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A BenefitsPro.com article provided a revealing investment strategy favored by America’s millionaires.
In the article entitled, “Millionaires’ favorite alt investment: real estate,” a survey noted that millionaire U.S. investors’ favorite alternative investment is real estate.
And it was by a wide margin.
According to the Investor Pulse Poll, conducted by Morgan Stanley Wealth Management, 77 percent of survey respondents said they owned real estate and 35 percent said they owned real estate investment trusts (or REITS).
GfK Public Affairs polled 1,004 U.S. investors, age 25 to 75, with $100,000 or more in investable household financial assets during the fourth quarter. A third of those interviewed had $1 million or more in household financial assets, and only this subset of households was asked about alternative asset classes.
Kingdom Trust, a leading alternative asset custodian, provides the vehicle for investors to purchase real estate in the form of a Self-Directed IRA. This tax-advantaged account is geared toward retirement savings and is an ideal strategy for investors seeking true portfolio diversity.
The IP Poll also found that 57 percent of investors who received advice from financial advisors had more awareness of alternative assets. Conversely, only 30 percent who had not received professional advice had knowledge of alternatives.
Exploring further in the survey, the next most popular alternative investment after real estate was collectibles—34 percent of millionaires said they owned them. Twenty-eight percent own precious metals, 27 percent private equity, 17 percent real assets (oil, gas and mining), 16 percent private real estate funds, 16 percent hedge funds and 13 percent invest via venture capital.
Kingdom Trust, a South Dakota chartered trust company, serves as an independent qualified custodian that specializes in holding alternative assets for its account owners. It does not provide tax, legal or investment advice and does not endorse, promote or sell any investment products or promote or endorse any investment sponsors or investment advisors.
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