How long have you been investing as an accredited investor?

I have been investing as an Accredited Investor since 1980.

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

My advice is always diversification. It has always worked well for us. We are actively investigating other niches and asset classes to diversify.

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

I have allocated funds in stocks, mutual funds, and real estate rentals and Secured Income Group. I am also fortunate to be a very small part of a number of Fed-Ex ground routes.

Has the pandemic and the low-interest-rate environment caused you to reconsider your portfolio diversification strategy? 

Not really. I feel like we will come out of this positively. I am adding some stocks at great values, and I am always comfortable with Southern California real estate because I understand the market here. The lack of inventory here will support the market.

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

I evaluate the risk of course, as my risk threshold has changed to a slightly more conservative position since retirement. I make sure I have a clear understanding of the asset, and rely on the feedback from my spouse as our personal experiences are different and that offers a valuable perspective.

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

My worst was investing with a Morongo Indian Reservation Methane Gas Recycling investment.  It was a complete investment failure, unfortunately it turned out to be a much better write off than it did being a going concern. My best was building hang gliders. You don’t always have to make a ton of money if you enjoy what you do.

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

My threshold for risk is a little more conservative. I do keep my eye on the portfolio managers, and have recently moved some cash to mutual funds in the last couple of months.

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

I have IRA’s with Vanguard and Schwab. I do my own allocation of investment products in the IRA’s. I do not use their advisors.

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? 

The worst source of investing advice has been from airline pilots! I do my own research on the web and subscribe to different newsletters and have benefitted from some profitable investments from those.

What has your experience with SIG been like?

I have never had any problems and they are easy to work with. I like the benefits from laddering my investment terms. I also like the fact that quarterly interest earned can be reinvested or distributed to the investor if needed. The staff is phone accessible and am comfortable that the owner is also accessible by phone if needed. I like that they have been in business since 1996 and have made it through some tough cycles.

Larry Hanes

Retired from Airline Industry