protecting from the downside , as well as optimizing for the upside .
He says that rather than being caught up in the moment to moment commentary of the media , or suffering from short term thinking and decisions triggered by frequent periods of volatility , he takes the longterm view . He invests for , and advises based on taking a 30year outlook , not just the next few years as many do .
Joel recognizes the need for investors to outpace real inflation today , something they are not getting from the stock marketing . The key to a reliable portfolio in the long term is having a genuinely diversified portfolio . This requires looking outside traditional stock market portfolios , which are likely to provide average returns , and local actively managed real estate properties , which are by their very nature highly undiversified with heightened geographical risks .
Joel and his firm help facilitate this risk by introducing their clients to a wide breadth of availability for investing . Far too many companies can never operate or advise in the absolute best interests of their clients because they literally can only sell the “ property du jour ” ( or the next one coming soon ). These are typically presented as “ opportunities ” too , versus described in their more accurate context such as “ 40yearold apartment building that needs millions in deferred maintenance ”.
In a Family Office environment , investors will find a much greater diversity of options and scalability so that they can begin building a large and well diversified portfolio , at the timing best for them and their unique situation .
Their managed portfolios of vertically integrated asset classes can include land banking , infrastructure development , large scale single family home construction projects , multifamily apartment community new constructions , and even prestigious hotel development and other commercial hospitality projects .
Active to Managed Investing
One of the largest transitions that Joel helps families and individual investors make is from Active to Managed investing . Characterization of investments as Passive , as is commonly done throughout the investing industry , is looked down upon . This is why he is so passionate about education surrounding Managed investing to ensure that relationships are built on the highest levels of intellectual honesty and ethics .
Business owners and highincome professionals such as doctors , dentists , and realestate investors are highly sophisticated . This is evidenced by their respected achievements in education , patient care , and prudent and methodical business growth and success over many years in building to their current levels of wealth . “ Why then would anyone want to short circuit their understanding and involvement in the design of the portfolio that will be managed for their success , most especially when multigenerational goals are at its core ?”
This is why a genuine focus on education throughout the portfolio selection process , and throughout its growth , and further diversification over time , is so vital .
Now is an attractive and important time for many to exit older or mature real estate assets and to restructure , especially those that have highly appreciated over time .
In other cases , Joel helps heirs handle the estates , properties , and businesses they inherit and need to manage . Also from the granting side , those that see fit to take care of this process themselves versus leaving disposition to the heirs . Joel helps disposition those assets , often deferring any tax impact , and often increases the amount of income they were making off their businesses and rental properties .
In fact , he has helped others moving from active to managed investing by using tax deferrals such that they are enjoying much better returns than they were getting by operating themselves .
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