How long have you been investing as an accredited investor?

I have been investing as an Accredited investor a little more than 15 years.

What advice would you give to a newly minted accredited investor regarding investing?

Before deciding on any particular investment, diversification should be considered. I do not have funds allocated in any one fund/asset class that would put me in a position to alter my lifestyle should a loss or non-performance occur.

How have you achieved passive income in this protracted low-interest-rate environment?

I invest with 2 or 3 other companies like SIG. I also have stocks, mutual funds, real estate that I own. I also make sure to have enough cash for liquidity and future investment opportunities.

Has the pandemic caused you to reconsider your portfolio diversification strategy?

No, but my overall diversification strategy has been reinforced. I have been watching the stock market and real estate markets closely.

What factors do you consider most before deciding on an investment?

I do a lot of research online and need to be comfortable with the asset class in general. I like to talk to and meet with the principals and confirm how long they have been in business.  I want to be comfortable with the people managing the investment. The business model needs to make sense and be capable of the returns. I do not invest in high-return “flash in the pan” type of investments.

What have been some of the worst and best investments you have made as an accredited investor?

I have learned my lesson from investments that under-performed due to my own lack of due diligence when I was younger. My strategies are more refined as I am not trying to make a fast buck. My best investments have been Southern California real estate, including my own purchases as well as conservative mutual funds.

Do you invest differently with your IRA or retirement account vs other funding sources?

My IRA monies are mainly in managed funds in less volatile asset classes with a fixed rate of return with defined term lengths.

Do you own a self-directed IRA? If so, what has been your experience with your self-directed IRA custodian?

Yes, I do have an account with a self-directed Custodian. I also have separate IRA funds with a larger fund manager, but I do like having the ability to self-direct my IRA funds to give me investment options I would not have otherwise.

What has been a good source of investing ideas over the years? How do friends, network of other investors, Wealth Advisor, Financial Planner, CPA, articles, publications factor into your decision?

My personal friends and colleagues know that I invest, and they often will come to me to ask my opinion about various opportunities. I do my own research, give them my feedback and decide if it is something I would consider for myself. I filter out most of them, but if I am comfortable with the model and it aligns with my personal strategy and risk threshold, I will consider it.

What has your experience with SIG been like?

My experience has been very positive, and it is a pleasure to do business with the company. I also liked that I had an opportunity to speak with the Principal (Max McDermott) prior to investing. I have added funds since my initial investment, and plan on laddering with another term in the future in order to stagger my maturity dates.

Tom Thuerbach

Business Owner