Ask most independent financial advisors what their clients' number-one investment goal is and most often you'll get the response “they don't want to run out of money in retirement.”
These clients may get to pick when they want to retire, but they don't get to pick where the S&P 500 is when that time comes, nor the price of bonds. So, priority one for advisors should be protecting their clients' nest eggs from market volatility so that their retirement doesn't get derailed or pushed back. And while many advisors think their clients may have a diversified strategy largely through traditional modern portfolio theory with a 60-40 allocation of publicly available stocks and bonds – new research shows that smart diversification includes having an allocation in alternative assets for truly reducing risk and attaining excess returns for accredited investors.
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