers.",[415,10086,10088],{"id":10087},"_3-limited-liquidity","3. Limited Liquidity",[12,10090,10091,10092,10094],{},"Opportunity Zone ",[22,10093,1328],{"href":4075}," can be illiquid, especially if the investor chooses to hold their investment for the full 10-year period. Selling the investment before the end of the holding period can result in the loss of some tax benefits.",[415,10096,10098],{"id":10097},"opportunity-zone-investments-represent-a-unique-opportunity-for-investors-to-simultaneously-reduce-their-tax-liability-and-contribute-to-the-revitalization-of-economically-distressed-communities-understanding-the-history-rules-benefits-and-drawbacks-of-these-investments-is-crucial-for-anyone-considering-them-as-part-of-their-financial-strategy-as-with-any-investment-thorough-research-and-consultation-with-financial-professionals-are-essential-to-make-informed-decisions-that-align-with-your-financial-goals-and-risk-tolerance","Opportunity Zone investments represent a unique opportunity for investors to simultaneously reduce their tax liability and contribute to the revitalization of economically distressed communities. Understanding the history, rules, benefits, and drawbacks of these investments is crucial for anyone considering them as part of their financial strategy . As with any investment, thorough research and consultation with financial professionals are essential to make informed decisions that align with your financial goals and risk tolerance.",[12,10100,10101],{},[22,10102,478],{"href":476,"rel":10103},[45],[12,10105,10106],{},[57,10107],{"alt":59,"src":483},[34,10109,9623],{"id":9622},[12,10111,9626,10112,9158,10114],{},[30,10113,9629],{},[30,10115,9632],{},[12,10117,10118],{},[57,10119],{"alt":59,"src":9637},{"title":59,"searchDepth":167,"depth":167,"links":10121},[10122,10123,10124,10130,10137,10138,10144],{"id":9956,"depth":167,"text":9957},{"id":9969,"depth":167,"text":9970},{"id":9989,"depth":167,"text":9990,"children":10125},[10126,10127,10128,10129],{"id":9993,"depth":498,"text":9994},{"id":10000,"depth":498,"text":10001},{"id":10007,"depth":498,"text":10008},{"id":10014,"depth":498,"text":10015},{"id":10021,"depth":167,"text":10022,"children":10131},[10132,10133,10134,10135,10136],{"id":10025,"depth":498,"text":10026},{"id":10029,"depth":498,"text":10030},{"id":10036,"depth":498,"text":10037},{"id":10043,"depth":498,"text":10044},{"id":10050,"depth":498,"text":10051},{"id":10057,"depth":167,"text":10058},{"id":10066,"depth":167,"text":10067,"children":10139},[10140,10141,10142,10143],{"id":10073,"depth":498,"text":10074},{"id":10080,"depth":498,"text":10081},{"id":10087,"depth":498,"text":10088},{"id":10097,"depth":498,"text":10098},{"id":9622,"depth":167,"text":9623},"2024-01-20","A comprehensive guide to Opportunity Zone investments covering tax benefits, qualified opportunity funds, timelines, and strategies for maximizing returns.","\u002Fimages\u002Fresources\u002Fopportunity-zone-investments-guide.jpg",{},{"title":9948,"description":10146},"resources\u002Fopportunity-zone-investments-guide","X7JQHetVKVMWRkf-rITxYSk-mEuMNpqga0SqPT-muH0",{"id":10153,"title":10154,"author":512,"body":10155,"category":176,"date":10275,"description":10276,"extension":179,"image":10277,"imageAlt":181,"meta":10278,"navigation":183,"path":10279,"seo":10280,"stem":10281,"topic":2330,"__hash__":10282},"resources\u002Fresources\u002F2024-outlook-on-private-market-opportunities.md","2024 Outlook on Private Market Opportunities",{"type":9,"value":10156,"toc":10264},[10157,10159,10161,10164,10168,10174,10180,10185,10189,10196,10199,10203,10212,10215,10220,10224,10234,10238,10241,10245,10248,10251,10253,10259],[12,10158,9953],{},[34,10160,9957],{"id":9956},[12,10162,10163],{},"After an incredibly strong year for equities in 2024, we are consistently getting the question from financial advisors of how to diversify client portfolios and where to put capital in order to protect their clients from what is likely to be a choppy 2024 with concerns around elections, wars, interest rates, and issues within the banking sector. In this blog post, we will delve into several investment opportunities within the private markets we believe can potentially perform well in 2024 even if we do enter a more challenging environment.",[34,10165,10167],{"id":10166},"renewable-infrastructure-powering-the-future","Renewable Infrastructure: Powering the Future",[12,10169,10170,10171,10173],{},"One of the most compelling risk versus reward opportunities we have seen in the market is ",[22,10172,9210],{"href":376},". We are currently witnessing the largest capital investment cycle in history as global efforts intensify to electrify the economy and stabilize energy prices. Projections indicate that over $30 trillion in global investments will flow into this sector between now and 2050.",[12,10175,10176,10177,10179],{},"One of the key advantages of renewable infrastructure investments is their track record of delivering stable returns across various economic cycles. Additionally, these investments have more recently benefited from the estimated ~$400 billion in tax credits provided by the Inflation Reduction Act, meaningfully increasing potential returns in the sector. The growth and stability of this asset class is partially a result of major corporations like Amazon, Microsoft, and Google’s commitment to carbon neutrality by 2030. As such, these and other corporates enter into 20-30 year energy “off-taker” agreements to secure their power supply for their ",[22,10178,9806],{"href":4092},". With AI taking 4x the energy of a normal data center, it is likely they will have to dramatically increases these energy purchases over the next decade to hit their goals.",[12,10181,10182],{},[57,10183],{"alt":59,"src":10184},"\u002Fimages\u002Fresources\u002Fmedia\u002F2024-01-Demand-versus-Supply-.png",[34,10186,10188],{"id":10187},"affordableworkforce-housing-a-steady-performer","Affordable\u002FWorkforce Housing: A Steady Performer",[12,10190,10191,10192,10195],{},"Another attractive asset class in the private market landscape is ",[22,10193,10194],{"href":9213},"affordable and workforce housing",". This sector has proven to be a stable and consistent source of returns. In recent years there has been a surge in demand for this type of housing, driven by factors such as high-interest rates and limited supplies of new housing units. Notably, even large players like Blackstone have recognized the potential in this space and have established their own funds.",[12,10197,10198],{},"One of the strengths of affordable and workforce housing is its resilience during economic downturns. These investments offer housing below market rates, ensuring high occupancy rates even in challenging economic conditions. In some cases, this can lead to the growth of Net Operating Income (NOI), making it a defensive asset class.",[34,10200,10202],{"id":10201},"farmland-a-growing-opportunity","Farmland: A Growing Opportunity",[12,10204,10205,10206,10208,10209,10211],{},"Agriculture, specifically investing in ",[22,10207,9182],{"href":9181},", has showcased remarkable resilience and ",[22,10210,1028],{"href":1027}," benefits over an extended period. The NCREIF Farmland Index Report for Q4 2022 highlighted positive returns in farmland investments for the last 31 years. With a continuously growing global population and a sustained focus on health and wellness, opportunities in this asset class remain abundant.",[12,10213,10214],{},"Investing in farmland can provide a unique blend of stability and growth potential, making it an appealing choice for those looking to diversify their portfolios. The inherent value of land and the demand for agricultural products ensure that farmland investments remain relevant in today’s market.",[12,10216,10217],{},[57,10218],{"alt":59,"src":10219},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-12-Farmland-1.png",[34,10221,10223],{"id":10222},"private-credit-select-opportunities","Private Credit: Select Opportunities",[12,10225,10226,10227,10229,10230,10233],{},"While concerns persist in traditional private equity, there are select opportunities in ",[22,10228,3404],{"href":3403}," that make sense. The preference underleveraged managers. Did you know you are actually second lien to the senior holder ",[1389,10231,10232],{},"the leverage provider"," in most brand-name private credit strategies? Finding managers with top tier underwriting capabilities who are actually implementing covenants is key.",[34,10235,10237],{"id":10236},"potential-issue-areas-private-equity-facing-challenges","Potential Issue Areas Private Equity: Facing Challenges",[12,10239,10240],{},"In contrast to the opportunities outlined above, private equity faces several challenges in the current market environment. The high-interest rate environment presents difficulties for financial engineering, a common practice in private equity deals. Additionally, pricing has mostly remained unattractive in the M&A market, and the prospect of successful exits is still quite challenging especially as large corporates pull back in the market. These items coupled with the potential for a recession make us concerned with the majority of managers in the asset class.",[415,10242,10244],{"id":10243},"private-markets-offer-a-range-of-potentially-compelling-opportunities-from-renewable-infrastructure-and-affordable-housing-to-farmland-and-select-private-credit-opportunities-however-its-crucial-to-understand-the-universe-and-be-incredibly-selective-with-the-managers-you-are-working-with-in-each-of-these-areas-if-you-are-looking-for-a-partner-to-help-you-evaluate-and-select-opportunities-for-your-clients-please-reach-out","Private markets offer a range of potentially compelling opportunities, from renewable infrastructure and affordable housing to farmland and select private credit opportunities. However, it’s crucial to understand the universe and be incredibly selective with the managers you are working with in each of these areas. If you are looking for a partner to help you evaluate and select opportunities for your clients, please reach out.",[12,10246,10247],{},"Note: The above is not considered investment advice. Please see our disclosures at the bottom of the page for additional information.",[12,10249,10250],{},"Learn more about investing in private markets by downloading our Guide to Private Markets white paper.",[34,10252,698],{"id":459},[12,10254,10255,10256],{},"Be sure to download our guide on ",[30,10257,10258],{},"Private Market Investments",[12,10260,10261],{},[57,10262],{"alt":59,"src":10263},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Private-Markets.png",{"title":59,"searchDepth":167,"depth":167,"links":10265},[10266,10267,10268,10269,10270,10271,10274],{"id":9956,"depth":167,"text":9957},{"id":10166,"depth":167,"text":10167},{"id":10187,"depth":167,"text":10188},{"id":10201,"depth":167,"text":10202},{"id":10222,"depth":167,"text":10223},{"id":10236,"depth":167,"text":10237,"children":10272},[10273],{"id":10243,"depth":498,"text":10244},{"id":459,"depth":167,"text":698},"2024-01-19","Learn about investment opportunities within the private markets that are likely to perform well in 2024 even in a more challenging environment.","\u002Fimages\u002Fresources\u002F2024-outlook-on-private-market-opportunities.jpg",{},"\u002Fresources\u002F2024-outlook-on-private-market-opportunities",{"title":10154,"description":10276},"resources\u002F2024-outlook-on-private-market-opportunities","kP08XaqX-qJnVHJXPozW4cx1ggL4q3JVU8KiiHvFvyY",{"id":10284,"title":10285,"author":512,"body":10286,"category":176,"date":10421,"description":10422,"extension":179,"image":10423,"imageAlt":181,"meta":10424,"navigation":183,"path":9181,"seo":10425,"stem":10426,"topic":939,"__hash__":10427},"resources\u002Fresources\u002Fwhy-invest-in-farmland.md","Why Invest in Farmland",{"type":9,"value":10287,"toc":10406},[10288,10292,10294,10296,10299,10303,10306,10310,10315,10320,10324,10328,10331,10339,10344,10348,10351,10355,10358,10363,10367,10370,10374,10377,10382,10386,10390,10394,10396,10398,10402],[34,10289,10291],{"id":10290},"why-farmland-investments-make-sense-in-todays-market","Why Farmland Investments Make Sense in Today’s Market",[12,10293,9953],{},[34,10295,9957],{"id":9956},[12,10297,10298],{},"Investing in farmland has historically been a cornerstone of wealth preservation and growth. While the allure of stocks, real estate, and cryptocurrencies often dominates investment conversations, farmland remains an overlooked gem in the investment landscape. In recent years, its potential for robust returns, stability, and resilience has attracted a surge of interest from savvy investors. Let’s delve into the reasons why investing in farmland is a prudent choice and explore the compelling data behind this opportunity.",[34,10300,10302],{"id":10301},"_1-tangible-asset-with-inherent-value","1. Tangible Asset with Inherent Value",[12,10304,10305],{},"Farmland is a tangible asset, grounded in real value and utility. Unlike stocks or cryptocurrencies, it’s a physical asset with intrinsic worth that remains irrespective of market fluctuations. Its fundamental value lies in producing essential resources—food and raw materials—necessary for human survival and industrial operations. This inherent value acts as a stabilizing force, providing a buffer against economic volatility.",[34,10307,10309],{"id":10308},"_2-diversification-low-correlation","2. Diversification & Low Correlation",[12,10311,10312,10314],{},[22,10313,2228],{"href":1027}," is the cornerstone of a robust investment portfolio. Farmland offers diversification benefits due to its low correlation with traditional asset classes like stocks and bonds. Historical data often demonstrates that farmland returns have little to no correlation with broader market movements, making it an excellent hedge against market volatility and economic downturns.",[12,10316,10317],{},[57,10318],{"alt":59,"src":10319},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-12-Farmland-Volatility.png",[80,10321,10323],{"id":10322},"source-ncreif-bloomberg-bankrate-nyu-stern-school-of-business-federal-reserve-bank-of-st-louis-and-acretrader-calculations-represents-period-from-12311990-12312020","Source: NCREIF, Bloomberg, Bankrate, NYU Stern School of Business, Federal Reserve Bank of St. Louis and AcreTrader calculations. Represents period from 12\u002F31\u002F1990 – 12\u002F31\u002F2020.",[34,10325,10327],{"id":10326},"_3-consistent-income-capital-appreciation","3. Consistent Income & Capital Appreciation",[12,10329,10330],{},"Income generated from farmland comes from various sources: crop production, leasing, and land appreciation. Agricultural land tends to provide consistent rental income, offering investors stable cash flows even in uncertain economic times. Moreover, farmland historically appreciates in value over the long term, driven by factors like population growth, urbanization, and increased demand for food and agricultural products.",[12,10332,10333,9158,10336],{},[30,10334,10335],{},"FARMLAND RETURNS",[30,10337,10338],{},"1990-2022",[12,10340,10341],{},[57,10342],{"alt":59,"src":10343},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-12-Farmland-Blog.png",[34,10345,10347],{"id":10346},"_4-inflation-hedge","4. Inflation Hedge",[12,10349,10350],{},"Farmland has historically served as a reliable hedge against inflation. As inflation rises, the value of tangible assets like farmland tends to increase. The inherent scarcity of arable land, coupled with growing global food demand, positions farmland as a valuable asset during inflationary periods.",[34,10352,10354],{"id":10353},"_5-environmental-social-sustainability","5. Environmental & Social Sustainability",[12,10356,10357],{},"Investing in farmland aligns with environmental and social sustainability goals. Responsible farming practices can contribute to environmental conservation, biodiversity, and carbon sequestration. Moreover, supporting agriculture through investment aids in ensuring food security, making it a socially impactful investment choice.",[12,10359,10360],{},[57,10361],{"alt":59,"src":10362},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-12-UPDATE-ON-CONSERVATION.png",[34,10364,10366],{"id":10365},"_6-technological-advancements-in-agriculture","6. Technological Advancements in Agriculture",[12,10368,10369],{},"The agriculture sector has seen remarkable technological advancements, enhancing productivity, efficiency, and sustainability. Innovations such as precision farming, biotechnology, and data-driven agriculture improve crop yields and overall profitability, thereby boosting the potential returns for farmland investors.",[34,10371,10373],{"id":10372},"_7-global-population-growth-food-demand","7. Global Population Growth & Food Demand",[12,10375,10376],{},"The world’s population is projected to surpass 9 billion by 2050, necessitating a substantial increase in food production. Investing in farmland positions investors to benefit from this growing demand for agricultural products, making it a strategic long-term investment.",[12,10378,10379],{},[57,10380],{"alt":59,"src":10381},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-12-Farmland-2.png",[80,10383,10385],{"id":10384},"source-the-world-bank-as-of-march-2022-arable-land-projections-based-on-average-percent-change-from-1961-2018-applied-to-2020-2050","Source: The World Bank, as of March 2022. Arable land projections based on average percent change from 1961-2018, applied to 2020-2050.",[415,10387,10389],{"id":10388},"in-conclusion-farmland-investment-presents-a-compelling-opportunity-for-investors-seeking-stability-income-diversification-and-long-term-growth-potential-the-combination-of-tangible-value-low-correlation-with-traditional-assets-consistent-returns-inflation-hedging-and-sustainability-aspects-makes-farmland-a-prudent-addition-to-a-well-rounded-investment-portfolio","In conclusion, farmland investment presents a compelling opportunity for investors seeking stability, income, diversification, and long-term growth potential. The combination of tangible value, low correlation with traditional assets, consistent returns, inflation hedging, and sustainability aspects makes farmland a prudent addition to a well-rounded investment portfolio.",[415,10391,10393],{"id":10392},"remember-before-diving-into-any-investment-thorough-research-consultation-with-financial-advisors-and-an-understanding-of-the-risks-involved-are-crucial-however-for-those-looking-to-diversify-their-portfolio-with-a-stable-tangible-asset-farmland-investment-stands-as-an-enticing-option-backed-by-solid-historical-data-and-promising-future-prospects","Remember, before diving into any investment, thorough research, consultation with financial advisors, and an understanding of the risks involved are crucial. However, for those looking to diversify their portfolio with a stable, tangible asset, farmland investment stands as an enticing option backed by solid historical data and promising future prospects.",[12,10395,10250],{},[34,10397,698],{"id":459},[12,10399,10255,10400],{},[30,10401,10258],{},[12,10403,10404],{},[57,10405],{"alt":59,"src":10263},{"title":59,"searchDepth":167,"depth":167,"links":10407},[10408,10409,10410,10411,10412,10413,10414,10415,10416,10420],{"id":10290,"depth":167,"text":10291},{"id":9956,"depth":167,"text":9957},{"id":10301,"depth":167,"text":10302},{"id":10308,"depth":167,"text":10309},{"id":10326,"depth":167,"text":10327},{"id":10346,"depth":167,"text":10347},{"id":10353,"depth":167,"text":10354},{"id":10365,"depth":167,"text":10366},{"id":10372,"depth":167,"text":10373,"children":10417},[10418,10419],{"id":10388,"depth":498,"text":10389},{"id":10392,"depth":498,"text":10393},{"id":459,"depth":167,"text":698},"2023-12-15","Learn why farmland is an overlooked gem in the investment landscape with the potential for solid returns, stability, and resilience.","\u002Fimages\u002Fresources\u002Fwhy-invest-in-farmland.jpg",{},{"title":10285,"description":10422},"resources\u002Fwhy-invest-in-farmland","YnVNTa8MJymRWEsFc0DZ_GNybQM_KfyHmrUv6QEbXe0",{"id":10429,"title":10430,"author":512,"body":10431,"category":176,"date":10513,"description":10514,"extension":179,"image":10515,"imageAlt":181,"meta":10516,"navigation":183,"path":4832,"seo":10517,"stem":10518,"topic":2330,"__hash__":10519},"resources\u002Fresources\u002Fwhy-liquidity-is-not-equal-to-risk-in-investing.md","Why Liquidity is Not Equal to Risk in Investing",{"type":9,"value":10432,"toc":10501},[10433,10436,10438,10441,10445,10448,10452,10455,10460,10464,10467,10471,10474,10478,10481,10485,10489,10491,10493,10497],[12,10434,10435],{},"LIQUIDITY• RISK MANAGEMENT• INVESTMENTS",[34,10437,9957],{"id":9956},[12,10439,10440],{},"When it comes to investing, one of the most common misconceptions is the assumption that liquidity is synonymous with risk. Many investors believe that assets that can be quickly converted to cash, such as stocks or government bonds, are less risky than those that are less liquid, like real estate or private equity. While liquidity is indeed an important consideration, it’s essential to understand that liquidity and risk are not the same. In this article, we will explore the reasons why liquidity does not equate to risk in investing.",[34,10442,10444],{"id":10443},"the-liquidity-myth","The Liquidity Myth",[12,10446,10447],{},"Liquidity refers to the ease with which an asset can be bought or sold without significantly affecting its price. Highly liquid assets can be traded rapidly without significant price fluctuations, whereas less liquid assets may experience more significant price swings when traded. This characteristic has led many investors to assume that more liquid investments are less risky. However, this is a simplistic view of risk in investing.",[34,10449,10451],{"id":10450},"diversification-and-risk","Diversification and Risk",[12,10453,10454],{},"Risk in investing is a multifaceted concept that depends on various factors, including an investor’s financial goals, time horizon, and risk tolerance. Liquidity is just one dimension of risk, and while it is an important consideration, it doesn’t provide a complete picture.",[12,10456,10457,10459],{},[22,10458,2228],{"href":1027}," is a fundamental principle in risk management. Diversifying a portfolio means spreading investments across different asset classes and securities to reduce the impact of poor performance in any single investment. The level of liquidity of these assets can vary significantly. For example, stocks and bonds are generally highly liquid, while real estate and private equity are less liquid. However, the less liquid assets can play a crucial role in diversification by offering lower correlation with more liquid assets, which can help reduce overall portfolio risk",[34,10461,10463],{"id":10462},"risk-and-return","Risk and Return",[12,10465,10466],{},"Another crucial aspect to consider is the risk-return trade-off. In general, investors expect higher returns for taking on more risk. While highly liquid assets may appear less risky on the surface, they often come with lower potential returns. This means that investors may need to take on additional risk in their portfolios or accept lower returns to achieve their financial goals if they focus exclusively on liquid assets.",[34,10468,10470],{"id":10469},"market-volatility","Market Volatility",[12,10472,10473],{},"Liquidity is not a guarantee against market volatility. In fact, even highly liquid assets can experience substantial price fluctuations during market turbulence. The 2008 financial crisis is a prime example of how highly liquid assets, such as stocks, experienced significant declines in value, leading to widespread panic and selling. Thus, the belief that liquidity can shield investors from risk is not always accurate.",[34,10475,10477],{"id":10476},"long-term-perspective","Long Term Perspective",[12,10479,10480],{},"Investors should also consider their investment horizon. If you are planning to invest for the long term, the short-term liquidity of an asset may be less relevant. Over extended periods, the impact of liquidity on risk diminishes, and other factors such as the asset’s fundamental qualities and growth potential become more important.",[415,10482,10484],{"id":10483},"in-investing-liquidity-is-just-one-dimension-of-risk-and-it-does-not-equate-to-overall-risk-while-liquidity-is-important-and-provides-flexibility-it-should-not-be-the-sole-determinant-of-an-investments-risk-profile-diversification-the-risk-return-trade-off-market-volatility-and-your-investment-horizon-all-play-a-crucial-role-in-evaluating-and-managing-risk","In investing, liquidity is just one dimension of risk, and it does not equate to overall risk. While liquidity is important and provides flexibility, it should not be the sole determinant of an investment’s risk profile. Diversification, the risk-return trade-off, market volatility, and your investment horizon all play a crucial role in evaluating and managing risk.",[415,10486,10488],{"id":10487},"successful-investing-involves-a-comprehensive-approach-that-considers-various-factors-including-an-individuals-financial-goals-risk-tolerance-and-time-horizon-by-understanding-that-liquidity-is-just-one-piece-of-the-puzzle-investors-can-make-more-informed-decisions-and-construct-well-balanced-portfolios-that-address-their-unique-risk-reward-requirements-in-the-end-its-essential-to-remember-that-not-all-that-glitters-is-gold-and-not-all-thats-liquid-is-low-risk-in-the-world-of-investing","Successful investing involves a comprehensive approach that considers various factors, including an individual’s financial goals, risk tolerance, and time horizon. By understanding that liquidity is just one piece of the puzzle, investors can make more informed decisions and construct well-balanced portfolios that address their unique risk-reward requirements. In the end, it’s essential to remember that not all that glitters is gold, and not all that’s liquid is low-risk in the world of investing.",[12,10490,10250],{},[34,10492,698],{"id":459},[12,10494,10255,10495],{},[30,10496,10258],{},[12,10498,10499],{},[57,10500],{"alt":59,"src":10263},{"title":59,"searchDepth":167,"depth":167,"links":10502},[10503,10504,10505,10506,10507,10508,10512],{"id":9956,"depth":167,"text":9957},{"id":10443,"depth":167,"text":10444},{"id":10450,"depth":167,"text":10451},{"id":10462,"depth":167,"text":10463},{"id":10469,"depth":167,"text":10470},{"id":10476,"depth":167,"text":10477,"children":10509},[10510,10511],{"id":10483,"depth":498,"text":10484},{"id":10487,"depth":498,"text":10488},{"id":459,"depth":167,"text":698},"2023-11-01","One of the most common misconceptions in investing is that liquidity is synonymous with risk. This is just not true. In this article we dive into the reasons.","\u002Fimages\u002Fresources\u002Fwhy-liquidity-is-not-equal-to-risk-in-investing.jpg",{},{"title":10430,"description":10514},"resources\u002Fwhy-liquidity-is-not-equal-to-risk-in-investing","615bW4x7lL5idR5x3dhwRFUUx9eVdohhBmApPhqixU0",{"id":10521,"title":10522,"author":192,"body":10523,"category":1248,"date":10571,"description":10572,"extension":179,"image":10573,"imageAlt":181,"meta":10574,"navigation":183,"path":376,"seo":10575,"stem":10576,"topic":939,"__hash__":10577},"resources\u002Fresources\u002Fthe-case-for-renewable-infrastructure.md","The Case for Renewable Infrastructure",{"type":9,"value":10524,"toc":10567},[10525,10529,10532,10538,10543,10548,10551,10562],[34,10526,10528],{"id":10527},"white-paper","White Paper",[34,10530,10522],{"id":10531},"the-case-for-renewable-infrastructure",[12,10533,10534,10535,10537],{},"Renewable infrastructure can be a compelling and defensive investment option due to its stable income streams, high barriers to entry, inflation protection, and government support. It can provide investors a number of benefits like portfolio ",[22,10536,1028],{"href":1027},", income potential, and significant growth prospects.",[12,10539,10540],{},[22,10541,1222],{"href":10542},"\u002Fdownloads\u002Fguides\u002Fthe-case-for-renewable-infrastructure.pdf",[1224,10544],{"className":10545,"src":10546,"title":10547,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Fthe-case-for-renewable-infrastructure.pdf#navpanes=0&view=FitH","The Case for Renewable Infrastructure (PDF)",[12,10549,10550],{},"In this in-depth guide you will learn:",[960,10552,10553,10556,10559],{},[536,10554,10555],{},"Why investors are beginning to incorporate renewable infrastructure in client portfolios",[536,10557,10558],{},"Compelling risk and return characteristics",[536,10560,10561],{},"How you can begin leveraging the renewable infrastructure opportunity for your clients",[12,10563,10564],{},[57,10565],{"alt":59,"src":10566},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-09-Screen-Shot-2023-09-03-at-2.22.21-PM.png",{"title":59,"searchDepth":167,"depth":167,"links":10568},[10569,10570],{"id":10527,"depth":167,"text":10528},{"id":10531,"depth":167,"text":10522},"2023-08-31","Discover why renewable infrastructure presents a compelling investment opportunity with stable cash flows, policy tailwinds, and growing demand for clean energy.","\u002Fimages\u002Fresources\u002Fthe-case-for-renewable-infrastructure.jpg",{},{"title":10522,"description":10572},"resources\u002Fthe-case-for-renewable-infrastructure","xivd86MKGpdYZW_LTNYQ1Lg14Jnz9Yk0tmzIJgx7uAY",{"id":10579,"title":10580,"author":512,"body":10581,"category":176,"date":10787,"description":10788,"extension":179,"image":10789,"imageAlt":181,"meta":10790,"navigation":183,"path":9223,"seo":10791,"stem":10792,"topic":2991,"__hash__":10793},"resources\u002Fresources\u002Fattract-next-gen-investors.md","Three Steps to Engage the Next Generation of Investors",{"type":9,"value":10582,"toc":10778},[10583,10591,10602,10605,10609,10612,10621,10624,10631,10636,10639,10642,10645,10648,10652,10655,10658,10670,10680,10687,10691,10694,10704,10713,10725,10728,10732,10741,10746,10762,10766,10768,10770,10774],[12,10584,10585],{},[343,10586,10587,10588,10590],{},"In this article, we share best practices for delivering an investing experience that",[1667,10589],{},"\nmeets the evolving expectations of the next generation of investors.",[12,10592,10593],{},[343,10594,10595,10596,10601],{},"This article was written in collaboration with our partner, ",[22,10597,10600],{"href":10598,"rel":10599},"https:\u002F\u002Fwww.seedsinvestor.com\u002F",[45],"Seeds",". Seeds allows advisors to better assess investors, personalize portfolios, and present engaging insights–all in one digital solution",[12,10603,10604],{},"NEXT GEN INVESTORS • INVESTMENTS • VALUES ALIGNED INVESTING",[34,10606,10608],{"id":10607},"deliver-a-meaningful-engaging-experience-for-growth","Deliver a meaningful & engaging experience for growth",[12,10610,10611],{},"Delivering a meaningful, engaging experience is essential for financial advisors looking to grow their business – especially when plans for growth include serving the next generation of investors.",[12,10613,10614,10615,10620],{},"According to ",[22,10616,10619],{"href":10617,"rel":10618},"https:\u002F\u002Fwww.businesswire.com\u002Fnews\u002Fhome\u002F20230124005076\u002Fen\u002FFidelity%C2%AE-Research-Spotlights-Significant-Growth-Opportunity-for-Advisors-With-Young-Investors",[45],"research"," from Fidelity’s 2022 Investor Insights Study, just one in five advisors has an asset-weighted client under age 60. The average firm derives an overwhelming majority of its revenue from older clients, yet it largely ignores the upcoming