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.
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®
Endowment Wealth Management, Inc.
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
Robert Riedl, CPA, CFP®, AWMA®
Global Alternatives Investment Management LLC
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.
New Video Looks at CARES Act
Signed into law in March 2020 as the COVID-19 pandemic began to gain momentum, the CARES Act includes four provisions designed to help retirement account owners weather the financial fallout.
Our latest video highlights these provisions, explaining how they may benefit retirement savers affected by the coronavirus and retirees.
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.”
2020 CARES Act: FAQs
On March 27, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law, the third in a series of economic relief bills in response to the COVID-19 pandemic. The more than $2 trillion package seeks to address financial pressures facing individuals, businesses, and state and local governments due to the pandemic. The below FAQ includes more details about what this means for you. Read More
The challenges we all face today are unique and significant. The Coronavirus has unleashed uncertainty, economic pain and shelter-in-place for much of the population. Any one of those alone can impact our mental health; the combination of all three can wreak havoc on us.
It is completely normal to experience feelings of loneliness, fear and anxiety during these unprecedented times. We may not be able to control the initial feelings, but we can control our internal dialogue. What we tell ourselves and what actions we take each day can either alleviate or intensify the negative feelings.
We can all protect our mental health by focusing on things that we can control. There is no sense worrying incessantly about those things we cannot control. We accept our situation as fact and figure out what we can do to make the most of the situation. Finding joy isn’t so much about our circumstance as it is in the actions we take.
Choosing to act, rather than be acted upon, supports a healthy mindset. I have included a list of actions that may be helpful:
- Turn off/take a break from the news and social media
- Continue your daily habits/routines to the extent you are able
- Adjust to new shopping options and try a home delivery service
- Exercise, walk, stretch – get the blood flowing
- Perform an act of service for someone else, checkup on a friend
- Think purposely about today; accomplish something each day
- Appreciate the simple things in life, count your blessings
I included several actions that have to do with our individual self-care. Yet, one of the most powerful ways we can feel good is to forget ourselves and do something nice for someone else. Whether that is mailing a card, dropping off some cookies or just talking with someone and lifting their spirits. For some reason whenever we serve another person, we are usually the ones that benefit the most.
Rest assured, the Endowment Wealth Management professional team is diligently working from their homes and our office, to manage your portfolio and we remain focused on achieving your personal long-term goals! So please stay healthy – both physically and mentally!
Robert L. Riedl, CPA, CFP®, AWMA®
CEO & Director of Wealth Management
Some positive news about the Coronavirus from one of our managers:
- Vaccine Development: An experimental vaccine developed by Moderna, Inc. began the first stage of a clinical trial on Monday, with testing on 45 healthy adults in Seattle. [link]
- China’s new cases plummet: China has now closed down its last temporary hospital built to handle COVID-19. Not enough new cases to warrant them. [link]
- Drugs that work: Doctors in India have successfully treated two Italian patients with COVID-19, administering a combination of drugs — principally Lopinavir and Ritonavir, alongside Oseltamivir and Chloroquine. Several are now suggesting the same medical treatment, on a case-by-case basis, globally. [link] [link]
- Antibodies to the rescue: Researchers at the Erasmus Medical Center claim to have found an antibody that can fend off infection by COVID-19. [link]
- 103-year-old recovery: A 103-year-old Chinese woman has made a full recovery from COVID-19 after being treated for 6 days in Wuhan, China, becoming the oldest patient to beat the disease. [link]
- Stores re-opening: Apple has reopened all 42 of its Apple retail stores in China. [link]
- Test results in 2 hours: Cleveland’s MetroHealth Medical Center has developed a COVID-19 test that can now deliver results in just two hours, rather than in a matter of days. [link]
- South Korea’s dramatic drop in new cases: After its peak of 909 newly reported COVID-19 cases on February 29th, South Korea has now seen a dramatic drop in the number of new cases reported daily. [link]
- Mortality rates inflated?: Experts predict that Italy has seen a higher mortality rate of COVID-19 given its significant aging population, as well as its higher percentage of COVID-19 patients with pre-existing health conditions. This might suggest that COVID-19’s fatality rate may have been slightly more inflated than previously thought for the general population. [link]
- Israeli vaccine development: More than 50 scientists in Israel are now working to develop a vaccine and antibody for COVID-19, having reported significant breakthroughs in understanding the biological mechanism and characteristics of the novel coronavirus. [link]
- Full recoveries: Three patients in Maryland who tested positive for COVID-19 have now been reported to have “fully recovered.” [link]
- Isolated virus: A network of Canadian scientists isolated the COVID-19 virus, which can now be replicated to test diagnostics, treatments, and vaccines. [link]
- Yet another vaccine in the works: San Diego biotech company Arcturus Therapeutics is developing a COVID-19 vaccine in collaboration with Duke University and National University of Singapore. [link]
- Treatment protocols: Seven patients who were treated for COVID-19 at Jaipur’s Sawai Man Singh (SFS) Hospital and Delhi’s Safdarjung Hospital in India have recovered. The treatment protocol will be widely scaled to other hospitals. [link]
- Another treatment: Plasma from newly recovered COVID-19 patients (involving the harvesting of virus-fighting antibodies) holds promise for treating others infected by the virus. [link]
Some of COVID-19’s hardest hit nation victims are already emerging strong after peak infection, and biomedical innovators are tackling the virus at unprecedented speeds.
