Wealth Preservation - What It Is & How To Do

California-based financial professional Micah Scheinberg serves as the managing director of Alex. Brown, a division of Raymond James, in Los Angeles, California. In this position, Micah Scheinberg helps clients preserve their wealth.

Wealth preservation is the management of assets so that their value does not decrease over time. Several processes can help preserve assets, such as forming a new entity to segregate assets and obtaining an insurance plan that covers certain assets. Estate planning to avoid probate also aids in wealth preservation since trusts or other estate documents protect assets from the probate process.

Wealth preservation strategies also incorporate risk re-evaluation. Re-evaluating investment risks includes the consideration of changing trends and future volatility. No investment is risk-free, but investors can preserve their wealth by regularly re-evaluating risks and distributing their investments among different companies.

An emergency fund also aids in wealth preservation. People should have at least three to six months of living expenses set aside to protect against unexpected crises. Emergency funds may not have the same returns as investments, but they are safer and easier to reach when needed.

How Hedge Funds Work

The managing director of Alex Brown, a division of Raymond James, Micah Scheinberg is based in Los Angeles, California. Having worked in the securities industry for over two decades, Micah Scheinberg has extensive experience in alternative investments such as hedge funds.

A type of pooled investment, hedge funds are operated by professional managers who control the money and returns of a limited number of partners or investors. Such investment vehicles are designed to minimize risk in the financial environment while still maximizing profit. Since capital is provided by each individual investor in the fund and then pooled together, the hedge fund manager is capable of making larger investments on behalf of the fund’s participants, thereby increasing the chances of higher returns.

With a hedge fund, investors can access a wide range of securities. Large hedge funds must register with the United States Securities Exchange Commission (SEC), but this isn’t a requirement for every fund. This gives hedge funds more freedom in how they achieve the goals of the fund manager and partners.

Since each hedge fund is structured differently, it has different goals that inform the fund manager how to invest. Some funds focus only on long equities, which means that they buy common stock and do not sell short. Meanwhile, others only focus on investing in private equity. The only unifying goal for hedge funds is that they all strive for market direction neutrality so they are capable of making money regardless of how the financial market fluctuates.

Differences btw Hedge & Mutual Funds

Award-winning financial advisor Micah Scheinberg leverages over 25 years of experience in the securities industries to help clients. As managing director of Alex Brown, a division of Raymond James, Micah Scheinberg is skilled in alternative investments and familiar with such investment opportunities as hedge funds.

Hedge funds are a type of managed investment portfolio composed of pooled investments. Typically, they are private, meaning that they have certain limitations requiring large minimum initial investments or net worth requirements and that mainstream investors do not always have access to them. Typically, the strategies that hedge funds employ are high-risk strategies that result in high yields for investors. This includes stock, real estate, and other investment options. For this reason, hedge funds often limit which investors can participate in them.

Many people conflate hedge funds with mutual funds, which is another type of pooled investment. Mutual funds offer investors a huge range of choices when it comes to their desired portfolio. They often focus on specific asset classes, though they also offer good diversification depending on the make-up of the portfolio, and are either actively or passively managed by a manager. With active management, the portfolio manager chooses the securities that the fund owns and those that it excludes. While mutual funds also have certain limitations on investing, they are usually more accessible than hedge funds.

The USC SEC and Financial Reporting

With more than 20 years of experience in the field of finance, Micah Scheinberg has established himself in leadership roles including his current position as managing director at Alex. Brown, a division of Raymond James. Micah Scheinberg holds a master of business administration with a concentration in finance from the Marshall School of Business at the University of Southern California (USC).

Each year, the Marshall School of Business organizes the USC SEC and Financial Reporting Conference. The 2021 iteration is scheduled for June 3 and 4. The two-day virtual event will provide an opportunity for dialogue between business professionals and policy makers who represent the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board.

The conference will tackle key practice issues related to financial reporting, accounting, and auditing. Attendees can benefit from this learning experience and claim 10 hours of continuing professional education credits. Learn more at www.uscsecconference.com.