generation.",[12,10622,10623],{},"As of now, advisors have contacted only 13% of their clients’ children, indicating a missed opportunity to engage the next generation.",[12,10625,10626,10627],{},"Furthermore, 63% of young investors agree that advisors should play an important role in providing access to sophisticated investment strategies like alternatives. However, over half of young investors believe ",[10628,10629,10630],"u",{},"aligning investments to their values is more important than getting maximum returns.",[12,10632,10633],{},[57,10634],{"alt":59,"src":10635},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-08-Seeds-Picture-1.png",[12,10637,10638],{},"Navigating the evolving expectations of investors isn’t easy.",[12,10640,10641],{},"In the face of diverse investor expectations and priorities, advisors must adopt a flexible engagement strategy. The ideal proposal should not only showcase financial acumen but also reflect tailored investment solutions.",[12,10643,10644],{},"This approach ensures alignment with the specific interests and values of each client.",[12,10646,10647],{},"So, how can we achieve this? Here are three steps to empower you to engage the next generation of investors.",[34,10649,10651],{"id":10650},"ask-the-right-questions","Ask the right questions",[12,10653,10654],{},"Come to the introductory meeting prepared with questions to uncover everything needed to produce a thoughtful and meaningful portfolio proposal and ongoing experience for the client.",[12,10656,10657],{},"You should leave the meeting with an understanding of the following:",[12,10659,10660,10662,10663,10666,10669],{},[1389,10661,1391],{},"●       ",[1389,10664,10665],{},"endif",[10628,10667,10668],{},"Their financial goals and risk target",": What are their aspirations and needs? What is their risk tolerance and time horizon?",[12,10671,10672,10662,10674,10676,10679],{},[1389,10673,1391],{},[1389,10675,10665],{},[10628,10677,10678],{},"Their mindset",": Do they focus on details or think about the big picture? Do they seek investments with a broader impact? Are they open to innovative approaches in their portfolio? What type of portfolio storytelling might resonate with them?",[12,10681,10682,10683,10686],{},"●     ",[10628,10684,10685],{},"Their interests and values",": What stirs their passion? How are they already contributing their time and money to causes they believe in?",[34,10688,10690],{"id":10689},"demonstrate-understanding-of-the-investor-with-a-meaningful-proposal","Demonstrate understanding of the investor with a meaningful proposal",[12,10692,10693],{},"Effectively respond to your investor by proposing relevant and meaningful portfolio recommendations. Doing so requires a wide variety of investment solutions at your disposal.",[12,10695,10696,10682,10698,10703],{},[1389,10697,1391],{},[10628,10699,10700],{},[22,10701,10702],{"href":255},"Alternative investments",": Incorporating alternative investments in your proposal can add value for both values-driven and return-focused investors. For investors focused on impact, these investments are more than just financial instruments; they’re a means to drive change, allowing them to directly influence causes they care about. Advisors can offer meaningful differentiation and foster deeper client engagement for those wishing to merge philanthropic passions with financial objectives.",[12,10705,10706,10707,10709,10710,10712],{},"Meanwhile, for the return-focused investor, alternative investments have the potential to mitigate portfolio volatility, amplify returns, and provide additional ",[22,10708,1028],{"href":1027},", ensuring a more balanced and resilient financial portfolio. To learn more about how you can get access to exclusive private market impact investments to include in your portfolio recommendations, visit our ",[22,10711,364],{"href":3411}," page.",[12,10714,10715,10716,10719,10720,10712],{},"●      ",[10628,10717,10718],{},"Incorporating values and interests into traditional investments",": Investors may have strong feelings about what companies to add to their portfolios when it comes to traditional asset classes like stocks and bonds. Understanding preferences around corporate behaviors and products will allow advisors to curate the portfolio and align client preferences with financial goals. For example, some clients will prefer to avoid investments engaging in controversial businesses like private prisons, predatory lenders, oil & gas, or big tobacco– while maintaining strong diversification across market capitalization and sectors of the economy. Others will want to avoid companies creating or assuming environmental, people, or corporate integrity risks. To learn more about how you can incorporate values into traditional investments, visit ",[22,10721,10724],{"href":10722,"rel":10723},"https:\u002F\u002Fwww.seedsinvestor.com\u002Fsolution",[45],"Seeds solutions",[12,10726,10727],{},"Beyond specific value preferences, clients may express interest in emerging or thematic investment trends, such as AI, crypto, or electric vehicles. By identifying and leveraging these interests, advisors can highlight portfolio companies that are actively engaged in those areas of the market.",[34,10729,10731],{"id":10730},"customize-your-ongoing-investing-experience-to-meet-their-needs-and-expectations","Customize your ongoing investing experience to meet their needs and expectations",[12,10733,10734,10735,10740],{},"It’s tempting to think that if the process isn’t broken, there is no need to change, but that simply isn’t true. An alarming number of clients report infrequent communication from their advisors, and 75% of all ",[22,10736,10739],{"href":10737,"rel":10738},"https:\u002F\u002Fgo.ycharts.com\u002Fhubfs\u002FYCharts_Client_Communications_Survey.pdf",[45],"clients surveyed"," indicated that they want advisors to send personalized or relevant updates.",[12,10742,10743],{},[57,10744],{"alt":59,"src":10745},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-08-Seeds-Picture-2.png",[960,10747,10748,10756,10759],{},[536,10749,10750,10751],{},"Tolerance for innovation: For some, developments like AI and autonomous vehicles are very exciting. For others, these topics may invoke discomfort or at least disinterest. Once your clients have completed their assessments, make an effort to talk about innovation regularly for the group who cares. Typically this is the next generation of investors, those in the Millennial and Gen Z age groups. ",[22,10752,10755],{"href":10753,"rel":10754},"https:\u002F\u002Fwww.nasdaq.com\u002Farticles\u002Fgen-z%3A-what-to-know-about-the-next-generation-of-investors",[45],"Source",[536,10757,10758],{},"Traditional performance reporting won’t cut it: Returns are important, but there should be storytelling around the portfolio, as well. A straightforward way to do this is by sharing stories about the companies they own or new updates in their industries of interest. Tell them explicitly why you thought sharing these stories, collateral, or information with them would be relevant. Remind them that you are aware of how they want their money to impact themselves and the world.",[536,10760,10761],{},"Alternative investment reporting that engages the client: Clients don’t want to see another line item on their performance report; they want to feel connected to their investments. By honing in on what your client cares about most, you become the conduit through which their investment reports come to life. Whether that be detailed overviews of a project, pictures that bring an investment into focus, or donut charts that display how the portfolio is aligned with their goals and themes, it’s all about personalization. This approach not only sustains their engagement but also establishes a feedback loop. Clients become eager for these tailored updates, turning them into valuable discussion points for conversations with friends and colleagues, paving the way for future referrals.",[415,10763,10765],{"id":10764},"time-has-a-way-of-reshaping-landscapes-and-recalibrating-preferences-we-are-beginning-to-see-the-shifting-priorities-of-younger-investors-as-we-navigate-new-investors-expectations-its-incumbent-upon-advisors-to-adapt-and-meet-next-gen-investors-on-their-terms-now-is-the-opportune-time-to-be-ahead-of-the-curve-initiating-meaningful-communication-with-the-emerging-clientele-of-your-firm-by-dedicating-the-time-to-genuinely-connect-and-understand-the-new-demographic-of-clients-you-position-yourself-to-win-the-trust-of-a-new-generation","Time has a way of reshaping landscapes and recalibrating preferences. We are beginning to see the shifting priorities of younger investors. As we navigate new investors’ expectations, it’s incumbent upon advisors to adapt and meet next-gen investors on their terms. Now is the opportune time to be ahead of the curve, initiating meaningful communication with the emerging clientele of your firm. By dedicating the time to genuinely connect and understand the new demographic of clients, you position yourself to win the trust of a new generation.",[12,10767,10250],{},[34,10769,698],{"id":459},[12,10771,10255,10772],{},[30,10773,10258],{},[12,10775,10776],{},[57,10777],{"alt":59,"src":10263},{"title":59,"searchDepth":167,"depth":167,"links":10779},[10780,10781,10782,10783,10786],{"id":10607,"depth":167,"text":10608},{"id":10650,"depth":167,"text":10651},{"id":10689,"depth":167,"text":10690},{"id":10730,"depth":167,"text":10731,"children":10784},[10785],{"id":10764,"depth":498,"text":10765},{"id":459,"depth":167,"text":698},"2023-08-24","Learn best practices for delivering an investing experience that meets the evolving expectations of the next generation of investors.","\u002Fimages\u002Fresources\u002Fattract-next-gen-investors.jpg",{},{"title":10580,"description":10788},"resources\u002Fattract-next-gen-investors","Mm61Fg8JLI3PqLBOItHQgr8elbwXhmijve1cU8_tNS8",{"id":10795,"title":10796,"author":512,"body":10797,"category":176,"date":10972,"description":10973,"extension":179,"image":10974,"imageAlt":181,"meta":10975,"navigation":183,"path":10976,"seo":10977,"stem":10978,"topic":6534,"__hash__":10979},"resources\u002Fresources\u002Fwhat-are-the-different-property-classes-in-real-estate-investing.md","Property Classes in Real Estate Investing Explained",{"type":9,"value":10798,"toc":10963},[10799,10802,10805,10809,10812,10815,10820,10824,10827,10829,10834,10838,10841,10844,10849,10853,10856,10858,10863,10866,10872,10875,10878,10881,10884,10887,10890,10893,10896,10899,10902,10905,10908,10910,10914,10916,10918,10920,10922,10924,10926,10928,10930,10932,10934,10936,10938,10942,10948,10950,10958],[12,10800,10801],{},"Real estate investing is a popular way tobuild wealthand generate passive income. One of the most important decisions an investor must make is deciding which type of real estate property to invest in. There are four main property classes in real estate investing: Class A, Class B, Class C, and Class D. Each class has its own unique characteristics, risks, and potential rewards.",[12,10803,10804],{},"REAL ESTATE • INVESTMENTS • METRICS",[34,10806,10808],{"id":10807},"class-a-properties","Class A Properties",[12,10810,10811],{},"Class A properties are generally newer buildings that are in excellent condition and have high-quality amenities. These properties are typically located in prime locations, such as downtown areas or affluent suburbs. Class A properties attract high-end tenants, such as businesses and professionals who are willing to pay premium rents for top-quality facilities.",[12,10813,10814],{},"Investing in Class A properties offers several benefits. They are generally easier to lease, have lower vacancy rates, and are more likely to retain their value during economic downturns. However, Class A properties also come with a higher purchase price and often require significant upfront capital investment.",[12,10816,10817],{},[57,10818],{"alt":59,"src":10819},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-06-viktor-jakovlev-H0vuplqoX0c-unsplash.jpg",[34,10821,10823],{"id":10822},"class-b-properties","Class B Properties",[12,10825,10826],{},"Class B properties are older buildings that are generally in good condition but may require some upgrades or renovations. These properties are located in less desirable areas than Class A properties but still offer attractive amenities and features. Class B properties attract middle-income tenants, such as families and young professionals, who are willing to pay reasonable rents for good-quality facilities.",[1667,10828],{},[12,10830,10831],{},[57,10832],{"alt":59,"src":10833},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-06-tomas-williams-sL8eUp2Acmo-unsplash.jpg",[34,10835,10837],{"id":10836},"class-c-properties","Class C Properties",[12,10839,10840],{},"Class C properties are typically older buildings that require significant upgrades or renovations. These properties are located in less desirable neighborhoods and may have fewer amenities and features than Class A or Class B properties. Class C properties attractlower-income tenantswho are willing to pay lower rents for basic facilities.",[12,10842,10843],{},"Investing in Class C properties can offer higher yields and potential value-add opportunities. However, these properties also come with higher risks, including higher vacancy rates, lower-quality tenants, and lower overall property values.",[12,10845,10846],{},[57,10847],{"alt":59,"src":10848},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-06-carlos-felipe-ramirez-mesa-7h3aHfiwrRk-unsplash.jpg",[34,10850,10852],{"id":10851},"class-d-properties","Class D Properties",[12,10854,10855],{},"Class D properties are the riskiest of all the property classes and are generally considered to be the most speculative investment. These properties are typically in poor condition and located in low-income neighborhoods with high crime rates. Class D properties are often distressed, foreclosed, or in need of significant repairs.",[1667,10857],{},[12,10859,10860],{},[57,10861],{"alt":59,"src":10862},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-06-joana-abreu-6tHobF6lIxI-unsplash.jpg",[12,10864,10865],{},"Types of Real Estate:",[12,10867,10868,10869,10871],{},"There are numerous types of ",[22,10870,615],{"href":614}," assets with each asset having defining characteristics that make it valuable.",[12,10873,10874],{},"Land",[12,10876,10877],{},"The first investment type is land which may have either geographic or physical attributes that make it desirable to own. Land can be utilized in many ways and can become highly valuable based on its geographic location or ability to change the use of the land for a specific purpose. In many cases, there is a capital investment necessary to increase the value of land. This could include preparing the land for building through the installation of water, sewer, electricity, drainage, etc. It could also include the addition of agriculture or trees.",[12,10879,10880],{},"Examples of land real estate:  Undeveloped raw land, farms & ranches, timberland, orchards, recreational parcels (camping, hunting, fishing), lots in subdivision",[12,10882,10883],{},"Residential",[12,10885,10886],{},"Residential real estate is utilized to house individuals. Residential real estate ranges from single-family houses to large condominium complexes to mobile home. Residential real estate makes up a large amount of the wealth of individuals in the United States given the cost to purchase a home and price appreciation over the time the individual owns the home",[12,10888,10889],{},"Examples of residential real estate:   Single family homes, condominiums, town homes, mobile homes",[12,10891,10892],{},"Commercial",[12,10894,10895],{},"Commercial properties are used for general business purposes and generate income for investors.",[12,10897,10898],{},"Examples of commercial real estate: Multi-family apartment complexes, office space (buildings, office parks, medical centers), retail, self-storage, parking lots & garages",[12,10900,10901],{},"Industrial",[12,10903,10904],{},"Industrial real estate properties use can vary dramatically but in most cases are properties that develop, manufacture and hold goods and products.",[12,10906,10907],{},"Examples of industrial real estate: manufacturing, refrigerated storage, storage warehouses & distribution centers, data server farms",[12,10909,10865],{},[12,10911,10868,10912,10871],{},[22,10913,615],{"href":614},[12,10915,10874],{},[12,10917,10877],{},[12,10919,10880],{},[12,10921,10883],{},[12,10923,10886],{},[12,10925,10889],{},[12,10927,10892],{},[12,10929,10895],{},[12,10931,10898],{},[12,10933,10901],{},[12,10935,10904],{},[12,10937,10907],{},[415,10939,10941],{"id":10940},"investing-in-real-estate-can-be-a-lucrative-way-to-build-wealth-and-generate-passive-income-however-choosing-the-right-property-class-is-crucial-to-achieving-the-desired-results-class-a-properties-offer-stability-and-premium-returns-but-require-significant-upfront-costs-class-b-properties-offer-good-quality-facilities-with-reasonable-returns-and-can-be-a-good-choice-for-investors-with-moderate-resources-class-c-properties-offer-value-add-opportunities-with-higher-yields-but-come-with-higher-risks-class-d-properties-offer-the-highest-risk-and-reward-potential-but-require-significant-expertise-and-resources-to-turn-the-property-around-by-understanding-the-unique-characteristics-of-each-property-class-investors-can-make-informed-decisions-and-achieve-their-real-estate-investment-goals","Investing in real estate can be a lucrative way to build wealth and generate passive income. However, choosing the right property class is crucial to achieving the desired results. Class A properties offer stability and premium returns but require significant upfront costs. Class B properties offer good-quality facilities with reasonable returns and can be a good choice for investors with moderate resources. Class C properties offer value-add opportunities with higher yields but come with higher risks. Class D properties offer the highest risk and reward potential but require significant expertise and resources to turn the property around. By understanding the unique characteristics of each property class, investors can make informed decisions and achieve their real estate investment goals.",[12,10943,10944,10945,10947],{},"Learn more about real estate and other ",[22,10946,3923],{"href":938}," such as infrastructure and natural resources by downloading our Guide to Real Assets white paper.",[34,10949,698],{"id":459},[12,10951,10952,10953,9158,10955],{},"Sign up to download our ",[30,10954,9629],{},[30,10956,10957],{},"Investing in Real Assets",[12,10959,10960],{},[57,10961],{"alt":59,"src":10962},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-Guide-to-real-assets.png",{"title":59,"searchDepth":167,"depth":167,"links":10964},[10965,10966,10967,10968,10971],{"id":10807,"depth":167,"text":10808},{"id":10822,"depth":167,"text":10823},{"id":10836,"depth":167,"text":10837},{"id":10851,"depth":167,"text":10852,"children":10969},[10970],{"id":10940,"depth":498,"text":10941},{"id":459,"depth":167,"text":698},"2023-06-29","There are four main property classes in real estate investing: Class A, B, C, & D. Each class has unique characteristics, risks, and potential rewards.","\u002Fimages\u002Fresources\u002Fwhat-are-the-different-property-classes-in-real-estate-investing.jpg",{},"\u002Fresources\u002Fwhat-are-the-different-property-classes-in-real-estate-investing",{"title":10796,"description":10973},"resources\u002Fwhat-are-the-different-property-classes-in-real-estate-investing","Mv5b3lkZnBUAyIWZWV0iynNtIsCFhEubkLO_43NzcaE",{"id":10981,"title":10982,"author":192,"body":10983,"category":176,"date":11086,"description":11087,"extension":179,"image":11088,"imageAlt":181,"meta":11089,"navigation":183,"path":11090,"seo":11091,"stem":11092,"topic":2330,"__hash__":11093},"resources\u002Fresources\u002Funderstanding-a-schedule-k1.md","Understanding a Schedule K-1",{"type":9,"value":10984,"toc":11074},[10985,10988,10991,10994,10998,11001,11006,11010,11013,11018,11022,11025,11030,11034,11037,11041,11044,11048,11051,11055,11058,11062,11064,11066,11070],[12,10986,10987],{},"PRIVATE MARKETS • INVESTMENTS • PARTNERSHIPs & LLCs",[34,10989,10982],{"id":10990},"understanding-a-schedule-k-1",[12,10992,10993],{},"When it comes to investing in a partnership or limited liability company (LLC), investors are often provided with a K-1 tax form. K-1s are used to report each partner or investor’s share of income, deductions, and credits for the given tax year. Understanding this document is important, not just for tax compliance, but also for tracking the health and performance of your investments. In this article, we’ll break down the different sections of a schedule K-1 and help you better understand the value it can provide.",[34,10995,10997],{"id":10996},"part-i-information-about-the-partnership","Part I: Information about the Partnership",[12,10999,11000],{},"The first part of the K-1 form provides general information about the partnership or LLC, including its name, address, and tax identification number (TIN). This section also includes the name and address of the partner or investor receiving the K-1 and the type of entity the partner or investor (e.g., individual, corporation, trust, etc.).",[12,11002,11003],{},[57,11004],{"alt":59,"src":11005},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-05-Screen-Shot-2023-06-02-at-10.17.34-AM.png",[34,11007,11009],{"id":11008},"part-ii-income","Part II: Income",[12,11011,11012],{},"Part II of the K-1 form reports the partner’s or investors share of the partnership or LLCs income. This includes both ordinary income and capital gains or losses. Ordinary income is income that is earned through the normal course of business, while capital gains or losses are generated from the sale of assets.",[12,11014,11015],{},[57,11016],{"alt":59,"src":11017},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-05-Screen-Shot-2023-06-02-at-10.30.16-AM.png",[34,11019,11021],{"id":11020},"part-iii-deductions","Part III: Deductions",[12,11023,11024],{},"Part III of the K-1 form reports the partner’s or investors share of the partnership or LLCs deductions. This includes any expenses incurred by the partnership or LLC in the course of doing business, such as salaries, rent, and equipment costs.",[12,11026,11027],{},[57,11028],{"alt":59,"src":11029},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-05-Screen-Shot-2023-06-02-at-10.31.50-AM.png",[34,11031,11033],{"id":11032},"part-iv-credits","Part IV: Credits",[12,11035,11036],{},"Part IV of the K-1 form reports the partner’s share of the partnership or LLCs tax credits. Tax credits reduce the amount of tax owed by the partnership or individual partners.",[34,11038,11040],{"id":11039},"part-v-other-information","Part V: Other Information",[12,11042,11043],{},"Part V of the K-1 form includes other information that may be relevant for tax reporting purposes. This can include foreign transactions, information on the disposition of partnership or LLC interests, and any changes in the partner or investors share of the partnership or LLC during the year.",[34,11045,11047],{"id":11046},"part-vi-alternative-minimum-tax-amt","Part VI: Alternative Minimum Tax (AMT)",[12,11049,11050],{},"Part VI of the K-1 form reports any alternative minimum tax (AMT) adjustments that may be necessary. The AMT is a separate tax system that operates alongside the regular tax system, and it is designed to ensure that high-income taxpayers do not use deductions and credits to avoid paying their fair share of taxes.",[34,11052,11054],{"id":11053},"part-vii-analysis-of-net-income-loss","Part VII: Analysis of Net Income (Loss)",[12,11056,11057],{},"Part VII of the K-1 form provides an analysis of the partnership or LLCs net income or loss. This section breaks down the partnership or LLCs income and deductions to arrive at the net income or loss that is reported in Part II and Part III.",[34,11059,11061],{"id":11060},"the-k-1-tax-form-is-not-just-a-compulsory-irs-document-but-also-a-tool-to-discern-valuable-financial-information-about-ones-investment-it-provides-insight-into-the-investments-revenue-streams-tax-obligations-and-overall-financial-standing-while-its-complexity-can-initially-seem-daunting-understanding-its-various-components-can-empower-an-investor-with-comprehensive-knowledge-about-their-investments-performance-hence-taking-the-time-to-become-familiar-with-the-k-1-form-is-a-valuable-investment-in-itself-promoting-informed-decision-making-and-ensuring-accurate-tax-reporting","The K-1 tax form is not just a compulsory IRS document, but also a tool to discern valuable financial information about one’s investment. It provides insight into the investment’s revenue streams, tax obligations, and overall financial standing. While its complexity can initially seem daunting, understanding its various components can empower an investor with comprehensive knowledge about their investment’s performance. Hence, taking the time to become familiar with the K-1 form is a valuable investment in itself, promoting informed decision-making and ensuring accurate tax reporting.",[12,11063,695],{},[34,11065,698],{"id":459},[12,11067,701,11068,705],{},[30,11069,704],{},[12,11071,11072],{},[57,11073],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":11075},[11076,11077,11078,11079,11080,11081,11082,11083,11084,11085],{"id":10990,"depth":167,"text":10982},{"id":10996,"depth":167,"text":10997},{"id":11008,"depth":167,"text":11009},{"id":11020,"depth":167,"text":11021},{"id":11032,"depth":167,"text":11033},{"id":11039,"depth":167,"text":11040},{"id":11046,"depth":167,"text":11047},{"id":11053,"depth":167,"text":11054},{"id":11060,"depth":167,"text":11061},{"id":459,"depth":167,"text":698},"2023-06-01","The K-1 is an important document that reports each partner's share of income, deductions, and credits for tax purposes.","\u002Fimages\u002Fresources\u002Funderstanding-a-schedule-k1.png",{},"\u002Fresources\u002Funderstanding-a-schedule-k1",{"title":10982,"description":11087},"resources\u002Funderstanding-a-schedule-k1","Bvxpuqwko5gRMLBk5byExVSl4h40orQ4jITbDFa2MOM",{"id":11095,"title":11096,"author":192,"body":11097,"category":176,"date":11326,"description":11327,"extension":179,"image":11328,"imageAlt":181,"meta":11329,"navigation":183,"path":11330,"seo":11331,"stem":11332,"topic":6534,"__hash__":11333},"resources\u002Fresources\u002Fcash-on-cash-return.md","Cash On Cash Return & What It Means For Real Estate Investors",{"type":9,"value":11098,"toc":11312},[11099,11120,11122,11126,11129,11134,11137,11141,11144,11149,11152,11156,11159,11162,11182,11185,11209,11213,11216,11219,11223,11226,11271,11275,11278,11282,11285,11289,11292,11296,11300,11302,11308],[12,11100,11101],{},[30,11102,11103,11104,11108,11109,11114,11115,263],{},"One of the most important metrics in evaluating the profitability of a ",[22,11105,11106],{"href":935},[30,11107,615],{}," investment is the cash-on-cash return, also known as cash yield or the equity dividend rate. A cash-on-cash return is an annual measure of the cash income generated by a real estate ",[22,11110,11111],{"href":579},[30,11112,11113],{},"investment"," in relation to the amount of cash invested. It is a useful and quick metric to gain an accurate picture of the profitability of an investment property, and is often used for efficient comparisons when assessing ",[22,11116,11117],{"href":614},[30,11118,11119],{},"investment properties",[12,11121,10804],{},[34,11123,11125],{"id":11124},"cash-on-cash-formula-how-to-calculate-cash-on-cash-return","Cash-on-cash formula: How to calculate cash-on-cash return",[12,11127,11128],{},"The formula for calculating cash-on-cash return is simple:",[12,11130,11131],{},[30,11132,11133],{},"Cash-on-Cash Return = Annual Cash Flow \u002F Total Cash Invested",[12,11135,11136],{},"The annual cash flow is the net operating income (NOI) generated by the property, which is the total income generated by the property minus all operating expenses. The total cash invested is the amount of cash you put into the property to purchase it, which includes the down payment, closing costs, and any renovation costs.",[415,11138,11140],{"id":11139},"practical-example","Practical Example",[12,11142,11143],{},"Let’s say you purchase a rental property for $300,000, and you put down a 20% down payment of $60,000. You also spend $10,000 on closing costs and $20,000 on renovations, for a total cash investment of $90,000. If the property generates $20,000 in net operating income each year, your cash-on-cash return would be:",[12,11145,11146],{},[30,11147,11148],{},"Cash-on-Cash Return = $20,000 \u002F $90,000 = 22.2%",[12,11150,11151],{},"This means that for every dollar you invest in the property, you can expect to receive a 22.2% return on your investment in cash flow each year.",[34,11153,11155],{"id":11154},"advantages-and-disadvantages-of-cash-on-cash-return","Advantages and Disadvantages of Cash-on-Cash Return",[12,11157,11158],{},"There are some important pros and cons to keep in mind when using cash-on-cash return as a metric for evaluating real estate investments:",[12,11160,11161],{},"Advantages:",[960,11163,11164,11170,11176],{},[536,11165,11166,11169],{},[30,11167,11168],{},"Easy to calculate:"," Cash-on-cash return is a simple and quick metric to calculate, requiring only two inputs: the annual cash flow and cash invested.",[536,11171,11172,11175],{},[30,11173,11174],{},"Focuses on cash flow:"," Cash-on-cash return focuses on the cash income generated by the property, which is important for investors who are primarily interested in generating passive income.",[536,11177,11178,11181],{},[30,11179,11180],{},"Accounts for leverage:"," Cash-on-cash return takes into account the amount of cash invested, including the down payment and closing costs, which allows investors to see the impact of leverage on their investment returns.",[12,11183,11184],{},"Disadvantages:",[960,11186,11187,11193,11199],{},[536,11188,11189,11192],{},[30,11190,11191],{},"Ignores appreciation:"," Cash-on-cash return does not take into account any appreciation in the value of the property. This means that it may not provide a complete picture of the overall profitability of a real estate investment.",[536,11194,11195,11198],{},[30,11196,11197],{},"Doesn’t account for taxes:"," Cash-on-cash return is considered a pre tax cash flow and does not take into account the impact of taxes on investment returns. This means that it may not accurately reflect the true profitability of an investment.",[536,11200,11201,11204,11205,11208],{},[30,11202,11203],{},"Can be influenced by financing:"," Cash-on-cash return can be heavily influenced by the terms of the ",[22,11206,11207],{"href":3989},"financing used to purchase the property",". For example, a property purchased with a higher down payment may have a lower cash-on-cash return, even if it generates the same amount of cash flow.",[34,11210,11212],{"id":11211},"what-is-a-good-cash-on-cash-return","What is a Good Cash on Cash Return?",[12,11214,11215],{},"Real estate investors often aim for cash on cash returns that exceed the cost of borrowing funds, such as the mortgage interest rate. This allows them to generate positive cash flow and cover their expenses while also earning a return on their invested capital.",[12,11217,11218],{},"The specific threshold for a good cash on cash return can vary widely, but some investors may consider a cash on cash return of 8% or higher to be satisfactory, while