Outside of Wall Street, many folks may not know who Larry Fink is. Fink is the Chairman & CEO of BlackRock, Inc., the world’s largest money management firm with $4.6 trillion in asset under management. He has led the firm since its inception three decades ago, and like many successful money managers, he’s known for speaking his mind regardless of what the consensus thinking may be.
When successful business owners start the planning process of selling their business, in many cases the largest asset that person owns, many are looking at things such as; what multiple of my EBITDA is reasonable, what business broker or investment banker should I be using, etc.? The first step in the process really starts with the question “how much do I need to realize from the sale of the business to fund my family’s lifestyle for the remainder of our lives? I like to equate this process to building a home, if your foundation (or in this case accumulation needed), is not thoughtfully and carefully calculated and executed the rest of the process is built on shaky ground.
Janiczek Wealth Management has been named one of the Top 12 Financial Advisors in Denver, Colorado Springs, and Boulder (Colorado) by AdvisoryHQ. To read the full article/review “Janiczek Wealth Management – A Beacon of Light for High-Net-Worth Individuals” go to this link.
Now in our 25th-year serving high net worth investors (those with investment portfolios of $2- to $20-million) and ultra-high net worth investors (those with $20-million+ investment portfolios) in the Denver, Colorado Springs, Boulder, Aspen, Vail, Beaver Creek, Summit County and Snowmass areas of Colorado and in approximately 24 other States in the U.S.A., we our proud that our patented Strength Based Wealth Management (SBWM) and our comprehensive Evidence Based Investing (EBI) services helps to “unleash” our clients from the complexities of wealth and investing so they can flourish with their good fortune.
When building an efficient portfolio, most market practitioners would agree to an allocation to bonds. This allocation reduces the overall volatility of the portfolio and adds a layer of safety. The two main components affecting fixed income returns are: 1). interest rates and 2). the credit quality of issuers. With the recent increase of interest rates and the Fed’s plan to incrementally increase rates over the next few years, we feel investments in credit, especially high yield, offers better return potential to investors.
High yield bonds tend to deliver the potential to improve a portfolio’s overall risk/return given the historically low correlation with other core asset classes. Due to their location on the credit spectrum, high yield bonds offer enhanced yields compared to high quality bonds and can potentially increase the overall yield of a portfolio significantly. Although this has not been the case as of late, historically speaking, high yield bonds have provided better downside protection than equities while delivering equity like returns with significantly less volatility and drawdowns.