The investment goals of the ultra-affluent individuals we serve at Paragon Capital Management, LLC are significantly different than those of typical investors. Capital preservation, tax-advantaged strategies, and a steady stream of cash flow are what many of our clients are seeking, and what Paragon Capital Management, LLC provides through our fixed-income investment strategies.
What Are Fixed Income Securities?
Fixed income refers to debt securities that can provide a steady stream of interest payments or dividends along a fixed schedule, hence the name "fixed income." The underlying debt security can be issued by many different types of organizations and is often used to fund a specific purpose.
Fixed-income investments are typically given preferential treatment over common stockholders if the debts become more than the issuer can maintain. While there are many different types of debt-based securities, they all maintain priority in bankruptcy proceedings over the owners of common equity shares.
Types of Fixed-Income Investments
There are many different types of fixed-income products, with each offering its own advantages and disadvantages. Treasury securities have provided the majority since 2012 and made up 37% of the fixed-income market in 2019. While they are the most popular, they are far from the only type of fixed-income securities.
Investment advice will often place fixed income as merely an afterthought because it's far easier for some to sell their clients on the appeal of stocks or emerging markets that could have higher returns (and high transaction costs that go to the financial advisor).
At Paragon Capital Management, LLC we custom-build portfolios for each individual client, and fixed-income strategies provide a possible solution to reach their goals. Let's go through some of the reasons why our ultra-affluent clients often prefer fixed-income strategies.
While fixed-income products are mostly considered "safer" than some other asset classes, no investment is perfectly safe. Let's go through some of the potential risk factors that must be considered with fixed-income investing.
Building Your Fixed Income Portfolio with Paragon Capital Management, LLC
The current market price volatility within the stock markets has been a rude awakening for many investors who have only invested during a bull market. It has sent many seeking a safe haven, with some even moving all of their investable assets into money market funds and other places where the interest gained is extremely low, but they feel their savings are safe.
If you are an ultra-affluent investor who meets our investment minimums, our team at Paragon Capital Management, LLC would love to walk you through our fixed-income investing philosophy to explain how we build the future foundations of our clients' legacies.
Our portfolios are custom-built according to each client, their risk tolerance, and their investment goals. Those who meet our investment minimums are given access to unique products that are custom-built hand-in-hand with the some of the largest investment banks due to our institutional relationships with them.
The right fixed-income portfolio can provide a wealth of benefits on its own or as part of a diversified asset allocation. Contact our fixed-income team at Paragon Capital Management, LLC, and allow us to build a portfolio that is customized to help you achieve your goals.
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Whether you feel as if you’ve outgrown your advisor or you just want a fresh perspective on portfolio strategies in our current market, our team of experts is here for you.