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IQ Financial Advisor – Content Page

IQ Financial Advisor – Content Page

FA-IQ contacted advisors to ask them: Are you for or against recommending cryptocurrencies to your customers?

Gerald GoldbergCEO and co-founder of GYL financial synergies. Goldberg, based in West Hartford, Conn., has been in the industry for 26 years and has approximately $9 billion in client assets.

“While we understand and embrace the potential associated with blockchain technology, to date we have avoided recommending our clients to invest in cryptocurrency.

Our responsibility as trustees is to listen to our clients to understand their needs. Based on this understanding, we then construct diversified portfolios that will help them achieve their goals while mitigating risk wherever possible.

With this framework in mind, to date we have not been satisfied that the cryptocurrency has met our criteria from a risk and reward perspective.

We continue to believe that the high level of volatility combined with the lack of a consistent regulatory framework contributes to a highly speculative environment which is inconsistent with our investment philosophy.

Jim Pratt Heaneyfounding partner of Coastal Bridge Advisors. Pratt-Heaney, based in Westport, Conn., has been in the industry for more than 30 years and has $2.85 billion in client assets.

“While our investment committee invests time researching these markets and ways to participate in them, I do not currently include crypto in our company’s otherwise customized portfolios, but instead have found ways for clients who wish to invest to do so as safely as possible. Importantly, many custodians do not hold crypto and this can complicate investment recommendations.

Brett BernsteinCEO and Founder of XML Financial Group. Based in Rockville, Maryland, Bernstein has been in the industry for 23 years and has $3.7 billion in client assets.

“I believe cryptocurrency is a real strength and is something, for the right client, that can be appropriate in their asset allocation. However, due to the lack of regulatory oversight, risk and volatility, customers really need to fully understand what it is, why they have it and the risk it carries.

Do you have a topical tip that you would like to share with FA-IQ? Email us at editorial@financialadvisoriq.com.


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