It’s hard to resist a good deal, and today’s high interest rates on short-term Treasurys
and CDs are luring in even wealthy investors who have financial advisers handling their affairs. You might think that paying a professional to manage your money would involve all sorts of private deals, hedge funds or business opportunities, and often it does. But that is usually only a small portion of a wealthy person’s asset allocation. The majority involves the same nuts and bolts as in most people’s portfolios, making them look very familiar, just with larger numbers.
“We go out and purchase CDs, some people have money-market funds, even something as basic as a high-yield savings account. We help with bond ladders, Treasury bills, things like that,” said Nicole Sullivan, a certified financial planner who is a co-founder and director of financial planning at Prism Planning Partners in Libertyville, Ill. The financial-planning industry sets a level of $1 million or more in investable assets to be considered in the high-net-worth category – that’s money beyond the value of a house. Sullivan says her clients typically have between $2 million and $10 million to invest, and some of that comes in lump sums from the sale of a business or an inheritance. The big focus for clients like this is having many different kinds of investments and making sure the different streams are optimized for growth and tax …