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Yale's $41.4 billion endowment (as of June 30, 2024) Source: Yale.edu
Dec 16
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State Mandated Retirement Plans for Small and Medium-sized Businesses

By Retirement

SECURE Act 2.0 Legislation Overview

  • The retirement industry experts widely expect it to pass by the end of the year (2022).
  • Take away the option for auto-enrollment (for 401k and 403b retirement plans).
  • Increases the tax credits for starting a company retirement plan from between 75-100%
    • Currently 50%
  • New credits for employer contributions
    • Historically been tax deductible. Moving forward will get a dollar-for-dollar tax credit.
  • Increases mandatory RMD age from 72 to 75.

Stats for Americans in retirement: These are the primary reasons for current legislation

  • 25% of U.S. adults have no retirement savings.
  • The median for individuals nearing retirement (ages 55-64) is less than $1,000/month in available income.
  • 40% of working Americans are confident their retirement planning is on track (overconfident?).

Legislation mandates have been introduced in most states and are currently active in 16 states.

Of those active:

  • Employee eligibility starts at age 18
  • All post-tax, Roth IRAs
  • Free administrative cost

Program details:

  • Contribution Limits
    • 401(k): $22,500 ($30,000 if older than 50)
    • IRA: $6,000 ($7,000 if older than 50)
  • Deadlines/Compliance
    • Many state-run programs require employer compliance by a given deadline.
    • Deadlines may be staggered or based on number of qualified employees.
  • Fees/Penalties
    • Employers may receive fines for failure to provide a retirement savings option to eligible employees.
  • Administrative Duties
    • Employers are often required to bear the burden of paperwork and processing to ensure program compliance.
Dec 15
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2022 Study on Private Philanthropy Trends

By Uncategorized

A recently released report conducted by Foundation Source summarizes giving and investment trends for nearly a thousand private foundations. Key highlights of the report include:

Giving Trends:

  • Private foundation endowments experienced double-digit growth in both 2020 and 2021.
  • Strong returns in 2020 presented an opportunity for private foundations to increase their giving in 2021. Larger foundations ($50-500 million in assets) increased their giving by nearly 21% from years 2020-2021.
  • In 2021, foundations collectively distributed an average of 7.2% of their assets for charitable purposes, generously exceeding the minimum distribution requirement of 5%.
    • Smaller foundations ($1-10 million in assets) gave nearly twice the minimum distribution requirement of 5% in 2021.
  • The Education Sector was the largest recipient (21%) of foundation funding in 2021.

Investment Trends:

  • Larger foundations have nearly 5-times the exposure to alternative investments than smaller foundations, and the lowest allocation to equities at 47.1% in 2021.
  • Foundations of all sizes experienced double-digit annual growth in both 2020 and 2021, gross-of-fees, with larger foundations leading at 16.5% over this two-year time period.

Foundations gave more abundantly in 2021 as they looked to contribute to pandemic recovery efforts. Even through times of economic distress, private foundations have continued to increase their charitable giving as they pursue their respective missions.

Details to Note:

  • Endowment Wealth Management maintains a strategic relationship with Foundation Source. View our press release from 2020 Here.
  • Foundation Source has been releasing its annual report on foundations since 2008.

 

View the Full Report Here.

Oct 28
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Endowment Index Press Releases Discontinued

By Uncategorized

SEC Marketing Rule 206(4)-1, places new requirements on the distribution of hypothetical performance on investment advisers. To comply with the Rule, ETF Model Solutions will no longer provide Endowment Index® performance data via press release. Investment professionals, institutional investors, endowment managers, family office staff and accredited investors who wish to continue to receive Endowment Index® performance data should visit EndowmentIndex.com and sign up to receive future updates directly

The Endowment Index® represents the investable opportunity for managers of portfolios utilizing the Endowment Investment Philosophy® or who otherwise incorporate alternative investments within a comprehensive asset allocation. The Endowment Index® measures performance for a multi-asset, globally diversified, three-dimensional portfolio that includes Global Equity, Global Fixed Income, and Alternative Investments (like Private Equity, Hedge Funds and Real Assets). The Index applies an objective, rules-based construction methodology based upon portfolio allocation data obtained from over 700 educational institutions that collectively manage over $820 billion as of 6/30/21. Each of the 22 sub-indexes that currently comprise the Index are investable and contained within those sub-indexes are over 47,000 underlying securities.

