|Are you tired of this pandemic yet? And, what about this seemingly never-ending-inflation?|
At times like these, it can be hard to see a silver lining, but we’re here to help guide you on how to keep your financial portfolio thriving.
Last week, we covered the first three tips you can follow to find clarity during the chaos and get your investments on the right track, including 1. taking inventory, 2. goal setting, and 3. starting from zero. Read the full article here.
|Whether your portfolio got caught napping, or you’ve been sitting on the sidelines in cash for years, here are more tips to help you along the way:|
Tip #4 Liquid Reserves
Liquid reserves means money that is available and accessible in a very short time frame, think immediately or 1-3 days.
Examples include savings, money market accounts, “conservative” mutual funds and my favorite – precious metals. A less liquid account would include other “paper” assets in a brokerage account such as stock stocks and ETFs.
As volatile as things are now, they have the potential to get worse.
Events like The Great Recession of 2008, the Gold Rush, the DotCom Boom and Bust, and now, this Great Pandemic, don’t happen often, but when they do, it’s clear there will be BIG opportunities for those who are prepared.
A general rule would be to have AT MINIMUM 5-10% of assets liquid and ready to deploy.
Tip #5 Cash on Hand
Having cash on hand is different from being liquid. I mean actual, physical cash, (in small denominations) for at least 3 month’s worth of expenses.
On March 24 2021, the FDIC asked people to remain calm and not to remove large amounts of cash. The last time this happened was 2008… Just sayin’. Besides, it’s not like it’s earning much interest in your savings. Not to mention, the counter-party risk! But more on that another day…
Tip #6 Buy Real Assets
Real assets include things like real estate, land, equipment, natural resources, commodities, and physical precious metals. With the Stimulus Packages / money printing there isn’t a clear end in sight for this inflation horror we’re enduring. When the financial reset comes, either as soon as the next election cycle or decades from now, you’ll be glad you considered investing in real assets.
An easy place to start is with 3-5% of your liquid net worth in physical gold and silver. Personally, I buy from American Gold Exchange, but you can use any reputable dealer. Dana Samuelson, the owner and friend of mine, is as solid as they come. And no, I don’t get any compensation from sending people his way unless you count the occasional beer when I see him at a conference.
Stay tuned! In the next newsletter, we’ll cover the last four tips on how you can adjust your portfolio in the midst of a pandemic and beyond!
Our mission is to help passive investors become financially-free by providing high quality alternative investments. If we can help you in that way, it would be an honor to do so. Feel free to schedule some time for us to chat.
Interested in learning more about how YOU can invest in a single family home portfolio? We may have the perfect opportunity for you – find out more here!