Real estate: Rich with opportunity
Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It’s no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset.
In the Bank of America survey, 31% of younger people said real estate presents the greatest opportunities for growth. Federal Reserve data also shows that the top 1% of Americans hold over $6 trillion in real estate assets.
But you don’t need to be Grant Cardone to invest in this asset — you can get started on becoming a real estate investor with a few different platforms.
Instead of buying a property outright or taking on an expensive mortgage, there’s a crowdfunding platform that takes a different approach by allowing you to invest directly in owner-occupied residential properties.
Cityfunds lets you benefit from the hot housing markets in major U.S. cities including Miami, Los Angeles, and Nashville.
Cityfunds secures an interest in a home’s future value in exchange for cash. As the value of these homes appreciates, so does the value of Cityfunds equity investment alongside the homeowners. So you can invest in portfolios of these owner-occupied properties, gaining access to the $20 trillion home equity market that spans multiple top U.S. metros.
With a community of over 10,000 users, Cityfunds allows you to invest in a city you love for as little as $500 – without the hassle of dealing with high home prices, an expensive mortgage or the hassles of being a landlord.
If you are an accredited investor looking to add a larger real estate stake to your portfolio, you also have the lucrative potential of commercial real estate open to you.
First National Realty Partners allows individual investors to access institutional-quality commercial real estate investments. With FNRP, investors own a share of properties leased by national brands like Whole Foods, CVS, Kroger and Walmart, providing a stable, positive cash flow without the worry of tenant costs and management.
With FNRP, everyday investors can become the landlord of these big-name brands, accessing the potential for greater returns, diversification, and transparency.
Private equity investing
Private equity refers to investments in companies that are not publicly traded on a stock exchange. This asset class involves investing directly in private companies, often during their growth stages or through buyouts.
It remains a popular choice among young investors seeking higher returns and more control over their investments.
The Bank of America survey showed that over 25% of young wealthy millionaires identified private equity as one of the greatest growth opportunities.
While private equity offers significant upside potential, it also requires a longer-term commitment and comes with higher risks than public equities.
Private equity is a broad category that spans a wide range of assets. So, finding a firm that can help you allocate your capital to the right assets, could be a way to dip your toe into this lucrative category.
With Fundrise you get access to an expansive portfolio of alternative investment opportunities spanning real estate, private debt and venture capital.
With over two million investors and managing over $7 billion in real estate assets alone, Fundrise is an accessible way to diversify your portfolio with the potential of yielding dividends every quarter.
To get started, all you have to do is share some details about financial background and investing style, then Fundrise will build a portfolio for you that aligns with your goals and risk tolerance
Cryptocurrency: more than a craze
Investors used to be skeptical about cryptocurrency perhaps due to its speculative and highly volatile nature. But it has now entered the mainstream, and the global cryptocurrency market cap is currently around $2.34 trillion, according to Forbes.
It’s no surprise that the wealthy millennials and Gen Z are fond of this asset class. In the Bank of America survey, 29% of younger people said cryptos offer the greatest opportunities for growth, while only 7% of the older group agreed.
The rich young Americans also allocated 15% of their portfolio to cryptos, compared to 2% by the older generation. It’s easy to get in on the action.
For example, eToro allows you to invest in Bitcoin and almost 100 other crypto assets on a secure platform.
eToro is one of the world’s largest communities of traders and investors, numbering more than 30 million.
With the powerful tools, user-friendly features, educational resources, and transparent fees, you can start crypto-trading with confidence.
Gold for your golden years
What asset class do millennials and Gen Z investors both want to own? You may or may not have guessed. It's gold.
The Bank of America survey revealed that among wealthy young investors, 45% own gold as a physical asset, and another 45% are interested in holding it.
Historically, gold has served as a hedge against inflation and market volatility. Many investors turn to “safe haven” assets like gold during economic and geopolitical instability to preserve their wealth.
The enthusiasm of investors has indeed propelled the price of gold to record levels with the precious metal recently surging past the $2,300 per ounce mark.
There are lots of gold assets to choose from, including gold bars, coins and gold stocks.
But right now, opening a gold IRA could be particularly practical as part of your long-term strategy.
Opting for a gold IRA with help from American Hartford Gold gives you the opportunity to diversify your portfolio, stabilize your finances and secure your retirement by allowing you to invest directly in physical precious metals rather than stocks and bonds.
As one of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients protect their retirement.
When you sign up, you’re eligible to get up to $10,000 in complimentary silver and a free investor guide that can help you diversify your portfolio and help secure your retirement fund.
A creative way to diversify
More than 72% of younger investors (ages 21-43) believe it is no longer possible to achieve above average investment returns by investing solely in traditional stocks and bonds. Art is one of the alternative investments that has captured the attention of smart investors.
With over $67 billion in annual transaction volume and a total estimated global value of $1.7 trillion, art represents a massive asset class, according to Deloitte.
In fact, fine art has historically outperformed the S&P 500, with contemporary art achieving an annual return of 11.5% from 1995 to 2023, compared to the S&P 500's 9.6% during the same period.
In the past, you had to be ultra wealthy to invest in art, considering you needed to have the millions it takes to buy a painting at an auction.
But Masterworks has now changed that. This investment platform has made it possible for more investors to access this prized asset.
Instead of buying a single painting for millions of dollars, you can now invest in fractional shares of blue-chip paintings by renowned artists including Pablo Picasso, Basquiat and Banksy.
All you have to do is select how many shares you want to buy and Masterworks will take care of the rest.