ETF Model Solutions, LLC serves its clients as an ETF strategist, designing and managing ETF-based investment solutions for advisers, institutions, retirement plans and individual investors based upon the Endowment Investment Philosophy®. The Firm offers ETF-based diversified target-risk models, and asset class models for use by investment advisers and retirement plans. ETF Model Solutions, LLC also provides digital investment services to individual investors through the website, www.MyRoboAdviser.com.

Contact: Tim Landolt MBA, Managing Director, 920.785.6012
Info: www.ETFModelSolutions.com or www.EndowmentIndex.com

Disclosure: Information presented for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies, nor shall it be construed to be the provision of investment advice. You cannot invest directly in an index. Indexes do not contain fees. Past performance is not necessarily indicative of future results. Investments involve risk and unless otherwise stated, are not insured or guaranteed. Performance information provided is net of any underlying exchange-traded fund expenses but does not include any other fees or expenses. A copy of the Firm’s disclosure document, Form ADV Brochure Part 2, is available upon request.

Oct 18
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Endowment Wealth Management’s Prateek Mehrotra Named to 2023 Wisconsin Titan 100

By General, News, Press Release

Titan CEO and headline sponsor Wipfli LLP are pleased to announce Prateek Mehrotra, Chief Investment Officer, Endowment Wealth Management as a 2023 Wisconsin Titan 100. The Titan 100 program recognizes Wisconsin’s Top 100 CEO’s & C-level executives. They are the area’s most accomplished business leaders in their industry using criteria that includes demonstrating exceptional leadership, vision, and passion. Collectively, the 2023 Wisconsin Titan 100 and their companies employ more than 100,000 individuals and generate $36 billion dollars in annual revenues.  This year’s honorees will be published in a limited-edition Titan 100 book and profiled exclusively online. They will be honored at the annual awards ceremony on January 12th, 2023 at Fiserv Forum, and will be given the opportunity to interact and connect multiple times throughout the year with their fellow Titans.

“The Titan 100 are shaping the future of the Wisconsin business community by building a distinguished reputation that is unrivaled and preeminent in their field. We proudly recognize the Titan 100 for their successes and contributions. We know that they will have a profound impact that makes an extraordinary difference for their customers and clients across the nation.” says Jaime Zawmon, President of Titan CEO.

As a visionary co-founder of Endowment Wealth Management and its affiliates, ETF Model Solutions, LLC and Global Alternative Investment Management, LLC, Prateek leads the investments team which is the backbone of the firm’s 3-dimensional Endowment Investment Philosophy®. Expanding a portfolio beyond just stocks and bonds, Prateek’s responsible for researching a virtually limitless expanse of investment opportunities including real assets, hedge strategies, private equity, venture capital, exchange-traded funds, private debt. He has led his firm to create a national index, an ETF strategist that designs and manages ETF portfolios, a private fund management firm that invests opportunistically on a global scale, and a digital investment platform for millennials and digitally-savvy investors.

 

“It is an incredible honor to be recognized as a Titan 100 and to be a part of this remarkable program.  While this is an individual award, it truly belongs to the great team we have at Endowment Wealth Management.  I am fortunate to be surrounded by a group of dedicated, hard-working, compassionate professionals.  I look forward to utilizing this opportunity to make meaningful connections with other accomplished, passionate, like-minded leaders to become an even better leader in my organization and our Wisconsin community.”

Prateek Mehrotra and the other award winners will be honored at the annual Titan 100 awards celebration on January 12th, 2023 at Fiserv Forum, home of the Milwaukee Bucks. This unique cocktail-style awards event will gather 100 Titans of Industry and their guests for an evening unlike anything that exists in the Wisconsin business community.

“On behalf of all the partners and associates at Wipfli we congratulate all the Titan 100 winners. It’s an honor to recognize this diverse group of leaders in Wisconsin. We appreciate the lasting impact each leader has made, and continues to make, in building organizations of significance both here in Wisconsin and abroad. Your ingenuity and creativity have set you apart, and the honor of being seen as an industry Titan is richly deserved,” says Gina Skibo, Partner at Wipfli.

