Keep it Simpler

I recently had my quarterly review with my financial advisor at a well-known national RIA with an office in my city. They prepare a thorough presentation with economic updates and detailed performance on all my holdings. While I follow my portfolio regularly, these meetings are valuable. They give my wife and me a chance to ask questions and stay aligned.

A little background: My accounts were previously managed by an advisor at a national brokerage firm in the city where I last worked full-time. In 2019, after my business was sold, we moved back to our hometown to be near our children and grandchildren. That had always been the plan after my seven-year stint running the company.

As I transitioned into retirement, we decided to move our assets locally. We wanted a closer personal relationship—quarterly meetings, someone we could sit across the table from—and, frankly, “a neck to grab” if something went wrong. My son, a CPA, is the executor of our estate, so keeping things closer to home felt sensible.

Fast forward to today. After this most recent meeting, it struck me that while my overall allocation between equities, fixed income and alternatives is directionally sound, the portfolio itself is too complex. I own too many illiquid investments that are difficult—if not impossible—to unwind.

How did I get here?

When I moved my assets in 2023, I interviewed several RIAs. I didn’t want to be limited to a brokerage firm’s in-house offerings. I believed an independent RIA would provide access to a broader range of alternatives—and it did. I was introduced to private debt, real estate, private equity and niche fixed-income strategies. I invested in several, most structured as limited partnerships that issue K-1s—something I was comfortable with given my background in private equity.

Now, in 2026, a few of these investments have underperformed. The hard reality is that there’s not much I can do about it.

Private limited partnerships typically operate on a capital call structure, drawing down committed capital over several years—about five, in my case. Once you commit, you’re locked in. There’s generally no meaningful liquidity, even in periods of disappointing performance. Some funds offer quarterly redemptions, but they often come with limits and waiting lists, and managers may only honor a small percentage of requests each quarter. To complicate matters, you may continue to receive capital calls even while performance lags.

To be clear, some of these investments may ultimately work out. Not everything moves in a straight line. But when you commit to these structures, you’re often tying up capital for five to ten years before meaningful liquidity appears. That’s a serious consideration, especially in or near retirement.

Then there’s the added complexity of multiple K-1s, higher tax preparation costs and more moving parts for heirs to sort through someday.

If your goal—like mine—is to build a lower-risk portfolio targeting 7% to 10% returns, there are simpler ways to pursue it. I know that now.

Sometimes the lesson is straightforward: Keep it simpler.