Founded in 1993, Vogel Consulting is a multifamily office that offers an integrated approach to wealth management. The professionals at Vogel Consulting look at alternative investments, including private equity, to drive higher returns, especially for high-net-worth families.
Investing is one of the many ways to generate profit from existing wealth. You can either opt for traditional investments such as cash, bonds, and stocks, or choose alternative investments in commodities, hedge funds, managed funds, and real estate investment trusts. The two types of investment vary significantly in terms of required minimum amounts, fees, liquidity, and return on investment, or ROI.
- The starting investment in traditional funds is between $500 to $3,000, while alternative investments require a substantial initial amount of $500,000 to $1 million plus fees, including up to 2 percent of the fund’s assets and 20 percent of profits.
- Cash and bonds are short-term investments, and stocks within mutual funds can be redeemed easily if needed. In contrast, assets like real estate require more time to liquidate.
- Alternative investments tend to generate higher returns compared to traditional investments, even during a financial crisis. However, alternative investments also carry a higher risk.
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