Contact: Tim Landolt

[email protected]

920.785.6012

For more information, visit: https://www.titan100.biz/2023wisconsintitan100

Award recognition does not qualify as an endorsement of any particular index, investment, or investment strategy. The Wisconsin Titan 100 for 2023 was awarded 10/13/2022 by Wipfli. No solicitation payment was made to the award sponsor to be nominated or to qualify for the award. Prateek Mehrotra agreed to attend the award presentation and purchase tickets for the event as part of his acceptance of the award. Judging criteria for the award can be found at: www.titan100.biz.

Sep 13
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2022 Private Equity Insights

By Private Equity

The private equity asset class has seen a surge of new money as of late. Private equity funds raised a record $940 billion in 2021. Private equity managers now manage $10 trillion in assets, a sum that has quadrupled over the past 15 years. In the first quarter of 2022 US private equity funds invested roughly $222 billion across 1,418 deals. Of this $222 billion invested, the technology sector was the largest recipient with about $66 billion in funding (∼30%).

Aug 10
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Utilize a Systematic Roth IRA conversion to take advantage of the bear market

By Solutions
Limit the amount of taxes paid when planning for retirement!

Most individuals look to mitigate taxation nearing retirement. This is due to the uncertainty of future tax rates as well as future earnings of the individual. Since income is usually high leading up to retirement, it is not uncommon for your adjusted gross income to be high as well. When other forms of income begin to develop, (pension, social security, RMDs) your marginal tax bracket is impacted.

Read More

Nov 30
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Social Security Announces Biggest COLA in Decades

By Inflation Watch, Social Security

EXECUTIVE SUMMARY

The Social Security Administration has announced a 5.9% cost-of-living adjustment for 2022 – the largest increase since 1983.

This cost-of-living adjustment, or COLA, is an increase in Social Security benefits helps offset rising prices that could erode purchasing power caused by inflation.

COLA’s are not guaranteed each year, but are announced each October and reflect an annual increase based on the CPI.

The CPI is compared with the same quarter of the previous year. For example, the CPI for Q3 2021 is compared with Q3 2020.

Benefits begin in January 2022.

Have Questions? Need an expert opinion?

If you have more questions I’m happy to help you! We make getting answers super easy, without having to talk to some high-pressure sales person. Just use the secure contact form to ask a question, and I’ll get back to you via email within 48 hours to help point you in the right direction. I also offer a free wealth discovery meeting where we can discuss your personal situation and make sure you’re on the right path. Remember, it’s free to contact us and we are fiduciary advisors putting your personal needs first and foremost.

Best of Success,

John Weninger, CFP®
Wealth Advisor
Endowment Wealth Management, Inc.

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Press Release: New Private Fund Management Firm

By Press Release

New Private Fund Management Firm Seeks to Offer Unique Private Equity and Venture Capital Investment Opportunities to High-Net-Worth Investors

PR Newswire APPLETON, Wis., September 28, 2021–Global Alternative Investment Management LLC (“Global Alts”) has announced that it has launched its private fund management business. The Firm seeks to expand fund management services developed under its affiliate, Endowment Wealth Management, Inc. to a broader geographic client base serving high net worth individuals and families, institutional, and non-profit investors.

The current investment team has worked together since 2007 and has raised over $39 million through eight funds and has allocated over $50 million to a multitude of alternative assets. The team is currently raising capital ($7.85 million raised to-date) for its latest Fund, Unicorn Tech Fund II.

Global Alts is being spun out from Endowment Wealth Management, Inc. which has previously launched eight funds. The funds included thematic and opportunistic investments including late-stage technology- focused venture capital (including Unicorn Fund I), financial technology (Fintech), CBD/medical cannabis, medical imaging, and three co-investment funds targeting diversified multichannel retail, defense electronics, and telecom infrastructure respectively.

