HOW TO BUILD PORTFOLIOS THAT ACTUALLY WORK

Buchholz, the founder and managing partner of BFG Wealth Management, aims to challenge the status quo of investing strategy in this debut personal-finance book.

“Most portfolios fail to perform not because markets are unpredictable,” argues the author in this investment guidebook, “but because they’re built without purpose.” Many high-earning people, he suggests, are offered the same “generic advice as everyone else” by their money managers, who don’t take the time to create personalized portfolios based on their clients’ specific tax situations, real estate holdings, and goals. The book convincingly suggests that the conventional asset-allocation models used by wealth managers are based on antiquated formulas, designed for an economy that existed decades ago. These portfolios also assume that every investor has the same retirement end-goal, Buchholz says. This pragmatic volume eschews theory for “real world” examples, identifying contemporary trends in emerging industries, such as robotics, cybersecurity, and smart transit. The author predicts, for instance, an imminent “Hydrogen Revolution” in energy and transportation, strengthened by policy and government-backed infrastructure. He also rejects “old-school, bond-heavy investing,” noting that income-oriented portfolios require a diversity of investments that include higher-yield stocks, dividend-grown equities, and real estate investment trusts that “provide access to real estate cash flow without direct ownership responsibilities.” The practical advice of Buchholz, a Texas-based investment adviser, encompasses 10 chapters that cover topics from portfolio design to risk management. The book concludes with a “Portfolio Self-Assessment Checklist” that challenges readers to evaluate their investments “through a different lens,” based on their own individual circumstances. Overall, Buchholz blends expertise based on years of experience with an accessible writing style designed for readers who may be unfamiliar with the jargon that defines 21st-century investing. To that end, the book also includes ample appendix materials, including a glossary to help readers navigate complicated investment terminology and its myriad acronyms. That said, the book’s emphasis on high-earning professionals and business owners will likely limit its audience.

A practical reference guide to personalized investment for a wealthy readership.