For the past several decades, investment advisors have steered their clients towards the safe bet of a 60/40 split of stocks and bonds. These portfolios were a reliable form of retirement planning when created over 70 years ago. However, the current environment of high inflation, high valuations of stocks, low yields on bonds, and low-interest rates have prompted many to turn to a new investment strategy, implementing more alternative investments.
Alternative investments, such as real estate, private equity, and private debt, have reasonable risk while maintaining returns. They also provide the benefit of diversification.
Research by J.P. Morgan Asset Management’s “Guide to Alternatives” proved that allocating just 30% to alternative investments can substantially increase your annual returns, strengthen portfolio stability, and decrease risk. An alternative investment such as real estate is a safe and dependable option for investors wanting to reach their financial goals.
Investing in multifamily is seen as one of the best forms of investments due to the passive income that it provides to the investor over a long period of time. Instead of being preoccupied with the stock market or worrying about making a trade, a multifamily investor can place their trust in a competent asset management team like Metonic to take care of their investment and the property.
Multifamily is a low-risk, high return, and dependable asset to invest in. Check out this blog to learn more about why we recommend a balanced investment portfolio that includes private real estate. If you have any questions or want to learn about Metonic’s previous deals, visit our website at Metonic.net or email Josh White at josh@metonic.net.