Women Control Majority of Consumer Wealth in America, With Sharon Lechter

According to a recent Nielsen report, women will control two-thirds of America's consumer wealth in less than a decade.  Women already control 60% of the net-worth in America and make 85% of the financial decisions and with that economic power, a responsibility comes as well, according to Sharon Lechter, co-author of the "Rich Dad, Poor Dad" book series and expert on financial literacy.  She says women need to educate themselves on not only how to invest wisely but preserving capital and helping it grow at the same time.  A lot of women, she says, tend to hand over that economic responsibility to their male partners and rely on their credit ratings.  

Recent studies have shown that women are looking into alternative investments more than men, which doesn't surprise Lechter.  With alternative investments comes an "excitement in learning something new and educating ourselves," and as such, women tend to form investment clubs and groups.  Investors of a whole, given the recent stock market volatility, are looking for a balance of alternative investments as well as the traditional stock investments.  

While Lechter feels the steps for success are the same for both men and women, they are approached differently.  The climate has also changed to favor women, who tend to excel in a collaborative environment.  Women need to respect their positions of power to support the economy going forward, she adds.

Sharon Lechter

Source: sharonlechter.com

With respect to women having access to capital, Lechter sees a move towards strategic partnerships and alliances, rather than going out for a specific bank loan individually.  In doing so, they are using other people's money and resources to build a joint venture environment and women excel in this type of environment.  As well, women are seeking out alternative investment strategies, in addition to alternative financing options.  This area still proves difficult for women to get venture funding, adds Lechter.

One of the biggest issues Lechter sees for women in business is a lack of self-confidence.  She says it's important for women to support each other in this regard to be each other's advocates while each woman grows in their own self-confidence.

Sharon Lechter, co-author of the "Rich Dad, Poor Dad" book series and expert on financial literacy, spoke with Alternative Investing News, providing online alternative investing video news content.  Her most recent project is "Think and Grow Rich for Women, Using Your Power to Create Success and Significance."   Alternative Investing News is a featured network of Sequence Media Group.  This video was brought to you by Vantage Self-Directed Retirement Plans. 

Crowdfunding 101

Crowdfunding, which has been the way churches, charities and political parties have always raised their funds through donations from people who believe in a cause, is becoming an increasingly popular form of raising capitol in the business world.  

Crowdfunding.com: Top 10 crowdfunding sites based on Alexa and Compete rankings

Kickstarter is a successful website used to crowdfund different types of artistic projects.  For entrepreneurs looking to raise capital to fund their start-up company, there is equity crowdfunding, which is the newest and potentially biggest game changer in the world of business.  One simply puts their business plan up on their website and in return, sell equity shares to investors.  It's easier, faster and more efficient than going after individual investors one by one.  This has been made even more accessible with various online platforms, such as Fundable, Equity Net, Microventures, Startup Valley and Realty Shares.  

The Jobs (Jumpstart Our Business Startups) Bill, which was passed back in the spring of 2012, was intended to accelerate the growth of small businesses in the U.S. by easing some of the securities regulations associated with raising capital.  Title II of that law allowed early stage businesses to openly solicit capital investment for the first time.  This gave rise to the proliferation of online crowdfunding platforms, although participation in equity funding online is still limited to accredited investors, including those with a net worth of over $1 million or who have earned over $200,000 for the last three years.  

Congress is still concerned about CROWDFUND, or Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure, and so Title III of the Jobs Bill, which proposes to open the world of equity crowdfunding investing to the vast sea of middle-income investors, is still waiting on regulations.  

Brian Burt

Snell and Wilmer

Source: linkedin.com

While both political gridlock and concerns about fraud are continuing to delay progress on the issue, Phoenix business attorney, Brian Burt of Snell and Wilmer, says that when equity crowdfunding becomes a reality, it will have a "huge impact."  He adds that you will see companies become very appealing to the average American who has $1,000 or $5,000 to invest.  We will need to look at the rewards base crowdfunding to see what will happen, as these are people raising millions of dollars without giving any equity.  If they can do that level of capital formation without even giving a potential for return, Burt can only imagine what would happen if one would actually get a few shares in the company.  "The potential is huge if we can just get to the finish line in terms of the regulations," Burt says.   

Brian Burt of Snell and Wilmer, spoke with Alternative Investing News, providing online alternative investing video news content.  Alternative Investing News is a featured network of Sequence Media Group.  This video was brought to you by Vantage Self-Directed Retirement Plans.