others may target returns of 12% or more.",[34,11220,11222],{"id":11221},"tips-for-using-cash-on-cash-return","Tips for Using Cash-on-Cash Return",[12,11224,11225],{},"Here are some tips for using cash-on-cash return effectively in your real estate investment decisions:",[533,11227,11228,11234,11240,11246,11256,11265],{},[536,11229,11230,11233],{},[30,11231,11232],{},"Use realistic assumptions:"," To calculate cash-on-cash return accurately, you need to use realistic assumptions about the rental income, expenses, and financing costs associated with the investment property. Be sure to factor in all the costs associated with owning and operating the property, such as property taxes, insurance, maintenance, repairs, and property management fees.",[536,11235,11236,11239],{},[30,11237,11238],{},"Account for financing costs:"," Cash-on-cash return is based on the amount of cash invested in the property, so it’s important to account for financing costs, such as interest and loan origination fees. If you’re using a mortgage to finance the property, your cash-on-cash return will be lower than if you paid cash.",[536,11241,11242,11245],{},[30,11243,11244],{},"Factor in potential risks:"," When evaluating a real estate investment, it’s important to consider the potential risks and uncertainties associated with the property and the local market. Be sure to factor in potential vacancy rates, rent increases or decreases, and changes in the local real estate market when calculating your cash-on-cash return.",[536,11247,11248,11251,11252,11255],{},[30,11249,11250],{},"Consider your investment goals:"," Cash-on-cash return is just one metric used to evaluate real estate investments. Be sure to consider your ",[22,11253,11254],{"href":1027},"investment goals"," and the overall profitability of the investment when making a decision. For example, a property with a lower cash-on-cash return may still be a good investment if it has strong potential for long-term appreciation or if it meets other investment criteria.",[536,11257,11258,11261,11262,11264],{},[30,11259,11260],{},"Compare with other metrics:"," To get a more complete picture of the potential profitability of an investment property, it’s important to compare cash-on-cash return with other metrics, such as cap rate, internal rate of return (",[22,11263,3639],{"href":3792},"), and return on investment (ROI). Each metric provides different information about the investment, and using multiple metrics can help you make a more informed decision.",[536,11266,11267,11270],{},[30,11268,11269],{},"Look at the big picture:"," Cash-on-cash return is just one piece of the puzzle when evaluating a real estate investment. Be sure to consider the overall market conditions, the potential for long-term appreciation, and the specific details of the property before making a decision. Investing in real estate is a long-term commitment, and it’s important to have a clear understanding of the risks and potential rewards before making a purchase.",[34,11272,11274],{"id":11273},"cash-on-cash-return-vs-roi","Cash-on-cash return vs. ROI",[12,11276,11277],{},"Return on investment (ROI) is a metric used to evaluate the profitability of an investment relative to the initial investment. It is calculated by dividing the net profit generated by the investment by the amount of the initial investment. ROI is a simple metric that is widely used to evaluate the profitability of investments across different asset classes.",[34,11279,11281],{"id":11280},"cash-on-cash-return-vs-irr","Cash On Cash Return Vs. IRR",[12,11283,11284],{},"The internal rate of return (IRR) is a metric used to evaluate the profitability of an investment over time, taking into account the time value of money. The IRR is calculated by discounting the future cash flows generated by the investment back to their present value and comparing it to the initial investment. The IRR takes into account the timing and size of cash flows, making it useful for evaluating investments with complex cash flow structures.",[34,11286,11288],{"id":11287},"cash-on-cash-return-vs-noi","Cash On Cash Return Vs. NOI",[12,11290,11291],{},"Cash-on-cash return helps assess the return on investment for a specific property, while Net Operating Income (NOI) provides a snapshot of the property’s operating performance and potential profitability. NOI measures a property’s operating income after deducting operating expenses but before deducting debt service (mortgage payments) and income taxes. It represents the property’s ability to generate income from its operations. NOI is calculated by subtracting operating expenses from the property’s total income, and is often used as a basis for determining property value and loan eligibility.",[415,11293,11295],{"id":11294},"cash-on-cash-return-is-a-useful-metric-for-evaluating-cash-flow-however-its-important-to-use-this-metric-in-conjunction-with-others-and-to-consider-the-big-picture-when-making-an-investment-decision-by-using-realistic-assumptions-accounting-for-financing-costs-and-factoring-in-potential-risks-and-uncertainties-you-can-make-a-more-informed-decision-about-whether-a-real-estate-investment-is-right-for-you","Cash-on-cash return is a useful metric for evaluating cash flow, however, it’s important to use this metric in conjunction with others and to consider the big picture when making an investment decision. By using realistic assumptions, accounting for financing costs, and factoring in potential risks and uncertainties, you can make a more informed decision about whether a real estate investment is right for you.",[12,11297,10944,11298,10947],{},[22,11299,3923],{"href":938},[34,11301,698],{"id":459},[12,11303,10952,11304,9158,11306],{},[30,11305,9629],{},[30,11307,10957],{},[12,11309,11310],{},[57,11311],{"alt":59,"src":10962},{"title":59,"searchDepth":167,"depth":167,"links":11313},[11314,11317,11318,11319,11320,11321,11322,11325],{"id":11124,"depth":167,"text":11125,"children":11315},[11316],{"id":11139,"depth":498,"text":11140},{"id":11154,"depth":167,"text":11155},{"id":11211,"depth":167,"text":11212},{"id":11221,"depth":167,"text":11222},{"id":11273,"depth":167,"text":11274},{"id":11280,"depth":167,"text":11281},{"id":11287,"depth":167,"text":11288,"children":11323},[11324],{"id":11294,"depth":498,"text":11295},{"id":459,"depth":167,"text":698},"2023-05-18","Cash-on-cash return is a quick metric to gain an accurate picture of the profitability of an investment property.","\u002Fimages\u002Fresources\u002Fcash-on-cash-return.webp",{},"\u002Fresources\u002Fcash-on-cash-return",{"title":11096,"description":11327},"resources\u002Fcash-on-cash-return","h9RAf3syR9GPHWn95ye9SIfkriX2RGfWXxE06tI66h0",{"id":11335,"title":11336,"author":192,"body":11337,"category":11348,"date":11349,"description":11336,"extension":179,"image":11350,"imageAlt":181,"meta":11351,"navigation":183,"path":11352,"seo":11353,"stem":11354,"topic":3893,"__hash__":11355},"resources\u002Fresources\u002Fseeds-investor-partners-with-citizen-mint-on-private-impact-investments.md","Seeds Investor Partners With Citizen Mint On Private Impact Investments",{"type":9,"value":11338,"toc":11346},[11339],[12,11340,11341],{},[22,11342,11345],{"href":11343,"rel":11344},"https:\u002F\u002Fwealthsolutionsreport.com\u002F2023\u002F05\u002F09\u002Fwealthtech-roundup-luma-envestnet-comply-vestmark-systm-and-more\u002F",[45],"Read the original coverage",{"title":59,"searchDepth":167,"depth":167,"links":11347},[],"news","2023-05-10","\u002Fimages\u002Fresources\u002Fseeds-investor-partners-with-citizen-mint-on-private-impact-investments.png",{},"\u002Fresources\u002Fseeds-investor-partners-with-citizen-mint-on-private-impact-investments",{"title":11336,"description":11336},"resources\u002Fseeds-investor-partners-with-citizen-mint-on-private-impact-investments","PqXXvVRCKWDRRCEzGWRexm57CeY_2QZ2pQHHHxWPkqg",{"id":11357,"title":11358,"author":192,"body":11359,"category":11348,"date":11369,"description":11358,"extension":179,"image":11370,"imageAlt":181,"meta":11371,"navigation":183,"path":11372,"seo":11373,"stem":11374,"topic":3893,"__hash__":11375},"resources\u002Fresources\u002Fdemand-for-impact-investing-is-rising-heres-why.md","Demand For Impact Investing Is Rising. Here’s Why",{"type":9,"value":11360,"toc":11367},[11361],[12,11362,11363],{},[22,11364,11345],{"href":11365,"rel":11366},"https:\u002F\u002Fwww.forbes.com\u002Fsites\u002Fbenjaminlaker\u002F2022\u002F11\u002F17\u002Fdemand-for-impact-investing-is-rising-heres-why\u002F?sh=424bf52e285f",[45],{"title":59,"searchDepth":167,"depth":167,"links":11368},[],"2023-05-09","\u002Fimages\u002Fresources\u002Fdemand-for-impact-investing-is-rising-heres-why.jpeg",{},"\u002Fresources\u002Fdemand-for-impact-investing-is-rising-heres-why",{"title":11358,"description":11358},"resources\u002Fdemand-for-impact-investing-is-rising-heres-why","c8w-IMHWmawuIVeocGGjbbkvUrJgjCAzt288YkivY4k",{"id":11377,"title":11378,"author":192,"body":11379,"category":11348,"date":11389,"description":11378,"extension":179,"image":11390,"imageAlt":181,"meta":11391,"navigation":183,"path":11392,"seo":11393,"stem":11394,"topic":3893,"__hash__":11395},"resources\u002Fresources\u002Fa-new-fintech-has-emerged-with-the-mission-of-accelerating-access-for-impact-investing-in-private-markets.md","A New Fintech Has Emerged With The Mission of Accelerating Access for Impact Investing in Private Markets",{"type":9,"value":11380,"toc":11387},[11381],[12,11382,11383],{},[22,11384,11345],{"href":11385,"rel":11386},"https:\u002F\u002Ftechcrunch.com\u002F2022\u002F07\u002F24\u002Fthese-fintech-startups-want-to-make-credit-scores-a-thing-of-the-past\u002F",[45],{"title":59,"searchDepth":167,"depth":167,"links":11388},[],"2023-05-07","\u002Fimages\u002Fresources\u002Fa-new-fintech-has-emerged-with-the-mission-of-accelerating-access-for-impact-investing-in-private-markets.png",{},"\u002Fresources\u002Fa-new-fintech-has-emerged-with-the-mission-of-accelerating-access-for-impact-investing-in-private-markets",{"title":11378,"description":11378},"resources\u002Fa-new-fintech-has-emerged-with-the-mission-of-accelerating-access-for-impact-investing-in-private-markets","9F5oMc-mZ6xDWw42yJMG7RtKOSaQccn_arxajzWf5Ao",{"id":11397,"title":11398,"author":192,"body":11399,"category":11348,"date":11409,"description":11398,"extension":179,"image":11410,"imageAlt":181,"meta":11411,"navigation":183,"path":11412,"seo":11413,"stem":11414,"topic":3893,"__hash__":11415},"resources\u002Fresources\u002Fcitizen-mint-launches-its-impact-investing-platform-designed-to-solve-global-challenges-2.md","Citizen Mint Launches Its Impact Investing Platform Designed to Solve Global Challenges",{"type":9,"value":11400,"toc":11407},[11401],[12,11402,11403],{},[22,11404,11345],{"href":11405,"rel":11406},"https:\u002F\u002Fmarkets.businessinsider.com\u002Fnews\u002Fstocks\u002Fcitizen-mint-launches-its-impact-investing-platform-designed-to-solve-global-challenges-1031900032",[45],{"title":59,"searchDepth":167,"depth":167,"links":11408},[],"2023-05-06","\u002Fimages\u002Fresources\u002Fcitizen-mint-launches-its-impact-investing-platform-designed-to-solve-global-challenges-2.webp",{},"\u002Fresources\u002Fcitizen-mint-launches-its-impact-investing-platform-designed-to-solve-global-challenges-2",{"title":11398,"description":11398},"resources\u002Fcitizen-mint-launches-its-impact-investing-platform-designed-to-solve-global-challenges-2","huJucA4Fakw7-Brn98YVxsDUgRvfWEVfZ3yon1N5AVA",{"id":11417,"title":11398,"author":192,"body":11418,"category":11348,"date":11409,"description":11398,"extension":179,"image":11447,"imageAlt":181,"meta":11448,"navigation":183,"path":11449,"seo":11450,"stem":11451,"topic":3893,"__hash__":11452},"resources\u002Fresources\u002Fcitizen-mint-launches-its-impact-investing-platform-designed-to-solve-global-challenges.md",{"type":9,"value":11419,"toc":11445},[11420,11423],[12,11421,11422],{},"Read 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One of the most critical aspects of investing is the process of asset allocation, which involves distributing investment capital across various asset classes to achieve a desired return while managing risk. Strategic asset allocation (SAA) is a long-term approach to portfolio construction that aims to create an optimal mix of assets to achieve a specific investment goal.",[12,11560,11561],{},[30,11562,11563,11564,11567,11568,11571,11572,11574],{},"In recent years, the ",[22,11565,11566],{"href":4714},"endowment model",", which is popularized by prominent university endowments like Yale and Harvard, has gained traction among investors. This model places a significant emphasis on ",[22,11569,11570],{"href":255},"alternative investments"," and private markets to enhance returns and ",[22,11573,1028],{"href":1027},". 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The key components of an SAA include:",[533,11586,11587,11592,11600],{},[536,11588,11589],{},[30,11590,11591],{},"Risk Tolerance: The investor’s willingness to accept volatility and potential losses in pursuit of their investment goals.",[536,11593,11594],{},[30,11595,11596,11599],{},[30,11597,11598],{},"Investment Horizon",": The time frame over which the investor plans to achieve their financial goals.",[536,11601,11602],{},[30,11603,11604,11607],{},[30,11605,11606],{},"Return Expectations",": The anticipated returns from various asset classes, based on historical performance and future projections.",[12,11609,11610],{},"Once an investor has established their strategic asset allocation, they can periodically rebalance their portfolio to maintain the desired allocation weights. This approach can help investors remain disciplined and focused on their long-term goals, even during periods of market volatility.",[34,11612,11614],{"id":11613},"the-endowment-model-embracing-alternative-investments","The Endowment Model: Embracing Alternative Investments",[12,11616,11617],{},"The endowment model, pioneered by Yale’s chief investment officer David Swensen, is an investment strategy that prioritizes a higher allocation to assets such as private equity, venture capital, private infrastructure, private real estate, private debt and hedge funds, compared to traditional stock and bond investments.",[12,11619,11620],{},"The primary advantages of the endowment model include:",[533,11622,11623,11628,11633,11638],{},[536,11624,11625],{},[30,11626,11627],{},"Enhanced Diversification: The inclusion of alternative investments and private market assets can help reduce portfolio risk by providing exposure to different sources of return.",[536,11629,11630],{},[30,11631,11632],{},"Improved Return Potential: Alternative investments, such as private infrastructure, private real estate, private equity and venture capital, have the potential to generate higher returns compared to traditional investments.",[536,11634,11635],{},[30,11636,11637],{},"Inflation Protection: Investments in real assets, such as real estate, infrastructure and natural resources, can help protect portfolios against inflation.",[536,11639,11640],{},[30,11641,11642],{},"Reduced Volatility: Some alternative investments, like infrastructure assets, may have lower correlations with traditional asset classes, which can help reduce overall portfolio volatility.",[12,11644,11645],{},"The endowment model has been successful for many large institutional investors, but the high minimum investment requirements and ability to source and diligence these opportunities has been an impediment to getting these strategies in retail investor portfolios. This is why we created Citizen Mint, providing an all-in-one solution by offering easy access to a curated list of vetted private market opportunities at low minimums while utilizing technology to reduce the operational burdens of investing in private markets.",[34,11647,11649],{"id":11648},"the-importance-of-private-markets","The Importance of Private Markets",[12,11651,11652],{},"Private markets have become an increasingly important component of investment portfolios in recent years, as investors seek to diversify their holdings and capture potential higher returns. However, weighting private markets in a portfolio can be a complex and nuanced process. Here are some key considerations to keep in mind when determining how to weight private markets in a portfolio:",[12,11654,11655],{},[30,11656,11657],{},"Determine the Investment Objectives of the Individual: The first step in weighting private markets in a portfolio is to determine an individual’s investment objectives. Private market investments can offer higher returns than traditional public markets, but they also come with higher risk. Therefore, it is important to understand your risk tolerance and investment goals before determining how much of your portfolio to allocate to private markets.",[12,11659,11660],{},[30,11661,11662],{},"Consider the Time Horizon: Another important consideration when weighting private markets in a portfolio is the investor’s time horizon. Private market investments are generally illiquid and have longer holding periods than public market investments. Therefore, if you have a short-term investment horizon, you may want to allocate less to private markets or avoid them altogether.",[12,11664,11665],{},[30,11666,11667],{},"Assess the Risk Tolerance: Private market investments have historically been considered riskier than public market investments as some can be subject to less regulation and have less transparency. That said, the risk in private markets is highly dependent on the asset class, the capabilities of the asset manager, the underlying diversification of the fund, and the ability to have a fund professionally diligenced to assess the capabilities and quality of the manager. This last point is incredibly important and is a key benefit of utilizing Citizen Mint given our team experience in the diligencing these investments.",[12,11669,11670,11673],{},[30,11671,11672],{},"Diversification:"," Diversification is a key consideration when weighting private markets in a portfolio. In general, private market provide significant diversification to an investors portfolio given their low correlation with stocks and bonds. This can reduce volatility of the portfolio over time and enhance returns during difficult periods in the traditional stock and bond markets.",[415,11675,11677],{"id":11676},"in-conclusion-strategic-asset-allocation-and-allocation-to-private-markets-in-portfolios-are-essential-components-of-a-well-rounded-investment-strategy-by-taking-the-time-to-understand-the-nuances-of-these-approaches-and-tailoring-them-to-ones-individual-risk-tolerance-investment-horizon-and-investment-objectives-investors-can-optimize-their-portfolios-and-maximize-their-chances-of-achieving-long-term-financial-success","In conclusion, strategic asset allocation and allocation to private markets in portfolios are essential components of a well-rounded investment strategy. By taking the time to understand the nuances of these approaches and tailoring them to one’s individual risk tolerance, investment horizon, and investment objectives, investors can optimize their portfolios and maximize their chances of achieving long-term financial success.",[12,11679,11680],{},"Learn about our investment philosophy and process by downloading our white paper.",[34,11682,698],{"id":459},[12,11684,701,11685,705],{},[30,11686,704],{},[12,11688,11689],{},[57,11690],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":11692},[11693,11694,11695,11698],{"id":11580,"depth":167,"text":11581},{"id":11613,"depth":167,"text":11614},{"id":11648,"depth":167,"text":11649,"children":11696},[11697],{"id":11676,"depth":498,"text":11677},{"id":459,"depth":167,"text":698},"Learn more about why strategic asset allocation and allocation to private markets in portfolios are essential components of a well-rounded 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Impact Investing Platform Created",{"type":9,"value":11760,"toc":11767},[11761],[12,11762,11763],{},[22,11764,11345],{"href":11765,"rel":11766},"https:\u002F\u002Fwww.thinkadvisor.com\u002F2022\u002F07\u002F21\u002Fmorgan-stanley-backed-fintech-teams-with-schwab-on-advisor-ai-solutions-tech-roundup\u002F",[45],{"title":59,"searchDepth":167,"depth":167,"links":11768},[],"\u002Fimages\u002Fresources\u002Fnew-impact-investing-platform-created.jpeg",{},"\u002Fresources\u002Fnew-impact-investing-platform-created",{"title":11758,"description":11758},"resources\u002Fnew-impact-investing-platform-created","QZs0LEjd9fCLoJtnlzmpHlSNrOL9e7Tda0LO2-WPUfY",{"id":11776,"title":11777,"author":512,"body":11778,"category":176,"date":12059,"description":12060,"extension":179,"image":12061,"imageAlt":181,"meta":12062,"navigation":183,"path":8136,"seo":12063,"stem":12064,"topic":939,"__hash__":12065},"resources\u002Fresources\u002Fwhy-is-infrastructure-compelling-and-defensive.md","Why is renewable infrastructure a compelling and defensive asset class?",{"type":9,"value":11779,"toc":12052},[11780,11784,11792,11795,11800,11803,11840,11845,11849,11881,11886,11896,11902,11912,11916,11919,11945,11950,11955,11961,11967,11972,11975,11980,11983,11997,12002,12005,12011,12017,12030,12034,12040,12042,12048],[34,11781,11783],{"id":11782},"why-is-renewable-infrastructure-a-compelling-and-defensive-investment","Why is renewable infrastructure a compelling and defensive investment?",[12,11785,11786],{},[30,11787,11788,11791],{},[22,11789,11790],{"href":376},"Renewable infrastructure"," is an asset class that many investors are beginning to incorporate in their portfolios due to its compelling risk and return characteristics. The asset class provides defensive characteristics through multiple market cycles and can provide consistent returns over extended periods of time.",[12,11793,11794],{},"RENEWABLE INFRASTRUCTURE • DEFENSIVE • ASSET ALLOCATION",[12,11796,11797],{},[30,11798,11799],{},"What are infrastructure investments?",[12,11801,11802],{},"Infrastructure is a large asset class with a variety of investments that have the following characteristics:",[533,11804,11805,11811,11817,11823,11834],{},[536,11806,11807,11810],{},[30,11808,11809],{},"Essential or necessary product or service:"," Infrastructure assets provide services that are hard not to use even in a difficult economic environment. Examples include: electricity, water, sewage, cell phones.",[536,11812,11813,11816],{},[30,11814,11815],{},"Long useful life:"," Infrastructure assets have very long useful lives and usually last between 20-50 years.",[536,11818,11819,11822],{},[30,11820,11821],{},"Monopoly or quasi-monopoly market position:"," A local utility that provides power, water, sewage is monopolistic by nature given the significant investment it takes to set up and deliver these services to homes. A cell tower or toll road would have a quasi-monopoly as there are very limited options beyond them for these services.",[536,11824,11825,11828,11829,263],{},[30,11826,11827],{},"Operate in regulated environments and\u002For are less affected by economic cycles:"," These assets can be regulated by authorities and\u002For benefit from the government encouraging additional investments in certain areas such as renewables with the passing of the ",[22,11830,11833],{"href":11831,"rel":11832},"https:\u002F\u002Fwww.irs.gov\u002Finflation-reduction-act-of-2022",[45],"Inflation Reduction Act",[536,11835,11836,11839],{},[30,11837,11838],{},"Cash flow and earnings vary minimally in multiple environments:"," Cash flows have limited variation given these assets necessity in all market environments and the monopolistic structure of the assets.",[12,11841,11842],{},[57,11843],{"alt":59,"src":11844},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-04-Infrastructure-Asset-Example.png",[415,11846,11848],{"id":11847},"five-reasons-why-renewable-infrastructure-is-defensive-during-tough-economic-cycles","Five Reasons Why Renewable Infrastructure is Defensive During Tough Economic Cycles",[533,11850,11851,11856,11861,11871,11876],{},[536,11852,11853],{},[30,11854,11855],{},"Steady Income Streams: Infrastructure assets, such as renewable power, waste-to-value, biogas, etc. often generate stable and predictable income streams over a long period of time, even during economic downturns. This provides a defensive characteristic for investors seeking income stability.",[536,11857,11858],{},[30,11859,11860],{},"High Barriers to Entry: Infrastructure projects often require significant capital investment, regulatory approvals, and expertise, creating high barriers to entry for new competitors. This can provide a defensive moat around existing infrastructure assets, protecting them from new entrants and competition.",[536,11862,11863,11868,11870],{},[22,11864,11865],{"href":926},[30,11866,11867],{},"Inflation Protection",[30,11869,569],{}," Infrastructure investments are often tied to inflation-adjusted revenue streams, such as tolls or fees. As a result, infrastructure investments can provide a hedge against inflation and maintain their value over the long term.",[536,11872,11873],{},[30,11874,11875],{},"Government Support: Infrastructure investments are often backed by government guarantees or concessions, which can provide a level of protection against default risk. Additionally, government support can provide stability in uncertain economic environments, further enhancing the defensive nature of infrastructure investing. See additional discussion on the Inflation Reduction Act and the expected benefit to renewable infrastructure investments",[536,11877,11878],{},[30,11879,11880],{},"Long-term Horizon:  Infrastructure investments are typically made with a long-term horizon in mind, often lasting several decades or longer. This long-term investment horizon can provide stability and resilience against short-term market volatility, making infrastructure investing a more defensive investment strategy.",[12,11882,11883],{},[30,11884,11885],{},"Benefits of Renewable Infrastructure Investments",[12,11887,11888,11895],{},[30,11889,11890,11891,569],{},"Portfolio ",[22,11892,11893],{"href":1027},[30,11894,1028],{}," In general, renewable infrastructure assets have a low correlation to stocks and bonds. Further, this asset class can reduce volatility in investors’ portfolios during economic turmoil as a result of stable earnings streams throughout economic cycles.",[12,11897,11898,11901],{},[30,11899,11900],{},"Income Potential:"," Given the highly predictable cash flows of renewable infrastructure assets, these investments usually provide strong income potential.",[12,11903,11904,11909,11911],{},[22,11905,11906],{"href":1202},[30,11907,11908],{},"Growth",[30,11910,569],{}," The global infrastructure market is expected to experience one of the greatest capital investment cycles ever given the transition from fossil fuels to renewable energy sources to address climate change. Additionally, countries are seeking energy security as a result of the war in Ukraine and dependence on foreign powers for energy needs.",[12,11913,11914],{},[30,11915,11833],{},[12,11917,11918],{},"The Inflation Reduction Act’s $370 billion commitment to clean energy will provide significant benefits to the renewable energy space and could significantly boost returns. Some key items encompassed in the act include:",[960,11920,11921,11924,11930,11933,11936,11939,11942],{},[536,11922,11923],{},"Extension of tax credits for solar, wind, geothermal, hydropower and biomass generated electricity for projects started prior to 2025",[536,11925,11926,11927,11929],{},"Making standalone battery storage and ",[22,11928,6546],{"href":2349}," facilities eligible for federal tax credits",[536,11931,11932],{},"Creation of “technology neutral” credits beginning in 2025",[536,11934,11935],{},"A 3-year carryback provision to expand the tax equity market",[536,11937,11938],{},"Transferability provisions for federal tax credits, allowing more efficient monetization for investors",[536,11940,11941],{},"Large new incentives for renewable natural gas, renewable hydrogen, electric vehicle infrastructure and energy efficiency",[536,11943,11944],{},"Significant focus on prevailing wage labor at qualifying projects, Made in USA components and building in historically underserved areas",[12,11946,11947],{},[57,11948],{"alt":59,"src":11949},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-04-Clean-Energy-Legislation.png",[12,11951,11952],{},[30,11953,11954],{},"Risks to Renewable Infrastructure",[12,11956,11957,11960],{},[30,11958,11959],{},"Political and Regulatory:"," Regulations and changes to the tax code can negatively affect the cash flows and valuations of these assets. Additionally, while rare, these assets have been nationalized, or taken over by governments.",[12,11962,11963,11966],{},[30,11964,11965],{},"Technical & Operational Capabilities:"," Owners and operators must be highly skilled given the complexity of running these assets.",[12,11968,11969],{},[30,11970,11971],{},"Anticipated Shift to Renewable Energy 2020 – 2050",[12,11973,11974],{},"The following chart shows the dramatic projected increase in renewable energy versus other sources of electricity generation. As you can see, renewables are expected to roughly triple between 2020 and 2030.",[12,11976,11977],{},[57,11978],{"alt":59,"src":11979},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-04-Green-Energy.png",[12,11981,11982],{},"Reasons for this massive shift include:",[533,11984,11985,11988,11991,11994],{},[536,11986,11987],{},"Declining costs of renewable energy: The cost of renewable energy technologies, such as solar and wind, has been decreased dramatically over the last two decades. This cost reduction makes renewable energy increasingly competitive with fossil fuels.",[536,11989,11990],{},"Government policies and targets: Many countries have set renewable energy targets and implemented supportive policies to promote the adoption of clean energy. These policies include renewable energy standards, feed-in tariffs, tax incentives (Inflation Reduction Act), and carbon pricing mechanisms. Governments worldwide are recognizing the importance of renewable energy in their energy mix and are taking steps to facilitate its growth.",[536,11992,11993],{},"Advancements in energy storage: Energy storage technologies, such as batteries, are becoming more efficient and affordable. Energy storage solutions help address the intermittent nature of renewable energy sources, enabling better integration into the grid and improving overall reliability and flexibility.",[536,11995,11996],{},"Technological advancements: Ongoing research and development efforts are driving technological advancements in renewable energy. Innovations in areas such as solar panels, wind turbines, tidal and wave energy, and geothermal systems are expected to improve efficiency and expand the potential of renewable energy generation.",[12,11998,11999],{},[30,12000,12001],{},"How do you invest in Renewable Infrastructure?",[12,12003,12004],{},"There are multiple ways to invest in the renewable infrastructure space with some opportunities providing more direct exposure and others providing secondary exposure to the space.",[12,12006,12007,12010],{},[30,12008,12009],{},"Publicly traded companies:"," Research and invest in companies that are involved in renewable energy generation, equipment manufacturing, or infrastructure development. While there are some direct pure play renewable infrastructure companies, the opportunities may be limited in public markets and come with significantly more volatility.",[12,12012,12013,12016],{},[30,12014,12015],{},"Green