An investment portfolio can simply be defined as a collection of assets that are owned by an institution or individual. Institutional investors like banks, pension schemes, and insurance companies usually have investment portfolio that are worth millions of dollars. For the case of the average American, he can have a portfolio that is worth less than a million dollar. Most Americans who live in Denver usually include Highland real estate Denver in their portfolios. The savvy investor understands the importance of having real estate in a portfolio. That does not mean that it should be the only asset that one invests in.
Of course, the golden rule of investing is diversifying. That spreads risks. Thus, the failure of one asset is automatically cushioned by the success of another. Even with diversification, properties should still be given prominence. As a matter of fact, a significant percentage of the portfolio in question should have properties if success is desired at the end of the road.
Most people usually make the mistake of making a huge part of the personal portfolio to have intangible assets. That must never be the case. What a portfolio needs the most are tangible assets. The truth is that tangible assets always outperform intangible ones. Real estate is one of the most popular tangible assets on planet earth. The other one is precious metal.
Stability is desired in a portfolio. It needs to be the order of the day. In the world of business and commerce, instability is not a good word. No savvy investor will want an unstable asset. That is due to the fact that such an asset will have a high level of risk. Actually, risk is not always good.
Volatility is not a good feature in an asset. As a matter of fact, volatility must never be the order of the day. There are asset classes that are always shaken by the latest news. That is not the case with properties. A piece of property will be able to endure political and economic instability.
Properties are not volatile in any way. It is hard if not impossible to find properties making wild swings up and down. The only swing that real estate makes is swinging up and it can actually appreciate more than tenfold in less than a year. That makes it the most valuable asset. Thus, it should occupy a special place in any portfolio.
When planning for a portfolio, there is the need to carefully choose the properties to invest in. Planning is an important task. It is half the job done. A plan is only as good as the execution. The best properties are in great locations. The three most important factors when it comes to investing in properties are location, location, and location.
A wise person does not spend all the money that he has. Actually, he saves at least ten percent of his income. Money should not just lie in a savings account. It should be invested in the best manner possible. Smart investors have investment portfolios. One should indicate on a piece of paper the structure of his portfolio.
Of course, the golden rule of investing is diversifying. That spreads risks. Thus, the failure of one asset is automatically cushioned by the success of another. Even with diversification, properties should still be given prominence. As a matter of fact, a significant percentage of the portfolio in question should have properties if success is desired at the end of the road.
Most people usually make the mistake of making a huge part of the personal portfolio to have intangible assets. That must never be the case. What a portfolio needs the most are tangible assets. The truth is that tangible assets always outperform intangible ones. Real estate is one of the most popular tangible assets on planet earth. The other one is precious metal.
Stability is desired in a portfolio. It needs to be the order of the day. In the world of business and commerce, instability is not a good word. No savvy investor will want an unstable asset. That is due to the fact that such an asset will have a high level of risk. Actually, risk is not always good.
Volatility is not a good feature in an asset. As a matter of fact, volatility must never be the order of the day. There are asset classes that are always shaken by the latest news. That is not the case with properties. A piece of property will be able to endure political and economic instability.
Properties are not volatile in any way. It is hard if not impossible to find properties making wild swings up and down. The only swing that real estate makes is swinging up and it can actually appreciate more than tenfold in less than a year. That makes it the most valuable asset. Thus, it should occupy a special place in any portfolio.
When planning for a portfolio, there is the need to carefully choose the properties to invest in. Planning is an important task. It is half the job done. A plan is only as good as the execution. The best properties are in great locations. The three most important factors when it comes to investing in properties are location, location, and location.
A wise person does not spend all the money that he has. Actually, he saves at least ten percent of his income. Money should not just lie in a savings account. It should be invested in the best manner possible. Smart investors have investment portfolios. One should indicate on a piece of paper the structure of his portfolio.
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