IMPORTANT TO REMEMBER… While everyone is concerned about the super-high mortality rate of this virus — which is calculated by the “number dead” divided by “the number who have tested positive” (currently ~8,000/200,000) — the denominator, i.e. the number infected is actually VERY hard to know because so few people have been tested. It may well be that 10x more are infected but subclinical. So is the mortality rate 4% or 0.4%?
Endowment Wealth Management has a new home. This past month we moved to a new Appleton headquarters located at W6272 Communication Court, Appleton, Wisconsin 54914. Please stop by if you are ever in the area and want to check out our new building!
Cyber security thieves are growing ever-more sophisticated, and it means that all of us need to be more diligent with protecting our digital or online information.
Registered Investment Advisers utilize the interface run by the FINRA (Financial Industry Regulatory Authority) for our regulatory reporting. Like all cloud or internet based, services, usernames and passwords are required to utilize the site and passwords need to be updated on a regular basis. Like many sites, Finra has adopted minimum standards in terms of character length and the inclusion of multiple character types within the password. Finra goes one step further in that the site also maintains a lengthy “Prohibited List” of words that cannot be included in the password on their site. Here are a few humorous takeaways that I gathered from the list:
- Passwords that include the names of popular pro sports teams are prohibited, including COWBOYS, GIANTS, LAKERS, YANKEES, REDSOX, or PACKERS. However, you can use less popular teams like MARLINS, CLIPPERS, or LIONS.
- BEER, BRANDY & COFFEE are prohibited, but WINE, VODKA, TEA and WATER are permitted (Good news- CARRYINS are allowed!)
- PEPSI is OK, but you can’t have COCACOLA
- You can use NICE, but not NAUGHTY.
- They permit BRUNETTEs and REDHEADS, but not BLONDES.
- You can’t get LUCKY, have MONEY, or reach for the STARS. You are not allowed to have DREAMS. You can use GOOD but not GREAT. You cannot have SUCCESS, but you are able to grab FAILURE.
- You can have a BURGER but no CHEESE. SALT, but no PEPPER. BREAD, but no BUTTER.
- You cannot have a BABY, but you can have KIDS.
- DRIVING and RACING are prohibited, as are MERCEDES, FERRARI, PORCHE, CHEVY, FORD, CORVETTE and MUSTANG. TOYOTA, NISSAN, VOLVO and BMW are OK.
- DANCING is permitted, but MUSIC is not allowed.
Seriously, please keep your data safe with good password hygiene using these tips:
- Use different passwords for every account or online profile
- Use passwords of at least 12 or more characters (more is always better)
- Do not use birthdays, names of children, pets or other personal information that people might be able to glean from your online social media accounts
- Always use four different character types (upper case, lower case, numerical and special) when creating a password
- If you are not sure, use a password checker tool to test the strength of a password
- If you cannot get creative, use a random password generator
- Always use multi-factor authentication when its available
- Use a password manager with strong encryption- do no store passwords in a file on your device
Authored by Tim Landolt, Director of Institutional Services