bonds:"," Consider investing in green bonds issued by renewable energy companies, utilities, or governments to fund sustainable projects. Green bonds take more research to understand that the money you are investing is going specifically to fund the investment in renewable infrastructure as these bonds have broad and sometimes misleading mandates.",[12,12018,12019,12022,12023,12026,12027,263],{},[30,12020,12021],{},"Private Renewable Infrastructure Funds",": For ",[22,12024,12025],{"href":5169},"accredited investors and qualified purchasers",", there is the opportunity to invest directly in renewable infrastructure funds or projects that give you direct exposure to opportunities in the space. This option is usually the best in taking advantage of the significant growth happening within the space while also providing limited volatility compared to public markets. Citizen Mint will provide direct access to these opportunities over time. You can review ",[22,12028,12029],{"href":3403},"current investable opportunities",[415,12031,12033],{"id":12032},"citizen-mint-believes-investing-in-renewable-infrastructure-is-a-multi-decade-opportunity-the-majority-of-these-investments-will-be-in-solar-and-wind-projects-which-will-be-the-greatest-source-of-new-power-generation-as-noted-in-the-chart-above-while-previously-expensive-to-build-the-prices-for-wind-generated-energy-has-dropped-70-per-megawatt-hour-mwh-and-90-for-solar-over-roughly-the-last-decade-reducing-the-need-for-government-subsidies-while-also-accelerating-plans-of-large-electric-utilities-to-switch-from-fossil-field-oil-and-coal-to-renewables","Citizen Mint believes investing in renewable infrastructure is a multi-decade opportunity . The majority of these investments will be in solar and wind projects which will be the greatest source of new power generation as noted in the chart above. While previously expensive to build, the prices for wind-generated energy has dropped 70% per megawatt hour (MWh) and 90% for solar over roughly the last decade, reducing the need for government subsidies while also accelerating plans of large electric utilities to switch from fossil field (oil and coal) to renewables.",[12,12035,12036,12037,12039],{},"Learn how infrastructure and other ",[22,12038,3923],{"href":938}," such as real estate and natural resources by downloading our Guide to Real Assets white paper.",[34,12041,698],{"id":459},[12,12043,10952,12044,9158,12046],{},[30,12045,9629],{},[30,12047,10957],{},[12,12049,12050],{},[57,12051],{"alt":59,"src":10962},{"title":59,"searchDepth":167,"depth":167,"links":12053},[12054,12058],{"id":11782,"depth":167,"text":11783,"children":12055},[12056,12057],{"id":11847,"depth":498,"text":11848},{"id":12032,"depth":498,"text":12033},{"id":459,"depth":167,"text":698},"2023-04-12","Learn why many investors are adding renewable infrastructure for diversification as well as compelling risk and return characteristics.","\u002Fimages\u002Fresources\u002Fwhy-is-infrastructure-compelling-and-defensive.jpg",{},{"title":11777,"description":12060},"resources\u002Fwhy-is-infrastructure-compelling-and-defensive","7NnrNP6RZdxiZUQmb8v-SCQlKK_a4kiPKdC7WwcgcCU",{"id":12067,"title":12068,"author":512,"body":12069,"category":176,"date":12175,"description":12176,"extension":179,"image":12177,"imageAlt":181,"meta":12178,"navigation":183,"path":12179,"seo":12180,"stem":12181,"topic":2330,"__hash__":12182},"resources\u002Fresources\u002Fevaluate-privates-markets-for-your-portfolio.md","New Tool: How privates can enhance returns",{"type":9,"value":12070,"toc":12168},[12071,12075,12082,12085,12090,12094,12100,12105,12108,12111,12116,12120,12125,12128,12131,12136,12139,12143,12148,12151,12155,12158,12160,12164],[34,12072,12074],{"id":12073},"new-tool-alert-understand-the-difference-privates-can-make-to-your-portfolio","New Tool Alert! Understand the Difference Privates Can Make to Your Portfolio",[12,12076,12077,12078,12081],{},"We created what we think is a handy new tool to evaluate how private markets investments could influence your portfolios over time. This tool allows you to set a traditional portfolio like a ",[22,12079,12080],{"href":921},"60\u002F40",",  60% traditional stocks and 40% traditional bonds, and then review hypothetical returns as if you would have been invested in private markets over the last 20 years.",[12,12083,12084],{},"INVESTMENTS • PRIVATE MARKETS • ASSET ALLOCATION",[12,12086,12087],{},[30,12088,12089],{},"What is this tool trying to show me?",[34,12091,12093],{"id":12092},"how-privates-can-enhance-returns","How privates can enhance returns",[12,12095,12096],{},[22,12097,9717],{"href":12098,"rel":12099},"https:\u002F\u002Fapp.citizenmint.com\u002Fgraphs\u002FprivateReturns\u002F?bgColor=e6e6e6",[45],[12,12101,12102],{},[57,12103],{"alt":59,"src":12104},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-03-help-circle.svg",[12,12106,12107],{},"About the chartThe Traditional Portfolio represents a custom blend calculated by Citizen Mint of the S&P 500 Index and Bloomberg US Aggregate Bond Index from Q3 2002 to Q3 2022 at different stock and bond weightings (increments of 10%). Financial indices assume the reinvestment of dividends and do not reflect the impact of fees, taxes and other expenses. Indices are unmanaged, and you cannot make a direct investment in an index. Indices data was reviewed and aggregated from Ycharts.The net annualized IRR for an allocation to private capital funds is based on an endowment style allocation methodology determined by Citizen Mint. It consists on a custom blend of historical performance data calculated by Citizen Mint. Allocations to private market assets classes were as follows: private credit (25%), private infrastructure (25%), private real estate (25), US private equity (17.5%), and US venture capital (7.5%). Data sources for each of these asset classes were as follows: private credit – Cliffwater Direct Lending Index Q3 2002 to Q3 2022, private infrastructure – Burgess \u002F Cohen & Steers Q3 2002 to Q3 2022, private real estate\u002FUS private equity\u002FUS venture capital – Cambridge Associates Q3 2002 to Q3 2022. The calculation takes a proportionate allocation from bonds and stocks when allocating to privates. All calculations are based on unaudited internal calculations and are subject to change. Numbers represented are rounded to the nearest decimal.Close",[12,12109,12110],{},"This tool clearly displays the significant positive impact that private market investments have on portfolio returns over time. As an example, let’s compare a traditional 60\u002F40 portfolio versus the same portfolio with 25% of the assets invested in private markets. As shown above the difference in returns is roughly 1% a year which may not seem like much, but over that 20 year period for a starting $1mm portfolio it is the difference between a ~$3.75mm portfolio versus $3.11mm portfolio. Said another way, the investor would expect to have $637,000 more dollars if a part of their portfolio was allocated to private market investments.",[12,12112,12113],{},[57,12114],{"alt":59,"src":12115},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-03-Enhanced-Returns-with-Privates.png",[80,12117,12119],{"id":12118},"the-above-chart-is-a-hypothetical-return-based-on-a-25-portfolio-allocation-to-private-markets-versus-a-traditional-60-sp-500-index-and-40-bloomberg-us-aggregate-bond-index-portfolio-allocation-between-q3-2002-to-q3-2022-for-more-information-on-how-the-private-markets-and-total-portfolio-return-was-calculated-please-review-the-information-below","The above chart is a hypothetical return based on a 25% portfolio allocation to private markets versus a traditional 60% S&P 500 Index and 40% Bloomberg US Aggregate Bond Index portfolio allocation between Q3 2002 to Q3 2022. For more information on how the private markets and total portfolio return was calculated please review the information below.",[12,12121,12122],{},[30,12123,12124],{},"How do the calculations work?",[12,12126,12127],{},"The Traditional Portfolio represents a custom blend, calculated by Citizen Mint, of the S&P 500 Index and Bloomberg US Aggregate Bond Index from Q3 2002 to Q3 2022 at different stock and bond weightings (increments of 10%). Financial indices assume the reinvestment of dividends and do not reflect the impact of fees, taxes and other expenses. Indices are unmanaged, and you cannot make a direct investment in an index. Indices data was reviewed and aggregated from Ycharts.",[12,12129,12130],{},"The net annualized return for an allocation to private investments is based on an endowment style allocation methodology determined by Citizen Mint. It consists of a custom blend of historical performance data calculated by Citizen Mint. Allocations to private market assets classes were calculated as follows:",[12,12132,12133],{},[57,12134],{"alt":59,"src":12135},"\u002Fimages\u002Fresources\u002Fmedia\u002F2023-03-Private-Markets-Allocation.png",[12,12137,12138],{},"The calculation takes a proportionate allocation from bonds and stocks when allocating to privates. Example: A 10% allocation to privates from a normal 60\u002F40 portfolio would take 6% from equities and 4% from bonds.",[80,12140,12142],{"id":12141},"all-calculations-are-based-on-unaudited-internal-calculations-and-are-subject-to-change","All calculations are based on unaudited internal calculations and are subject to change.",[12,12144,12145],{},[30,12146,12147],{},"What about the volatility of a portfolio with privates?",[12,12149,12150],{},"We estimate that the volatility of an investors portfolio will decrease, on average, between 10-30% based on their allocation to the private markets. This reduces both clients’ anxiety about their portfolio and allows them to stay invested in the market even during tough economic cycles.",[415,12152,12154],{"id":12153},"overall-an-allocation-to-privates-can-enhance-returns-reduce-volatility-and-reduce-investor-anxiety-during-difficult-market-cycles-if-you-want-to-learn-more-about-reasons-to-invest-in-private-market-opportunities-review-the-white-paper-below","Overall, an allocation to privates can enhance returns, reduce volatility and reduce investor anxiety during difficult market cycles. If you want to learn more about reasons to invest in private market opportunities review the white paper below.",[12,12156,12157],{},"Learn why private markets are an integral part of portfolio construction by downloading our Guide to Private Markets.",[34,12159,698],{"id":459},[12,12161,10255,12162],{},[30,12163,10258],{},[12,12165,12166],{},[57,12167],{"alt":59,"src":10263},{"title":59,"searchDepth":167,"depth":167,"links":12169},[12170,12171,12174],{"id":12073,"depth":167,"text":12074},{"id":12092,"depth":167,"text":12093,"children":12172},[12173],{"id":12153,"depth":498,"text":12154},{"id":459,"depth":167,"text":698},"2023-03-24","Evaluate how adding private markets to your portfolio both enhances returns as well as reduces volatility by utilizing Citizen Mints new tool.","\u002Fimages\u002Fresources\u002Fevaluate-privates-markets-for-your-portfolio.png",{},"\u002Fresources\u002Fevaluate-privates-markets-for-your-portfolio",{"title":12068,"description":12176},"resources\u002Fevaluate-privates-markets-for-your-portfolio","b9dAIayggvtOM61iIqbs3wGEWOk27V9uB4YOc2KKEPU",{"id":510,"title":511,"author":512,"body":12184,"category":176,"date":717,"description":718,"extension":179,"image":719,"imageAlt":181,"meta":12320,"navigation":183,"path":144,"seo":12321,"stem":722,"topic":187,"__hash__":723},{"type":9,"value":12185,"toc":12314},[12186,12188,12192,12194,12198,12231,12235,12237,12241,12243,12247,12251,12253,12257,12261,12266,12270,12272,12276,12278,12280,12284,12288,12292,12294,12298,12300,12302,12304,12306,12310],[34,12187,518],{"id":517},[12,12189,12190],{},[30,12191,523],{},[12,12193,526],{},[12,12195,12196],{},[30,12197,531],{},[533,12199,12200,12204,12210,12214,12221,12227],{},[536,12201,12202,541],{},[30,12203,540],{},[536,12205,12206,547,12208,552],{},[30,12207,546],{},[22,12209,551],{"href":550},[536,12211,12212,558],{},[30,12213,557],{},[536,12215,12216,570],{},[30,12217,563,12218,569],{},[22,12219,568],{"href":566,"rel":12220},[45],[536,12222,12223,576,12225,581],{},[30,12224,575],{},[22,12226,580],{"href":579},[536,12228,12229,587],{},[30,12230,586],{},[12,12232,12233],{},[30,12234,592],{},[12,12236,595],{},[12,12238,12239],{},[30,12240,600],{},[12,12242,603],{},[12,12244,12245],{},[30,12246,608],{},[12,12248,611,12249,616],{},[22,12250,615],{"href":614},[12,12252,619],{},[12,12254,12255],{},[30,12256,624],{},[12,12258,627,12259,632],{},[22,12260,631],{"href":630},[12,12262,635,12263,641],{},[22,12264,640],{"href":638,"rel":12265},[45],[12,12267,12268],{},[30,12269,646],{},[12,12271,649],{},[12,12273,12274],{},[30,12275,654],{},[12,12277,657],{},[12,12279,660],{},[12,12281,12282],{},[30,12283,665],{},[12,12285,668,12286,672],{},[22,12287,671],{"href":240},[12,12289,12290],{},[30,12291,677],{},[12,12293,680],{},[12,12295,12296],{},[30,12297,685],{},[12,12299,688],{},[415,12301,692],{"id":691},[12,12303,695],{},[34,12305,698],{"id":459},[12,12307,701,12308,705],{},[30,12309,704],{},[12,12311,12312],{},[57,12313],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":12315},[12316,12319],{"id":517,"depth":167,"text":518,"children":12317},[12318],{"id":691,"depth":498,"text":692},{"id":459,"depth":167,"text":698},{},{"title":511,"description":718},{"id":12323,"title":12324,"author":512,"body":12325,"category":176,"date":12469,"description":12470,"extension":179,"image":12471,"imageAlt":181,"meta":12472,"navigation":183,"path":5169,"seo":12473,"stem":12474,"topic":2330,"__hash__":12475},"resources\u002Fresources\u002Faccredited-investor-versus-qualified-purchaser.md","Accredited Investor vs. Qualified Purchaser",{"type":9,"value":12326,"toc":12458},[12327,12331,12336,12339,12343,12349,12352,12356,12359,12370,12373,12384,12388,12391,12405,12419,12423,12426,12437,12439,12442,12446,12448,12450,12454],[34,12328,12330],{"id":12329},"what-is-the-difference-between-an-accredited-investor-a-qualified-client-and-a-qualified-purchaser","What is the difference between an Accredited Investor, a Qualified Client and a Qualified Purchaser?",[12,12332,12333],{},[30,12334,12335],{},"An accredited investor, a qualified client, and a qualified purchaser are all terms used in the context of securities regulation in the United States. These classifications govern which investors can access certain investment opportunities. While these terms are often used interchangeably, they serve different regulatory purposes and determine eligibility for different types of private investments and advisory relationships.",[12,12337,12338],{},"INVESTOR CLASSIFICATIONS • INVESTMENTS • 3(C)1 & 3(C)7 FUNDS",[34,12340,12342],{"id":12341},"why-do-investor-classifications-matter","Why do investor classifications matter?",[12,12344,12345,12346,12348],{},"Individuals who meet the requirements of these classifications can participate in offerings that aren’t registered with the SEC. The reason for this is that the SEC believes the risks of these opportunities may be greater than what is allowed in public markets which are regulated by the SEC. Participation in these opportunities can provide significant ",[22,12347,1028],{"href":1027}," to investor portfolios as well as enhanced returns.",[12,12350,12351],{},"Accredited investors may invest in many private offerings, including many 3(c)(1) funds. Qualified purchasers may invest in both 3(c)(1) and 3(c)(7) funds, while qualified client status is generally relevant when an investment adviser charges performance-based compensation.",[34,12353,12355],{"id":12354},"accredited-investor","Accredited Investor",[12,12357,12358],{},"An accredited investor is a person or entity that meets certain financial criteria that allows them to participate in certain types of private securities offerings. Specifically, an accredited investor is someone who:",[960,12360,12361,12364,12367],{},[536,12362,12363],{},"Has an annual income of at least $200,000 (or $300,000 joint income with spouse) in each of the last two years, with a reasonable expectation of the same income level in the current year; OR",[536,12365,12366],{},"Has a net worth of at least $1 million (excluding the value of a primary residence)",[536,12368,12369],{},"Holds a Series 7, 65 or 82 license that is in good standing",[12,12371,12372],{},"If an investor wants to invest through a trust, the trust must meet all of the following requirements.",[960,12374,12375,12378,12381],{},[536,12376,12377],{},"Has total assets greater than $5 million",[536,12379,12380],{},"Was not formed to just invest in a particular fund",[536,12382,12383],{},"Is directed by a person who is considered “sophisticated” or someone with knowledge and experience to make informed decisions",[34,12385,12387],{"id":12386},"qualified-client","Qualified Client",[12,12389,12390],{},"A qualified client is a type of investor that meets certain financial criteria, which allows them to invest in certain private funds that have the ability to charge a performance fee. To be considered a qualified client you must meet one of the following criteria:",[960,12392,12393,12396,12399,12402],{},[536,12394,12395],{},"Has a net worth of at least $2.7 million (excluding the value of a primary residence)",[536,12397,12398],{},"Has at least $1.4 million under the management of an investment adviser immediately after entering into an advisory contract",[536,12400,12401],{},"An individual that is considered a qualified purchaser (see definition below)",[536,12403,12404],{},"An individual that is an executive officer, director, trustee, general partner, or person serving in a similar capacity, or the advisor",[12,12406,12407,12410,12411,12414,12415,12418],{},[30,12408,12409],{},"2026 SEC Update:"," Effective June 29, 2026, the SEC increased the qualified client thresholds to account for inflation. Investors must now have either at least ",[30,12412,12413],{},"$2.7 million in net worth (excluding their primary residence)"," or ",[30,12416,12417],{},"$1.4 million under the management of an investment adviser"," to qualify. Existing advisory relationships are generally grandfathered, while new advisory relationships entered into on or after the effective date are subject to the updated thresholds.",[34,12420,12422],{"id":12421},"qualified-purchaser","Qualified Purchaser",[12,12424,12425],{},"A qualified purchaser is a type of investor that meets certain financial criteria, which allows them to invest in certain types of investment funds that are exempt from registration under the Investment Company Act of 1940. Specifically, a qualified purchaser is someone who:",[960,12427,12428,12431,12434],{},[536,12429,12430],{},"Owns at least $5 million in investments (not including primary residence), OR",[536,12432,12433],{},"Is an entity (such as a business) that owns and invests at least $25 million in investments",[536,12435,12436],{},"A trust, not formed for the specific investment, that has a value of at least $5 million in investments",[415,12438,2260],{"id":2259},[12,12440,12441],{},"In summary, while there are similarities between the terms “accredited investor,” “qualified client,” and “qualified purchaser,” each serves a distinct regulatory purpose. Accredited investors may participate in many private securities offerings. Qualified clients satisfy additional financial thresholds that permit investment advisers to charge performance-based fees under certain circumstances. Qualified purchasers meet the highest investment thresholds and may invest in certain private funds that rely on exemptions under the Investment Company Act of 1940.",[34,12443,12445],{"id":12444},"today-is-a-great-day-to-start-investing-in-private-market-opportunities-if-you-are-looking-for-ways-to-diversify-your-investments-and-compound-your-wealth-as-part-of-a-well-diversified-portfolio-review-open-investment-offerings-here","Today is a great day to start investing in private market opportunities. If you are looking for ways to diversify your investments and compound your wealth as part of a well-diversified portfolio, review open investment offerings HERE",[12,12447,695],{},[34,12449,698],{"id":459},[12,12451,701,12452,705],{},[30,12453,704],{},[12,12455,12456],{},[57,12457],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":12459},[12460,12461,12462,12463,12464,12467,12468],{"id":12329,"depth":167,"text":12330},{"id":12341,"depth":167,"text":12342},{"id":12354,"depth":167,"text":12355},{"id":12386,"depth":167,"text":12387},{"id":12421,"depth":167,"text":12422,"children":12465},[12466],{"id":2259,"depth":498,"text":2260},{"id":12444,"depth":167,"text":12445},{"id":459,"depth":167,"text":698},"2023-02-23","Learn the difference between an accredited investor and a qualified purchaser and how it governs access to certain investment opportunities.","\u002Fimages\u002Fresources\u002Faccredited-investor-versus-qualified-purchaser.jpg",{},{"title":12324,"description":12470},"resources\u002Faccredited-investor-versus-qualified-purchaser","6fuNGIKfr5vZXgew0zP5o5PvTbLGI2lIzRxt1KLLKDI",{"id":12477,"title":12478,"author":512,"body":12479,"category":176,"date":12681,"description":12682,"extension":179,"image":12683,"imageAlt":181,"meta":12684,"navigation":183,"path":1027,"seo":12685,"stem":12686,"topic":2330,"__hash__":12687},"resources\u002Fresources\u002Fhow-to-diversify-your-portfolio.md","What is diversification and why is it important",{"type":9,"value":12480,"toc":12676},[12481,12485,12489,12492,12497,12500,12570,12573,12578,12581,12659,12662,12664,12666,12668,12672],[34,12482,12484],{"id":12483},"what-is-diversification-and-why-does-it-matter","What is diversification and why does it matter?",[384,12486,12488],{"id":12487},"when-it-comes-to-investing-one-of-the-most-important-principles-is-portfolio-diversification-diversifying-your-investment-portfolio-means-spreading-your-money-across-a-range-of-assets-to-reduce-risk-and-maximize-returns-below-are-five-reasons-why-diversifying-your-portfolio-is-essential","When it comes to investing, one of the most important principles is portfolio diversification. Diversifying your investment portfolio means spreading your money across a range of assets to reduce risk and maximize returns. Below are five reasons why diversifying your portfolio is essential.",[12,12490,12491],{},"DIVERSIFICATION • INVESTMENTS • ASSET ALLOCATION",[12,12493,12494],{},[30,12495,12496],{},"Why diversification matters…",[12,12498,12499],{},"Here are five reasons why portfolio diversification is essential:",[533,12501,12502,12520,12532,12551,12559],{},[536,12503,12504,12509,12510,12513,12514,12519],{},[30,12505,12506],{},[30,12507,12508],{},"Minimize Risk",": Portfolio diversification helps to reduce the risk of losing money in the event that one of your investments fails or performs poorly. By investing in different assets, such as stocks, bonds, ",[22,12511,12512],{"href":579},"private real estate, private equity, private infrastructure"," and commodities, you spread your risk across different markets and reduce the impact of any one investment on your overall portfolio. Managing risk is an often-overlooked part of an individual’s financial plan and for the most part many individuals are taking much higher risks than they even realize. This can come in the form of buying individual stocks, investing in the newest fad or hottest ETF, and\u002For having a ",[22,12515,12518],{"href":12516,"rel":12517},"https:\u002F\u002Fwww.investopedia.com\u002Fterms\u002Fh\u002Fhome-country-bias.asp",[45],"home country bias",". The last is rather common, with many individuals putting the majority of their liquid net worth into U.S. stocks. It’s common to look at the preceding 10 years of extraordinary returns and assume this will happen into the future. But, what if I asked you: what were the returns in the U.S. from the 2000 to 2010? It was a total return of 0%, including dividends. So if you had your money exclusively invested in the U.S. over that 10-year period, you would have made nothing.  This fact surprises many investors and is the reasons investors need to be thoughtful and active in the diversification of their portfolios.",[536,12521,12522,12527,12528,12531],{},[30,12523,12524],{},[30,12525,12526],{},"Maximizing Returns:"," Diversification can help in maximizing your returns. By ",[22,12529,12530],{"href":921},"spreading your investments across different asset classes",", you can benefit from different market trends and take advantage of opportunities in different sectors.",[536,12533,12534,12539,12540,12543,12544,373,12546,12550],{},[30,12535,12536],{},[30,12537,12538],{},"Protection against Inflation:"," Inflation can erode the value of your investments over time, but diversification can help to ",[22,12541,12542],{"href":926},"protect your portfolio against the impact of inflation",". Investing in assets that are likely to perform well during periods of inflation, such as ",[22,12545,615],{"href":614},[22,12547,12549],{"href":12548},"\u002Fresources\u002Fhow-to-diversify-your-portfolio-with-real-asset-investments","infrastructure and commodities",", can help to preserve the value of your investments.",[536,12552,12553,12558],{},[30,12554,12555],{},[30,12556,12557],{},"Liquidity:"," Diversifying your portfolio can also provide greater liquidity, as you will have a range of assets that can provide income, growth, and potentially be bought and sold. This can be especially important in times of market volatility or economic uncertainty.",[536,12560,12561,12565,12566,12569],{},[30,12562,12563],{},[30,12564,586],{}," Diversification can provide ",[22,12567,12568],{"href":630},"peace of mind",", knowing that your portfolio is not reliant on the success of one single investment. By investing in a range of assets, you can feel more secure in the knowledge that your portfolio is protected against unexpected events or market downturns.",[12,12571,12572],{},"Regardless of how you decide to diversify your investments, it’s important to remember is that diversification doesn’t guarantee returns or protect against loss. It simply helps reduce your overall risk. That’s why it’s important to develop a long-term plan and periodically review your investments to ensure that they are still meeting your goals. With the right strategy in place, you can maximize returns while minimizing risks.",[12,12574,12575],{},[30,12576,12577],{},"Ways to diversify your portfolio",[12,12579,12580],{},"Diversifying a portfolio is an essential risk management strategy that involves spreading investments across different asset classes, sectors, and geographical regions. By diversifying, you aim to reduce the impact of individual investment risks and increase the potential for stable returns. Here are some key steps to diversify a portfolio effectively:",[960,12582,12583,12593,12603,12609,12615,12624,12630,12641,12647],{},[536,12584,12585,9158,12590,12592],{},[30,12586,12587,569],{},[22,12588,12589],{"href":4848},"Asset allocation",[22,12591,1033],{"href":12179},", such as stocks, bonds, cash, private real estate, private infrastructure, private equity and commodities. The specific allocation will depend on your financial goals, risk tolerance, and investment horizon. Different asset classes tend to have varying levels of risk and return potential, so diversifying across them can help balance your portfolio.",[536,12594,12595,12598,12599,12602],{},[30,12596,12597],{},"Consider investment styles:"," Diversify within each asset class by considering different investment styles or strategies. For example, in the stock market, you can have a mix of growth stocks and value stocks, or large-cap stocks and small-cap stocks. In private markets, this could mean having allocations to ",[22,12600,12601],{"href":614},"private real estate",", private debt, and private equity. This approach helps you benefit from various market conditions and reduces the reliance on a single investment approach.",[536,12604,12605,12608],{},[30,12606,12607],{},"Geographic diversification:"," Invest in different countries and regions to reduce geographic concentration risk. Economic and market conditions can vary across countries, so diversifying globally can help mitigate the impact of localized risks. Consider investing in international stocks, bonds, or funds that provide exposure to different regions.",[536,12610,12611,12614],{},[30,12612,12613],{},"Sector diversification:"," Allocate investments across different sectors or industries. Different sectors perform differently based on economic cycles, market trends, and other factors. By diversifying across sectors, you can reduce the impact of poor performance in a specific industry and take advantage of growth opportunities in others.",[536,12616,12617,12620,12621,263],{},[30,12618,12619],{},"Consider investment vehicles:"," Diversify your investments by using various investment vehicles, such as individual stocks, mutual funds, exchange-traded funds (ETFs), private investment vehicles, and bonds. Each vehicle has its own risk profile and return characteristics, so ",[22,12622,12623],{"href":1032},"spreading investments across them adds another layer of diversification",[536,12625,12626,12629],{},[30,12627,12628],{},"Rebalance regularly:"," Regularly review and rebalance your portfolio to maintain the desired asset allocation and diversification. Over time, certain investments may outperform or underperform, causing your portfolio to deviate from your intended allocation. Rebalancing involves selling some investments that have become overweight and reinvesting in underrepresented areas to restore the desired balance.",[536,12631,12632,12637,12638,12640],{},[30,12633,12634,12635,569],{},"Consider ",[22,12636,11570],{"href":255}," Explore ",[22,12639,11570],{"href":579}," beyond traditional asset classes, such as private equity, venture capital, private infrastructure, real estate investment trusts (REITs), or commodities. These alternative investments often have a low correlation with traditional stocks and bonds, providing additional diversification benefits.",[536,12642,12643,12646],{},[30,12644,12645],{},"Risk management:"," Evaluate and manage risks within your portfolio. Consider using risk management techniques like hedging strategies, options, or diversifying across investment strategies with different risk profiles. This can help mitigate downside risks and protect your portfolio during market downturns.",[536,12648,12649,12652,12653,12658],{},[30,12650,12651],{},"Stay informed and seek professional advice:"," Monitor market trends, economic indicators, and investment performance. Stay informed about changes in the investment landscape and adjust your portfolio accordingly. If needed, ",[22,12654,12657],{"href":12655,"rel":12656},"https:\u002F\u002Fwww.fidelity.com\u002Fviewpoints\u002Finvesting-ideas\u002Ffinancial-advisor-cost",[45],"seek guidance from a financial advisor"," who can provide personalized advice based on your specific financial goals and risk tolerance.",[12,12660,12661],{},"Remember, diversification does not guarantee profits or protect against losses, but it can help manage risk and improve the overall resilience of your portfolio. The specific diversification approach will vary based on individual circumstances, so it’s important to align your diversification strategy with your financial goals and risk