Frequently Asked Questions
Answers to common questions about investing with INVST — from getting started to planning for a future business acquisition.
What is the minimum amount you would recommend for someone to begin investing effectively?
We suggest starting with a cash reserve of 3 to 6 months of expenses and then moving to investing dollars that are above and beyond that threshold. We have strategies from $100 and beyond.
If we’re starting with a relatively modest amount, what types of investment accounts or strategies would be worth considering?
This would depend on your Invst IQ — or how you handle risk to reward on your money. We would suggest a basic brokerage account for assets not in retirement accounts. In this account we can invest in anything but would usually start with a foundation model which gives good diversification. We have some simple ETF based models for modest accounts and would build to more complex strategies as you grow and where appropriate.
How would you balance growth potential, liquidity, and risk for someone who may want access to some of the money for a future business acquisition?
This is dependent on timeframe and the goals themselves. As we work with many small business owners we might look at a securities backed line of credit or perhaps a moderate model if a short timeframe to protect on the down side but also give you upside potential.
What would realistic expectations look like for short-, medium-, and long-term investment growth?
This depends on needs anywhere from 5 to 40% is where our portfolios land.
Would you recommend starting with a lump sum, recurring monthly contributions, or a combination of both?
Both is usually good if you have funds set aside. Continued savings but also being invested in a diversified portfolio usually provides the best opportunity for growth.
How should we structure our savings and investments if acquiring an established business within the next few years is one of our goals?
We would look at opportunities for funding and put a plan together based on the business we would be considering. Ideally nothing too aggressive for the investments but we also wouldn’t just look at cash or bonds. It really depends on your comfort level and anticipated timeframes.
Could investing too much of our available cash now negatively affect our ability to qualify for SBA financing or provide the necessary equity injection, working capital, and reserves for a future acquisition?
Not unless the market drops. Those funds invested or not are all liquid — meaning they can be sold for downpayments etc. We would also not put them in retirement accounts to lock them up.
Do you have experience helping clients financially prepare for the acquisition of an existing business through SBA financing?
Yes, and I have a guy who helps with this who used to work as a SBA loan officer.
Do you provide comprehensive financial planning beyond investment management, including retirement planning, tax strategy, business income, real estate, debt management, and preparation for major investments or acquisitions?
Yes. We do all of that and help with estate planning and business insurance and work with your team of CPAs, lawyers, insurance agents and others to be sure everyone understands what your goals are and what they should be working toward.
Are you a fiduciary at all times when providing advice to your clients?
Yes, this is very important to us. INVST, LLC is a RIA which means we are not limited to what opportunities we can help our clients with. There are no products or limited scope of investments here.
How are you compensated, and what fees, commissions, asset-management costs, or minimum investment requirements should we be aware of?
We are paid based on the assets we manage and we do have an insurance division which is paid by the insurance company for any policies we place. We have access to just about everything investment and protection wise. We do not have minimums to work with people. We enjoy working with those who would like to grow and would value having a resource as they grow their business, their family and their future.
If we decided to work with you, what would the process look like from our initial conversation through creating and implementing a financial strategy?
We start with an initial meeting to identify your why and what your money needs to do for you. We then setup a portal for you to see your full financial picture in one place, identify the areas for improvement and put lost money back to work for you. Usually the initial process is 3 to 5 meetings and after that as you make decisions on buying a new business we would likely have additional meetings for that. We are a trusted partner for you and will be there as you make all of your journeys. I know it sounds corny but it’s true. Our clients are like family and we will be with you every step as you grow, change and build the next thing for your family. Here is the process written out for your reference: https://www.invst.com/process
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