Alternative Investment Strategies Gain In Popularity

Registered Investment Advisors, or RIA's, are saying that the investment landscape has changed quite a bit in the last few years.  Michael Bradley, who heads Bradley Wealth Management, in San Diego, California, says that the mindset of his clients has changed in recent years to a more "back to basics" way of thinking, after the technology meltdown in the early 2000's and recent recession.  

To that end, people are taking more time do their homework, explains Bradley, and are looking for alternative strategies to augment a portfolio through growth or income.  Across the board, "people are being much more cautious about how they deploy cash," and as such, are looking at entire spectrum of choices, Bradley adds.

Michael Bradley

CEO, Bradley Wealth Management

Source: linkedin.com

In working with many high net-worth investors in Bradley's firm, they are looking for new ideas and strategies.  From the investment banking side, it's requiring them to look farther for things that can bring income or growth to a portfolio in a different way.  Some examples would be oil and gas, where there could be a depreciation or reduction, real estate, providing growth on the back-end, or a limited partnership, just to name a few.  

Statistically, the alternative market segment is growing rapidly and Bradley attributes this to the fact that people aren't happy with the stock market.  For the credit net-worth clients, who are the core of Bradley Wealth Management, their RIA's are "seeking different ways of deploying capital than ever before,"  Bradley says.

Michael Bradley is the Founder and CEO of Bradley Wealth Management.  He spoke with Alternative Investing News, providing online alternative investing video news content.  Alternative Investing News is a featured network of Sequence Media Group.  This video was brought to you by Vantage Self-Directed Retirement Plans. 

Real Estate Rental Markets

There was a strong run-up in home sale prices last year, in part due to a lot of institutional investing in foreclosed properties.  Many investors are wondering what's next, as this boom has slowed down in many markets.  

According to Realty Trac, the top five U.S. markets for average return on investment in residential rentals are Detroit, Michigan; Atlanta, Georgia; Greenville, Mississippi; Macon, Georgia and Baltimore, Maryland.  The bottom five U.S. markets are New York City/Long Island; Edwards, Colorado; San Francisco/Oakland, California; Bozeman, Montana and Nashville, Tennessee.  

Kathy Fettke

CEO, Real Wealth Network

Source: linkedin.com

Kathy Fettke, CEO of Real Wealth Network in Northern California, says that in high-priced markets, the cost of real estate is high and the rents are low.  In high-priced coastal markets, such as San Francisco and New York, she says you're better off renting.  She tells her investors not to invest in rentals in these areas and instead, buy in cash flow states where the prices haven't yet peaked to give them appreciation and cash flow.  

In parts of California, the expansion phase is just beginning so there is a shortage of housing, Fettke says, with a stronger economy and population growth.  "It is a good time to be building and that's how we're making money in California," she says.  

Alan Langston

AZREI

Source: linkedin.com

Alan Langston, Director of the largest REIA in the U.S., based in Phoenix, Arizona, disagrees with the Arizona Republic, who says that single-family properties are no longer a good investment.  He says that the Phoenix rental market is a strong one, with a lot of demand and low vacancy rate of currently less than 4%.  Property can be acquired with a cap rate return that most people who find good, almost 35 times the return you would get by keeping your money in a money market account.  

This real estate market update was provided by Alternative Investing News, providing online alternative investing video news content.  Alternative Investing News is a featured network of Sequence Media Group.  This video was brought to you by Vantage Self-Directed Retirement Plans. 

Study Finds Women Look to Alternative Investments More Than Men

Wealthy women are more likely to put their money in alternative investments, such as private equity and commodities, than their male counterparts, according to a recent New York Life study.  The study looked at high net-worth investors with at least $1 million to invest and already had alternative assets.  

The study showed that women had a 27% allocation to the alternative sector, while men had a 20% allocation.  Of the women who responded in the study, 52% said they held their investments in commodities, compared to 46% for men.  The study also showed that 49% of women held stakes in private equity, compared to 35% for men.  Both men and women had indicated that they have increased their allocations to alternative investments in the past year.  

The researchers say that women maybe more interested in looking beyond traditional investments because they typically have longer life spans and need to save more for retirement as a result.  While women traditionally tend to be more conservative when it comes to investing, this study indicates women are becoming more moderate.  

According to Boston-based research firm Cerulli Associates, assets in alternative mutual funds are expected to double in the next year from 3% to 6%.

This Alternative Investing News update was provided by Vantage Self-Directed Retirement Plans.  Alternative Investing News provides online alternative investing video news content and is a featured network of Sequence Media Group.