| One of the most targeted demographics by financial | | | | doesn't, or at least should not cut it when dealing |
| advisors and private bankers is that of the high net | | | | with real money. |
| worht investor. The obvious reason that this is the | | | | Instead it is imperative that brokers and advisors do |
| case is due to the fact that advisors typically get | | | | a lot of homework and become proficient and |
| paid on their assets under management and high net | | | | alternative investments like hedge funds, private |
| worth investors have more money. It is easier to | | | | equity, venture capital, advanced tax strategies, |
| service 100 people with $10 million each then it is to | | | | timber, real estate, etc. Essentially you must learn the |
| service 1000 clients with $1 million each. Because of | | | | ins and outs to just about everything. |
| this many brokers and advisors are targeting this | | | | If you don't know what a global macro hedge fund is |
| demographic far more heavily then in the past. | | | | and how it looks at things then you need to learn. if |
| What is sad is that while they are going after the | | | | statistical arbitrage scares you then grow up and do |
| HNW investor more and more there are a ton of | | | | some homework. Strategies like convertible bond |
| misconceptions as to what a HNW investor needs. | | | | arbitrage, volatility arbitrage and the like are all |
| Many advisors that are new to working with HNW | | | | commonplace investment strategies in the world of |
| investors will just try and put all of their money into | | | | HNW investors and you better be up on the |
| the same crap that they have always pushed. Guess | | | | advantages and disadvantages of them. |
| what folks? A 70/30 mix of stocks and bonds just | | | | |