What should investors do when confronted with market volatility? The conventional wisdom couldn’t be clearer: Ignore it. But new research says that is wrong and that investors should instead decrease their equity exposure.
Daily liquidity is important if your clients are day traders or need to quickly cash in their entire investment portfolio. Most of your clients, however, do not need 100% liquidity in many areas of their portfolio, especially the portion earmarked for retirement. This webinar will outline:
The liquidity mismatch is found anywhere in a portfolio that is 100% liquid but earmarked for long-term objectives; this is most stark when it comes to retirement savings. A more sensible approach involves aligning long-term retirement goals with a thoughtful allocation to illiquid investments and their corresponding return opportunities.
Advisors should look more closely at their clients’ investments as well as portfolio design from a liquidity perspective. Investors, particularly those with long-term goals, may be paying for daily liquidity they don’t need. By ignoring liquidity premiums, advisors are not maximizing the funds of their clients.