Strategic Wealth Preservation
Strategic Wealth Preservation
The old saying, “don’t put all your eggs into one basket” is the heart of strategic wealth preservation. Whether you are just entering the job market, or you are close to retiring, protecting your investments from sudden, unexpected changes. It’s no secret that those at the top protect their investments by diversifying their portfolios so that one disaster does not wreck their wealth. The same tactics of strategic wealth preservation can be used by anyone who has assets they want to protect.
What is Diversification?
The answer is more than just putting your money into different assets, it is about separating your money so that one event does not affect all of them. The tradeoff is that some of your assets may not grow as strong as others, but they will be there in case something happens to the rest.
By minimizing the risk, you can then recover in case the worst should occur by diversifying your remaining assets rather than having to build from scratch.
Recommended Asset Protection
Gold investment for Strategic Wealth Preservation
Both gold and gold bullion are arguably the most popular forms of diversification. The reason is that gold has an inherent value beyond simple currency which makes it quite stable. In fact, during times of economic instability, gold often increases in value as more investors buy gold as protection from possible asset losses.
Gold bullion is an excellent investment because it is a form of currency, is highly liquid which means it can be bought and sold easily, and always in demand. However, during specific times in history Gold has been confiscated by Governments.
However, you should not overlook other precious metals such as silver, platinum, and palladium. Silver is especially in demand in the technology field and has yielded impressive returns. Plus, silver tends to do better when the global market is experiencing growth. This is unlike gold as its demand goes down during the good times, silver is always in demand.
Real Estate for Strategic Wealth
Rental properties are especially attractive because no matter how bad the times get people always need a place to stay. Rental properties offer a solid income return every month. Plus, they have an inherent value that can be sold at the right time when you want to leave the market.
While real estate has its share of ups and downs, the advantages outweigh the risks when careful consideration is made of how to invest.
Fine art for Portfolio Diversification
Other means of diversification include investing in fine art. The demand for such art from reputable painters makes for a considerable investment opportunity. This is because fine art has an inherent value that in most circumstances will grow over time. However, it should be noted that demand does rise and fall rapidly with fine art which will affect the selling price.
Cryptocurrency as Strategic Wealth Preservation
Cryptocurrencies are yet another form of diversification that has garnered more attention in the past few years. This form of currency offers a hedge against inflation. Plus, it is immune to confiscation by the US Government as per the Gold Reserve Act of 1934.
These are just some of the many ways you can diversify your portfolio. By engaging in proper strategic wealth preservation, your assets can survive sudden, unexpected changes in the market.
Zanthe Alexander Bentley is a finance veteran with over 25 years’ wealth management experience advising both family offices and institutions on their corporate finance requirements including capital raises (debt & equity), restructurings and M&A activities. He has significant experience in investment management and investment banking and spent nine years at UBS focused on convertible bond arbitrage and equity derivatives.
Prior to getting involved in Asset Management he expanded a small Spanish brokerage from a handful of staff in Barcelona to a diversified brokerage company with over 150 personnel spread across 9 countries, transacting deals from High Grade to High Yield Fixed Income and Loans; Structured Products through to exchanged traded equities.
After taking time to focus on family office activities in Asia, Zanthe-Alexander now leads an ambitious zero-leveraged fund providing exceptional growth and income to Sophisticated Investors.
Zanthe Alexander Bentley Twitter: https://twitter.com/BentleyZanthe