Reach Your Financial Goals With a Diversified Portfolio

It’s fair to say that deciding where to start or what to do can feel overwhelming with all the investment options out there. Just listen to CNBC, Fox Business, or Bloomberg any day of the week, and you’ll hear dozens of opinions about where to invest your money. “Buy stocks,” “buy bonds,” “buy gold!” “sell Bitcoin!” “buy real estate,” the options feel endless. On the surface, the advice can be confusing and, at times, contradictory. Still, if you take a step back, you realize they are all hinting at one fundamental piece of advice: diversify your portfolio.

What exactly is diversification?

Simply put, it’s the process of spreading your investments across multiple industries and asset classes. You’ve probably heard the saying, “don’t put all of your eggs in one basket,” as it turns out, this applies, quite literally, to your investment portfolio.

To better understand diversification’s benefits, you must first understand modern portfolio theory (MPT) and correlation. MPT argues that an investment should be evaluated on how it affects an overall portfolio’s risk and return. This is important because the risk and return profile of one investment can influence an entire portfolio. When you have a diversified portfolio, you will have assets with varying levels of risks, returns, variances, and correlations.

As for correlation, it’s the degree of a relationship between two assets. For example, if two assets are perfectly correlated (correlation equals 1), when one asset price goes up, the other asset increases at the same value, and vice-versa. A well-diversified portfolio includes assets with low correlation preventing the entire portfolio value from collapsing in bad times.

So, what does a diversified portfolio look like? It includes a mix of real estate, stocks, bonds, and even some Treasuries. All these assets have varying risks, returns, and correlations with one another. For example, Treasuries and bonds generally have lower returns than stocks and real estate but can be a good source of steady income. These are your portfolio’s lower-risk portfolio stabilizers. Real estate and stocks can provide more significant long-term returns but increase the overall portfolio risk. These assets are your portfolio’s growth engine.

Additionally, according to PREA.org research, real estate and stocks have a low correlation of 0.07, and real estate has a -0.15 correlation with bonds. By investing in all three of these types of assets, your portfolio return is resilient from events that may affect real estate or stocks exclusively. A great example of why this is important is the 2008 Great Recession and the stock market drop in early 2020. Private market real estate did not necessarily lose its value even when stocks declined sharply. In fact, as bond values took a hit during this same period, private market real estate (multifamily, single-family, industrial, and logistics) increased in value. The private market real estate, in this case, stabilized the portfolio value for long enough to allow an investor to maintain their ownership in stocks, which of course, returned to near all-time highs as of the publishing of this article.

In short, a diversified portfolio helps mitigate the effects of unfavorable market fluctuations while still allowing you to take advantage of the bull market runs. At the end of the day, it’s important to find the right balance of assets for your risk tolerance. Creating a well-diversified portfolio can help you hit your financial goals faster!

Investing In Real Estate For the First Time

Whether you love your career and are looking for a secondary source of income or are thinking about changing careers and looking for financial stability, investing can help you achieve both.

Investing may sound scary, but it can be a lucrative, stress-free, and even fun activity for you and your family when done correctly. We’re not suggesting to throw your life savings in the stock market. That is a terrible idea. Instead, take an educated approach by researching investing options and consider investing in real estate to diversify your portfolio.

For the last 20 years, real estate has outperformed the stock market approximately 2-to-1. As long as you have a little money to invest, you can start making some tremendous financial improvements. Here is how to start:

Research the best apps for real estate investors

People have been investing in real estate long before apps were ever a thing. Now, there are plenty of apps for real estate investors that are easy and fun to use! Many people are too intimidated to start investing in real estate because they think they’ll have to shell out tens of thousands of dollars to do so. That couldn’t be farther from the truth. In fact, with as little as $10, you can start your investing journey! Sure, the more money you put in, the more you’ll get out — but starting with a small percentage of your disposable income and some quality apps for real estate investors can undoubtedly help break you into this lucrative industry.

After you’ve downloaded an app and tossed some money in, you’ll be invested in real estate. Then you can set weekly or monthly recurring investments to grow your account value, and your real estate investing nest egg will begin to grow.

Get your finances in order

Again, you don’t need $50,000 to start investing in real estate. But you do need some extra cash on hand, so you’re not risking too much on these ventures. Though investing in real estate has plenty of upsides, it’s still a fallible market. So you need to tread carefully and make sure you have plenty of cash in case of an emergency.

Research everything and start small

Finally, no matter how much you know about investing in real estate, you should always be trying to learn more. Do as much research as you can and make sure you’re comfortable with the real estate before you start putting money into this sector. Also, make sure you’re starting with smaller projects. You can — and should — invest in commercial real estate, but don’t search for gigantic properties right off the bat.

