Alternative Investments

REITS – A real estate investment trust, or REIT, is a corporate entity investing in, and managing, income-producing properties. Among other requirements, REITs are required to distribute 90% of their taxable income into the hands of the investors in the form of dividends. In turn, the REIT, itself, avoids significant corporate income tax. REITs can add portfolio diversification and generate income for certain investors, but involve certain risk factors to consider compared to other income producing investments.

REITs are generally illiquid (non-traded) and potential investors are encouraged to thoroughly review the “Risk Factors” section of the prospectus prior to investing. Investing in real estate involves risk and is not be suitable for all investors. Please ask for a prospectus from your representative and review the prospectus carefully prior to investing.

UDF

KBS

Franklin Square

Phillip Edision

ARC

Carter Validus

Resource Real Estate

Northstar

CNC

Oil & Gas – Oil and Gas Programs are another form of direct participation programs (DPPs). Offerings usually fall into either exploratory or developmental programs. Exploratory programs attempt to find oil or gas in certain areas. Developmental programs expand operations in areas already known to have oil or gas.

DPPs are most suitable for clients who need tax advantages on passive income, such as clients in the higher personal tax brackets. Oil and Gas DPPs may also be good investments for obtaining appreciation of capital. Most oil and gas programs are also illiquid (non-traded). Accordingly, DPPs should be considered long term investments.

Oil & Gas DPPs can add portfolio diversification and generate income for certain investors, but also involve certain risk factors to consider. Potential investors are encouraged to thoroughly review the “Risk Factors” section of the prospectus prior to investing. Investing in oil and gas programs is not suitable for all investors. Please ask for a prospectus from your representative and review the prospectus carefully prior to investing.
Mewbourne Oil

Active Money Management– Active money management involves ongoing buying and selling by Wamhoff as your advisor. We actively purchase investments and continuously monitor their activity in an effort to take advantage of what we feel are profitable conditions. We use active money management to provide our clients with the service of monitoring their investments on a daily basis. We do not believe the old buy and hold strategy will sustain the type of returns we believe active management will provide. We charge a flat management fee on these accounts instead of our clients paying a commission on every transaction.

Planning your portfolio– We believe this is one of the most important steps in your retirement planning. There is a large amount of information that should be gathered to plan your retirement. We like to look at everything from your current investments to what the terms of your home mortgage may be. In order for us to create your tailored retirement plan it is imperative to have a snapshot of your entire financial situation and future plans.

Portfolio Diversification– Diversification through investing in a variety of assets attempts to reduce overall risk in a portfolio. If the asset values of varying investments do not move up and down in perfect synchrony, a diversified portfolio may likely have less risk than the weighted average risk of its investment assets. Diversification allows you to take advantages of many different investments while not getting devastated if one investment were to decline in value.