Understand— Before You Invest

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Never invest in something you don’t understand,
or can’t explain.

This sounds like very practical advice, but it’s hard to follow in these increasingly complicated markets. We believe that many less traditional investment vehicles offer investors significant benefits like overall portfolio risk reduction, higher current income, or protection from inflation and rising interest rates. But they are often complex and difficult to understand. Don’t shy away from them due to their complexities, but don’t invest without a solid grasp of their characteristics and potential risks either.

Let us help you understand which securities make sense given your investment goals, which managers offer the depth and experience critical in these markets, and how these investments will impact your risk, your return, your liquidity and your taxes. Cliffwater’s research professionals cover investment managers in over 30 separate asset classes. Everything from a traditional large cap US equity manager to a highly specialized manager of Timber resources is covered. With our access to Cliffwater’s research, we not only can recommend new managers to complement your existing investments, but also can help you understand exactly what you own today.

You may not choose to drill down into each detail—but you should work with an advisor who emphasizes education, and advocates for investing with your eyes wide open.