Hi Friends!
Welcome to the Cornerstone Financial Blog. We are excited to bring our second blog
post to you! Our purpose with this blog is to keep our clients informed & educated on
various financial topics. We love client interaction, so if you ever have any questions
that you want to further discuss, call us at our office, or set up a time to come visit us
at our office in Mandeville, LA.

Alternative Investments

We have recently rolled out a new product line here at Cornerstone Financial. This product
line greatly expands our existing privately traded alternative investment portfolio.
What is the benefit for you as an investor? Simply put, the typical stock market investment
allows for a 4% withdrawal rate (sometimes slightly more and sometimes somewhat less) for
an equities investment in retirement. For example, it takes $1 million to get $40,000 of annual
income with the 4% withdrawal rate.

The privately traded credit funds our clients invest in have been able to sustain an 8%
withdrawal rate. This is over 100% more income from a private credit than publicly traded
bonds – while using less risk – over the last 10 years. (We will provide source links at the
bottom of the blog)

Doing the math, that means a $1 million portfolio can now yield $60,000 of income a year
compared to the $40,000 that is the conventional number in the marketplace.
The typical withdrawal rate for bonds in retirement is around 2 to 3% maximum, for your
frame of reference.

We also show our clients how to use private pensions and market momentum strategies
along with these alternatives for a more well-rounded investment portfolio. All three of these
strategies have been able to achieve the 6% withdrawal rate for most investors.
Please keep in mind that the stock market typically has substantial risk unless using a
product that has principal guarantees, which do exist.

Let us know when you would like me to run some numbers on some existing funds that you
have that you want to use for retirement to see what your exact numbers and risk look like
now and what they can be with these advancements.

Best regards,
Chris

sources:
Blue Owl Credit Income Corp | Nuveen_Churchill_Private_Capital_Income_Fund_fact_sheet_Standard_54.0_9___2_ | TPG_Twin_Brook_Capital_Income_Fund_Fact_Card_January_2025 | VBTLX Factsheet