Robert Riedl, CPA, CFP®, AWMA®, President stated “Our private fund management business was an extension of our alternative investment offering within the context of our 3-D Endowment Investment Philosophy®. However, the majority of the HNW investors in our private funds are attracted to the unique investment opportunities and have less of a need for financial planning and core wealth management service offerings. Thus, it’s a natural evolution of our business to create a stand-alone entity and focus on marketing these unique investment opportunities to a broader HNW client base that are looking for the higher return opportunities that private funds may present. In addition, we also construct customized dedicated funds tailored to HNW families or entities willing to commit $10 million or more.”

The Firm’s fund research is headed by Prateek Mehrotra, MBA, CFA, CAIA, Chief Investment Officer. Prateek brings a unique global perspective to the Company. Born in India and armed with a degree in engineering, Prateek has earned an MBA, is a CFA charter holder, and is the first Chartered Alternative Investment Analyst in the State of Wisconsin. Prateek has spent his career cultivating relationships with private fund managers, hedge fund managers, and venture capitalists and utilizes this extensive list of contacts to source unique private and public investment opportunities. Under EWM, Prateek has spearheaded the launch of 9 funds. Mr. Mehrotra commented “At first, it was difficult to get people to commit. We launched our first fund in 2016. All our funds have been opportunistic or thematic in nature. We are looking forward to building upon our experience and tell our story to a broader audience. We truly enjoy sifting through the tremendous number of investment opportunities out there and bring to our investors the unique companies we can locate and add to our funds. We think we have a unique offering and skill set that investors are not able to source on their own or through their traditional investment professional.”

For more information visit www.GlobalAlts.com

Contact:

Robert Riedl, CPA, CFP®, AWMA®

Managing Member

Global Alternatives Investment Management LLC

[email protected]

920.785.6010

Global Alts relies upon the investment adviser registration of Endowment Wealth Management, Inc. based on certain no-action letters issued to the American Bar Association in the past. The activities of Global Alts’ investment advisory activities are subject to the Investment Advisers Act of 1940 and the rules thereunder and is subject to examination by the Securities and Exchange Commission.

Press Release 2021.09.28_Global Alts Launch (Print Version)

Jun 18
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Time to Take Control: Informed, Diversified Investors Can Weather Market Storms

By Retirement

Robert L. Riedl, CPA, CFP, AWMA, CEO & Director of Wealth Management at Endowment Wealth Management was recently featured in the article titled Time to Take Control: Informed, Diversified Investors Can Weather Market Storms, which appeared in the most recent issue of Insight Magazine. You can view the entire article on Insight’s website but Rob’s quotes in the article are listed below:

On Q1 2020 financial market volatility:

“Everyone didn’t even want to see what happened on their statements.” “But you need to open it and know your options.  And the investment options are plentiful, whether it’s equity markets, bond markets and certificates of deposit or something more tangible like gold. The key, is to know your risk tolerance and review investments to see if they match how much risk you are willing to take.

Investing for long-term retirement:

“Most people are working longer and living longer. If they are working longer, they have more time to add to their investment fund.  Some people are living 20 or 30 years after they stopped working. If you are too conservative, you’ll run out of money. Today, I tell clients they need a portfolio with a 50/50 split between stocks and bonds at age 75, not age 65.”

How to build wealth:

“Dollar-cost averaging is the best way to build wealth.  In dollar-cost averaging, investors place a fixed amount of money into an investment program at regular intervals. The strategy is designed to help the investor buy more shares when prices are down and fewer when prices are up, creating an average price per share and theoretically reducing the overall investment cost. If that sounds a lot like a 401(k), you’re right.”

On investing in a 401(k):

“The 401(k) is the most common investment vehicle people use to save for retirement, but they often set the allocation levels — for example 70 percent in stocks, 30 percent percent in bonds — and forget about it. 401(k)s are a critical asset.  Investors should not be afraid to take charge of their 401(k) accounts. They are a complicated asset, and if you don’t understand it or what’s happening, then find yourself a fee-only financial adviser.  It’s better to do something rather than nothing.”

On monitoring and re-balancing your portfolio:

“You need to re-balance your portfolio annually.  Pay attention to your accounts. Check on them quarterly to see how they are doing and what you may need to do to adjust.”

On having a diversified portfolio:

“Diversification, whether it’s stocks, bonds or another investment option, is also an essential part of making sure your funds can handle market volatility.”