Over 90% of your risk and return will be decided by your portfolio's allocation. In 2023, information overload can make investing feel overwhelming. But becoming an expert isn't the primary goal; understanding what to look for is. Just like we may not be fishermen, but can still tell if a fish is undercooked, your investment strategy should be approached similarly. Join us as we delve into the essentials of investing in 2023 and help you cut through the noise.
Monday Money Short Summary:
- With allocation deciding a great deal for your risk/return, it's crucial to construct a portfolio that fits your needs. The base of a healthy portfolio typically consists of publicly traded equities.
- Alternative investments offer valuable diversification for high-net-worth individuals, helping to create a non-correlated portfolio. However, it's important to consider liquidity needs and have a clear understanding of your expectations from these investments.
- Real estate is a well-established investment vehicle with various benefits. However, similar to alternative investments, liquidity should be taken into account. Additionally, the old adage holds true – location matters significantly, as not all real estate investments are equal.
- Private equity (PE) and venture capital (VC) have gained popularity in recent years, thanks to increased access to investor information. However, it's crucial to assess if these investments are suitable for you. In our video, we suggest a minimum net worth of 3 million before considering PE or VC. It's worth noting that both PE and VC can lead to substantial losses if thorough research is not conducted due to their unique approaches.
Thanks for taking the time to visit us this week. If you have any questions, be sure to forward them to [email protected], and we will see you next week!
