(Video) The Future of Portfolio Diversification

"Ultimately a structured note is a candy wrapper of two assets so 85% of a structure note is a bond and the other 15% of a structure note is an option. That's it. It's just an option matched with a bond to give you that payoff." 

- Jason Barsema, Co-Founder & President, HALO Investing, Inc.

Traditionally used in Europe but now growing in popularity in the United States, protective investment solutions provide a diversification strategy that serves as "insurance" or a "halo" in a world that asks investors to otherwise be fully exposed to a public equity allocation. Barsema, highlights "three dimensional" investing that takes into account factors in addition to risk and return (that incorporate planning). Here are his five (5) factors: 

1. Liquidity
2. Income
3. Growth
4. Protection
5. Volatility 

Instead of overcomplicating finance Barsema believes investors have always wanted just a few things: to grow their wealth, preserve their wealth and generate some income. Technology is democratizing the distribution of old tools for achieving those goals that are still new to US markets.

Our firm started learning about structured notes in 2021. Chloe Leitzke - one of Jason's teammates - was patient as we performed our due diligence. Our direct relationship with Jason Barsema began a couple years later. 

We hope you enjoy the following conversation: 

Jason Howell Company is a family wealth management firm that strengthens the finances of families making the transition from first generation success to family wealth. We envision a world where wealthy families give, grow and govern themselves in ways that enrich their local communities. We do this by reducing the fear, isolation and guilt associated with financial success.

Jason J. Howell, CFP®, CPWA®, CSRIC® and Douglas W. Tees, MBA, CFP® CAP®, CBDA  have spent a lot of time in the Washington, DC area, and are aware that many people who are first generation wealth suffer from a kind of "financial imposter syndrome."  Successful entrepreneurs and family businesses are always looking over their shoulder; government contractors worry about the next contract; former Capitol Hill staffers privately wonder if they should "feel bad" for the money they now make. Imposter syndrome is common among people who work for the many corporate headquarters based in this area as well. These feelings get in the way of properly managing family wealth. We empower them to get organized, build a team of advisors and make decisions.

Our typical "first generation wealth" families include dual income parents who work, save and have just the right amount of fun. For long-time, family owned businesses we focus on much family preservation as we do wealth preservation. 

First generation wealth success stories and family business owners realize that they:

• Need to “do something” with the cash in their checking/savings
• Need to eventually diversify their portfolio away from the family business
• Need an investment strategy for “up” and “down” markets
• Need a plan to mitigate market, credit, inflation, and political risks
• Need to start tax planning instead of just tax paying
• Need to be sure they are choosing the right work benefits
• Need to reduce financial miscommunications between family members
• Need to separate business finances from personal finances
• Need to separate family wealth from individual wealth
• Need a plan to provide space for both family and individual philanthropy 
• Need to plan for money while alive and for what happens after death