Diversify like the 1%
While half of high net worth households’ capital is tied up in real estate, investments in stocks, bonds and alternative assets make up the rest.
Real estate
One of the more common themes among the well-to-do households surveyed is that a large percentage own real estate. Primary and secondary homes account for around one-third of the overall net worth of most wealthy households. Commercial property makes up another 14%.
So, adding those two asset classes together, it’s clear that investors who own real estate tend to generate much higher gains over time.
Some of that could be due to the forced savings effect that real estate provides. Being a relatively illiquid asset with high transaction costs, those who simply pay their mortgage down each and every month gain a pile of equity (assuming you doesn’t refinance).
If you’re looking to gain exposure to residential real estate, Arrived is a great option to consider. This easy-to-use platform is among the top options for investors looking to break into the real estate market, without breaking the bank on overhead expenses, or incurring the costs typically associated with owning property.
Arrived’s platform provides SEC-qualified investments for those seeking rental homes or vacation rentals exposure all in one place. Arrived simplifies the investment process for those looking to push their net worth into the next bracket.
If you’re looking to make a larger investment and diversify your portfolio with commercial real estate, First National Realty Partners (FNRP) specializes in grocery-anchored retail property deals aimed at accredited investors. These properties are essential to the local community, often leased by national brands like Wal-Mart and Kroger, and likely to remain desirable.
Once a deal is closed, FNRP’s team of experts manages the property, so you can focus on finding more deals you love.
A creative alternative asset
Households in the top 2% generally all have some form of alternative investment in their portfolio, with nearly three-quarters of all households surveyed owning some form of alternative asset.
If you’re looking to diversify your portfolio in the fine art and collectibles market, Masterworks is a platform worth considering.
This platform allows investors to buy fractional shares of blue-chip art by iconic artists from Banksy to Basquiat.
Simply browse through the pieces in their extensive portfolio and choose how many shares you’d like to buy of the works you like. Masterworks will take care of the rest — making elite art investments accessible and hassle-free.