tolerance.",[34,12663,1181],{"id":1180},[12,12665,695],{},[34,12667,698],{"id":459},[12,12669,701,12670,705],{},[30,12671,704],{},[12,12673,12674],{},[57,12675],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":12677},[12678,12679,12680],{"id":12483,"depth":167,"text":12484},{"id":1180,"depth":167,"text":1181},{"id":459,"depth":167,"text":698},"2023-02-16","Learn why a portfolio diversification is important and ways to diversify your portfolio across different asset 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Alternative Investments for Inflation",{"type":9,"value":13572,"toc":13683},[13573,13576,13579,13582,13585,13591,13596,13600,13604,13607,13610,13614,13617,13620,13624,13627,13631,13634,13637,13640,13642,13644,13661,13663,13667,13670,13673,13675,13679],[12,13574,13575],{},"The definition of inflation is a general increase in prices that results in a fall of purchasing power.",[12,13577,13578],{},"ALTERNATIVE INVESTMENTS • PRIVATE MARKETS • INFLATION",[12,13580,13581],{},"While small amounts of inflation are normal and necessary for a functioning economy, we have seen a spike in inflation over the last year with the cost of many common goods rising between 7% – 10%. This inflation has led to dramatic swings in the market across numerous asset classes including stocks and bonds.",[12,13583,13584],{},"While we are hopeful that inflationary pressures are easing as demand wanes, supply chains are restored, and employees become easier to hire, it may be time to evaluate your portfolio to make sure it is properly protected if inflation lasts longer than expected.",[12,13586,13587,13588,13590],{},"Below we have aggregated a list of investment opportunities that both provide ",[22,13589,1028],{"href":1027}," to traditional stock and bond portfolios while also possibly protecting investors capital during inflationary periods.",[12,13592,13593],{},[57,13594],{"alt":59,"src":13595},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-image-17.png",[34,13597,13599],{"id":13598},"alternative-investments-for-inflation","Alternative Investments for Inflation",[415,13601,13603],{"id":13602},"real-estate-investments","Real Estate Investments",[12,13605,13606],{},"Real estate is one of the most unique assets classes in the world given the distinctness of each property type. It is also considered by many as a prudent investment to be included in a well-diversified portfolio. The four main types of real estate are land, residential, commercial and industrial with numerous sub-categories for each.",[12,13608,13609],{},"Real estate has historically performed well during periods of inflations given the ability to  raise rents commensurate with inflation rates.",[415,13611,13613],{"id":13612},"commodities","Commodities",[12,13615,13616],{},"Commodities are raw materials and agricultural products that are traded globally based on set prices given supply versus demand of the product. The six main categories for commodities are as follows: energy, base metals, precious metals, agricultural, softs and live stock.",[12,13618,13619],{},"Commodities usually perform well during periods of inflation given the physical nature of the asset and the ability to pass through costs of production to purchasers of these assets.",[415,13621,13623],{"id":13622},"treasury-inflation-protected-security","Treasury Inflation-Protected Security",[12,13625,13626],{},"Treasury inflation-protected securities (TIPS) are government bonds where the value of the bond can rise and fall with consumer prices. While the underlying rate is fixed, the interest payments will rise and fall with the value of the bond based on inflation. TIPS are sold in five-, 10- or 30-year terms and help diversify a portfolio during inflationary environments.",[415,13628,13630],{"id":13629},"direct-lending","Direct Lending",[12,13632,13633],{},"Direct lending is form of private corporate debt where the lender is making loans to a company without the use of an investment bank. In most cases, these loans are utilized when a company is purchased by a private equity firm as they can be much quicker and cheaper to obtain than traditional debt providers such as banks.",[12,13635,13636],{},"The advent of direct lending was a result of traditional banks reducing their lending after the Great Financial Crisis and the significant growth of private equity firms over the last decade. Companies might also seek loans from direct lending firms to pay for new growth initiatives. In most cases, the direct lending firm has first lien on the company and its assets, meaning they will be paid back before all other debt and equity holders.",[12,13638,13639],{},"The interest rate on the loans is variable and move up or down with major lending rates such as the Secured Overnight Financing Rate (SOFR). As such, when inflation and interest rates are rising or high the investor takes advantage of higher overall yields on their capital.",[415,13641,3584],{"id":939},[12,13643,11802],{},[960,13645,13646,13649,13652,13655,13658],{},[536,13647,13648],{},"Essential or necessary product or service",[536,13650,13651],{},"Long useful lives",[536,13653,13654],{},"Monopoly\u002Fquasi-monopoly market position",[536,13656,13657],{},"Operate in regulated environments\u002For are less affected by economic cycles",[536,13659,13660],{},"Cash flow and earnings vary minimally in multiple environments",[1667,13662],{},[12,13664,13665],{},[30,13666,2260],{},[12,13668,13669],{},"While inflation is daunting, especially at the current levels, the investments above display the numerous ways to protect your portfolio over the long-run.",[12,13671,13672],{},"Learn more about how Citizen Mint reviews opportunities in these spaces by downloading our Investment Philosophy and Process white paper.",[34,13674,698],{"id":459},[12,13676,701,13677,705],{},[30,13678,704],{},[12,13680,13681],{},[57,13682],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":13684},[13685,13692],{"id":13598,"depth":167,"text":13599,"children":13686},[13687,13688,13689,13690,13691],{"id":13602,"depth":498,"text":13603},{"id":13612,"depth":498,"text":13613},{"id":13622,"depth":498,"text":13623},{"id":13629,"depth":498,"text":13630},{"id":939,"depth":498,"text":3584},{"id":459,"depth":167,"text":698},"2022-12-05","Discover an aggregated list of alternative investment opportunities that both provide diversification to traditional stock & bond portfolios.","\u002Fimages\u002Fresources\u002Fbest-alternative-investments-for-inflation.jpg",{},{"title":13570,"description":13694},"resources\u002Fbest-alternative-investments-for-inflation","3Q1jEGPsNnRgY4GJKkkBg_TG0FKsEjFV3tIdQSnRO48",{"id":13701,"title":13702,"author":512,"body":13703,"category":176,"date":13960,"description":13961,"extension":179,"image":13962,"imageAlt":181,"meta":13963,"navigation":183,"path":921,"seo":13964,"stem":13965,"topic":2330,"__hash__":13966},"resources\u002Fresources\u002Fdecline-of-the-60-40-portfolio.md","The 60\u002F40 Portfolio Decline & Top Alternatives",{"type":9,"value":13704,"toc":13950},[13705,13709,13712,13715,13718,13723,13726,13752,13755,13759,13762,13768,13771,13777,13806,13813,13818,13822,13832,13871,13874,13878,13884,13923,13927,13937,13940,13942,13946],[34,13706,13708],{"id":13707},"the-decline-of-the-6040-portfolio-top-alternative-investments","The Decline of the 60\u002F40 Portfolio & Top Alternative Investments",[12,13710,13711],{},"The 60\u002F40 portfolio, or 60% stocks and 40% bonds, has been a keystone of financial planning for the last five decades given its ability to weather numerous market cycles. Unfortunately, the portfolios underlying characteristics have changed over time that has resulted in it being less effective during market disruptions.",[12,13713,13714],{},"STOCKS & BONDS • 60\u002F40 PORTFOLIO • IMPACT INVESTING • ALTERNATIVES",[12,13716,13717],{},"The 60\u002F40 has been successful in the past as a result of being able to benefit from appreciation of stocks over decades and protection from the bond portfolio which has performed well in downturns such as the dot-com bust and the global financial crisis in 2008-2009. However, 2022 was a very different story with stocks and bonds having their highest correlation over the past decade. This led the 60\u002F40 portfolio having one of its worst years since 1937.",[12,13719,13720],{},[57,13721],{"alt":59,"src":13722},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-11-Graph-Stocks-and-Bonds.png",[12,13724,13725],{},"Factors that have led to the 60\u002F40 being less effective include:",[533,13727,13728,13731,13737],{},[536,13729,13730],{},"Stock Market Volatility & Concentration: Stocks have become more volatile over the last two decades as investors and large institutional investors reallocate capital rapidly during times of market disruptions causing greater downside moves compared to history. Further, concentration in major indexes has increased dramatically and much of the return of stocks can be contributed to a few big names in the market (i.e. Apple, Microsoft, Amazon, etc.).",[536,13732,13733,13734,13736],{},"Changing Correlations: Traditionally, stocks and bonds have had a negative correlation, meaning that when one asset class performed poorly, the other tended to perform well, providing ",[22,13735,1028],{"href":1027}," benefits. However, the negative correlation between stocks and bonds has weakened or become more positive in recent years leading to limited protection during market volatility.",[536,13738,13739,13740,13742,13743,373,13745,13748,13749,13751],{},"Evolving Investment Landscape: The investment landscape has evolved, with new asset classes gaining prominence. ",[22,13741,10702],{"href":1170}," such as ",[22,13744,615],{"href":935},[22,13746,13747],{"href":938},"private infrastructure",", private equity, and ",[22,13750,3404],{"href":926}," have attracted attention from investors seeking to diversify their portfolios beyond stocks and bonds. These alternatives may offer better risk-return characteristics compared to the traditional 60\u002F40 allocation.",[12,13753,13754],{},"With the advent of new strategies and services, such as Citizen Mint, access to alternatives has increased significantly over the last few years. As a result, advisors should be looking for ways to diversify clients portfolios beyond traditional assets classes leading to better portfolio diversification and portfolio outcomes.",[34,13756,13758],{"id":13757},"whats-the-opportunity-in-alternative-investments","What’s the opportunity in alternative investments?",[12,13760,13761],{},"We have witnessed many investors question how diversified their portfolios are in traditional asset classes like stocks and bonds given highly correlated returns more recently. This has led them to seek diversifying alternatives in the private markets space where they can seek to reduce portfolio volatility while also enhancing returns. Compelling opportunities we are seeing within the private market space include:",[12,13763,13764],{},[57,13765],{"alt":13766,"src":13767},"real estate alternative investments","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-pexels-kelly-2833686-scaled.jpg",[415,13769,9173],{"id":13770},"private-real-estate",[12,13772,13773,13776],{},[22,13774,13775],{"href":614},"Private real estate"," is a great diversifier for portfolios that can provide many benefits over multiple market cycles. Benefits of the category include:",[960,13778,13779,13790,13798],{},[536,13780,13781,13789],{},[343,13782,13783],{},[30,13784,13785,13788],{},[22,13786,13787],{"href":926},"Inflation"," Hedge:"," During times of rising prices, rents and property values tend to increase.",[536,13791,13792,13797],{},[343,13793,13794],{},[30,13795,13796],{},"Defensive:"," Certain real estate assets can be highly defensive during times of economic stress. These usually include mobile home parks, affordable\u002Fworkforce multi-family housing and self-storage.",[536,13799,13800,13805],{},[343,13801,13802],{},[30,13803,13804],{},"Attractive Distributions:"," Income distributions to investors from certain real estate such as residential, commercial and industrial can be attractive and usually ranges between 4-7% a year.",[12,13807,13808,13809,13812],{},"While many are concerned aboutcommercial officeand industrial assets at the current point in time, ",[22,13810,13811],{"href":371},"multifamily"," continues to be an under-invested opportunity in the US as housing affordability continues to be incredibly challenging.Review current  investable opportunities in this space by clickingHERE.",[12,13814,13815],{},[57,13816],{"alt":11570,"src":13817},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-solar-panel-array-power-sun-electricity-159397-1.jpeg",[415,13819,13821],{"id":13820},"infrastructure-assets","Infrastructure Assets",[12,13823,13824,13827,13828,13831],{},[22,13825,13826],{"href":938},"Infrastructure assets"," provide essential or necessary services, have long useful lives and generate cash flow and earnings that vary minimally through market cycles. An example could include ",[22,13829,13830],{"href":8136},"renewable energy assets"," such as solar or wind power that sign 20-to-30 year contracts for energy production with a customer such as a local utility or a large corporation. Benefits of these assets include:",[960,13833,13834,13842,13849,13859],{},[536,13835,13836,13841],{},[343,13837,13838],{},[30,13839,13840],{},"Portfolio Diversification & Downside Protection:"," In general, infrastructure assets have a low correlation to stocks and bonds. Further, this asset class can reduce volatility in investor portfolios during economic turmoil given a stable earnings stream throughout economic cycles.",[536,13843,13844,13848],{},[343,13845,13846],{},[30,13847,11900],{}," Given the highly predictable cash flows of infrastructure assets, these investments usually provide strong income potential.",[536,13850,13851,9158,13856,13858],{},[343,13852,13853],{},[30,13854,13855],{},"Long-Term Growth Potential:",[22,13857,11790],{"href":376}," investments, such as solar and wind energy projects, often offer long-term growth potential. As the world transitions towards a cleaner and more sustainable energy system, the demand for renewable energy is expected to rise. This can create opportunities for investors to benefit from capital appreciation and potential income generation over time.",[536,13860,13861,13866,13867,13870],{},[343,13862,13863],{},[30,13864,13865],{},"Regulatory Support:"," Governments around the world are increasingly implementing policies and regulations that support the growth of renewable energy. This can include incentives such as tax credits, grants, and favorable regulatory frameworks that encourage renewable infrastructure development. In the US, the ",[22,13868,11833],{"href":11831,"rel":13869},[45]," created $370 billion in incentives to develop renewable infrastructure projects which should ultimately lead to trillions of dollars in capital expenditures and the potential for higher returns to investors.",[12,13872,13873],{},"Review current  investable opportunities in this space by clickingHERE.",[415,13875,13877],{"id":13876},"private-market-debt","Private Market Debt",[12,13879,13880,13883],{},[22,13881,13882],{"href":926},"Private market debt"," has grown significantly since the global financial crisis as banks have dramatically reduced lending to meet regulatory and capital requirement needs. This has led to private debt funds becoming the main source of financing for private equity firms that are seeking to buy and sell companies. Private debt can also be used for real estate projects and other ventures. Benefits include:",[960,13885,13886,13898,13906,13915],{},[536,13887,13888,13894,13895,13897],{},[30,13889,13890,13893],{},[343,13891,13892],{},"Reduced Volatility of Returns:"," Private debt"," investments are typically less sensitive to interest rate fluctuations compared to publicly traded fixed income securities. This is because ",[22,13896,3404],{"href":3403}," transactions often involve fixed interest rates or floating rates with contractual adjustments, which can help mitigate interest rate risk. As a result, private debt can be an attractive option for investors seeking income generation with lower interest rate sensitivity.",[536,13899,13900,13905],{},[343,13901,13902],{},[30,13903,13904],{},"Higher Returns:"," Private debt usually offers much higher returns than publicly traded debt.",[536,13907,13908,13912,13913],{},[343,13909,13910],{},[30,13911,2228],{},": Private credit can provide diversification benefits to a portfolio. It is a distinct asset class that can have low correlation with traditional stocks and bonds. By adding private credit to a portfolio, investors can potentially reduce overall portfolio volatility and enhance risk-adjusted returns.",[1667,13914],{},[536,13916,13917,13922],{},[343,13918,13919],{},[30,13920,13921],{},"Income Generation",": Private credit investments can provide a steady income stream in the form of interest payments. The contractual cash flows from private credit investments can offer reliable income, which can be particularly appealing to income-focused investors or those seeking consistent cash flows to meet their financial goals.",[415,13924,13926],{"id":13925},"the-future-of-investing","The Future of Investing",[12,13928,13929,13930,13932,13933,13936],{},"While we don’t know what the future holds, we do know that ",[22,13931,1028],{"href":1027}," and ",[22,13934,13935],{"href":1202},"compounding"," over long periods of time works well for investors. Diversification in this case is not just traditional stocks and bonds where correlations between the asset classes have increased, but multiple asset classes in both the public and private markets. Further, having some illiquid assets can both reduce investor volatility and the impulse to sell during market disruptions. It further has the potential to enhance returns and meet investors goals both financially and personally. Learn more about private market investment opportunities by clicking the button below.",[12,13938,13939],{},"Learn more about ways to diversify your portfolio by reading our white paper on opportunities to invest in Private Markets.",[34,13941,698],{"id":459},[12,13943,10255,13944],{},[30,13945,10258],{},[12,13947,13948],{},[57,13949],{"alt":59,"src":10263},{"title":59,"searchDepth":167,"depth":167,"links":13951},[13952,13953,13959],{"id":13707,"depth":167,"text":13708},{"id":13757,"depth":167,"text":13758,"children":13954},[13955,13956,13957,13958],{"id":13770,"depth":498,"text":9173},{"id":13820,"depth":498,"text":13821},{"id":13876,"depth":498,"text":13877},{"id":13925,"depth":498,"text":13926},{"id":459,"depth":167,"text":698},"2022-11-30","Learn why the 60\u002F40 investment portfolio is in a decline and discover top alternative investment opportunities to add to portfolios.","\u002Fimages\u002Fresources\u002Fdecline-of-the-60-40-portfolio.jpg",{},{"title":13702,"description":13961},"resources\u002Fdecline-of-the-60-40-portfolio","aa156E09nzP5-NDkRdx8-QBVz3K_BUkx-iIfw6cM2Fg",{"id":13968,"title":13969,"author":512,"body":13970,"category":176,"date":14142,"description":14143,"extension":179,"image":14144,"imageAlt":181,"meta":14145,"navigation":183,"path":14146,"seo":14147,"stem":14148,"topic":9322,"__hash__":14149},"resources\u002Fresources\u002Fwe-need-trillions-of-dollars-for-climate-finance-where-will-it-come-from.md","We Need Trillions of Dollars for Climate Finance, Where Will it Come From?",{"type":9,"value":13971,"toc":14135},[13972,13975,13978,13981,13984,13989,13998,14004,14008,14017,14025,14031,14034,14038,14047,14052,14056,14069,14073,14076,14118,14121,14123,14129],[12,13973,13974],{},"The COP 27, or Conference of the Parties, is currently underway in Egypt and brings the topic of climate change funding back into the limelight. Despite the fact that conferences like COP 27 have been occurring for over 30 years, and in addition to repeated calls for the U.S. to become a “carbon neutral country”, the amount of carbon emissions continues to rise year after year.",[12,13976,13977],{},"COP 27 • IMPACT INVESTING • CLIMATE FINANCE",[12,13979,13980],{},"Climate Finance Agreements & Goals",[12,13982,13983],{},"The first COP took place in 1995 in Germany after establishing the United Nations Framework Convention on Climate Change (UNFCC) during the 1992 Rio Earth Summit. By 1997 there were a series of binding targets set out for 37 countries, which grew to 197 countries in 2015 when the Paris Agreement was adopted in order to outline ambitious goals to combat climate change.",[12,13985,13986],{},[57,13987],{"alt":59,"src":13988},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-11-matthew-tenbruggencate-8eW6v3oLUMY-unsplash-1.jpg",[12,13990,13991,13992,13997],{},"It has been 7 years since the Paris Agreement and if one thing has been learned it’s that combating climate change is… expensive. The promises made have generated a lot of hope and excitement but the execution on them has been less than thrilling, especially from developed nations, which are responsible for ",[22,13993,13996],{"href":13994,"rel":13995},"https:\u002F\u002Fwww.cgdev.org\u002Fmedia\u002Fwho-caused-climate-change-historically#:~:text=Developed%20Countries%20Are%20Responsible%20for,Global%20Development%20%7C%20Ideas%20to%20Action",[45],"79%"," of historical carbon emissions. (*Center for Global Development)",[12,13999,14000],{},[57,14001],{"alt":14002,"src":14003},"Who caused climate change?","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-11-who-caused-climate-change-1.png",[415,14005,14007],{"id":14006},"climate-finance-broken-promises","Climate Finance Broken Promises",[12,14009,14010,14011,14016],{},"There is a common theme emerging at all of these conferences. Rich nations make ambitious pledges to reduce their country’s emissions while also promising to contribute capital to less wealthy nations, theoretically allowing them to adapt and mitigate further rises in temperature. Unfortunately these pledges fall flat when the results are measured, with the ",[22,14012,14015],{"href":14013,"rel":14014},"https:\u002F\u002Fwww.nature.com\u002Farticles\u002Fd41586-021-02846-3",[45],"UN Copenhagen Climate Summit"," being a prime example.",[12,14018,14019,14020,14024],{},"“Compared with the investment required to avoid dangerous levels of climate change, the $100-billion pledge is minuscule. Trillions of dollars will be needed each year to meet the 2015 Paris agreement goal of restricting global warming to “well below” 2 °C, if not 1.5 °C, above pre-industrial temperatures.” (",[22,14021,14023],{"href":14013,"rel":14022},[45],"Saleemul Huq, director of the International Centre for Climate Change and Development in Dhaka",".)",[12,14026,14027],{},[57,14028],{"alt":14029,"src":14030},"Climate Finance Targets","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-11-Climate-Finance-Targets.png",[12,14032,14033],{},"Organization for Economic Co-operation and Development. Climate Finance Provided and Mobilized by Developed Countries: Aggregate Trends Updated with 2019 Data\n (OECD, 2021)",[415,14035,14037],{"id":14036},"finance-needed-to-reach-climate-targets","Finance Needed to Reach Climate Targets",[12,14039,14040,14041,14046],{},"Total climate finance has grown steadily to USD 632 billion as measured in the ",[22,14042,14045],{"href":14043,"rel":14044},"https:\u002F\u002Fwww.climatepolicyinitiative.org\u002Fwp-content\u002Fuploads\u002F2021\u002F10\u002FGlobal-Landscape-of-Climate-Finance-2021.pdf",[45],"Global Landscape of Climate Finance 2021 report",". But wait, this sounds like a lot of money right? It certainly is a start, but based on estimates climate finance must increase by at least 590% (USD 4.35 trillion) annually by 2030 to meet climate objectives. So, where will this financing come from?",[12,14048,14049],{},[57,14050],{"alt":59,"src":14051},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-11-GLCF_2021_Figure_1.png",[415,14053,14055],{"id":14054},"democratizing-climate-investment-opportunities","Democratizing Climate Investment Opportunities",[12,14057,14058,14059,14065,14066,14068],{},"Giving everyone access to invest in climate solutions is the only way we can hope of achieving such ambitious climate finance targets. ",[30,14060,14061],{},[22,14062,14064],{"href":9963,"rel":14063},[45],"Citizen Mint’s impact investment platform"," allows investors, financial advisors and wealth managers to access investment opportunities in ",[22,14067,394],{"href":393},", renewable energy, carbon removal and more. With lower minimums and a simple signup process, you can make investments in minutes, which seek to maximize returns while solving global issues.",[415,14070,14072],{"id":14071},"climate-hope-looking-forward","Climate Hope Looking Forward",[12,14074,14075],{},"As we face these global challenges it’s important to also recognize the progress we have made and celebrate the wins. Here are some top reasons to be hopeful that COP 27 will result in positive change for our planet:",[960,14077,14078,14088,14098,14108],{},[536,14079,14080,14083,14084],{},[30,14081,14082],{},"Brazil’s new leader has promised zero deforestation:"," The most recent elections in Brazil in October 2022 were won by Luiz Inacio Lula da Silva, who pledged “zero deforestation” of the Amazon in his victory speech. *",[22,14085,10755],{"href":14086,"rel":14087},"https:\u002F\u002Fapnews.com\u002Farticle\u002Fforests-brazil-deforestation-climate-and-environment-782a100c87cb6cd83c949b2d106cc926",[45],[536,14089,14090,14093,14094],{},[30,14091,14092],{},"We are at a historic energy turning point:"," It’s true that we’re in a global energy crisis triggered by Russia’s invasion of Ukraine. But that could be a “historic turning point” towards a cleaner, more affordable and more secure energy system, according to the International Energy Agency (IEA). *",[22,14095,10755],{"href":14096,"rel":14097},"https:\u002F\u002Fwww.iea.org\u002Freports\u002Fworld-energy-outlook-2022",[45],[536,14099,14100,14103,14104],{},[30,14101,14102],{},"Australia joined the COP26 methane pledge:"," Countries, which signed the pledge agreed to take voluntary action to lower methane emissions by at least 30% from 2020 levels by the year 2030. It has now be signed by 112 nations, with Australia, the world’s 11th largest methane emitter. *",[22,14105,10755],{"href":14106,"rel":14107},"https:\u002F\u002Fearth.org\u002Faustralia-methane-pledge\u002F",[45],[536,14109,14110,14113,14114],{},[30,14111,14112],{},"The U.S. Inflation Reduction Act includes $360B+ in climate investment, tax credits and loans:"," This bill was passed in August 2022 and aims to reduce energy costs and emissions while increasing energy security, and investments in environmental justice and rural communities. *",[22,14115,10755],{"href":14116,"rel":14117},"https:\u002F\u002Fpitchbook.com\u002Fnews\u002Farticles\u002Fclimate-tech-inflation-reduction-act",[45],[12,14119,14120],{},"We all have a role to play in combating climate change. Sign up now to see our open investment opportunities that increase the amount of capital going towards climate change mitigation and adaptation!",[34,14122,698],{"id":459},[12,14124,14125,14126],{},"Sign up to download our white paper on ",[30,14127,14128],{},"Net Zero Investing: 5 Ways to Counter Climate Change.",[12,14130,14131],{},[57,14132],{"alt":14133,"src":14134},"Investments to counter climate change","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Counter-Climate-Change.png",{"title":59,"searchDepth":167,"depth":167,"links":14136},[14137,14138,14139,14140,14141],{"id":14006,"depth":498,"text":14007},{"id":14036,"depth":498,"text":14037},{"id":14054,"depth":498,"text":14055},{"id":14071,"depth":498,"text":14072},{"id":459,"depth":167,"text":698},"2022-11-17","Learn more about COP 27 in Egypt as world leaders discuss climate change funding and ways to address sustainability.","\u002Fimages\u002Fresources\u002Fwe-need-trillions-of-dollars-for-climate-finance-where-will-it-come-from.jpg",{},"\u002Fresources\u002Fwe-need-trillions-of-dollars-for-climate-finance-where-will-it-come-from",{"title":13969,"description":14143},"resources\u002Fwe-need-trillions-of-dollars-for-climate-finance-where-will-it-come-from","owba-xDABSyHgLtjUIRtXBQl-MW_TQDGZ8W5GHV1a8g",{"id":14151,"title":14152,"author":512,"body":14153,"category":176,"date":14259,"description":14260,"extension":179,"image":14261,"imageAlt":181,"meta":14262,"navigation":183,"path":14263,"seo":14264,"stem":14265,"topic":9322,"__hash__":14266},"resources\u002Fresources\u002Ftop-impact-investing-trends-discovered-at-socap.md","Top Impact Investing Trends According to Industry Leaders at SOCAP",{"type":9,"value":14154,"toc":14254},[14155,14158,14169,14172,14175,14180,14186,14194,14197,14200,14203,14206,14209,14220,14222,14228,14234,14237,14240,14243,14247],[34,14156,14152],{"id":14157},"top-impact-investing-trends-according-to-industry-leaders-at-socap",[12,14159,14160,14161,14168],{},"This month the Citizen Mint team attended the SOCAP conference in San Francisco to connect with other leaders at the intersection of money and meaning. “",[22,14162,14165],{"href":14163,"rel":14164},"https:\u002F\u002Fsocapglobal.com\u002F",[45],[30,14166,14167],{},"SOCAP"," Global is the thought leadership platform for the accelerating movement towards a more just and sustainable economy.”",[12,14170,14171],{},"SOCAP CONFERENCE • IMPACT INVESTING • PRIVATE MARKETS",[12,14173,14174],{},"During the conference we heard from social entrepreneurs, investors, foundations, nonprofit leaders, academics, and more. From all of the events and conversations during SOCAP we couldn’t help but notice some key trends emerging at this intersection of money and meaning.",[12,14176,14177],{},[57,14178],{"alt":512,"src":14179},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-Citizen-Mint-Team.jpg",[12,14181,14182,14183],{},"*",[343,14184,14185],{},"Left to right Kelly Rogan VP of Marketing, Josh Hile CEO, Marshall Dunford CTO",[12,14187,14188],{},[30,14189,14190,14191,14193],{},"Top ",[22,14192,1017],{"href":9696}," Trends",[12,14195,14196],{},"Here are the top takeaways we learned from industry leaders that we are excited about in the field of impact investing:",[12,14198,14199],{},"Collaboration Marks the Difference",[12,14201,14202],{},"One of the key differences between traditional finance and impact finance is the ability and willingness to collaborate. According to Luke Sorenson from the Sorenson Impact Center, this advantage will allow impact-focused financial institutions to get ahead as we build strategic partnerships and increase the amount of capital shifting from traditional investments to impact investments that solve social and environmental challenges.",[12,14204,14205],{},"Impact Investing is not Philanthropy",[12,14207,14208],{},"Being at SOCAP reinstated the fact that positive impact and solid financial returns can coexist. We need capital from many different sources to tackle global challenges, which can generate returns to be put back into these solutions and build a virtuous cycle. Many of the speakers during SOCAP were investors who use their money as a force for good while still generating returns.",[12,14210,14211,14212,14219],{},"A great resource we discovered at this conference was the ",[30,14213,14214],{},[22,14215,14218],{"href":14216,"rel":14217},"https:\u002F\u002Fwww.climatefinancetracker.com\u002F",[45],"Climate Finance Tracker by ImpactAlpha",". “The Climate Finance Tracker (CFT) is designed to help climate funders and ‘ecosystem builders’ better collaborate by easily exploring: who is funding what, who to talk to for shared learnings, where are the gaps, and what type of capital would be most effective where.” In