Downtown Investment Advisory
Salo Aizenberg, a licensed Investment Advisor Representative, manages Downtown Investment Advisory. Salo is an expert investment professional with more than 20 years of institutional investing experience prior to founding Downtown Investment Advisory.
Salo consults with a middle market asset based lender and serves on the board of several entities, including a multi-million private foundation and BlueStar Indexes, a financial firm focused on the Israeli capital markets.
Salo spent 10 years at BNP Paribas, one of the largest global banks, managing portfolios exceeding $500 million. He spent another 10 years as a Managing Director investing various institutional funds exceeding $200 million
Salo's goal is to create a long term investment plan for each client and to implement this plan by selecting and managing a portfolio of investments. Salo and his team offers intense personalized services as an alternative to the large wealth management firms that typically provide their best service only to their largest accounts, and have inherent conflicts of interest, such as placing clients in "house" mutual funds. Salo also specializes in creating custom portfolios of bonds and fixed income investments as an alternative to the stock market.
Salo's investment philosophy has been developed based on over 20 years of institutional investing and navigating through the crashes of 2001-2002 and 2008-2009. As an independent firm DIA does not have incentives to place clients in certain types of assets and we do not earn sales commissions. Salo has fiduciary obligations to all of his clients that many investment professionals, such as the majority of advisors at the large brokerage firms, are not required to provide.
BS, Management Information Systems, Binghamton University
MBA, Finance, Columbia University
The answer is absolutely. Junk bonds are really a misnomer, better known as high yield bonds. For some reason high yield bond are seen as highly risky, but the fact is that over the past 20 years high yield bonds have outperformed stocks with 1/3 less risk than stocks. If you look at the performance of high yield in the last two market crashes, high yield has vastly outperformed stocks. And if you are an income investor, these bonds provide a steady yield in the 6% range on average today. Sure, high yield bonds are riskier than investment grade and government bonds, but the yields are these are in the 2%-3%. The best way to invest in high yield bonds is by holding a diversified portfolio of individual bonds and plan to hold to maturity. If you can do this, then you can ignore market volatility, simply wait for the maturity date to get repaid and collect interest along the way. My investment advisory practice specialized in fixed income, specifically creating laddered portfolios of high yield and other bonds. If interested check out www.downtownllc.com.
Downtown Investment Advisory
IULs and similar life insurance policies are complex financial instruments that few people truly understand. Even as a financial professional, I have trouble analyzing all the opaque moving parts involved in these insurance products. One thing is certain, fees are high, and insurance salesman have strong incentives to sell these products. Less certain is if they are the right answer for most people. The first question is if you actually need life insurance, are you more concerned with leaving money to heirs or having the money you need for your retirement? I suspect the answer is money for retirement. A better solution in my opinion would be to invest all your assets in more traditional investments like bonds and stocks. Given your age, I would recommend a mix of bonds (ranging from investment grade to high yield bonds) to generate a steady stream of income that you can withdraw from your accounts each month for living expenses. Another portion would be invested in stocks for long term growth, with a focus on lowest cost index funds (no individual stocks, and no mutual funds). My Registered Investment Advisory practice specialized in fixed income, specifically creating portfolios of individual bonds clients hold to maturity. The interest earned can be reinvested or withdrawn. Only with further discussion could a proper allocation plan be assessed and implemented. I would be happy to discuss further, and you can learn more about my practice, Downtown Investment Advisory, at www.downtownllc.com. As a fee-only independent advisor with fiduciary obligations, I have no incentives to "sell" any products or to place client in in-house mutual funds.
I concur with some prior answers that your assets are clearly enough to cover your living expenses now and in retirement. You are in a strong position with large liquid holdings and a substantial IRA that can continue to grow tax free. However, you are simply holding too much cash, and there is no need to dip into this cash for living expenses. Inflation slowly erodes the value of cash, so I would strong recommend that you put this cash to work, since you need to plan for many more decades. Although the only information I have is your note, I am guessing that you lean towards the conservative side on investing. I would recommend allocating a large portion of your cash holdings to a portfolio of individual bonds, including a wide variety of high grade municipal bonds, investment grade corporate bonds, and high yield bonds. I would think targeting a 3.5%-4.0% net yield is achievable. By holding individual bonds, you can ignore market fluctuations and simply seek to hold the bonds to maturity. The income stream generated can be withdrawn as needed for living expenses, or reinvested to take advantage of compounding interest. In this way your cash can last for decades, without high market risk. You may also want to consider a portion of investments in stock index ETFs (no mutual fund and no individual stocks). My Registered Investment Advisory practice specializes in fixed income, specifically creating portfolios of individual bonds. However, only with further discussion could a proper allocation plan be assessed and implemented. I would be happy to discuss further, and you can learn more about my practice, Downtown Investment Advisory, at www.downtownllc.com. I also write extensively on Seeking Alpha about fixed income, you can find my articles here.