🎙Alt Goes Mainstream EP. 108 - 🎙Ritholtz Wealth Management's Ben Carlson - bringing a wealth of common sense to asset allocation
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Guest post by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Welcome back to the Alt Goes Mainstream podcast.
Today’s show features a guest who brings a wealth of common sense to wealth management and asset allocation.
We talk with Ben Carlson, the Director of Institutional Asset Management at Ritholtz Wealth Management, a $5B AUM wealth management firm. He’s managed institutional portfolios for his entire career. He started out with an institutional investment consulting firm, where he deployed portfolio strategies and created investment plans for foundations, endowments, pensions, hospitals, insurance companies, and HNW individuals. More recently, he was part of the portfolio management team for an investment office that managed a large endowment fund for a charitable organization.
Ben is a student of markets and asset allocation, which is clear from the knowledge he shares daily and weekly with his blog, A Wealth of Common Sense, and his podcast Animal Spirits with Michael Batnick and Ben Carlson. He’s also authored four books about saving, investing, and money. He was named to the Investment News 40 Under 40 list of top financial advisors in 2017.
Ben and I had a fascinating conversation about the adoption of alternatives in the wealth channel and the whys and hows of asset allocation. We discussed:
Why asset allocation is the most important aspect of an investment plan.
The question of whether or not investors now have too much choice?
Why Ben documents every investment decision he makes.
The benefits of private markets and the pitfalls of private markets.
His biggest lesson learned in investing.
Why crypto has helped younger investors become more comfortable with volatility (for better or worse).
The future of wealth management and what won’t change about the advisor / client relationship.
The power of content creation and how it helps him approach investing.
Thanks Ben for coming on the show to share your wisdom and experience in investing and asset allocation. We hope you enjoy.
Show Notes
01:56Â Meet Ben Carlson: Wealth Management Expert
02:17 Ben Carlson's Career Journey
02:55 Insights on Asset Allocation
03:11 The Importance of Documenting Investment Decisions
03:14 Private Markets: Benefits and Pitfalls
04:34 Early Career Lessons
04:58 Asset Allocation Strategies
06:06Â Navigating Investment Choices
07:10 The Complexity of Investment Strategies
09:46 Institutional vs. Wealth Management
10:19 Communication in Institutional Investing
12:35 The 60/40 Portfolio Debate
23:20 Advisors and Alternatives
27:17 Thresholds for Investing
27:48 Differentiating Through Culture
28:41 Defining and Evaluating Culture
29:20 Transparency and Client Relationships
29:57 Partnering with the Right Clients
30:19 Qualitative Manager Selection
31:53 Content Creation and Transparency
34:22 Building a Brand from Scratch
37:49 Advice for Young Advisors
39:31 Compounding in Private Markets
40:06 Behavioral Benefits of Private Markets
41:17 Excitement in Private Markets
41:56 Evolving Fund Structures
42:28 Defining Alternatives
43:48 Younger Investors and Volatility
46:55 Future of Wealth Management
47:53 Private Equity in Wealth Management
48:58 Favorite Alternative Investments
51:44 Conclusion and Final Thoughts
