Tags: Jason Vanclef | investing | diversify | wealth

Strategist Vanclef: Take Diversification to the Next Level

By    |   Thursday, 27 June 2013 07:13 AM

A successful and profitable portfolio must have "many different legs" supporting a financial table, with the "legs" not tied to each other, said Jason Vanclef, a financial planner, strategist and author.

"Stocks, bonds, mutual funds, and annuities are basically one leg of a table, and you get a year like 2008 that rolls around and that leg gets clipped, that whole table collapses," Vanclef told Newsmax TV in an exclusive interview.

"You need real estate, oil and gas … to collect all these different things, different ideas that are not part of the Wall Street methodology. And when one leg inevitably breaks, the only guarantee in finance is that something will go wrong," he said.

Watch our exclusive video. Story continues below.



"When a leg or two breaks, you have other ones that support the table. You can have stocks and bonds, but that's ... just a one-legged table. That's not very stable," said the author of “The Wealth Code 2.0.”

Editor's note: To order 'The Wealth Code 2.0' at a great price — Click Here Now.

Questions of where stocks and bonds are headed for the rest of this year and the state of the economy led Vanclef to discuss Federal Reserve Chairman Ben Bernanke and the central bank's program of quantitative easing.

"Why is Ben Bernanke printing $85 billion a month?" Vanclef asked. "Even though he keeps talking about how he's going to taper this, the reality is that he does this every year. He's done this for the last three years. He says, 'I'm going to taper it off,' and all of a sudden the markets swoon down … and then he comes back to save the day."

Vanclef added that we're in uncharted territory because, as long as the Fed is printing, it's very difficult to understand relationships with the markets.

"They wouldn't be printing $85 billion a month if things were humming right along," he said.

"There's an artificial support that's happening right now that if they take it away, what's going to happen? The law of gravity [and] the law of economics applies here and it's going to be a little bit tough, which is the idea of learning about different ideas and how to better withstand whatever comes our way."

Editor’s Note: Put the World’s Top Financial Minds to Work for You

He also pointed out how the average investor can take advantage of asset classes that have been typically available only to the wealthy.

"With commercial real estate, you can be in things like storage centers, you can be in things like apartment buildings, and you can be in a $1 billion portfolio, but if you find what is called … a non-traded REIT, or a non-listed business development corporation, there [are] ways that … smaller investors can be part of that kind of portfolio and get the same perks," he said.

The subject of fees also was discussed, with investors advised to know why you're paying what you're paying. "Ask the questions that might make you feel uncomfortable: How you're getting paid; What's in it for me? Because the reality is this [is] your money, it's the investors' money. It's supposed to be what's [in it] for you, not for the adviser."

Investors must be comfortable with what is in their portfolio, he said. "The very first thing is your personality for any type of investment," he said.

Oil and gas provide an example.

"I always ask questions," he said. "Is there anything you hate about it? I might have a [client] that says my daughter's in Greenpeace … and anything with oil's bad, he said.

"That should never be part of someone's portfolio because if you don’t believe [in] an investment, you're not willing to weather the ebbs and flows which eventually will happen," he said.

"Being in an idea that … [makes] sense to you and believe in, that is the first step of a successful portfolio because you'll weather the storms better. You won't panic as much."

Editor’s Note: Put the World’s Top Financial Minds to Work for You

© 2018 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
A successful and profitable portfolio must have "many different legs" supporting a financial table, with the "legs" not tied to each other, said Jason Vanclef, a financial planner, strategist and author.
Jason Vanclef,investing,diversify,wealth
715
2013-13-27
Thursday, 27 June 2013 07:13 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved