BURKE CAPITAL PARTNERS

Since their arrival in the United States in 1883, the Burke family has been creating, investing, and protecting capital. The greatest lesson we have learned is that investing is about long term consistency, always moving forward. When you consider the effort that you put into accumulating your money, you realize that protecting your money is the top priority. In other words, the first part of always moving forward is to not move backward. In order to build wealth you must manage risk effectively, and there are several threats being posed to your investment capital today. These are a few of them:

INFLATION RISK

The Federal Reserve System has consistently inflated the money supply for over 100 years. Today’s dollar is worth about $0.13 when compared to the purchasing power of the original 1913 dollar. If your capital is held in US Dollars, it is losing value every day.

STOCK MARKET RISK

Since the advent of the 401k in the late 1970’s investors have been conditioned to invest in the US stock market. During the 1980’s and 1990’s, Baby Boomers were in their prime earning years and pumping money into the stock market creating the greatest boom in stock market history. That is now a bygone era as Baby Boomers are now leaving the workforce and drawing money from their stock investments while new investors are skeptical of stocks. Stock market investing is now and has historically been volatile and exposes assets to a considerable risk of loss.

INTEREST RATE RISK

Interest rates have consistently been lowered by the Federal Reserve since their peak in the early 1980’s. This has helped stimulate economic growth in a system with an ever-increasing amount of public debt. As a result, most investors have looked to bonds as a safe haven investment in times of volatility. However, we are now entering uncharted territory after 7 years of zero or near-zero interest rates. Rising interest rates will have a negative impact on bond yields in the future, and could spell disaster for the high yield bonds that have now been added to so many Wall Street bond funds.

LONGEVITY RISK

The stock market boom of the 1980’s and 1990’s made the accumulation/decumulation strategy of retirement planning popular, but the latest financial crisis has alerted many Americans to its inherent problems. Increasing life expectancies and an under-performing stock market have shown that the 4% annual decumulation strategy leaves most retirees out in the cold in their later years.

SOLUTIONS

These and many other types of investment risk must be managed effectively to achieve your investment goals. Burke Capital Partners manages risk primarily by providing clients with investment options that we believe:

Provide consistent, predictable rates of return that exceed the rate of inflation
Are backed by hard Real Estate assets typically in the client’s local area
Have low or no correlation to the stock or bond market
Offer high levels of transparency to clients
Have higher levels of liquidity than annuities or other fixed investments

Now is the time to take a look at your investment portfolio and evaluate your strategies for growth and risk management. To further discuss investment offerings and qualifications please contact Justin Burke at 651-335-1586.