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Endowment Investing with WhiteStone Wealth Management

When major institutions such as universities and hospitals need to ensure that they will be financially solvent for years to come, they turn to endowment investing. In the world of nonprofit organizations, an endowment is a fund contributed to by donors that the institution can pull from each year to cover its operating costs. They withdraw only a small percentage each year, maintaining the principle, which will continue to grow. 

These endowments need to be dependable because the financial needs of these large institutions do not change when the stock market drops. They cannot simply stop offering classes for a semester to cut costs. They need to depend on their endowment to provide funding even during a recession. We believe that you deserve the same stability.

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What is the Endowment Investment Model?

Endowment-style investing is all about managing risks. This means adding a wide range of asset classes to your investment portfolio that have little or no correlation, with each segment of the portfolio taking a different path. In addition to traditional stocks and bonds our endowment investment could include real estate, private equity, hedge funds, annuities, commodities, and more. 

Endowment investing means taking advantage of the broad range of assets available to you as an investor so that when the stock market plummets, you can remain calm knowing that your broad portfolio remains strong. This works because the different asset classes respond differently to market behavior; Generally, when stocks go down, bonds go up, while several other asset classes such as real estate or commodities respond in different ways.  The diversification within the endowment-style portfolio allows you to hedge your risk and develop a well-balanced portfolio.


Endowment Model Investing for Everyday People

Endowment-style investing helps smooth out the roller coaster ride of the stock market. You can also utilize the investment strategy used by sophisticated investors at multi-billion-dollar institutions and benefit from the same diverse asset classes.

Endowment investing is not the same as investing in your 401(k). There are many investments available to you, and they all have different regulations, risk portfolios, and minimum investments. Even if you have successfully managed your retirement investments independently until now, you may need an investment manager to handle endowment-style investing.

WhiteStone Wealth Management is passionate about bringing this powerful investment style to individual investors. Call us today to learn how we can help you manage your risk and develop an endowment-style investment portfolio.

Let’s Talk About You. Schedule Your Free Consultation Today.