Managing your money and portfolio properly is not easy, and the super-wealthy are experts in maintaining their wealth. They often are focused on preserving their nest egg in order to continue to benefit from that capital through interest and appreciation of their capital. They generally do not spend their principal. We dive into the top four investment options the super-wealthy use to diversify their portfolios.
Virtually every high net worth individual has a very large portion of their wealth in the relatively secure investment of real estate. Real estate investments include principal residence, secondary (or even multiple) residences, investment in tenanted residential and commercial real estate, raw land development and lending money secured by a mortgage against real estate.
Wealthy families know that one of the oldest businesses in history, lending money against real estate, is often the cornerstone of the banking industry’s profit.
Investing in real estate through a MIC is a popular choice for avid investors. Essentially they pay investors from a pool of mortgages. Nest Capital, for example, has been providing consistent results yielding returns of 10% annually. Primarily focusing on the Ontario real estate market, Nest Capital is an option for just about any investor. Although MICs were historically limited to high net worth families they are often now also available to others.
This investment option has become easier for just about anyone to invest in as well, requiring an investment as low as $1,000.
It is always better to have your money working for you. Wealthy investors have the option to choose investments in businesses in the hope to profit from the business’s success. While not typically available to just any investor, this investment type can yield huge returns if the company succeeds.
Blue Chip Stocks
A staple for investors, stocks such as Google, Apple, and Facebook are stock options to diversify your portfolio. Wealthy investors have still chosen stocks to be part of their investment portfolio as a way to diversify adequately. Since these companies are large and stable, they are a go-to investment type to invest alongside other options such as bonds and real estate. Frequently well off investors choose stable dividend paying shares as they continually seek ways to preserve their nest capital while earning returns they can enjoy.
Commodities Such as Gold
To keep up a safely diversified portfolio to benefit from multiple markets, investors choose not only stock investments but also investments in gold and other precious metals like silver. While seen as a much longer-term investment than others such as stocks, it is still a reliable way to diversify a portfolio against market uncertainties.
Bottom Line – Diversify Like Wealthy Investors
While wealthy investors have a lot of money to work with, they are still careful with the investments they make. This is why investments such as a MIC are a popular choice for investors. Nest Capital has experience providing a reliable solution for this type of investment. Our team is readily available to help you simply get in contact with us.