There’s always room for improvement. What adjustments would make your investment portfolio even better?
Even if your investment portfolio is performing well, there are always tweaks for fine tuning it. If you aren’t getting all you want out of your investments yet, then definitely consider how you can implement these things to really up your results.
Diversification
Most individuals are woefully underprepared when it comes to diversification. Some may feel they are diversified in the stock market, yet, have everything on the line at the whim of the emotional stock market, with no downside protection. Some have strong real estate portfolios which benefit from concentration in one area, but lack the protection of geographic diversification. Others may be doing very well in the note or debt investment space, but as exposed to risk, because they are in too tight of a niche.
Partner Up
Billionaire real estate legend Sam Zell has spoken on the advantage of partnerships. For him it is a way to share, and lower risk, while increasing scale and rewards. This could be partnering with friends and family, or a business partner. Finding a financial backer. Or investing in a partnership or fund with like-minded peers.
Tax Savings
True net investment results depend a lot on taxes. You can gross less profit than a competitor, and actually net a lot more, if you pay less in taxes. The opposite is true too. If we are not using 1031 exchanges, self-directed retirement accounts, and taking the full range of deductions and write-offs available, then we are just throwing a big percentage of gains away. That may be 28% or 40%, which makes a huge difference.
Succession Planning
For those with an eye on the big picture and long game, it is really smart to have the right structure and plans in place now. It is tragic when individuals work so hard and long, and sacrifice so much, only for heirs not to receive the intended assets or benefits. That’s a real shame when an extra piece of paper or two could have made all the difference. How you hold title, listing beneficiaries, having wills and trusts in place, and timing how you begin transferring wealth and assets are all important parts of this. Don’t wait.
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How are you loving your portfolio’s performance? In what areas might you be able to make small (or significant) adjustments to generate better results now, and achieve your long term goals with confidence?
Investment Opportunities
Find out more about investing in secured debt and real estate, go to NNG Capital Fund
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