Asset Diversity and Wealth Preservation

For high-net-worth individuals, one of the biggest concerns is how to preserve wealth in times of financial instability. Strategic investment and wealth management are intrinsically connected, with the key to maintaining wealth being smart asset diversity. 

A balanced portfolio will generally have a combination of investments with varying levels of risk, built on a solid foundation of low-risk, secured assets that will see your wealth protected and even continue to grow when the market experiences extreme economic fluctuation.

By diversifying your portfolio, you can preserve your wealth and continue generating income well into retirement. 

What is the Core of a Wealth Preservation Strategy?

Focus on secure assets for preservation of capital and income generation. Because the cost of living inevitably increases over time, it isn’t enough to keep your wealth in the same place. Income generation is a crucial aspect of any wealth preservation strategy. 

With the right income-generating investments in your portfolio, backed by security, you can continue to protect and grow your wealth. Investing in property is one of the most reliable assets for adding ongoing income to your wealth management portfolio, given that investments are secured against the property itself. 

Is Wealth Preservation Only Focused On Minimising Risk?

If you are looking to preserve your wealth without considering income options through investments, your strategy is not likely to be sustainable. Given the significant rises in inflation, high-net-worth individuals should be seeking capital increases that keep them ahead of the surging Consumer Price Index. 

When it comes to wealth management, investing with the intention to grow your capital and have a reliable source of income is one of the best strategies. By focusing on wealth protection and capital increases, you can enjoy a higher rate of return, long-term sustainability to your investment strategy and risk minimisation. 

Asset Options

There are numerous investment options available for high-net-worth individuals looking to diversify their portfolios, including cash, bonds, assets, shares and funds. Mortgages are a particularly safe investment, with the security of property minimising the risk involved. 

Even within mortgages, there are multiple ways to diversify your portfolio, with investments in residential or commercial mortgages, first and second mortgages, and the option to go with a mortgage investment fund.

Each type of mortgage investment has its own level of risk and benefit for the preservation of wealth. First-mortgage investments tend to carry less risk, since these investors are paid first in the event of a default, but still provide investors with a stable, fixed income. Second-mortgage investments are often more lucrative but involve higher levels of risk.

Contributory mortgage funds provide investors with a low-risk way to improve wealth preservation strategies. A contributory mortgage fund gives investors control over how much risk they are willing to take on, as they are able to choose which mortgages in a fund they wish to contribute to. As part of a mortgage fund, the overall risk is shared between investors, making it a relatively safe investment option. 

Arthurmac specialises in helping clients find the best mortgages to invest in, providing a fixed income that can serve as the foundation for a balanced portfolio and preserving wealth throughout retirement. 

To learn more about preserving your wealth through mortgage investments and funds, or to speak to a specialist, contact Arhturmac on 1300 417 690 or complete our enquiry form.

Disclaimer: Please be advised that it is highly recommended to conduct thorough research and seek guidance from a financial expert prior to making any investment decisions. It is further recommended to regularly review your investment portfolio and make necessary adjustments to ensure it aligns with your financial goals.