Most business owners don't leave their advisor because of a bad year. They stay — sometimes for decades — with someone they trust. That loyalty is understandable. But at a certain level of complexity, it may be costing more than it's worth.
The advisor who was right for you at 32 may not be right for you at 47.
When most people hire a financial advisor, their needs are straightforward: invest consistently, build a diversified portfolio, stay the course. A standard 60/40 portfolio — stocks and bonds — makes sense at that stage.
But business owners reach a point — usually in their peak earning years — where that approach no longer fits. The questions change:
What do I do with the cash my business generates? How do I build wealth outside the business? What does a future exit look like, and what should I be doing now? How do I avoid handing a third of it to the IRS?
A generalist advisor, regardless of how capable they are, typically wasn't built to answer these questions well. Their practice was designed around a different client.
The 60/40 portfolio isn't wrong. It's just not designed for you.
A standard stock and bond portfolio assumes your biggest financial risk is market volatility. But if you own a business, your biggest risk is concentration — your income, net worth, and time are all tied to a single asset you don't fully control. A portfolio that mirrors that same market exposure doesn't diversify your risk. It compounds it.
The bond portion specifically deserves scrutiny. For many business owners, there are better alternatives that most generalist advisors either don't have access to or don't specialize in:
Structured notes
Structured notes may provide defined downside buffers and enhanced income potential relative to some traditional fixed-income strategies — while still offering a degree of principal protection. The tradeoffs are real: credit risk to the issuing institution, limited liquidity, and complexity. But for a portion of a portfolio where daily liquidity isn't required, they deserve consideration.
Private infrastructure
Infrastructure investments — toll roads, utilities, digital infrastructure — have historically shown low correlation to public markets while delivering stable, inflation-linked cash flows. That combination is precisely what a business owner who already carries equity-like risk in their business is looking for.
Private equity
Access to top-tier private equity managers has historically been reserved for institutional investors and the very wealthy. That's changing — but it still requires an advisor with the right custodial relationships and expertise to deploy these strategies appropriately.
What the data shows.
The case for alternatives isn't theoretical. The evidence is meaningful, though context matters:
The honest qualifier: None of this means alternatives belong in every portfolio. They carry real risks: illiquidity, complexity, manager dependence, and sometimes higher fees. The right question isn't whether alternatives are categorically better than bonds. It's whether a portfolio built for a salaried employee with a 401(k) is the right portfolio for a business owner with concentrated risk, variable income, and a 15-year horizon. For most of the business owners we work with, the answer is no — and a broader set of tools is worth exploring.
The question worth asking yourself.
What percentage of your advisor's clients look like you? Are they working primarily with business owners navigating the same complexity you are — or a broad mix across every income level and life stage?
Specialization matters in every field. A general practitioner and a cardiac surgeon are both doctors. The difference is who you want operating.
"The most common thing I hear from business owners who finally make a change: 'I didn't know what I didn't know.' They had no idea what strategies existed, what access their advisor lacked, or what they'd been leaving on the table."
What a more sophisticated approach actually looks like.
It's not complexity for its own sake. It's a strategy built around your actual situation — your business risk, your tax picture, your exit timeline, your family.
It means access to investment strategies beyond a standard brokerage platform. A tax return reviewed alongside your investment strategy, not as a separate conversation. A financial plan that treats your business and personal wealth as connected — because they are.
And it means working with someone who has had this exact conversation hundreds of times with people who look exactly like you.
If any of this resonates.
The right time to evaluate whether you've outgrown your advisor isn't after something goes wrong. It's now — while you're in your peak earning years, while there's still time to build the structure that actually serves you.
The first conversation costs you nothing. And it will tell you quickly whether there's a gap worth closing.
¹ Cambridge Associates, "Private Equity Index and Benchmark Statistics" — verify current figures at cambridgeassociates.com
² McKinsey Global Infrastructure Initiative, "Global Infrastructure Report 2022" — verify at mckinsey.com
This article is for informational purposes only and does not constitute investment, tax, or legal advice. Past performance is no guarantee of future results. Alternative investments involve significant risks including illiquidity, potential loss of principal, complexity, and higher fees. These strategies are not suitable for all investors. Advisory services offered through NewEdge Advisors, LLC, a registered investment adviser. Please consult your financial, tax, and legal advisors before making any investment decisions.
Joel works primarily with business owners, professionals, and families who have reached a level of financial complexity where a planning-first approach makes a real difference. As a business owner himself, he has the same conversations with himself that he has with his clients — where does the capital go, what does an exit look like, am I building wealth or just income?
Schedule a conversation with Joel →The first conversation
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