PERSONAL FINANCE LESSONS FROM THE UHNW
The Wall Street Journal’s Veronica Dagher was invited to the TIGER 21 Townhouse to experience a TIGER 21 Portfolio Defense first hand. The Portfolio Defense is at the heart of the TIGER 21 experience and the conversations pertaining to investments, family, philanthropic giving, estate planning and more can provide all Members involved insights into their investments, not just the Member presenting his/her portfolio. Key takeaways from her article include:
- Consolidating accounts to a manageable amount to streamline investment tracking and potentially cut fees. Though one must be wary of early withdrawal penalties and unintended tax consequences.
- TIGER 21 Members have an average asset allocation to Cash and Cash Equivalents of about 12%; not only as an “emergency fund” should a financial crisis arise but also handy should they need to jump on opportunistic investments quickly, particularly going into the new year under a Trump administration.
- The Portfolio Defense process is “about shining light on the Members’ blind spots.” Members may go into their Portfolio Defense with specific questions in mind; however, it may be the questions they didn’t think to ask that provide the most rewarding solutions.
- As was seen in the TIGER 21 Member Favorites Report, Members’ second-most-allocated asset class was into Private Equity, which though higher in risk, allows for greater returns than other asset classes in this low-interest rate environment.
TIGER 21 would like to especially thank Perry Lerner, TIGER 21 NYC 08 Member, for allowing Veronica to gain such a personal exposure into his life as well as the eight other Members who sat in on Perry’s Portfolio Defense.