If you’re excited about breaking into this sector and want to invest in real estate, make sure you’re doing plenty of research, saving money, considering top investing apps, and working alongside a trusted investment company to answer all your questions.

My Financial Journey: Peter Romano

My name is Peter, and this is my financial journey.

There are many things I can reflect on when it comes to the things my parents did well while raising us. Yet, what sticks out the most was their never-ending commitment to making sure we understood the value of money.

From a young age, every time I asked my mother for something, whether it was a pack of baseball cards, the coolest new album ( Fugees ‘The Score’ for this 80’s kid), or a snowboard, she would ask, “do you know how much that costs?”

Trying to show how responsible I was, I’d immediately respond by saying, “Yes! The price is X dollars.” What I realize now is that my mom wasn’t asking because she wanted actually to know the price, she was asking so I could understand the real price of what would go into getting that baseball card, snowboard, or CD.

“No. The price tag says $10, but I must make $14 before taxes to pay for that. Your Fugees album costs me two hours of work.” Fast forward through high school, college, and multiple different jobs, I now see how impactful that guidance was on me. I calculate the total cost of everything I buy and relate it back to the number of hours I must work to afford it. As you can imagine, this can be a little overbearing for my wife when it comes to shopping since I act like a human calculator, but she has taught me you can’t put a price tag on love 😊

Yet, as life has shown us, being fiscally responsible can only protect us so much. There are things in life that happen that we frankly cannot control. Family members get sick, and people get laid off, families separate, children are born – the list goes on.

These unexpected expenses cannot always be covered by a single stream of income from one job, no matter how much that job pays. Sometimes, it means a family must take money from their savings and find themselves with nothing left but their weekly incomes. This is one of my greatest fears for my own family, and why I helped launch HappyNest.

By using HappyNest, I’ve learned that investing doesn’t have to be large chunks of money; it can be a steady stream that is as little as $10. In the end, life is really a marathon, not a sprint. By dedicating more of my income to investing in real estate, I am diversifying my income stream and preparing myself and my family for a financially stable life – something I hope HappyNest can help you do as well.

My name is Peter Romano, and that is my financial journey.

Can Real Estate Investing Bring You Closer to Your Financial Goals?

If you’re like most people, then you probably have some financial goals that you’re working towards. It doesn’t make a difference if you’re trying to get rid of pesky student loans once and for all, or if you’re trying to save up for a once in a lifetime vacation, there’s no denying the importance of setting financial goals and doing everything you can to work toward them. But even the most dedicated people sometimes feel it is impossible to save and make progress. Lifes obstacles and bills can get in the way. That’s where investing in a commercial property for sale or any other form of real estate offers you some options. Here are just a few ways that real estate investing can move you closer to your financial goals, no matter how lofty they may be.

Real estate investing can create substantial passive income for non accredited investors

If you are going to work and paying the bills, it’s easy to feel as though it’s impossible to get ahead on your expenses and move closer to your financial goals. If this sounds anything like you, then you can rest assured in knowing that there are many others just like you. Nevertheless, this way of life can be quite suffocating when it comes to your financial goals. That’s why you need to create multiple passive income streams and set yourself up with assets that provide you with additional income outside of your day job.

Investing in real estate is one of the most reliable ways to generate passive income. Passive income is any form of income that is earned with little to no effort. Some work is required to set up the income stream but after the initial investment, you should be able to sit back and collect. Investing in one or more properties is a great way to receive passive income, all the while, you work your regular day job. The additional income can help you build towards your ideal financial situation.

When you invest real estate apps, they make things quick and convenient so that you can save time

Real estate investing is more accessible than ever. A 2017 study by UBS and Campden Wealth revealed that the ultra-wealthy invest an average of 15% of their portfolio into real estate. But many people make the mistake of thinking that you have to be rich or brilliant to turn a profit in real estate investing these days. That is far from the truth! Thanks to recent developments in information systems and smartphone technology, it’s now easier than ever to get started in real estate investing from your phone.

A real estate investment app can guide you along your financial journey. If you don’t know what to do when you’re starting, then choosing the right apps can give you the support you need. Furthermore, real estate apps allow you to track your progress and earnings. With real estate investment apps, even the beginner can make tangible progress toward their financial goals without much trouble. Investing in real estate has never been more convenient!

At HappyNest, we are proud to offer a premier app for investing in commercial real estate. With our service, you don’t even need much experience or money to get started. When you invest, the app tracks your progress. Not sure how to proceed and get started on developing your commercial real estate investment portfolio? Just looking for a little more information on what Happynest does? No problem! Don’t hesitate to reach out and get in touch with a member of our team today. We can’t wait to work with you!

