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Boutique investment advisory for high net worth clients

I Just Inherited $1 Million Dollars


If you have just inherited a large amount of money and have no clue about where to start, we are here to help you by guiding you through the many options available. Nevertheless, note that the first thing you have to keep in mind is what are your objectives with the money. As a financial advisory firm, in order to help you invest your money we need to understand you and your family’s needs. Do you already have a comfortable yearly budget based on your current salary or will you be relying on the inherited funds to supplement your income.  Do you have kids, are about to retire, or are you are investing in new businesses? These are all questions we need to know in order to proceed with well thought out plan, covering the most suitable investments for you.

At Horn Eichenwald, we create tailor made portfolios based on your own individual needs. We are experienced investors who understand that financial markets fluctuate and volatility spikes throughout the cycle.  We have a consistent and disciplined approach to portfolio allocation which we have been using for more than two decades with our clients. Staying close to our clients, listening to their needs and managing their financial risks, is a hallmark of our service. We are here to help you navigate the complex financial markets. We list below some investment products available to allocate in your portfolio. However, the key to remember is that a properly diversified portfolio is essential for most long-term investors. Deciding the right mix of investments appropriate for your needs is our specialty.

Here are some examples of investments to appraise when setting up a client’s portfolio:

US Government Bonds: T-bills, TIPS, Municipal Bonds and other U.S government securities.  While these investments have very little risk of non-repayment, they do have interest rate risk because bond prices fall when interest rates rise

Corporate & High Yield Bonds: U.S and foreign fixed income securities that can help to diversify a client’s portfolio and bring a differentiated generation of income.  Typically, corporate and high yield bonds pay higher than government bonds but also come with credit risk, in that the issuer may not be able to pay back the principal in times of stress.

US Stocks: The U.S stock market has a vast amount of opportunities and great liquidity, different industries, types of strategies to explore such as value, growth and dividend. There are also options and other derivatives that can be used under volatile periods. However, US stocks are very volatile in the short term. In order to invest in US Stocks, an investor needs to have a longer time horizon or more risk tolerance

Foreign Stocks:  Equity markets outside the USA can add a more opportunistic exposure within a global view, although we would only invest in reliable markets from developed or trustworthy emerging markets. There are an immense number of companies in the emerging markets who are likely to have more opportunities ahead vs Developed markets like the USA.

ETFs: ETFs revolutionized the stock market, bringing cheap and reliable structures to diversify a portfolio. Exchanged Trade Funds are basically investment funds traded like stocks that can hold assets like stocks, commodities, bonds. Usually a passive ETF will try to replicate an index, like the S&P, providing interesting exposure to equity markets without individual stock risk.

Closed End Funds: Closed End Funds are like ETFs in that you can easily buy and sell them as stocks, however the underlying price of Closed End Funds is not always directly tied to the fund’s holdings. Often times closed end funds trade a large premiums or discounts, to their underlying assets.  Understanding which funds are consistent and well managed helps us to bring an extra return for clients, as well as complements to our analysis since we trust the money to reliable investors.

Alternative Investments: Exposure to alternatives in this low yields era is crucial and something every day more usual in the industry. The alternatives world of investments is huge and understanding the products, the liquidity and the risks involved is crucial. The alternative investments industry ranges from venture capital, private equity to mortgage loans and real estate properties.

To conclude, understanding what to do with $1 million dollars starts with understanding yourself, your objectives in the short and long term, your family needs and the appetite for risk that you are willing to trust your financial advisor to run. The second step is to trust your money to people that are trustworthy, have 100% aligned incentives to take the best decisions for you. At Horn Eichenwald, we have been in the wealth management industry for more than 20 years guided by trust and integrity, high quality service, close relationship to our clients and investment expertise. Set up a meeting today to find out how we can help.

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