We all know how important it is to diversify your retirement portfolio. But when you think of diversification, it doesn’t just apply to stocks and bonds. According to Forbes, in 2019 more than 60% of portfolios are made up of stocks or stock-based bonds. While diversifying your stocks and bonds is incredibly important, it can leave you vulnerable to market swings and recessions.
Your portfolio should always contain the appropriate balance of growth, income, and capital preservation. To decrease risk, diversification across many different investment securities is a must. Let’s see how Yieldi can help you use proper diversification.
Maintain your balance
Too much of a good thing? When you have too much of one asset class it can be unhelpful and even harmful to your retirement portfolio. Whether you’re a seasoned investor or just getting started, we recommend allocating funds across a number of investment classes. The investment classes need to be independent of one another to reduce exposure.
Variety does not equal diversity.
Contributing to your 401(k), 529, and maxing out your Roth IRA is a great starting plan. Looking closer, you’ll notice that these plans are majorly made up of stocks and very dependent on the market. So it is important to look outside of these core investments to reduce potential losses in a downturn. A diversified retirement portfolio might consist of:
- Stocks (US/Foreign)
- Alternative Investments
So what is the best alternative investment?
While there are many alternative investments to choose from, including art finance, precious metals, or other commodities – real estate has proven to accumulate wealth passively over time. With the right investments, real estate will grow wealth and will allow you to diversify your portfolio more than ever before.
But is real estate right for me?
Real estate can be scary, time consuming, and risky for individuals who are not familiar with investing in this asset class. Vetting properties, worrying about real estate values, fixing and flipping can all be overwhelming and risky even for the most seasoned investor. However, investing in real estate using debt based investing allows you to put your money in asset classes such as commercial and residential real estate without the hassle or expertise.
So let Yieldi make it easy for you.
At Yieldi, we pride ourselves in our unique market place. It is diverse and full of commercial and residential properties. Without the hassle of vetting properties, we do it for you using our 50 plus years of family experience in real estate development. Our online offers are asset-backed, which means your investment is backed by real assets, as opposed to more traditional stocks and bonds.
When you invest with Yieldi you get access to our offerings as they become available, you invest your money at 9.5% interest, funds are added to your Yieldi wallet, and then you choose the type of loan or loans you want to invest in.
Getting paid is just as simple. The borrowers pay on the 1st of every month, our investors are paid on the 15th, and at loan maturity you will have the opportunity to receive your money back or reinvest.
Let passive income work for you without the headache. Learn more about our current offerings here and get on your way to adding the right kind of diversity to your retirement portfolio.