What percentage of your portfolio is in stocks?
If you’re counting on a financial advisor to grow your wealth, it’s likely that MOST of your money is in the stock market.
But that’s not how ultra-high-net-worth individuals approach investing.
So, what if you diversified your portfolio to include more alternative investments?
Drew Kniffin is Partner and President at Nighthawk Equity, the multifamily investing arm of The Michael Blank Brands.
Drew has a corporate finance and real estate investing career that spans two decades, and he is passionate about helping high-net-worth entrepreneurs invest passively in apartments.
On this episode of Financial Freedom with Real Estate Investing, Drew joins me to debate the pros and cons of investing in the stock market versus real estate.
Drew makes the case for the stock market, explaining why you should stay engaged with Wall Street as part of a balanced portfolio.
Michael discusses why he’s cynical about stocks, describing how the volatility of the market can decimate your returns over time.
Listen in for insight on how HNWIs invest their money and learn how to optimize your portfolio, mitigate your risks, and grow your wealth with real estate!
Key Takeaways
Drew’s early experiences with the stock market
- Part of family dinner table discussion growing up
- Managed $3M of college’s endowment as student
Why Michael is cynical about investing in stocks
- IPO millionaire after sale of software company
- Stock investments didn’t yield passive income
Drew’s case for investing in the stock market
- 6.5 to 7% average returns with 200 years of data
- Double your money every 10 years
How stocks and bonds became the default investment
- 1974 ERISA was genesis of IRAs and 401(k)s
- Wall Street FAs portray stocks as wise choice
Michael’s top disadvantages of stock investing
- Return stats don’t account for inflation or taxes
- Volatility decimates returns over time
Michael’s top benefits of investing in real estate
- Generates cashflow
- Don’t pay fees to financial advisor
- Major tax advantages
- Inflation hedge
Drew’s case for investing in stocks AND real estate
- Work together in tax code
- Part of balanced portfolio
How ultra-high-net-worth individuals invest money
- Half in alternative investments, <30% equities
- Average investor 50 to 90% in stocks
Drew & Michael’s parting advice to average investors
- Make choices based on ‘goods and services’
- Explore alternative investments like real estate
Connect with Drew Kniffin
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Schedule a Call with Michael’s Team
Explore Michael’s Complete Guide to Real Estate Syndications
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