Do You Need A NEW New Year’s Resolution?

Many of us make the same New Year’s resolutions year after year. But why? Isn’t the definition of insanity doing “the same thing over and over again, but expecting different results”? The answer (which some of you already know) is that most people don’t stick to their resolutions, and even with the best intentions many of us fall off the wagon in as little as one month (80% in fact). If you, like some of us, already have failed your New Year’s resolution, don’t despair! We have some simple tips for setting (and achieving) a new New Year’s resolution, and a couple of suggestions for new areas to focus on as you revamp your 2020 resolutions.

Perfecting Your NEW New Year’s Resolution

There are a number of reasons why the majority of us fail to achieve our New Year’s resolutions. From the psychology behind the word ‘resolution’ to the unrealistic nature of our goals, few of us set ourselves up for success. Fortunately, Inc. magazine has outlined seven steps we can take when setting a new New Year’s resolution we can actually keep:

  1. Create a measurable goal.
  2. Identify clear action steps.
  3. Set yourself up for success.
  4. Plan for obstacles.
  5. Start when you’re ready.
  6. Track your progress.
  7. Learn from your mistakes.

Before we delve too deeply into the specifics of each of these steps, however, let’s discuss why we’re talking about setting a new New Year’s resolution in the first place and talk about our recommendation for a new area of focus you may previously have overlooked: your financial future.

Money and financial habits are the biggest source of stress for Americans, according to research conducted by Northwestern Mutual.  Many of us do not budget properly. We do not have an emergency plan. We rely too heavily on credit cards, ultimately paying the price.

The result? Poor financial health.

Financial Health: The state and stability of an individual’s personal finances and financial affairs. Source: Investopedia]

Poor financial health bleeds into other areas of our lives, putting a strain on marriages and relationships, and even affecting our physical well-being. In fact, 72% of participants in a Financial Stress Survey conducted by the John Hancock financial institution admitted to “worrying about their personal finances at work,” with “one in three doing that more than once a week.” In 2018, Americans’ credit card debt hit a record high of more than $1 trillion dollars, according to the Federal Reserve. And not only are we drowning in debt, but one in four Americans don’t have “even a single dollar saved for an emergency.”

But does poor financial health really have a tangible effect on us? According to a survey from LendingClub, Americans that report poor financial health also tend to have poor physical health. In fact, these Americans are “significantly less likely to practice healthy physical habits (59% do not get routine check-ups and 60% do not get regular exercise) and are more likely to skip preventative health measures due to cost (38%).” The conclusion? “Bad wealth begets bad health.”

‘Bad wealth begets bad health.’

Indeed, according to the journal of Anxiety, Coping and Stress, the biggest negative impacts of poor financial health include:

  • Depression and anxiety
  • Migraines
  • Ulcers and digestive issues
  • High blood pressure and heart attacks
  • Disrupted sleep

Even if more Americans are beginning to recognize the importance of financial health, most financial resolutions aren’t helpful. Resolving to “manage finances better,” “rethink financial habits,” or “save more money,” for example, is self-defeating. These kinds of resolutions aren’t measurable, don’t set out clear steps to take in order to achieve your goal, don’t anticipate obstacles, and don’t allow you to track your progress in a meaningful way. Essentially, we’re setting ourselves up for failure rather than success.

A proper resolution should not be summed up in just a few words. If possible, think of resolutions as goals and establish specific tools to achieve them. Set a timeframe, make sure your goal is measurable, keep track, identify ways to keep yourself accountable, prepare for obstacles–they’re inevitable!–and perhaps most importantly, start when you are ready. Choosing an arbitrary start date like New Year’s day doesn’t make sense if you haven’t put a plan in place to achieve your resolutions. Don’t force yourself into a failing situation simply because of social pressure.

What Is a Healthy Financial Portfolio?

A healthy financial portfolio is a diversified portfolio. But what is a ‘diversified’ portfolio? Simply put, diversification is “a risk-management technique that mixes a wide variety of investments within a portfolio.” As NerdWallet puts it, diversification means investing in “different assets that aren’t highly correlated, meaning they don’t move in lockstep. […] Spreading your money around reduces overall risk by ensuring your portfolio’s performance isn’t too dependent on any one particular asset.”

With that in mind, we want to discuss how real estate investing fits into a diversified financial portfolio–particularly because this frequently is an overlooked investment opportunity. Real estate investing is a great way to diversify your finances, earn more, and ultimately save more. Without help, however, learning the nuances of real estate investing can take some time.