this tool you can see how 44% of funding for climate solutions is venture backed while 54% is grant backed. The opportunity to invest in these solutions is massive and will only continue to grow.",[34,14221,698],{"id":459},[12,14223,10952,14224,9158,14226],{},[30,14225,9629],{},[30,14227,1017],{},[12,14229,14230],{},[57,14231],{"alt":14232,"src":14233},"Citizen Mint Guide to Impact Investing booklet - free resource for values-aligned private market investments","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Impact-Investing-Guide.png",[12,14235,14236],{},"More Diverse Leadership Leads to Optimized Solutions",[12,14238,14239],{},"Each panel we saw and company we spoke with had a unique and diverse background, which clearly was part of their strength. As the panel on family offices mentioned, having women and underrepresented individuals involved in the investment decision making process will only enhance the potential for both positive returns and impact. We must be conscious and intentional when selecting our team members, leaders and advisors to invest in optimized solutions that build a better world for everyone.",[12,14241,14242],{},"Did we miss you at SOCAP? We would love to chat about how you see the future for impact investing. Contact us now to get in touch!",[384,14244,14246],{"id":14245},"contact-us-for-any-other-questions","Contact us for any other questions",[34,14248,14250],{"id":14249},"contactcitizenmintcom",[22,14251,14253],{"href":14252},"mailto:contact@citizenmint.com","contact@citizenmint.com",{"title":59,"searchDepth":167,"depth":167,"links":14255},[14256,14257,14258],{"id":14157,"depth":167,"text":14152},{"id":459,"depth":167,"text":698},{"id":14249,"depth":167,"text":14253},"2022-10-31","Discover the top takeaways from the SOCAP event on impact investing trends.","\u002Fimages\u002Fresources\u002Ftop-impact-investing-trends-discovered-at-socap.jpeg",{},"\u002Fresources\u002Ftop-impact-investing-trends-discovered-at-socap",{"title":14152,"description":14260},"resources\u002Ftop-impact-investing-trends-discovered-at-socap","600sZtx0yhMDR-mVSXpIy5wCxNDh3y3ScNG-8NRdzmw",{"id":14268,"title":14269,"author":512,"body":14270,"category":1248,"date":14303,"description":14304,"extension":179,"image":14305,"imageAlt":181,"meta":14306,"navigation":183,"path":935,"seo":14307,"stem":14308,"topic":6534,"__hash__":14309},"resources\u002Fresources\u002Fguide-to-investing-in-real-estate.md","Guide to Investing in Real Estate",{"type":9,"value":14271,"toc":14300},[14272,14276,14279,14284,14289],[34,14273,14275],{"id":14274},"full-guide-to-start-investing-in-real-estate","Full Guide to Start Investing in Real Estate",[12,14277,14278],{},"Do you want to learn how to start investing in real estate? Real estate is one of the most unique asset classes in the world given the distinctness of each property type. It is also considered by many as a prudent investment to be included in a well-diversified portfolio. Download this guide now to learn:",[12,14280,14281],{},[22,14282,1222],{"href":14283},"\u002Fdownloads\u002Fguides\u002Fguide-to-investing-in-real-estate.pdf",[1224,14285],{"className":14286,"src":14287,"title":14288,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Fguide-to-investing-in-real-estate.pdf#navpanes=0&view=FitH","Guide to Investing in Real Estate (PDF)",[960,14290,14291,14294,14297],{},[536,14292,14293],{},"The benefits and drawbacks of real estate investments",[536,14295,14296],{},"The four main types of real estate investments",[536,14298,14299],{},"How real estate investments can have a positive impact on our society and planet",{"title":59,"searchDepth":167,"depth":167,"links":14301},[14302],{"id":14274,"depth":167,"text":14275},"2022-10-25","Explore private real estate investing strategies including multifamily, workforce housing, and commercial properties. Learn about fund structures, returns, and risks.","\u002Fimages\u002Fresources\u002Fguide-to-investing-in-real-estate.png",{},{"title":14269,"description":14304},"resources\u002Fguide-to-investing-in-real-estate","0I86tEoBdP5a0r4IKhVRLN2n-NfrqIsIrgxmiMvthNY",{"id":14311,"title":14312,"author":512,"body":14313,"category":176,"date":14303,"description":14591,"extension":179,"image":14592,"imageAlt":181,"meta":14593,"navigation":183,"path":614,"seo":14594,"stem":14595,"topic":6534,"__hash__":14596},"resources\u002Fresources\u002Fhow-can-you-start-investing-in-real-estate.md","How Can You Start Investing In Real Estate?",{"type":9,"value":14314,"toc":14585},[14315,14318,14321,14324,14329,14332,14335,14369,14373,14377,14380,14382,14384,14390,14392,14394,14400,14402,14404,14410,14412,14414,14420,14422,14428,14432,14437,14442,14450,14458,14465,14473,14481,14486,14494,14502,14510,14518,14523,14526,14553,14559,14562,14569,14572,14575,14581],[34,14316,14312],{"id":14317},"how-can-you-start-investing-in-real-estate",[12,14319,14320],{},"Real estate is one of the most unique assets classes in the world given the distinctness of each property type. It is also considered by many as a prudent investment to be included in a well-diversified portfolio.",[12,14322,14323],{},"REAL ESTATE • IMPACT INVESTING • PRIVATE MARKETS",[12,14325,14326],{},[30,14327,14328],{},"Real Estate Investment Types:",[12,14330,14331],{},"The four main types of real estate are land, residential, commercial and industrial with numerous sub-categories for each. In this paper we will explore in-depth the different types of real estate categories. We will also look at both the benefits and drawbacks of real estate investing.",[12,14333,14334],{},"Real estate is defined by the following characteristics:",[960,14336,14337,14345,14353,14361],{},[536,14338,14339,14344],{},[343,14340,14341,569],{},[30,14342,14343],{},"Distinctive"," Properties have unique characteristics and no two properties are the same.",[536,14346,14347,14352],{},[343,14348,14349],{},[30,14350,14351],{},"Location & Use:"," Real estate values are highly influenced by their location and ultimate use.",[536,14354,14355,14360],{},[343,14356,14357,569],{},[30,14358,14359],{},"Scarce"," Land is a scarce resource and the scarcer the available land in a geographic region increases the value of that land.",[536,14362,14363,14368],{},[343,14364,14365,569],{},[30,14366,14367],{},"Permanent"," Real estate is a physical, permanent asset.",[12,14370,14371],{},[57,14372],{"alt":59,"src":13595},[12,14374,14375],{},[30,14376,10865],{},[12,14378,14379],{},"There are numerous types of real estate assets with each asset having defining characteristics that make it valuable.",[12,14381,10874],{},[12,14383,10877],{},[12,14385,14386,14389],{},[30,14387,14388],{},"Examples of land real estate:","  Undeveloped raw land, farms & ranches, timberland, orchards, recreational parcels (camping, hunting, fishing), lots in subdivision",[12,14391,10883],{},[12,14393,10886],{},[12,14395,14396,14399],{},[30,14397,14398],{},"Examples of residential real estate:","   Single family homes, condominiums, town homes, mobile homes",[12,14401,10892],{},[12,14403,10895],{},[12,14405,14406,14409],{},[30,14407,14408],{},"Examples of commercial real estate",": Multi-family apartment complexes, office space (buildings, office parks, medical centers), retail, self-storage, parking lots & garages",[12,14411,10901],{},[12,14413,10904],{},[12,14415,14416,14419],{},[30,14417,14418],{},"Examples of industrial real estate:"," manufacturing, refrigerated storage, storage warehouses & distribution centers, data server farms",[415,14421,9623],{"id":9622},[12,14423,9626,14424,9158,14426],{},[30,14425,9629],{},[30,14427,9632],{},[12,14429,14430],{},[57,14431],{"alt":59,"src":9637},[12,14433,14434],{},[30,14435,14436],{},"Benefits of Real Estate Investing",[12,14438,14182,14439],{},[343,14440,14441],{},"See additional benefits and drawbacks in downloadable white paper",[12,14443,14444,14449],{},[343,14445,14446,569],{},[30,14447,14448],{},"Income"," Real estate can provide consistent income to underlying investors through the generation of cash flow from these properties.",[12,14451,14452,14457],{},[343,14453,14454,569],{},[30,14455,14456],{},"Capital Appreciation"," Real estate can appreciate in value as a result of local market appreciation, increased demand of the real estate asset, value-add investments, or the development of land.",[12,14459,14460,14464],{},[343,14461,14462],{},[30,14463,11672],{}," While real estate values are likely to be impacted by broader macroeconomic factors, in general, real estate has a low correlation to most major asset classes. This can lower total portfolio volatility over time.",[12,14466,14467,14472],{},[343,14468,14469,569],{},[30,14470,14471],{},"Inflation Hedge"," In general, inflation is a result of both GDP growth and the subsequent increased demand for real estate. Real estate can pass inflationary pressures to tenants through increasing rents.",[12,14474,14475,14480],{},[30,14476,14477,569],{},[343,14478,14479],{},"Tax Benefits"," Real estate investors can take advantage of the depreciation tax benefits of real estate, reducing taxable income from other income sources.",[12,14482,14483],{},[30,14484,14485],{},"Drawbacks of Real Estate Investing",[12,14487,14488,14493],{},[343,14489,14490],{},[30,14491,14492],{},"Illiquid",": Real estate is illiquid which means that can take considerable time, effort and expense to sell an asset.",[12,14495,14496,14501],{},[343,14497,14498],{},[30,14499,14500],{},"Influenced by Geographic Factors:"," Real estate is highly correlated to localized geographic factors including population growth, job growth, and increased supply of similar properties being built.",[12,14503,14504,14509],{},[343,14505,14506,569],{},[30,14507,14508],{},"Large Initial Outlays"," Real estate takes significant capital to purchase or build, necessitating significant capital at the front end of the investment.",[12,14511,14512,14517],{},[343,14513,14514,569],{},[30,14515,14516],{},"Can Require Active Management & Expertise"," In many cases, real estate will need to be actively managed which may take specialized expertise.",[12,14519,14520,14522],{},[22,14521,1017],{"href":9696}," in Real Estate",[12,14524,14525],{},"There are numerous ways to invest in real estate that produces a positive impact on society or the environment. These include:",[960,14527,14528,14535,14541,14547],{},[536,14529,14530,14534],{},[30,14531,14532,569],{},[22,14533,9214],{"href":393}," Underinvested in for decades despite strong growth in demand, we believe that quality affordable housing is both a prime investment opportunity as well as a way to help alleviate the US housing shortage. Our focus at Citizen Mint is finding those investments in the private markets that fund affordable housing – either through debt or equity – that are most likely to deliver a reasonable return on investment as well as quality housing for families.",[536,14536,14537,14540],{},[30,14538,14539],{},"Green Building:"," Buildings operations and construction produce 39% of all greenhouse gas emissions (source: New Buildings Institute). As such, it is imperative to invest in buildings that are highly efficient and sustainable.",[536,14542,14543,14546],{},[30,14544,14545],{},"Regenerative Agriculture:"," Regenerative agriculture is the process of managing farm land in a way that restores the soil for long-term use.",[536,14548,14549,14552],{},[30,14550,14551],{},"Timberland",": If taken care of properly, timberland is a highly renewable resource given the regenerative growth of timber over time. Further, through new technology such as cross-laminated timber there is the ability to replace the carbon intensive materials in new buildings.",[12,14554,14555],{},[343,14556,14557],{},[30,14558,2260],{},[12,14560,14561],{},"As discussed in this blog, real estate properties can be highly differentiated from each other and provide a plethora of interesting investment opportunities including those that can have real and measurable positive impacts on society and the environment.  To read more about the underlying property types and impact opportunities in real estate, download our free white paper.",[12,14563,14564],{},[343,14565,14566],{},[30,14567,14568],{},"This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice.",[12,14570,14571],{},"There are numerous ways to invest in real estate that produces a positive impact on society or the environment.",[34,14573,9623],{"id":14574},"get-the-guide-to-real-estate-investing-1",[12,14576,9626,14577,9158,14579],{},[30,14578,9629],{},[30,14580,9632],{},[12,14582,14583],{},[57,14584],{"alt":59,"src":9637},{"title":59,"searchDepth":167,"depth":167,"links":14586},[14587,14590],{"id":14317,"depth":167,"text":14312,"children":14588},[14589],{"id":9622,"depth":498,"text":9623},{"id":14574,"depth":167,"text":9623},"Learn the different types of investments in real estate and how to get started.","\u002Fimages\u002Fresources\u002Fhow-can-you-start-investing-in-real-estate.jpg",{},{"title":14312,"description":14591},"resources\u002Fhow-can-you-start-investing-in-real-estate","FwkP9vGC65efAImHWZ1zVLElZroTdT0DLMa8J-ZTtYc",{"id":14598,"title":14599,"author":512,"body":14600,"category":176,"date":14784,"description":14785,"extension":179,"image":14786,"imageAlt":181,"meta":14787,"navigation":183,"path":3989,"seo":14788,"stem":14789,"topic":6534,"__hash__":14790},"resources\u002Fresources\u002Fwhat-is-the-capital-stack-in-real-estate-investing.md","What is the Real Estate Capital Stack?",{"type":9,"value":14601,"toc":14780},[14602,14606,14612,14614,14617,14631,14634,14637,14642,14645,14648,14651,14654,14657,14660,14663,14669,14672,14675,14677,14683,14689,14697,14706,14712,14717,14723,14729,14735,14741,14745,14751,14757,14761,14764,14766,14776],[34,14603,14605],{"id":14604},"what-is-the-capital-stack-in-real-estate-investments","What is the Capital Stack In Real Estate Investments?",[12,14607,14608,14609,14611],{},"The capital stack is an important concept to understand for anyone looking to invest in ",[22,14610,615],{"href":935},". In the simplest terms, it encompasses the total value of capital necessary for a project and what the expected return and priority of repayment is for that capital.",[12,14613,14323],{},[12,14615,14616],{},"There are two main parts of any capital stack:",[960,14618,14619,14628],{},[536,14620,14621,14622,14627],{},"Debt: A loan ",[22,14623,14626],{"href":14624,"rel":14625},"https:\u002F\u002Fwww.investopedia.com\u002Fterms\u002Fc\u002Fcollateralization.asp",[45],"collateralized"," by an asset or assets of an equity owner",[536,14629,14630],{},"Equity: An ownership interest in an asset",[12,14632,14633],{},"As expected, the higher risk capital such as equity will receive its capital last but is compensated for this risk with the highest return. Alternatively, the lowest risk part of the stack, debt, will receive its capital back first but has the lowest return.",[12,14635,14636],{},"Each of these parts can be broken down further to common equity, preferred equity, mezzanine debt and senior debt. Let’s dive into each of these further:",[12,14638,14639],{},[57,14640],{"alt":59,"src":14641},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-CM_CapitalStackGraphicV3.png",[12,14643,14644],{},"The Capital Stack",[12,14646,14647],{},"Senior Debt",[12,14649,14650],{},"The senior debt holder has priority to receive capital back, including principal and interest, before any other parties are paid. This is the least risky position of the capital stack given the ability to take possession of a property if a borrower fails to pay their mortgage. In general, senior debt usually comprises 65-75% of the capital stack.",[12,14652,14653],{},"Mezzanine Debt",[12,14655,14656],{},"This is second lien debt on the property, which is debt that will be paid after the principal and interest of the senior debt holder has been paid in full.  This occurs in the case of a sale, either by choice or through bankruptcy. Given its priority after the senior debt, and ultimately higher risk, its rate of return is higher than senior debt.",[12,14658,14659],{},"Preferred Equity",[12,14661,14662],{},"While structured slightly differently than mezzanine debt, preferred equity is functionally the same as mezzanine debt in that it pays a similar interest rate and is usually in second lien position.",[12,14664,14665,14666,14668],{},"In general, preferred equity or mezzanine debt comprises 10-20% of the capital stack. Developers or sponsors will utilize preferred equity or mezzanine debt to enhance the ",[22,14667,3639],{"href":3792}," of a project, given its ultimate cost is usually lower than that of common equity. Note that it is rare to have both mezzanine debt and preferred equity in the same capital stack, due to borrowers preferring the more streamlined deal structure that preferred equity allows for.",[12,14670,14671],{},"Common Equity",[12,14673,14674],{},"Common equity is comprised of contributions from both the sponsors or developers and their corresponding investment partners. It is the riskiest but potentially most profitable portion of the capital stack. Common equity holders are paid last, but get to participate in the ongoing cash flow distributions of the property along with the potential upside after the all-loan servicing obligations have been paid.",[12,14676,14436],{},[12,14678,14679,14449],{},[343,14680,14681,569],{},[30,14682,14448],{},[12,14684,14685,14457],{},[343,14686,14687,569],{},[30,14688,14456],{},[12,14690,14691,14464],{},[343,14692,14693],{},[30,14694,14695,569],{},[22,14696,2228],{"href":1027},[12,14698,14699,14472],{},[343,14700,14701,569],{},[30,14702,14703,14705],{},[22,14704,13787],{"href":926}," Hedge",[12,14707,14708,14480],{},[30,14709,14710,569],{},[343,14711,14479],{},[12,14713,14714],{},[30,14715,14716],{},"Drawbacks of Real Estate Investments",[12,14718,14719,14493],{},[343,14720,14721],{},[30,14722,14492],{},[12,14724,14725,14501],{},[343,14726,14727],{},[30,14728,14500],{},[12,14730,14731,14509],{},[343,14732,14733,569],{},[30,14734,14508],{},[12,14736,14737,14517],{},[343,14738,14739,569],{},[30,14740,14516],{},[12,14742,14743],{},[30,14744,2260],{},[12,14746,14747,14748,14750],{},"In any ",[22,14749,615],{"href":614}," deal, there are many factors to consider when evaluating potential risk and returns. It is also the case that the structure of the capital stack will vary from deal to deal. As such, it is important to understand the risk of the opportunity and if the expected return compensates the investor for that risk.",[12,14752,14753,14754,263],{},"Learn about ",[22,14755,14756],{"href":3403},"current real estate investment opportunities",[12,14758,14759],{},[30,14760,14568],{},[12,14762,14763],{},"The Capital Stack encompasses the total value of capital necessary for a project and what the expected return and priority of repayment is for that capital.",[34,14765,698],{"id":459},[12,14767,10952,14768,9158,14770],{},[30,14769,9629],{},[30,14771,14772,14773],{},"Investing in ",[22,14774,14775],{"href":938},"Real Assets",[12,14777,14778],{},[57,14779],{"alt":59,"src":10962},{"title":59,"searchDepth":167,"depth":167,"links":14781},[14782,14783],{"id":14604,"depth":167,"text":14605},{"id":459,"depth":167,"text":698},"2022-10-14","Learn about the capital stack in real estate investing - what it is, how it works, and why it matters for investors. Explore the layers of financing and risk.","\u002Fimages\u002Fresources\u002Fwhat-is-the-capital-stack-in-real-estate-investing.jpg",{},{"title":14599,"description":14785},"resources\u002Fwhat-is-the-capital-stack-in-real-estate-investing","sQea7CZQ6pd4w3_jnsN2YYcdM--CdpWjg2Y1cZQLj2g",{"id":14792,"title":14793,"author":512,"body":14794,"category":176,"date":14987,"description":14988,"extension":179,"image":14989,"imageAlt":181,"meta":14990,"navigation":183,"path":12548,"seo":14991,"stem":14992,"topic":939,"__hash__":14993},"resources\u002Fresources\u002Fhow-to-diversify-your-portfolio-with-real-asset-investments.md","How To Diversify Your Portfolio With Real Asset Investments",{"type":9,"value":14795,"toc":14983},[14796,14799,14805,14808,14814,14817,14842,14845,14851,14854,14856,14858,14870,14876,14879,14882,14885,14907,14915,14920,14922,14925,14930,14936,14942,14945,14951,14957,14961,14964,14968,14971,14973,14979],[34,14797,14793],{"id":14798},"how-to-diversify-your-portfolio-with-real-asset-investments",[12,14800,14801,14804],{},[22,14802,14803],{"href":938},"Real assets"," are anything that is a tangible resource with an intrinsic value tied to its use. This could include such items as real estate, infrastructure, industrial and precious metals, agricultural goods and other natural resources.",[12,14806,14807],{},"REAL ASSETS • IMPACT INVESTING • PRIVATE MARKETS",[12,14809,14810,14811,14813],{},"These assets can provide significant value to investors’ portfolios through increased ",[22,14812,1028],{"href":1027}," and lower risk given their underlying characteristics.",[12,14815,14816],{},"Benefits of an allocation to real assets in a portfolio include:",[960,14818,14819,14825,14831,14837],{},[536,14820,14821,14824],{},[30,14822,14823],{},"Inflation protection:"," Most real assets increase in market value and\u002For their earnings rise (either contractually or through regulatory allowance) as inflation increases.",[536,14826,14827,14830],{},[30,14828,14829],{},"Income:"," In many cases, real assets produce stable and strong cash flows which usually results in above average distributions (income) to investors.",[536,14832,14833,14836],{},[30,14834,14835],{},"Capital Appreciation:"," Both consistent income and growing cash flows can provide strong capital appreciation over time. During periods of higher inflation, capital appreciation is likely to exceed inflation providing strong benefits to a well-diversified portfolio.",[536,14838,14839,14841],{},[30,14840,11672],{}," Given steady cash flows, some real assets can perform well during challenging market environments and are less correlated to broader equity markets.",[12,14843,14844],{},"Dynamic Allocation can exploit a range of potential benefits in real assets.",[12,14846,14847],{},[57,14848],{"alt":14849,"src":14850},"Benefits of Real Asset Investments","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-Benefits-of-Real-Assets.png",[12,14852,14853],{},"Asset Types",[12,14855,3584],{},[12,14857,11802],{},[960,14859,14860,14862,14864,14866,14868],{},[536,14861,13648],{},[536,14863,13651],{},[536,14865,13654],{},[536,14867,13657],{},[536,14869,13660],{},[12,14871,14872,14875],{},[30,14873,14874],{},"Sustainability:"," Citizen Mint believes investing in renewable energy infrastructure is a multi-decade opportunity. The majority of these investments will be in wind and solar projects which will be the greatest source of new power generation as noted in the chart below.",[12,14877,14878],{},"While previously expensive to build, the price for wind-generated energy has dropped 70% per megawatt hour (MWh) and 90% for solar over roughly the last decade, reducing the need for government subsidies while also accelerating plans of large electric utilities to switch from fossil fuels (oil and coal) to renewables.",[12,14880,14881],{},"Real Estate",[12,14883,14884],{},"Real estate is one of the most unique assets classes in the world given the distinctness of each property type. The four main property types for real estate include land, residential, commercial and industrial with numerous sub-categories for each. Characteristics of real estate properties include:",[960,14886,14887,14892,14896,14902],{},[536,14888,14889,14344],{},[343,14890,14891],{},"Distinctive:",[536,14893,14894,14352],{},[343,14895,14351],{},[536,14897,14898,14901],{},[343,14899,14900],{},"Scare:"," Land is a scarce resource.",[536,14903,14904,14368],{},[343,14905,14906],{},"Permanent:",[12,14908,14909,9158,14912],{},[30,14910,14911],{},"Examples of real estate include",[30,14913,14914],{},"land, residential, commercial and industrial.",[12,14916,14917],{},[57,14918],{"alt":59,"src":14919},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-Real-Estate-Investments.png",[12,14921,13613],{},[12,14923,14924],{},"Commodities are raw materials and agriculture products that are traded globally based on set prices given supply versus demand of the product.",[12,14926,14927],{},[30,14928,14929],{},"The six main categories for commodities are as follows:",[12,14931,14932],{},[57,14933],{"alt":14934,"src":14935},"Investments in Commodities","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-Commodities.png",[12,14937,14938,14941],{},[30,14939,14940],{},"Sustainability",": Commodities will be a necessary resource to reduce our carbon usage over time. As an example, electric vehicles (EVs) take significant copper, nickel, graphite and other metals to power our new transportation systems such as electric cars and buses.",[12,14943,14944],{},"Natural Resources",[12,14946,14947,14950],{},[30,14948,14949],{},"Natural Resources:"," Investments in natural resources encompasses opportunities that in most cases are land or water related. Ultimately, the value of natural resources is less standardized than commodities and is more dependent on how they are processed and marketed.",[12,14952,14953,14956],{},[30,14954,14955],{},"Examples of natural resources",": timberland, farmland & grassland, fisheries.",[12,14958,14959],{},[30,14960,2260],{},[12,14962,14963],{},"We believe that the best opportunities are those that create positive societal or environmental outcomes as well as financial return. To read more about each of these opportunities as well as the benefits and drawbacks, download our free white paper.",[12,14965,14966],{},[30,14967,14568],{},[12,14969,14970],{},"Citizen Mint believes real assets can be a great tool for investors to increase portfolio diversification, reduce risk and add growth opportunities to their portfolios.",[34,14972,698],{"id":459},[12,14974,10952,14975,9158,14977],{},[30,14976,9629],{},[30,14978,10957],{},[12,14980,14981],{},[57,14982],{"alt":59,"src":10962},{"title":59,"searchDepth":167,"depth":167,"links":14984},[14985,14986],{"id":14798,"depth":167,"text":14793},{"id":459,"depth":167,"text":698},"2022-10-10","These assets can provide significant value to investors’ portfolios through increased diversification and lower risk given their underlying characteristics.","\u002Fimages\u002Fresources\u002Fhow-to-diversify-your-portfolio-with-real-asset-investments.jpg",{},{"title":14793,"description":14988},"resources\u002Fhow-to-diversify-your-portfolio-with-real-asset-investments","-_IJPwSlDLaNNkKBKbon9D8NrzG29OkMB0zeCtwIoRE",{"id":14995,"title":14996,"author":512,"body":14997,"category":176,"date":15091,"description":15092,"extension":179,"image":15093,"imageAlt":181,"meta":15094,"navigation":183,"path":15095,"seo":15096,"stem":15097,"topic":9322,"__hash__":15098},"resources\u002Fresources\u002Fwhat-is-a-community-development-loan.md","What is a Community Development Loan?",{"type":9,"value":14998,"toc":15087},[14999,15002,15005,15008,15011,15031,15034,15037,15042,15045,15051,15056,15061,15066,15071,15074,15076,15082],[34,15000,14996],{"id":15001},"what-is-a-community-development-loan",[12,15003,15004],{},"Community development financial institutions (CDFIs) are lenders that seek to provide fair and responsible financing to people and communities that traditional finance usually does not reach or deems too risky.",[12,15006,15007],{},"COMMUNITY DEVELOPMENT • IMPACT INVESTING • AFFORDABLE HOUSING",[12,15009,15010],{},"They specialize in lending to individuals, organizations and businesses in under resourced communities to support community development activities. This could include:",[960,15012,15013,15019,15022,15025,15028],{},[536,15014,15015,15016,15018],{},"Support for affordable ",[22,15017,13811],{"href":371}," housing for low or moderate-income individuals",[536,15020,15021],{},"Support for community facilities",[536,15023,15024],{},"Economic development through financing small business or farms",[536,15026,15027],{},"Suppling underserved communities with traditional banking services like saving accounts and personal loans",[536,15029,15030],{},"Financial assistance for education",[12,15032,15033],{},"Ultimately, the benefits of these loans are multifaceted and highly impactful as they create new small businesses, living wage jobs, development of schools, grocery stores, health care centers, access to homeownership, and more.",[12,15035,15036],{},"Further, as loans are repaid, CDFIs will recycle the money back into the community to new borrowers, providing a multiplier effect on local economies.",[12,15038,15039],{},[30,15040,15041],{},"History & Current Impact of CDFIs",[12,15043,15044],{},"CDFIs took shape around 1970 when the government started programs to more formally address both poverty and racial discrimination. With early success from these programs, CDFIs started to look to private funding sources for capital.",[12,15046,15047,15048,15050],{},"With additional government support in the 1990s and a strong record of success, the CDFI industry has expanded dramatically to over 1,300 certified CDFIs nationwide managing $222 billion in assets for the creation of jobs, ",[22,15049,394],{"href":393},", financial health and greater opportunities for individuals. These impact investment are a great way for investors to directly create positive change to a specific community, city or region.",[12,15052,15053],{},[30,15054,15055],{},"CDFIs have created a vital funding source for individuals that are overlooked by traditional banking institutions.",[12,15057,15058],{},[57,15059],{"alt":59,"src":15060},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-CDFI-2.png",[12,15062,15063],{},[57,15064],{"alt":59,"src":15065},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-CDFI-1.png",[12,15067,15068],{},[343,15069,15070],{},"Source: OFN Annual Member Survey, FY 2020",[12,15072,15073],{},"Citizen Mint believes CDFIs play a critical role in creating economic growth and opportunity in many of the nations most underserved and distressed communities.",[34,15075,698],{"id":459},[12,15077,15078,15079],{},"Sign up to download our guide on ",[30,15080,15081],{},"Affordable Housing Investments",[12,15083,15084],{},[57,15085],{"alt":59,"src":15086},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Affordable-Housing.png",{"title":59,"searchDepth":167,"depth":167,"links":15088},[15089,15090],{"id":15001,"depth":167,"text":14996},{"id":459,"depth":167,"text":698},"2022-10-04","Community Development Loans specialize in lending to individuals, organizations and businesses in under resourced communities to support community development activities.","\u002Fimages\u002Fresources\u002Fwhat-is-a-community-development-loan.jpg",{},"\u002Fresources\u002Fwhat-is-a-community-development-loan",{"title":14996,"description":15092},"resources\u002Fwhat-is-a-community-development-loan","u1nHy3UM6oQM3jsjVCfZwW_oHa-HpUSfDQxx3SKeTOw",{"id":15100,"title":15101,"author":512,"body":15102,"category":1248,"date":15139,"description":15140,"extension":179,"image":15141,"imageAlt":181,"meta":15142,"navigation":183,"path":938,"seo":15143,"stem":15144,"topic":939,"__hash__":15145},"resources\u002Fresources\u002Fguide-to-investing-in-real-assets.md","Guide to Investing in Real Assets",{"type":9,"value":15103,"toc":15137},[15104,15107,15112,15117,15123,15126],[12,15105,15106],{},"Real assets are tangible resources with intrinsic value tied to their use: real estate, infrastructure, industrial and precious metals, agricultural goods, and other natural