2020 is sure to bring a roller coaster of emotions on several fronts, along with some changes to many markets. There are only a few weeks left to maximize deductions and contributions to self-directed 401ks, IRAs, and ESA and HSA accounts. As well as to get the most out of restructuring current investment portfolios. What main factors do we all need to be investing for now?
There is no question the public stock market has been on fire for years. The last bull run has lasted years longer than expected, with share prices easily exceeding 100% more than where analysts thought they should be.
With everything happening out there this year, diversifying away from the public stock market is an important move. Look for concrete investments without the miserable returns of bonds.
Between California’s new employment rules and the upcoming presidential election and failing company retirement plans, one of the most pressing investment needs is to generate cash flow and passive income. This may need to be a much more significant share of investments over the next few years than the last decade.
Smart Tax Plays
At least several presidential candidates are vowing a whole barrage of new taxes and higher taxes starting in 2021. Investing in vehicles and assets with great tax benefits is going to be key for getting out ahead of this and minimizing the impact. Those that drag their feet are likely to see lower yields and fewer opportunities in these assets if they wait for the dust to settle in November, and are then competing with the herd.
Lock-In Higher Yields
At least for the foreseeable future, it appears that yields are probably going to continue to compress. Negative rates overseas will drive more international investors to US assets this year. In turn, this demand and uncertainty over the election will bring yields down further. Lock in the best returns now.
ABOUT THE AUTHOR
Bill Zahller is the Managing Partner of Park Capital Partners, LLC and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Partners, LLC in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalPartnersLLC.com for more information.