60 Second Wealth Tip – Advice From My 80 Million Dollar Mentor
80 Million Net Worth Multi-Family Investor Buys...Muni Bonds?
I thought this was interesting and worth sharing. I have a personal mentor in my network worth approximately 80 million. He primarily invests in multi-family ; however, I recently discovered that he holds nearly 40% of his portfolio in tax-free municipal bonds. Upon learning this fact, my first thoughts was...why invest in an asset that yields 3% when you could invest in real estate and potentially have a much higher return? Then he explained the lesson. In summary, the lesson was about , NOT potential upside or seeking the highest yield. In other words, this is a risk mitigation strategy for him.
After all... 32 million x 3% = $960,000 a year in tax-free income - Not bad
If you are reading this blog, you are probably a multi-family investor or have in interest in the asset class.
· How do you rank the importance of capital preservation (protection of your initial investment) when it comes to investing in multi-family?
· Do you diversify in any other asset classes?
· How do you evaluate risk vs potential return when making an investment?
To Your Success