resources.",[12,15108,15109],{},[22,15110,1222],{"href":15111},"\u002Fdownloads\u002Fguides\u002Fguide-to-investing-in-real-assets.pdf",[1224,15113],{"className":15114,"src":15115,"title":15116,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Fguide-to-investing-in-real-assets.pdf#navpanes=0&view=FitH","Guide to Investing in Real Assets (PDF)",[12,15118,15119,15120,15122],{},"These assets can provide significant value to client portfolios through increased ",[22,15121,1028],{"href":1027}," and lower correlation to public markets.",[12,15124,15125],{},"This guide covers:",[960,15127,15128,15131,15134],{},[536,15129,15130],{},"What qualifies as a real asset and why it matters for portfolio construction",[536,15132,15133],{},"How real assets behave across market cycles",[536,15135,15136],{},"Categories of real-asset investments available through Citizen Mint",{"title":59,"searchDepth":167,"depth":167,"links":15138},[],"2022-10-03","Real assets can provide significant value to investors portfolios through increased diversification and lower risk given their underlying characteristics.","\u002Fimages\u002Fresources\u002Fguide-to-investing-in-real-assets.webp",{},{"title":15101,"description":15140},"resources\u002Fguide-to-investing-in-real-assets","SYw5U-byzlC6rhmptwF9NCUoNu-gmezEz3ve6h46ImI",{"id":1986,"title":1987,"author":512,"body":15147,"category":176,"date":2192,"description":2193,"extension":179,"image":2194,"imageAlt":181,"meta":15292,"navigation":183,"path":897,"seo":15293,"stem":2197,"topic":187,"__hash__":2198},{"type":9,"value":15148,"toc":15281},[15149,15151,15153,15155,15157,15159,15171,15173,15175,15177,15179,15181,15183,15185,15189,15193,15195,15197,15205,15207,15209,15211,15213,15215,15225,15227,15229,15231,15233,15239,15241,15249,15251,15257,15259,15261,15263,15269,15271,15273,15277],[34,15150,1993],{"id":1992},[12,15152,1996],{},[12,15154,1999],{},[34,15156,2003],{"id":2002},[12,15158,2006],{},[533,15160,15161,15167],{},[536,15162,15163,2014,15165,2018],{},[30,15164,2013],{},[22,15166,2017],{"href":240},[536,15168,15169,2024],{},[30,15170,2023],{},[12,15172,2027],{},[34,15174,2031],{"id":2030},[12,15176,2034],{},[12,15178,2037],{},[12,15180,2040],{},[12,15182,2043],{},[34,15184,2047],{"id":2046},[12,15186,15187],{},[30,15188,2052],{},[960,15190,15191],{},[536,15192,2057],{},[1667,15194],{},[1667,15196],{},[960,15198,15199,15201,15203],{},[536,15200,2066],{},[536,15202,2069],{},[536,15204,2072],{},[34,15206,2076],{"id":2075},[12,15208,2079],{},[34,15210,2083],{"id":2082},[12,15212,2086],{},[12,15214,2089],{},[533,15216,15217,15221],{},[536,15218,15219,2097],{},[30,15220,2096],{},[536,15222,15223,2103],{},[30,15224,2102],{},[12,15226,2106],{},[34,15228,2110],{"id":2109},[12,15230,2113],{},[12,15232,2116],{},[960,15234,15235,15237],{},[536,15236,2121],{},[536,15238,2124],{},[12,15240,2127],{},[960,15242,15243,15247],{},[536,15244,2132,15245,2135],{},[22,15246,1028],{"href":1027},[536,15248,2138],{},[12,15250,2141],{},[960,15252,15253,15255],{},[536,15254,2146],{},[536,15256,2149],{},[34,15258,2153],{"id":2152},[12,15260,2156],{},[12,15262,2159],{},[960,15264,15265,15267],{},[536,15266,2164],{},[536,15268,2167],{},[12,15270,2170],{},[34,15272,698],{"id":459},[12,15274,701,15275,705],{},[30,15276,704],{},[12,15278,15279],{},[57,15280],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":15282},[15283,15284,15285,15286,15287,15288,15289,15290,15291],{"id":1992,"depth":167,"text":1993},{"id":2002,"depth":167,"text":2003},{"id":2030,"depth":167,"text":2031},{"id":2046,"depth":167,"text":2047},{"id":2075,"depth":167,"text":2076},{"id":2082,"depth":167,"text":2083},{"id":2109,"depth":167,"text":2110},{"id":2152,"depth":167,"text":2153},{"id":459,"depth":167,"text":698},{},{"title":1987,"description":2193},{"id":15295,"title":15296,"author":512,"body":15297,"category":1248,"date":15344,"description":15345,"extension":179,"image":15346,"imageAlt":181,"meta":15347,"navigation":183,"path":9213,"seo":15348,"stem":15349,"topic":6534,"__hash__":15350},"resources\u002Fresources\u002Faffordable-housing-investment-guide.md","Affordable Housing Investment Guide",{"type":9,"value":15298,"toc":15340},[15299,15301,15304,15310,15315,15320,15323],[34,15300,10528],{"id":10527},[34,15302,15296],{"id":15303},"affordable-housing-investment-guide",[12,15305,15306,15307,15309],{},"Underinvested in for decades despite strong growth in demand, we believe that quality ",[22,15308,394],{"href":393}," is both a prime investment opportunity and a way to help alleviate the US housing shortage.",[12,15311,15312],{},[22,15313,1222],{"href":15314},"\u002Fdownloads\u002Fguides\u002Faffordable-housing-investment-guide.pdf",[1224,15316],{"className":15317,"src":15318,"title":15319,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Faffordable-housing-investment-guide.pdf#navpanes=0&view=FitH","Affordable Housing Investment Guide (PDF)",[12,15321,15322],{},"Our focus at Citizen Mint is finding those investments in the private markets that fund affordable housing – either through debt or equity – that are most likely to deliver a reasonable return on investment as well as quality housing for individuals and families. In this guide you will learn:",[960,15324,15325,15328,15331,15334,15337],{},[536,15326,15327],{},"Why affordable housing is in high demand but low supply",[536,15329,15330],{},"How investments in affordable housing can produce returns",[536,15332,15333],{},"Why Citizen Mint focuses on private markets",[536,15335,15336],{},"The impact on local communities when affordable homes are built",[536,15338,15339],{},"How you can become an impact investor",{"title":59,"searchDepth":167,"depth":167,"links":15341},[15342,15343],{"id":10527,"depth":167,"text":10528},{"id":15303,"depth":167,"text":15296},"2022-09-09","Learn how affordable and workforce housing investments can deliver competitive returns while addressing the critical housing supply gap in communities across the country.","\u002Fimages\u002Fresources\u002Faffordable-housing-investment-guide.jpg",{},{"title":15296,"description":15345},"resources\u002Faffordable-housing-investment-guide","5xUYUg4o9lIlTWmmpRgtD7Z11-EBs_7j32mkowZmBWA",{"id":15352,"title":15353,"author":512,"body":15354,"category":176,"date":15344,"description":15416,"extension":179,"image":15417,"imageAlt":181,"meta":15418,"navigation":183,"path":4762,"seo":15419,"stem":15420,"topic":2330,"__hash__":15421},"resources\u002Fresources\u002Fhow-does-citizen-mint-select-investments.md","How Does Citizen Mint Select Investments?",{"type":9,"value":15355,"toc":15412},[15356,15359,15362,15365,15368,15371,15391,15394,15399,15402,15404,15408],[34,15357,15353],{"id":15358},"how-does-citizen-mint-select-investments",[12,15360,15361],{},"The universe for impact opportunities is enormous and growing dramatically as people seek to solve complex global challenges through the use of private market capital.",[12,15363,15364],{},"IMPACT INVESTMENTS • DUE DILIGENCE",[12,15366,15367],{},"At Citizen Mint we take pride in our ability to wade through this universe and select the investments we are convinced will make a positive difference in the world while providing a competitive risk-adjusted return.",[12,15369,15370],{},"The strength of our platform is grounded on three items:",[533,15372,15373,15379,15385],{},[536,15374,15375,15378],{},[30,15376,15377],{},"Objectivity"," – We are never compensated for the investments we recommend.",[536,15380,15381,15384],{},[30,15382,15383],{},"Expertise"," – We have decades of experience managing multi-billion dollar portfolios and have expertise in evaluating impact opportunities in the private markets.",[536,15386,15387,15390],{},[30,15388,15389],{},"Due Diligence"," – We utilize a consistent and rigorous five-step process to evaluate all opportunities.",[12,15392,15393],{},"A synopsis of our due diligence and selection process:",[12,15395,15396],{},[57,15397],{"alt":59,"src":15398},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Due-Diligence.png",[12,15400,15401],{},"We take pride in our ability to wade through this universe and select the investments we are convinced will make a positive difference in the world while providing a competitive risk-adjusted return.",[34,15403,698],{"id":459},[12,15405,701,15406,705],{},[30,15407,704],{},[12,15409,15410],{},[57,15411],{"alt":59,"src":710},{"title":59,"searchDepth":167,"depth":167,"links":15413},[15414,15415],{"id":15358,"depth":167,"text":15353},{"id":459,"depth":167,"text":698},"At Citizen Mint we select the investments we are convinced will make a positive difference in the world while providing a competitive risk-adjusted return.","\u002Fimages\u002Fresources\u002Fhow-does-citizen-mint-select-investments.png",{},{"title":15353,"description":15416},"resources\u002Fhow-does-citizen-mint-select-investments","UW1F7OxKEufR5-izJpBcXc_vScpwwY3sTVARRqz8QJU",{"id":15423,"title":15424,"author":512,"body":15425,"category":176,"date":15344,"description":15585,"extension":179,"image":15586,"imageAlt":181,"meta":15587,"navigation":183,"path":393,"seo":15588,"stem":15589,"topic":6534,"__hash__":15590},"resources\u002Fresources\u002Finvesting-in-affordable-housing-for-impact-and-return.md","Investing in Affordable Housing for Impact and Return",{"type":9,"value":15426,"toc":15580},[15427,15430,15433,15436,15439,15442,15445,15451,15463,15466,15471,15475,15478,15481,15484,15487,15490,15493,15496,15499,15502,15504,15507,15510,15513,15516,15554,15560,15564,15567,15570,15572,15576],[34,15428,15424],{"id":15429},"investing-in-affordable-housing-for-impact-and-return",[12,15431,15432],{},"Affordable housing in many areas of the US is in high demand while supply has remained stubbornly low.",[12,15434,15435],{},"AFFORDABLE HOUSING • IMPACT INVESTING",[12,15437,15438],{},"This is slowly starting to change as the private market has more incentive to build affordable housing due to changes in zoning, more subsidies, and financial and political support from companies and local governments who want all sorts of workers to be able to live locally, including teachers, police, firefighters, retail\u002Frestaurant\u002Fhotel staff.",[12,15440,15441],{},"There is a big difference between quality affordable housing that is well-planned, well-financed, and well-built and “slumlord” type housing that benefits only the owner. Quality affordable housing is typically built near public transportation, schools, and parks which can play a critical role in making communities more secure and vibrant, both socially and economically.",[12,15443,15444],{},"Underinvested in for decades despite strong growth in demand, we believe that quality affordable housing is both a prime investment opportunity and a way to help alleviate the US housing shortage. Our focus at Citizen Mint is finding those investments in the private markets that fund affordable housing – either through debt or equity – that are most likely to deliver a reasonable return on investment as well as quality housing for individuals and families.",[12,15446,15447],{},[57,15448],{"alt":15449,"src":15450},"Affordable housing","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-isaac-quesada-s34TlUTPIf4-unsplash-scaled.jpg",[12,15452,15453,15454,15456,15458,15459,15462],{},"For Perspective: ",[1667,15455],{},[1667,15457],{},"\nSome 44 million U.S. households are renters, and the vast majority of these – 80% — have household income of between $36,000 and $60,000 a year. (Source: National Low Income Housing Coalition ",[1389,15460,15461],{},"NLIHC",")",[12,15464,15465],{},"About 25% of U.S. households were already living in some type of affordable housing in 2019, and we believe this number has increased since then due to a surge in rents the past two years. (Source: Census Bureau 2019)",[12,15467,15468,15469,15462],{},"For every 100 low-income households, only 37 affordable homes are available and no single state has an adequate supply. (Source: National Low Income Housing Coalition ",[1389,15470,15461],{},[34,15472,15474],{"id":15473},"why-invest-in-affordable-housing","Why Invest in Affordable Housing",[12,15476,15477],{},"Affordable housing can be a sound long-term investment for many reasons:",[12,15479,15480],{},"Reliable ROI:",[12,15482,15483],{},"High demand for affordable housing means units are quick to fill-up when new buildings are complete. This lowers vacancy risk and helps create a consistent return on investment (ROI).",[12,15485,15486],{},"Consistent Cash Flow:",[12,15488,15489],{},"Rents can be subsidized by federal, state and local agencies. This translate into steady cash flow for investors as the property is almost always full or near capacity.",[12,15491,15492],{},"Recession Resilience:",[12,15494,15495],{},"Properties stay in demand throughout the economic cycle, and especially during recessions as people lose jobs and are priced out of more costly rentals.",[12,15497,15498],{},"Hedge Against Inflation:",[12,15500,15501],{},"Real estate prices and rents can continue to rise in an inflationary environment.",[12,15503,11672],{},[12,15505,15506],{},"Affordable housing as an asset has low correlation with public equities, allowing it to add to portfolio stability during times of market volatility.",[12,15508,15509],{},"Tax Depreciation Flow-through:",[12,15511,15512],{},"Depreciation on investment real estate, including affordable housing properties, is allocated (flows through) to the individual investors and can be used to lower income and capital gains taxes generated by other investments.",[12,15514,15515],{},"There are a variety of risks associated with affordable housing including:",[960,15517,15518,15524,15530,15536,15542,15548],{},[536,15519,15520,15523],{},[30,15521,15522],{},"Entitlement Risk",": Not getting the permits or approvals necessary to build.",[536,15525,15526,15529],{},[30,15527,15528],{},"Construction Risk:"," Finishing the construction of the product after breaking ground.",[536,15531,15532,15535],{},[30,15533,15534],{},"Stabilization Risk",": Filling up the property with renters.",[536,15537,15538,15541],{},[30,15539,15540],{},"Financing Risk:"," Ability to secure and the cost of financing can change throughout a projects lifecycle which can increase risk to a project’s completion and lower the expected return.",[536,15543,15544,15547],{},[30,15545,15546],{},"Leverage:"," Taking on too much debt can increase the risk of a project if rent expectations or stabilization takes longer than expected.",[536,15549,15550,15553],{},[30,15551,15552],{},"Government Incentives:"," Some affordable housing developments may need federal or local assistance to be viable given similar construction costs to non-affordable options and rents that are lower than market.",[12,15555,15556,15557,15559],{},"Read more about risks and how Citizen Mint addresses these, affordable housing case studies, and other topics such as ",[22,15558,5994],{"href":5993}," by downloading our white paper below.",[12,15561,15562],{},[30,15563,2260],{},[12,15565,15566],{},"Citizen Mint believes that new affordable housing can have a large, positive impact in many cities and other areas as they struggle to deal with complex issues around homelessness, crime and inequality. We are excited to bring numerous opportunities to our investors on both the equity and debt side of these deals.",[12,15568,15569],{},"Invest to change the world, invest with Citizen Mint.",[34,15571,698],{"id":459},[12,15573,15078,15574],{},[30,15575,15081],{},[12,15577,15578],{},[57,15579],{"alt":59,"src":15086},{"title":59,"searchDepth":167,"depth":167,"links":15581},[15582,15583,15584],{"id":15429,"depth":167,"text":15424},{"id":15473,"depth":167,"text":15474},{"id":459,"depth":167,"text":698},"Underinvested in for decades despite strong growth in demand, we believe affordable housing is both a prime investment opportunity and a way to help alleviate the US housing shortage.","\u002Fimages\u002Fresources\u002Finvesting-in-affordable-housing-for-impact-and-return.jpg",{},{"title":15424,"description":15585},"resources\u002Finvesting-in-affordable-housing-for-impact-and-return","UdhRtOa0ki_VW6tth_8dnQLvoe5Hje4VWj7sn5SnZvA",{"id":15592,"title":15593,"author":512,"body":15594,"category":1248,"date":15344,"description":15638,"extension":179,"image":15639,"imageAlt":181,"meta":15640,"navigation":183,"path":15641,"seo":15642,"stem":15643,"topic":2330,"__hash__":15644},"resources\u002Fresources\u002Finvestment-philosophy-and-process.md","Investment Philosophy & Process",{"type":9,"value":15595,"toc":15634},[15596,15598,15602,15605,15610,15615,15618,15621],[34,15597,10528],{"id":10527},[34,15599,15601],{"id":15600},"citizen-mints-investment-philosophy-process","Citizen Mint's Investment Philosophy & Process",[12,15603,15604],{},"At Citizen Mint (CM), we seek to have a positive change on the world one investment at a time. We enable people, families and foundations with significant and growing wealth to invest directly for impact and a financial return.",[12,15606,15607],{},[22,15608,1222],{"href":15609},"\u002Fdownloads\u002Fguides\u002Finvestment-philosophy-and-process.pdf",[1224,15611],{"className":15612,"src":15613,"title":15614,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Finvestment-philosophy-and-process.pdf#navpanes=0&view=FitH","Investment Philosophy & Process (PDF)",[12,15616,15617],{},"Our focus: private market opportunities that target specific environmental and socioeconomic needs, from affordable housing and renewable energy to community healthcare and development.",[12,15619,15620],{},"In this guide you will learn:",[960,15622,15623,15626,15632],{},[536,15624,15625],{},"How Citizen Mint selects new investment opportunities",[536,15627,15628,15629,15631],{},"The 5 step rigorous ",[22,15630,4763],{"href":4762}," process",[536,15633,15339],{},{"title":59,"searchDepth":167,"depth":167,"links":15635},[15636,15637],{"id":10527,"depth":167,"text":10528},{"id":15600,"depth":167,"text":15601},"At Citizen Mint (CM), we seek to have a positive change on the world one investment at a time.","\u002Fimages\u002Fresources\u002Finvestment-philosophy-and-process.jpg",{},"\u002Fresources\u002Finvestment-philosophy-and-process",{"title":15593,"description":15638},"resources\u002Finvestment-philosophy-and-process","EcxGWqFpC1jqqFd2cnIBjSmszjIBiihdtzyhMdZjL8E",{"id":15646,"title":15647,"author":512,"body":15648,"category":1248,"date":15344,"description":15695,"extension":179,"image":15696,"imageAlt":181,"meta":15697,"navigation":183,"path":1170,"seo":15698,"stem":15699,"topic":2330,"__hash__":15700},"resources\u002Fresources\u002Fprivate-market-investments-guide.md","Private Market Investments Guide",{"type":9,"value":15649,"toc":15692},[15650,15653,15655,15658,15661,15663,15686,15688],[12,15651,15652],{},"Private investments are increasingly an area of focus for advisors and their clients as a way to diversify beyond public markets, while accessing institutional-quality opportunities with meaningful impact potential.",[34,15654,6194],{"id":6193},[12,15656,15657],{},"Private markets were long the territory of pension funds, foundations, and endowments, largely because of high minimums, long holding periods, and the depth of due diligence involved. This guide is a primer on what private investments are, how they differ from public markets, and how access has broadened to include individual investors.",[12,15659,15660],{},"It is a practical starting point for advisors who are new to the asset class, or who want a plain-language resource to share with clients. Each investment type is explained in simple terms and paired with an illustrative example.",[12,15662,6203],{},[960,15664,15665,15668,15671,15674,15677,15680,15683],{},[536,15666,15667],{},"A clear definition of a private investment and why the space continues to draw investor attention",[536,15669,15670],{},"How regulatory changes, including Regulation Crowdfunding and Regulation A+, along with new technology, have opened private markets to more investors",[536,15672,15673],{},"An overview of nine major private market categories: corporate buyouts, venture capital, growth capital, mezzanine financing, natural resources, distressed debt, private real estate, private infrastructure, and special situations",[536,15675,15676],{},"Illustrative examples of the kinds of opportunities found within each category",[536,15678,15679],{},"Five potential advantages of private markets: diversification, long-term focus, a wider range of options, the payoff of rigorous due diligence, and values alignment",[536,15681,15682],{},"Why manager and sponsor selection matters so much in private markets, given the wide gap the guide describes between the best and the worst",[536,15684,15685],{},"Citizen Mint's perspective on adding private investments to a diversified portfolio thoughtfully and monitoring them over time",[12,15687,6229],{},[6231,15689],{"guide":15690,"pdf":15691,"title":15647},"private-market-investments-guide","\u002Fdownloads\u002Fguides\u002Fprivate-market-investments-guide.pdf",{"title":59,"searchDepth":167,"depth":167,"links":15693},[15694],{"id":6193,"depth":167,"text":6194},"Private markets are an area of focus for many impact investors as a way to diversify out of the public markets, while potentially helping to fund a higher level of impact and capturing a competitive market return.","\u002Fimages\u002Fresources\u002Fprivate-market-investments-guide.webp",{},{"title":15647,"description":15695},"resources\u002Fprivate-market-investments-guide","MeN9oX_8woXX3uJzJ2spzEz6DzDWmYSwfCIHYTlYDqY",{"id":15702,"title":15703,"author":512,"body":15704,"category":1248,"date":15344,"description":15695,"extension":179,"image":15754,"imageAlt":181,"meta":15755,"navigation":183,"path":15756,"seo":15757,"stem":15758,"topic":9322,"__hash__":15759},"resources\u002Fresources\u002Ftop-5-investment-areas-to-counter-climate-change.md","Top 5 Investment Areas to Counter Climate Change",{"type":9,"value":15705,"toc":15749},[15706,15708,15712,15716,15719,15724,15729,15732,15735],[34,15707,10528],{"id":10527},[34,15709,15711],{"id":15710},"net-zero-investing","Net Zero Investing:",[34,15713,15715],{"id":15714},"_5-ways-to-counter-climate-change","5 Ways to Counter Climate Change",[12,15717,15718],{},"Climate change is an environmental issue but it has also become a financial one. Exposure to the damaging impacts of climate change is increasingly seen as a financial risk and included in the analysis of most investments, from real estate to corporate and government securities.",[12,15720,15721],{},[22,15722,1222],{"href":15723},"\u002Fdownloads\u002Fguides\u002Ftop-5-investment-areas-to-counter-climate-change.pdf",[1224,15725],{"className":15726,"src":15727,"title":15728,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Ftop-5-investment-areas-to-counter-climate-change.pdf#navpanes=0&view=FitH","Top 5 Investment Areas to Counter Climate Change (PDF)",[12,15730,15731],{},"With challenge comes opportunity! Citizen Mint believes climate change is likely to drive one of the greatest capital investment cycles in history, leading to significant innovations across all parts of the economy.",[12,15733,15734],{},"Download this white paper to discover:",[960,15736,15737,15740,15743,15746],{},[536,15738,15739],{},"The top 5 investment areas to counter climate change",[536,15741,15742],{},"How much capital is required to hit emission targets",[536,15744,15745],{},"The financial gaps that private markets can fill to achieve net-zero emissions by 2040",[536,15747,15748],{},"Why Citizen Mint is an impact-only investment platform",{"title":59,"searchDepth":167,"depth":167,"links":15750},[15751,15752,15753],{"id":10527,"depth":167,"text":10528},{"id":15710,"depth":167,"text":15711},{"id":15714,"depth":167,"text":15715},"\u002Fimages\u002Fresources\u002Ftop-5-investment-areas-to-counter-climate-change.jpg",{},"\u002Fresources\u002Ftop-5-investment-areas-to-counter-climate-change",{"title":15703,"description":15695},"resources\u002Ftop-5-investment-areas-to-counter-climate-change","90r8pyGjkihxINNAqIXAOh-siJxlyDk4ewXrlvcaB5k",{"id":15761,"title":15762,"author":512,"body":15763,"category":176,"date":15344,"description":15841,"extension":179,"image":15842,"imageAlt":181,"meta":15843,"navigation":183,"path":9696,"seo":15844,"stem":15845,"topic":9322,"__hash__":15846},"resources\u002Fresources\u002Fwhat-is-impact-investing.md","What is Impact Investing?",{"type":9,"value":15764,"toc":15837},[15765,15768,15772,15775,15778,15783,15789,15792,15795,15800,15803,15806,15811,15814,15817,15822,15825,15827,15833],[34,15766,15762],{"id":15767},"what-is-impact-investing",[384,15769,15771],{"id":15770},"the-term-impact-investing-is-used-widely-and-loosely-in-the-financial-industry-because-of-that-it-is-often-confused-with-other-ways-to-invest-for-profits-as-well-as-non-financial-benefits","The term “impact investing” is used widely and loosely in the financial industry. Because of that it is often confused with other ways to invest for profits as well as non-financial benefits.",[12,15773,15774],{},"IMPACT INVESTING • ESG • SOCIALLY RESPONSIBLE INVESTING",[12,15776,15777],{},"To keep things straight, at Citizen Mint we distinguish between the three main types of “sustainability” investing as follows:",[12,15779,15780],{},[30,15781,15782],{},"Socially Responsible Investing (SRI):",[12,15784,15785],{},[57,15786],{"alt":15787,"src":15788},"Socially Responsible Investing (SRI)","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-blog3img.png",[12,15790,15791],{},"This is perhaps the easiest and most subjective approach. Simply put, you avoid investments you think will cause damage to society or the environment. Exclusion of cigarette and alcohol producers, nuclear power operators, weapons manufacturing, fossil-fuel producers and distributors is quite common. However, for SRI to have impact, the majority of investors must agree which companies to avoid and that has not yet happened. When you sell the shares of a polluting utility, for example, someone else is likely to step in and buy it.",[12,15793,15794],{},"Environmental, Social and Governance (ESG) Investing:",[12,15796,15797],{},[57,15798],{"alt":59,"src":15799},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-img2blog2.png",[12,15801,15802],{},"Widely accepted guidelines and criteria on environmental, social and corporate governance best practices are used to analyze investments, usually in the public markets, in addition to traditional performance measures. The goal: to invest in companies striving to do what’s best for all their stakeholders — employees, customers, local communities and owners\u002Fshareholders, while also limiting negative impact on society and the environment. Few companies score highly on all three factors — the E, S and the G. But the effort of rating helps to hold companies accountable, so ESG investing has and will continue to be a major force toward positive change. However, ESG is more about how companies behave than the output of beneficial goods or services.",[12,15804,15805],{},"Impact Investing:",[12,15807,15808],{},[57,15809],{"alt":59,"src":15810},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Solar-Energy.png",[12,15812,15813],{},"Here, the focus is on specific investment opportunities, often in the private markets, that aim to a solve an environmental or social challenge, materially, measurably and intentionally while also providing a profit. Impact investments tend to be more targeted and seek to address very specific needs or challenges. That said, we recognize that many of these needs and challenges are interrelated.",[12,15815,15816],{},"Each impact investment we research and put on the Citizen Mint platform is evaluated using key performance indicators (KPIs) to track the project and its progress toward stated goals. Examples of project-based metrics include:",[12,15818,15819],{},[57,15820],{"alt":59,"src":15821},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-impactfocus.png",[12,15823,15824],{},"Join Citizen Mint in this journey to change the world through positive private impact investments.",[34,15826,698],{"id":459},[12,15828,10952,15829,9158,15831],{},[30,15830,9629],{},[30,15832,1017],{},[12,15834,15835],{},[57,15836],{"alt":14232,"src":14233},{"title":59,"searchDepth":167,"depth":167,"links":15838},[15839,15840],{"id":15767,"depth":167,"text":15762},{"id":459,"depth":167,"text":698},"Impact Investments focus is on specific investment opportunities, often in the private markets, that aim to a solve an environmental or social challenge, materially, measurably and intentionally while also providing a profit.","\u002Fimages\u002Fresources\u002Fwhat-is-impact-investing.jpg",{},{"title":15762,"description":15841},"resources\u002Fwhat-is-impact-investing","ecSPsrw0hBLwpqIDraBw9XuZoXNC5nARpOpYMyz1LiA",{"id":15848,"title":15849,"author":512,"body":15850,"category":176,"date":15344,"description":16049,"extension":179,"image":16050,"imageAlt":181,"meta":16051,"navigation":183,"path":579,"seo":16052,"stem":16053,"topic":2330,"__hash__":16054},"resources\u002Fresources\u002Fwhy-should-you-invest-in-private-markets.md","Why Should You Invest in Private Markets?",{"type":9,"value":15851,"toc":16044},[15852,15855,15861,15865,15872,15878,15881,15886,15890,15893,15896,15904,15909,15915,15918,15921,15924,15927,15930,15933,15936,15939,15942,15945,15948,15951,15954,15956,15959,15962,15965,15968,15971,15976,15982,15987,16020,16024,16031,16034,16036,16040],[12,15853,15854],{},"PRIVATE MARKETS • DUE DILIGENCE",[12,15856,8120,15857,15860],{},[22,15858,1040],{"href":15859},"\u002Fresources\u002Fthe-story-behind-citizen-mint",", we are passionate about transforming the world of finance by enabling the everyday investor to participate in impact investments in the private markets. Often perceived as the exclusive domain of large institutional investors such as pension funds, foundations, and endowments, the private markets have been traditionally inaccessible to individual investors due to high investment minimums, extensive holding periods, and the extensive due diligence required. But why should these potentially fruitful opportunities be the exclusive privilege of a select few? At Citizen Mint, we believe they shouldn’t, and we’re here to democratize access to these private markets.",[34,15862,15864],{"id":15863},"two-reasons-citizen-mint-focuses-on-private-markets","Two reasons Citizen Mint focuses on private markets",[12,15866,15867,15868,15871],{},"First, investing in private markets enables ",[22,15869,15870],{"href":1027},"portfolio diversification"," beyond the public markets. Diversification is a cornerstone of sound investment strategy, as it reduces the risk of your portfolio being adversely affected by a single sector or asset. Private market investments often exhibit lower correlations with the public markets and can potentially provide return enhancement, providing both a layer of resilience to the portfolio as well as the ability to provide better outcomes for clients.",[12,15873,15874,15875,15877],{},"Secondly, private markets present a unique opportunity to make ",[22,15876,1328],{"href":9696}," in a direct and targeted way. Instead of contributing to a pool of funds in public markets that have little alignment with your values, investing in private markets allows you to direct your capital towards specific enterprises and projects that align with your values and objectives.",[12,15879,15880],{},"Historically, these benefits have largely been accessible only to the aforementioned institutional investors. But the landscape is changing, and we’re spearheading this evolution. Citizen Mint is committed to unlocking this investment avenue to a