Is Your Portfolio Ready to Withstand Another 2008?

On August 5, the Dow closed at almost 770 points lower due to fears about trade wars. On August 14, the Dow tanked 800 points in the biggest one-day decline of 2019.

This market volatility and lack of control is exactly why we have been focusing on educating you on an alternative approach to the conventional wisdom of Wall Street.

With market volatility on the rise in this current economic cycle, you have to ask yourself how much longer will it last? Take a look at your portfolio performance over the past 10 – 20 years. Whether you have money under management, an IRA or in a hedge fund, take a look at the performance. Financial Advisors will make you think that you are not smart enough to manage your own wealth, yet they all say that with all of the market cycles you should look to make an 8% return over the long haul. What they are not telling you is that they are collecting fees of 1-2%. Further, you are paying taxes on those gains of at least 2-3%. And then there is inflation at 2%. This nets you a 3% return at best.

Wealth builders understand the significance of inflation and invest in tax efficient investments such as commercial real estate. With this asset class you have more control by raising rents to account for inflation.

From a tax perspective wouldn’t you rather pay taxes on $1M today vs. $3M at retirement? The only thing we can predict with certainty is that future tax rates will be higher than they are today.  Wall Street is advocating a net worth goal for retirement. Wealth builders know that buying cash flowing assets and paying taxes on the seed not the harvest yields exponential results.

Do you really think you are getting the right value from your money manager? If they are only setting a target of 8% mapping to the major indexes, where is the expertise? You are better off with a robo-advisor such as https://www.wealthfront.com. On the fees side, make sure you know how much you are paying. There are software tools such as Feex.

When compared to the investment thesis of commercial real estate syndications, you can realize 6-8%/year cashflow return that is likely tax free due to accelerated depreciation. On top of receiving this return, we target investments that can double your money in 5 years which equates to a 20% annual return + tax benefits. This is achieved through renovations to the property, increased rents, reduced operating costs, and loan amortization. It’s easy to sleep at night knowing that you own a tangible asset and the value will not change due to something completely random like the threat of trade wars.

You haven’t heard of these investments for two reasons: 1). Millions of Wall Street marketing dollars that control the messaging to get your money, and 2). These investments are only available to accredited investors (those who make $200,000 or have $1M in net worth outside of the primary residence).

At 90%, the majority of the population only invests in retail products from the market because that is all they know. Accredited investors take the time to learn about alternative investment opportunities like multi-family syndications which can accelerate their retirement and financial independence goals significantly.

In keeping with our mission to educate investors, we are pleased to announce a new library on the website providing our recommended reading selections. Will will continue expanding the assets in the Resources section to enable you to achieve greater heights in your financial IQ and financial future.