Recently, I temporarily went broke because I improperly managed my private investment capital calls. Because this happened, I thought I’d discuss some straightforward solutions to ensure you always have liquidity.

If you are a new private fund investor or plan to invest in more private funds to diversify your investments, please learn from my errors. Not only will you learn how to better manage your capital calls, you’ll also learn the process of how private funds reinvest capital.

How I Recently Went Broke

As an aggressive investor since 1999, I hardly ever have more than three-to-six months’ worth of living expenses in my checking account. Checking accounts generally pay terribly low interest rates. Most of my incoming money gets dollar-cost averaged into an S&P 500 ETF and private real estate funds.

However, after Treasury bond yields surpassed 5%, I decided to shovel my remaining cash into Treasuries.

Keep reading this article on Financial Samurai.

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