wider audience. By leveraging technology, innovation, and our deep expertise in impact investing, we’re making private market impact investments not only possible, but practical and accessible to you.",[12,15882,15883],{},[57,15884],{"alt":59,"src":15885},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Investor-Opportunities.png",[34,15887,15889],{"id":15888},"what-is-a-private-investment","What is a Private Investment?",[12,15891,15892],{},"Private investments, simply defined, are those not traded on public exchanges. These investments are gaining immense popularity among impact investors for their potential in diversifying beyond public markets, facilitating significant impact, and securing competitive returns.",[12,15894,15895],{},"Private market investments have witnessed a dramatic rise globally over the last twenty years, with total assets invested swelling to a staggering $10 trillion by the close of 2021. This trend, in our analysis, is unlikely to decelerate as both individual and institutional investors persistently seek opportunities in the private markets for diversification. This sector’s dynamism further ensures a continuous emergence of fresh investment opportunities.",[12,15897,15898,15899,15903],{},"By opting for private markets, you are not only investing in the potential for financial returns but also supporting impactful initiatives that drive social and ",[22,15900,15902],{"href":15901},"\u002Fresources\u002Fcombat-climate-change-through-investment","environmental progress",". With Citizen Mint, you can be part of this influential and growing global financial trend, poised at the intersection of value and values.",[12,15905,15906],{},[30,15907,15908],{},"Range of Investments:",[12,15910,15911,15912,15914],{},"As with public markets, private markets comprise many different asset classes including equity, debt, ",[22,15913,615],{"href":614},", and special purpose funds, typically referred to as alternative assets.",[12,15916,15917],{},"The major types of private market investments are below (see private markets white paper for impact examples in each asset class):",[12,15919,15920],{},"Corporate Buyouts (Private Equity):",[12,15922,15923],{},"Buying a company to grow it, make it more efficient or profitable with the ultimate aim of selling the business at a higher price in the future.",[12,15925,15926],{},"Venture Capital:",[12,15928,15929],{},"Early-stage businesses working on new or innovative solutions.",[12,15931,15932],{},"Growth Capital:",[12,15934,15935],{},"Pre-IPO capital, usually after initial funding rounds, to help scale a business.",[12,15937,15938],{},"Mezzanine Financing:",[12,15940,15941],{},"Loans for a predetermined time before bank financing becomes viable.",[12,15943,15944],{},"Distressed Debt:",[12,15946,15947],{},"Debt that is heavily discounted due to problems at the issuing company. The goal is to buy this debt cheap, restructure the company and\u002For sell off assets, then eventually resell the debt at a higher price.",[12,15949,15950],{},"Private Real Estate:",[12,15952,15953],{},"Investments in multi-family, office, commercial or industrial properties.",[12,15955,14949],{},[12,15957,15958],{},"Agriculture products, commodities, or land that hopefully can increase in value over time.",[12,15960,15961],{},"Private Infrastructure:",[12,15963,15964],{},"Investments in long-life, productive assets that usually have pricing power in the markets they serve (i.e. renewable energy projects, electric vehicle charging stations).",[12,15966,15967],{},"Special Situations:",[12,15969,15970],{},"Special situation funds can have very diverse strategies but in general look to take advantage of market anomalies.",[12,15972,15973],{},[30,15974,15975],{},"The Private Market Advantage",[12,15977,15978],{},[57,15979],{"alt":15980,"src":15981},"Private Market White Paper","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Private-Market-White-Paper.png",[12,15983,15984],{},[30,15985,15986],{},"Risks and Concerns:",[533,15988,15989,15997,16008],{},[536,15990,15991,9158,15994,15996],{},[30,15992,15993],{},"Manager or Sponsor Selection:",[1667,15995],{},"\nWhile returns in the private markets can be compelling, it is key to invest with the right manager or sponsor given that the dispersion of returns is huge, highlighting the big difference in performance between the best and worst managers or sponsors. This makes manager due diligence and selection paramount",[536,15998,15999,9158,16001,16003,16004,16007],{},[30,16000,12557],{},[1667,16002],{},"\nThe average commitment period is between three to 10 years and can be as much as 15 years in some circumstances. This results in private investments being considered “illiquid” or not easily scaleable. While there may be the opportunity to sell in secondary markets, the price is usually unknown and, in some cases, can be at a large discount if buyers are hard to find. “",[22,16005,16006],{"href":4832},"Illiquidity premium","” is the term used to describe the extra return investors require to lose access to their capital for a period of time. The longer the period, the higher the illiquidity premium.",[536,16009,16010,9158,16013,16015,16016,16019],{},[30,16011,16012],{},"Taxes:",[1667,16014],{},"\nMost private funds are set up as Limited Partnerships (LPs) or Limited Liability Companies (LLCs) for which you will be required to report annually to the IRS your portion of income, whether distributed or not. This reporting is done through ",[22,16017,16018],{"href":11090},"Schedule K-1",". Thankfully, K-1 reporting has become more common and has resulted in many online tax preparers creating custom worksheets to process private market distributions.",[12,16021,16022],{},[30,16023,2260],{},[12,16025,16026,16027,16030],{},"Citizen Mint believes private market investments can provide the direct impact our community members’ seek in alignment with their values and issues of concern. We also believe that private market investments can enhance portfolio diversification and risk-adjusted return if carefully added and monitored. The key is having a partner like Citizen Mint to curate the most ",[22,16028,16029],{"href":4762},"promising opportunities"," based on risk, return, and impact and provide those opportunities in an accessible and flexible format.",[12,16032,16033],{},"We are excited about the positive impact we can make collectively. We hope you will join us in making a direct investment in change for the better.",[34,16035,698],{"id":459},[12,16037,10255,16038],{},[30,16039,10258],{},[12,16041,16042],{},[57,16043],{"alt":59,"src":10263},{"title":59,"searchDepth":167,"depth":167,"links":16045},[16046,16047,16048],{"id":15863,"depth":167,"text":15864},{"id":15888,"depth":167,"text":15889},{"id":459,"depth":167,"text":698},"Private markets are increasingly an area of focus for many impact investors as a way to diversify out of the public markets.","\u002Fimages\u002Fresources\u002Fwhy-should-you-invest-in-private-markets.jpg",{},{"title":15849,"description":16049},"resources\u002Fwhy-should-you-invest-in-private-markets","2RATn-swE5u5beZf_8vtjlHDptl9mFf9L7JMmW987wI",{"id":16056,"title":16057,"author":512,"body":16058,"category":1248,"date":16097,"description":16098,"extension":179,"image":16099,"imageAlt":181,"meta":16100,"navigation":183,"path":1016,"seo":16101,"stem":16102,"topic":9322,"__hash__":16103},"resources\u002Fresources\u002Fimpact-investing-guide.md","Impact Investing Guide",{"type":9,"value":16059,"toc":16095},[16060,16066,16071,16076,16078],[12,16061,16062,16065],{},[22,16063,16064],{"href":9696},"Impact investing"," aligns capital with values without giving up return discipline. For advisors, it is a way to differentiate client portfolios with strategies clients are proud to own.",[12,16067,16068],{},[22,16069,1222],{"href":16070},"\u002Fdownloads\u002Fguides\u002Fimpact-investing-guide.pdf",[1224,16072],{"className":16073,"src":16074,"title":16075,"loading":1230},[1227],"\u002Fdownloads\u002Fguides\u002Fimpact-investing-guide.pdf#navpanes=0&view=FitH","Impact Investing Guide (PDF)",[12,16077,15620],{},[960,16079,16080,16083,16086,16089,16092],{},[536,16081,16082],{},"The difference between SRI, ESG, and impact investing",[536,16084,16085],{},"How to track impact key performance indicators",[536,16087,16088],{},"Why Citizen Mint focuses on private impact investments",[536,16090,16091],{},"The main types and categories of impact investments",[536,16093,16094],{},"How advisors and their clients can participate",{"title":59,"searchDepth":167,"depth":167,"links":16096},[],"2022-09-08","Learn more about impact investing opportunities to make a change while making returns.","\u002Fimages\u002Fresources\u002Fimpact-investing-guide.webp",{},{"title":16057,"description":16098},"resources\u002Fimpact-investing-guide","FWl-sreAnt_36Wn7HPKnaXll7eFmmCZ7IL7TQ8HMPAU",{"id":16105,"title":16106,"author":512,"body":16107,"category":176,"date":16201,"description":16202,"extension":179,"image":16203,"imageAlt":181,"meta":16204,"navigation":183,"path":15901,"seo":16205,"stem":16206,"topic":9322,"__hash__":16207},"resources\u002Fresources\u002Fcombat-climate-change-through-investment.md","How to Combat Climate Change Through Investment",{"type":9,"value":16108,"toc":16197},[16109,16113,16116,16119,16122,16125,16128,16133,16138,16141,16144,16149,16152,16157,16160,16165,16168,16173,16176,16181,16184,16187,16189,16193],[34,16110,16112],{"id":16111},"_5-investment-areas-to-counter-climate-change","5 Investment areas to counter climate change",[12,16114,16115],{},"Climate change is an environmental issue but it has also become a financial one.",[12,16117,16118],{},"CLIMATE CHANGE • IMPACT INVESTING",[12,16120,16121],{},"Exposure to the damaging impacts of climate change – including extreme temperatures, floods, droughts, wildfires – is increasingly seen as a financial risk and included in the analysis of most investments, from real estate to corporate and government securities. Not surprisingly, more capital is being invested in products and services to mitigate or adapt to climate change.",[12,16123,16124],{},"With challenge comes opportunity! Citizen Mint believes climate change is likely to drive one of the greatest capital investment cycles in history, leading to significant innovations across all parts of the economy. As such, we believe it will be one of the most promising investment opportunities of our lifetime, and is one of the reasons we created the Citizen Mint platform.",[12,16126,16127],{},"Investment Required to Hit Target",[12,16129,16130,16131],{},"Net zero by the year 2040 (no additional greenhouse gas emissions generated) is the goal for avoiding dire climate change. Getting there will require global commitment and worldwide investment of $1-$2 trillion each year (about 1% to 2% of global GDP), according to estimates by Wellington Investment Management, a leader in climate investing in both public and private markets. ",[1667,16132],{},[12,16134,16135],{},[57,16136],{"alt":59,"src":16137},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-CM.png",[12,16139,16140],{},"Climate Change Solutions in Five Sectors",[12,16142,16143],{},"Below are five areas where we see major investment potential as related to climate change. (Get in-depth insights into each one of these areas by downloading our white paper on the topic)",[12,16145,16146],{},[30,16147,16148],{},"1. Renewable Energy",[12,16150,16151],{},"Wind, solar, batteries, and waste-to-energy",[12,16153,16154],{},[30,16155,16156],{},"2. Resource Sustainability & Efficiency",[12,16158,16159],{},"Energy efficiency solutions, carbon capture & storage, reforestation, environmental remediation and fire monitoring & prevention",[12,16161,16162],{},[30,16163,16164],{},"3. Water Efficiency & Infrastructure",[12,16166,16167],{},"Water efficiency, water treatment & security",[12,16169,16170],{},[30,16171,16172],{},"4. Transportation",[12,16174,16175],{},"Electric vehicles, logistics software and sensors & monitoring",[12,16177,16178],{},[30,16179,16180],{},"5. Food & Agriculture",[12,16182,16183],{},"Plant-based and cell-based foods, food waste reduction, climate resilient crops, weather analytics, indoor farming",[12,16185,16186],{},"The bottom line: Citizen Mint believes that while climate change produces very difficult and distinct challenges, it will also drive innovative solutions and investment opportunities. Find out how you can be part of the solution.",[34,16188,698],{"id":459},[12,16190,14125,16191],{},[30,16192,14128],{},[12,16194,16195],{},[57,16196],{"alt":14133,"src":14134},{"title":59,"searchDepth":167,"depth":167,"links":16198},[16199,16200],{"id":16111,"depth":167,"text":16112},{"id":459,"depth":167,"text":698},"2022-09-02","Climate change is an environmental issue but it has also become a financial one. Not surprisingly, more capital is being invested in products and services to mitigate or adapt to climate change.","\u002Fimages\u002Fresources\u002Fcombat-climate-change-through-investment.jpg",{},{"title":16106,"description":16202},"resources\u002Fcombat-climate-change-through-investment","v3afR3bBU-Dk7pVvQ73AE7kwhrpp5NA_vEbHAqw3gA4",{"id":16209,"title":16210,"author":512,"body":16211,"category":176,"date":16201,"description":16289,"extension":179,"image":16290,"imageAlt":181,"meta":16291,"navigation":183,"path":15859,"seo":16292,"stem":16293,"topic":3893,"__hash__":16294},"resources\u002Fresources\u002Fthe-story-behind-citizen-mint.md","The Story Behind Citizen Mint",{"type":9,"value":16212,"toc":16285},[16213,16216,16219,16222,16225,16228,16233,16236,16239,16242,16259,16264,16267,16273,16275,16280],[34,16214,16210],{"id":16215},"the-story-behind-citizen-mint",[12,16217,16218],{},"The greatest danger to our future is apathy. – Jane Goodall",[12,16220,16221],{},"IMPACT INVESTING • PRIVATE MARKETS • CITIZEN MINT",[12,16223,16224],{},"At Citizen Mint, we connect investors with opportunities that align with their values or issue areas. We believe it’s the power of investors coming together that will accelerate a positive impact on our world. Josh Hile, Citizen Mint’s CEO and CIO, has been in the investment field for over a decade. He’s helped manage the pensions and 401k plans of Fortune 100 companies, and most recently, he was Director of Investment Strategy and Research at a $16 billion registered investment advisor (RIA).",[12,16226,16227],{},"Over the last few years, Josh began to recognize two major trends emerging in the investment industry — trends that are likely to create a multi-decade seismic shift in how people utilize their financial capital. The first change was clear — align financial resources with investors’ values or issue areas. This shift is happening across the age spectrum but is most evident in Millennial and Gen X investors. The second change was for more investors to gain access to private markets, opportunities usually reserved for the elite few.",[12,16229,16230],{},[57,16231],{"alt":59,"src":16232},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-blogpost_CM.png",[12,16234,16235],{},"“We believe the model of exclusivity is outdated. We further believe that we can accelerate and scale our impact through increasing accessibility to these worthwhile projects that create a positive societal or environmental impact while also giving clients a financial return.”",[12,16237,16238],{},"Realizing the current construct wouldn’t let his clients hit their specific goals, Josh created Citizen Mint — a platform built to connect investors with private market opportunities that change the world, one investment at a time.",[12,16240,16241],{},"Whether that’s",[960,16243,16244,16250,16253,16256],{},[536,16245,16246,16247,16249],{},"Building or renovating thousands of multi-family ",[22,16248,394],{"href":393}," units.",[536,16251,16252],{},"Creating hundreds of megawatts of clean renewable energy.",[536,16254,16255],{},"Providing millions of dollars in development loans to underserved communities.",[536,16257,16258],{},"Funding innovative companies tackling pressing global challenges around energy, water, circular economies, sustainability, healthcare, etc.",[12,16260,16261],{},[57,16262],{"alt":59,"src":16263},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Screen-Shot-2022-09-02-at-3.44.39-PM.png",[12,16265,16266],{},"In each case we will be striving for material, measurable and intentional positive impact that would not be accomplished by other means.",[12,16268,16269,16270],{},"We are only beginning to scratch the surface. ",[30,16271,16272],{},"Join us and invest in a better world.",[34,16274,698],{"id":459},[12,16276,16277,16278],{},"Sign up to download our guide on Citizen Mint’s ",[30,16279,15593],{},[12,16281,16282],{},[57,16283],{"alt":59,"src":16284},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Investment-Process.png",{"title":59,"searchDepth":167,"depth":167,"links":16286},[16287,16288],{"id":16215,"depth":167,"text":16210},{"id":459,"depth":167,"text":698},"At Citizen Mint, we connect investors with opportunities that align with their values or issue areas. We believe it’s the power of investors coming together that will accelerate a positive impact on our world.","\u002Fimages\u002Fresources\u002Fthe-story-behind-citizen-mint.jpg",{},{"title":16210,"description":16289},"resources\u002Fthe-story-behind-citizen-mint","h3hsMz5vVjjYMQ8qyuI5DPZqEXPUeI3MyBOfJ4vUlOQ",{"id":16296,"title":16297,"author":512,"body":16298,"category":176,"date":16201,"description":16377,"extension":179,"image":16378,"imageAlt":181,"meta":16379,"navigation":183,"path":16380,"seo":16381,"stem":16382,"topic":9322,"__hash__":16383},"resources\u002Fresources\u002Fwhat-are-the-un-sdgs.md","What are the UN SDGs?",{"type":9,"value":16299,"toc":16373},[16300,16303,16306,16309,16312,16314,16318,16323,16325,16328,16332,16334,16338,16340,16344,16346,16350,16352,16356,16358,16363,16365,16369],[34,16301,16297],{"id":16302},"what-are-the-un-sdgs",[12,16304,16305],{},"In 2015 the United Nation created 17 core sustainable development goals (SDGs) to create a visible roadmap of issues that need to be addressed for the long-term prosperity of people and planet. While originally government focused, the UN SDGs have been adopted by companies, investment managers and investors as a map for allocating to impact investments.",[12,16307,16308],{},"UN SGDS • NET-ZERO • IMPACT INVESTING",[12,16310,16311],{},"Private philanthropy and governments fund some of the 17 Sustainable Development Goals (SDGs) that 193 countries agreed to work toward by 2030. But there is an estimated $2.5 trillion annual funding shortfall which makes it imperative that private capital be mobilized to address these pressing issues. We believe Citizen Mint can be a conduit in providing access to opportunities that address these items. We hope you’ll join us!",[12,16313,16127],{},[12,16315,16130,16316],{},[1667,16317],{},[12,16319,16320],{},[57,16321],{"alt":59,"src":16322},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-ScreenShot2022-08-03at11.05.17PM.png",[12,16324,16140],{},[12,16326,16327],{},"Below are five areas where we see major investment potential as it relates to climate change.",[12,16329,16330],{},[30,16331,16148],{},[12,16333,16151],{},[12,16335,16336],{},[30,16337,16156],{},[12,16339,16159],{},[12,16341,16342],{},[30,16343,16164],{},[12,16345,16167],{},[12,16347,16348],{},[30,16349,16172],{},[12,16351,16175],{},[12,16353,16354],{},[30,16355,16180],{},[12,16357,16183],{},[12,16359,16360,16361],{},"Citizen Mint believes that while climate change produces very difficult and distinct challenges, it will also drive innovative solutions and investment opportunities. Find out how you can be part of the solution.",[1667,16362],{},[34,16364,698],{"id":459},[12,16366,14125,16367],{},[30,16368,14128],{},[12,16370,16371],{},[57,16372],{"alt":14133,"src":14134},{"title":59,"searchDepth":167,"depth":167,"links":16374},[16375,16376],{"id":16302,"depth":167,"text":16297},{"id":459,"depth":167,"text":698},"While originally government focused, the UN SDGs have been adopted by companies, investment managers and investors as a map for allocating to impact investments.","\u002Fimages\u002Fresources\u002Fwhat-are-the-un-sdgs.jpg",{},"\u002Fresources\u002Fwhat-are-the-un-sdgs",{"title":16297,"description":16377},"resources\u002Fwhat-are-the-un-sdgs","XDk0_hL2ndJpvccK_FZzdsmM7xrlTWs0BXmLhsjDoo0",{"id":16385,"title":16386,"author":512,"body":16387,"category":176,"date":16531,"description":16532,"extension":179,"image":16533,"imageAlt":181,"meta":16534,"navigation":183,"path":16535,"seo":16536,"stem":16537,"topic":9322,"__hash__":16538},"resources\u002Fresources\u002Fimpact-investments-opportunity.md","How Big is the Opportunity for Impact Investments?",{"type":9,"value":16388,"toc":16522},[16389,16393,16396,16400,16404,16410,16419,16434,16438,16445,16454,16458,16475,16480,16483,16486,16491,16496,16499,16504,16509,16512,16514,16518],[34,16390,16392],{"id":16391},"how-big-is-the-opportunity-for-impact-investments","How Big Is the Opportunity for Impact Investments?",[12,16394,16395],{},"UN SDGs • CLIMATE ACTION • IMPACT INVESTING",[415,16397,16399],{"id":16398},"we-believe-that-there-has-never-been-a-better-time-to-be-an-impact-investor-impact-investments-are-investments-that-aim-to-generate-positive-social-and-environmental-outcomes-as-well-as-financial-returns-they-can-be-made-across-different-asset-classes-sectors-and-geographies-and-can-target-a-range-of-impact-themes-such-as-climate-change-health-education-gender-equality-and-poverty-alleviation-impact-investing-is-revolutionary-as-it-breaks-the-usual-way-of-thinking-that-social-issues-can-only-be-solved-through-philanthropy-in-recent-years-the-impact-investing-market-has-experienced-significant-growth-and-is-garnering-attention-from-investors-worldwide","We believe that there has never been a better time to be an impact investor. Impact investments are investments that aim to generate positive social and environmental outcomes, as well as financial returns. They can be made across different asset classes, sectors, and geographies, and can target a range of impact themes, such as climate change , health, education, gender equality, and poverty alleviation. Impact investing is revolutionary, as it breaks the usual way of thinking that social issues can only be solved through philanthropy. In recent years, the impact investing market has experienced significant growth and is garnering attention from investors worldwide.",[34,16401,16403],{"id":16402},"the-size-of-the-impact-investing-market","The Size of the Impact Investing Market",[12,16405,16406,16407,16409],{},"One of the challenges of measuring the size of the ",[22,16408,9697],{"href":9696}," market is the lack of a clear and consistent definition of what constitutes an impact investment. Different investors can have different criteria and expectations for their impact investments, and there is no universally agreed-upon standard or framework for reporting and verifying the impact outcomes. However, some organizations have attempted to estimate the size of the market based on surveys, reports, and databases of impact investors and intermediaries.",[12,16411,16412,16413,16418],{},"One such organization is the Global Impact Investing Network (GIIN), a nonprofit that aims to increase the scale and effectiveness of impact investing around the world. According to its ",[22,16414,16417],{"href":16415,"rel":16416},"https:\u002F\u002Fthegiin.org\u002Fassets\u002F2022-Market%20Sizing%20Report-Final.pdf",[45],"2022 Annual Impact Investor Survey",", which collected data from 1,289 impact investors managing $623 billion in impact assets, the total size of the impact investing market was estimated at $1.164 trillion as of the end of 2022 . This represents a significant growth from previous years, as the same survey estimated the market size at $715 billion in 2020 and $239 billion in 2019.",[12,16420,16421,16422,16427,16428,16433],{},"Another source of data is the ",[22,16423,16426],{"href":16424,"rel":16425},"https:\u002F\u002Fwww.ifc.org\u002Fen\u002Fhome",[45],"International Finance Corporation"," (IFC), a member of the World Bank Group that provides financing and advisory services to private sector projects in developing countries. The IFC has developed its own definition and principles for impact investing, which require investors to manage their impact throughout the investment lifecycle and report on their progress. Based on its analysis of funds that align with its principles, the IFC estimated that the potential market size for impact investing in emerging markets alone was ",[22,16429,16432],{"href":16430,"rel":16431},"https:\u002F\u002Fwww.ifc.org\u002Fen\u002Ftypes\u002Finsights-reports\u002F2021\u002Fimpact-investing-market-2020",[45],"$2.3 trillion as of 2020",". This suggests that there is a huge untapped opportunity for impact investors to support sustainable development in low and middle-income countries.",[34,16435,16437],{"id":16436},"the-returns-and-impacts-of-impact-investing","The Returns and Impacts of Impact Investing",[12,16439,16440,16441,16444],{},"Another challenge of assessing the opportunity for ",[22,16442,16443],{"href":4762},"impact investments"," is the trade-off between financial returns and social or environmental impacts. Some investors may be willing to accept lower returns or higher risks in exchange for higher impacts, while others may seek market-rate returns or better while still achieving positive impacts. The optimal balance between returns and impacts may vary depending on the investor’s objectives, preferences, constraints, and risk appetite.",[12,16446,16447,16448,16453],{},"However, some studies have shown that impact investing can offer competitive or even superior returns compared to conventional investing, while also delivering significant impacts. For example, a ",[22,16449,16452],{"href":16450,"rel":16451},"https:\u002F\u002Fwww.cambridgeassociates.com\u002Fwp-content\u002Fuploads\u002F2015\u002F06\u002FIntroducing-the-Impact-Investing-Benchmark.pdf",[45],"2015 study"," by Cambridge Associates and GIIN found that the median impact fund realized a comparable return when compared to non-impact funds. However, when looking at specific segments of the market, such as emerging markets or smaller funds, the impact funds outperformed their non-impact peers. Moreover, the study found that there was no correlation between financial performance and social or environmental performance, meaning that higher impacts did not necessarily imply lower returns.",[34,16455,16457],{"id":16456},"the-future-prospects-of-impact-investing","The Future Prospects of Impact Investing",[12,16459,16460,16461,16464,16465,16468,16469,16474],{},"The opportunity for impact investments is not only large but also growing. As the world faces unprecedented challenges such as climate change, poverty, inequality, health crises, and social unrest, there is an urgent need for more capital to address these issues and achieve the ",[22,16462,16463],{"href":16380},"United Nations Sustainable Development Goals"," (SDGs) by 2030. The SDGs are a set of 17 global goals that cover various aspects of economic, social, and environmental development, such as ending hunger, ensuring quality education, promoting gender equality, and combating climate change. According to the UN, achieving the SDGs will require an annual ",[22,16466,16467],{"href":14146},"investment gap of $2.5 trillion"," in developing countries alone. The value of opportunities that align with the UN Sustainable Development Goals (UN SDGs) was estimated as a ",[22,16470,16473],{"href":16471,"rel":16472},"https:\u002F\u002Fd306pr3pise04h.cloudfront.net\u002Fdocs\u002Fnews_events%2F9.3%2Fbetter-business-better-world.pdf",[45],"$12 trillion dollar opportunity"," from 2017 to 2030.",[12,16476,16477],{},[57,16478],{"alt":59,"src":16479},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-08-biggrowth.png",[12,16481,16482],{},"Source: Better Business World; The Report of the Business and Sustainable Development Commission; 2017",[12,16484,16485],{},"Impact investing can play a vital role in bridging this gap and mobilizing more capital for sustainable development. Additionally, the world is expected to have increased demand on strained resources as a result of the continued growth of the middle class globally. This is expected to increase global water demand by 40% by 2030 and global energy demand by 50% by 2050.",[12,16487,16488],{},[57,16489],{"alt":59,"src":16490},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-08-water-1.png",[533,16492,16493],{},[536,16494,16495],{},"World Bank Group, 2030 Water World Resources Group (WRG) 2. US Energy Information Administration (EIA) 2019.",[12,16497,16498],{},"Impact investing is also attracting more attention and support from various stakeholders, such as governments, regulators, corporations, foundations, and consumers. For example, in 2020, the European Union launched the EU Taxonomy for Sustainable Activities, a classification system that defines what constitutes an environmentally sustainable economic activity and sets performance thresholds for different sectors and activities . This initiative aims to provide clarity and transparency for investors and businesses that want to align their activities with the EU’s climate and environmental objectives. Similarly, in 2021, the US Securities and Exchange Commission (SEC) announced the creation of a Climate and ESG Task Force, which will focus on identifying and pursuing misconduct related to environmental, social, and governance issues . This reflects the growing demand and scrutiny from investors and regulators for more disclosure and accountability on ESG matters.",[12,16500,16501],{},[57,16502],{"alt":59,"src":16503},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-08-social-1.png",[533,16505,16506],{"start":498},[536,16507,16508],{},"Business and Sustainable Development Commission (BSCD) 2017 4. World Health Organization (WHO)",[12,16510,16511],{},"Impact investing is a powerful strategy that can generate positive returns for both investors and society. Atwe believe opportunity for impact investments is huge and growing, as more capital is needed and available to address the world’s most pressing challenges. Impact investing can also offer competitive or even superior returns compared to conventional investing, while also delivering significant impacts across various sectors and regions. Impact investing is not a niche or a fad, but a mainstream and long-term trend that is reshaping the global financial system and creating a more sustainable and inclusive future for all.",[34,16513,698],{"id":459},[12,16515,14125,16516],{},[30,16517,14128],{},[12,16519,16520],{},[57,16521],{"alt":14133,"src":14134},{"title":59,"searchDepth":167,"depth":167,"links":16523},[16524,16527,16528,16529,16530],{"id":16391,"depth":167,"text":16392,"children":16525},[16526],{"id":16398,"depth":498,"text":16399},{"id":16402,"depth":167,"text":16403},{"id":16436,"depth":167,"text":16437},{"id":16456,"depth":167,"text":16457},{"id":459,"depth":167,"text":698},"2022-08-25","The number of investable opportunities targeting one or more social or environmental positive outcomes has increased dramatically due to technology, innovation and increased awareness.","\u002Fimages\u002Fresources\u002Fimpact-investments-opportunity.jpg",{},"\u002Fresources\u002Fimpact-investments-opportunity",{"title":16386,"description":16532},"resources\u002Fimpact-investments-opportunity","x2Co_2wEA-5l6zom0EB4rlu1_vDr23kXXnn9BXl4Hj8",1790893040501]