Managing your wealth in an uncertain world

When times get tough, managing your wealth may seem daunting or even impossible. An economic downturn can pose a lot of uncertainty, for example. But there are plenty of ways to safeguard your financial well-being when it comes to investments, says Andrew D. Burish, managing director and financial advisor at UBS Financial Services Inc.

“Make sure you have a financial plan in place,” says Burish. While a rainy day can occur at any time, being prepared early can make all the difference and dissuade you from panic selling if you hold investments in stocks. “For those with a financial plan, if you don’t have a liquidity strategy in place, we would recommend minimizing your withdrawals from your investments to prevent a permanent impairment of your portfolio,” says Burish. “You can make tweaks to the portfolio, but history will show that as long as you stay invested, your portfolio will weather the storm.”

Andrew Burish

But how can someone manage their wealth during a period of inflation? If you have investments in stocks, Burish suggests adding value stocks. “As inflation rises, it is likely that interest rates also rise, which in turn slows the economy down,” he says. Thus, you would want to consider a “tactical move to more ‘value’ or ‘dividend’ securities. In times of rising rates, these types of securities typically outperform their growth counterparts.”

However, this is also the time to add commodities or hard assets such as real estate to your investment portfolio. “Owning a portfolio of real estate, which can increase rents, can also be a good tactical decision in times of inflation.” You might also consider adding commodities such as energy, which, Burish says, “oftentimes correlate to high inflation, and can help mitigate potential losses on other assets.” If you are an accredited investor, you might look to diversify your portfolio with alternative investments. “Our [UBS] research shows that adding alternatives can provide various potential benefits for investors, including downside risk protection and higher returns,” he says. The Burish Group at UBS has the tools to help you prepare for uncertain times. Reach out today to learn more so you don’t have to face economic uncertainty alone. •

Disclosures: Alternative Investments US of UBS Financial Services Inc. provides investment management services to qualified high-net-worth and institutional clients. Eligibility requirements begin, generally, at a net worth greater than $1.5 million for individuals (with spouse) and $5 million for entities. This is not an offer to purchase or a solicitation to sell any security. Investors should be aware that alternative investments are speculative, subject to substantial risks (including the risks associated with limited liquidity, the use of leverage, short sales and concentrated investments), may involve complex tax structures and strategies, and may not be appropriate to all investors. Alternative investments may be illiquid, they may not be required to provide periodic pricing or valuation information to investors, there may be delays in distributing tax information to investors, they are not subject to the same regulatory requirements as mutual funds and they may be subject to high fees and expenses, which will reduce profits. Alternative investments are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other governmental agency. They should not constitute an entire investment program.

Important information about UBS brokerage and advisory services. As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business and that you carefully read the agreements and disclosures that we provide about the products or services we offer. For more information, please review client relationship summary provided at ubs.com/relationshipsummary. BS Financial Services Inc. is a subsidiary of UBS Group AG. Member FINRA/SIPC. Expiration: 9/30/2023 Review Code: IS2205305