That’s why we founded HappyNest–to provide experienced real estate investors and beginners alike with a simple, easy-to-use way to take advantage of the benefits of commercial real estate investing and provide the education needed for each of you to make the most of those investments.

Portfolio Diversification: Varying an individual’s investments by type (real estate, equities, bonds, etc.) in an effort to reduce the risk associated with investing.

“Another term for ‘diversification’ is ‘asset allocation,'” Michael Crawford, principal and founding member at Nationwide Wealth Management, has said. “Many financial advisors will divide investments by equities and bonds, depending on risk and age. There are other asset classes to consider, including private equity, hedge funds, real estate, and collectibles.”

That’s where HappyNest comes in.

Achieve Your New New Year’s Resolution This Year with HappyNest

HappyNest simplifies real estate investing to make it easy for anyone to diversify their portfolio. How do you get started? Simply download the HappyNest app to your Apple- or Android-based smartphone, connect your bank account (securely), and purchase shares of a diversified real estate portfolio.

The real estate investment team at HappyNest vets properties under strict guidelines to ensure they add value to the real estate portfolio. Specifically,  HappyNest REIT purchases properties that have long term leases, strong tenant credit, and rent growth. This investment strategy creates a strong real estate portfolio that will help keep your real estate investments and financial portfolio sound.

Done right, real estate can be incredibly profitable (in fact, 84% of real estate investors would happily make another investment).

What Will HappyNest Actually Do For Me?

HappyNest is a mobile app that can allow you to unlock the potential of real estate investing, starting with just $10. Download the HappyNest app and use your smartphone to experience the stability, tax benefits, and wealth creation traditionally reserved for those of advanced means. With us, you can own an equity interest in a portfolio of high-quality commercial real estate and continuously receive dividends for years to come.

Download HappyNest for Apple or Android and experience an app that reflects your priorities. Don’t miss out on the tools you need to establish healthy financial habits and accomplish your goals.

3 Simple Reasons to Get Involved in Real Estate Investing

It doesn’t matter whether you are rich or poor; there’s no denying the fact that investing in real estate can be an incredibly fruitful decision for both your short term and long term financial future. Even if you’re undecided about investing in a commercial or residential property, just showing interest and thinking about how you can invest in real estate will lead to positive results. With modern-day tools such as the HappyNest app and other technological advances, there has never been a better time to get started in your journey of real estate investment. Still not convinced? Here are three simple benefits to getting involved in the world of real estate investing.

Real estate investments create passive income for non accredited investors

Have you ever been tired of working at the same job day in and day out? If you’re like most people, then the answer is “yes”. With monthly bills to pay and unexpected expenses, the majority of people can never seem to get ahead on their finances. Thankfully, it helps to know that there are many options a person can pursue on their path toward financial freedom, and real estate investing is perhaps the easiest and most lucrative among them.

Simply put, passive income refers to any income you receive NOT generated by your physical labor. Sure, it may take some time and effort upfront to establish your footing in the world of real estate investing, but once you are set up, the passive income from your efforts will pay off over time. Add in the ease of using a smartphone app such as HappyNest, which allows you to invest in real estate with just $10, then investing in real estate is a no brainer for anyone looking to create passive income for themselves or their family.

Real estate investing can help you reach your financial goals

Sometimes our financial goals seem nearly impossible to reach. At times, months and years can pass by without any real progress made to reach them. If you limit yourself to one source of income, then it’s quite unlikely that you’ll ever be able to graduate to higher levels of regular monthly income. That is why so many people have realized the life-changing power of real estate investing. When you apply the right mindset and willpower, real estate investing can help you reach your financial goals much faster and easier than you would with a traditional lifestyle.

Let’s think about a typical savings strategy. Say you save $500 per month in a traditional savings account; it will accrue interest at a low rate, 0.06% APY on average. On the flip side, say you were to take that same $500 and invest it into a commercial real estate portfolio using the HappyNest app. That same amount of money is projected to grow at a much quicker rate (HappyNest targets a 6% annual dividend). In this way, you can accelerate your timeline toward financial freedom.

With real estate investment apps, investing in real estate has never been easier

Roughly 84% who have invested in real estate indicated that they would make another real estate investment. Finally, you should know that there has never been a better time to start investing in real estate than right now. Not only do real estate investment apps allow you to get started with a small amount of money, but they make the investment process easy and convenient. When you choose to use an app like the HappyNest app, you are provided constant access to your investment portfolio and a range of tools that can help you make even better investment choices in the future.

It doesn’t matter whether you’re new to real estate investing or not; it’s clear to see that there are many benefits to getting started. Not sure how to begin? Contact us today for more information.