Quote:
Originally Posted by Flying Ace
Quote:
Originally Posted by DETRoadster
Exactly! Mid 40s at what may be the tail end of a huge economic run up and plans to retire by 60 is a strange and unsettling place to be!
Yes! I started that about 5 years ago.
Interesting. I know zero about this. Thanks for the tip. I'll investigate.
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Well you need to be an accredited investor to get into a lot of the private investments. Your risks are higher and there are Madoff's type scams out there too.
I would talk to an wealth management person at a Merrill Lynch or UBS office first. Sure they'll sell you expensive investment shit, but they'll at least show you the way to get accreditation.
Basically you can't get accreditation without having to buy something first. No one will accredit you for free.
If you have questions about what AI means, PM me your cell and I'll call you with an overview. Don't worry, I'm not selling you shit. |
RE has a pretty high positive correlation to the market. Additionally ALL correlations increase during stress periods. In a raising interest rate environment value of RE will depreciate. Depending on the market/sector the RE can be massively overvalued now.
You want to hold bonds/cash so you don't have to liquidate your portfolio. For High net worth individuals It is advised to have 5-8 years of ALL expenses in bonds. Dividends can partially offset this, but companies can always cut them in hard times.
With private RE you need to be very careful. You need to analyze portfolio (type of properties, target markets, leases, leverage) and fees. Most of those investments are not beating an index after fees. Plus when the market crashes you will have a hard time liquidating it, and hope that it survives.
You want to have a real finance professional (portfolio manager) and not a broker (sells person). A lot of those guys like to put people in fancy/illiquid products (that they don't understand) with high fees that are not performing that well.