#1 Interactive

Head over to Fundrise to see how you can add private real estate to your portfolio with the click of a button.

LEARN MORE

Diversifying your investments

We have a hunch that this is the year you update your investment portfolio. If not entirely revamped, maybe just refreshed. Redistributed. Diversified. You get the point we’re trying to make. So, it’s time to take a good look at where you’re putting your hard earned dollars. That’s why we’ve partnered with Fundrise, a revolutionary platform that allows investors like you and me to invest in real estate, in order to explore how to maximize your long-term investing strategies. We're starting with portfolio diversification: the OG of smart investing.

MORNING BREW

CREATIVE STUDIO

January 21, 2022

This is the year you diversify your portfolio

For Presentation Only Custom image being worked on

How much did you know about portfolio diversification before today?

A. Nothing at all

B. I dabble

C. I’m actively working to increase my asset classes

D. One thing about me, my portfolio is diverse-i-fied

A. 0 - I’m brand new

B. 1-3

D. 7-9

C. 4-6

How many different asset classes are you currently invested in (including equities, fixed income, property, crypto, collectibles, etc…)?

Ready to start diversifying? Let’s first take a quick assessment of where you are in your journey so far.

Start Poll

A. Stocks

B. Bonds

D. Real estate

C. Crypto

What asset class(es) have you invested in the last 12 months?

A. Growth potential

B. External factors (such as the pandemic, the housing market, etc…)

D. All the above

C. Stability

What do you look for when choosing an asset class to invest in?

A. Up to 5 years

B. 5-10 years

D. I’m in it for the long haul

C. 10-20 years

What’s your investment time horizon?

5. Tampa, FL

2. Raleigh, NC

4. Austin, TX

1. Nashville, TN

3. Phoenix, AZ

8. Atlanta, GA

A look at the hottest real estate markets of 2022

Need some inspiration on where to invest? Here are some of the markets where real estate is positioned for significant growth.

The close up: real estate could be the answer Now let’s examine why adding non-traditional real estate investing to your portfolio might be the smartest thing you do this year as we invest during a period of inflation. To reiterate our previous point, while inflation is certainly a hassle in the short-term, things can escalate very quickly if it decides to stick around for the long haul. With this uncertainty, it’s imperative that investors protect themselves and their investments in the case that high inflation continues at a sustained rate. And given the current state of affairs, there’s reason to believe that the upward inflation trend will continue at least through this year and likely longer. Therefore, now feels like the right time to shake up your investment strategy beyond relying on just stocks and bonds. Now you might be wondering what you can do to mitigate the risk of inflation and make sure your long-term investment outlook isn’t severely impacted by rising rates. The key is to build a portfolio that includes both public assets like stocks and bonds, as well as private market assets like real estate. The idea is that, instead of putting all of your eggs (dollars) into one basket (investment strategy), you can diversify your portfolio to drive performance and minimize risk simultaneously. Real estate is a great way to make this happen.

The pandemic

What factors have contributed to the rise in price of consumer goods?

Test your inflation knowledge

Knowledge is like money–it’s the most fun when you get to expand and retain it.

Start Quiz

How Fundrise is changing the real estate investment game With Fundrise, you have access to the same opportunities as big financial institutions without having to deal with excess fees and unhelpful brokers. On their platform you can get started through their proprietary platform that maximizes your experience through automated transactions. So, you still have the chance to get in and get good with real estate–all from the convenience of a mobile app. Plus, you’re not alone. With over a million users, there’s a real community of other people who care about putting their money towards something solid. Smart gains are better together. In fact, Fundrise just reported that the average annual return for all Fundrise client accounts was a notable 22.99% for the year in 2021. Fundrise makes diversification simple and accessible. At any time, and at any place, you can log on and make changes from the palm of your hand. And, a diversified portfolio leaves room for flexibility and new opportunities. With a community of like-minded investors, everyone can tap into a previously inaccessible market while also hedging against unexpected surprises (like inflation!).

2011

2021

$267,900

$332,750

NEW HOME

$46,000

$32,000

2011

2021

NEW CAR

$9.16

$7.19

2011

2021

MOVIE TICKET

$363

$135

2011

2021

SMARTPHONE

The Bottom Line Get excited, because you don’t need to sacrifice actual results for stability. High inflation rates, while challenging, offer up an opportunity to positively diversify your portfolio via things like nontraditional real estate investing. This means more long-term gains and less short-term stress. With uncertainty regarding the supply chain and ever-fluctuating economic policies, navigating the market and the bevy of investment options can feel super daunting. Through innovation in technology and a digital-first approach, Fundrise has demystified investing in real estate, made it lower cost, and more accessible (read: it’s no longer just for institutions and individuals with deep pockets).

Then today might be the day—read on to learn more about how to start diversifying.

The close up: real estate could be the answer

The big picture: diversifying in the time of inflation

The big picture: diversifying in the time of inflation The future is uncertain by nature. These days, however, driven in large part by the ongoing pandemic and its economic impact, the forecast for what’s to come has an even more heightened sense of unpredictability to it. So what’s different this time? That conversation begins and ends with inflation, which has reemerged in an impactful way after 40 years of decline. While there’s some nuance to how it may be measured and interpreted, the concept of inflation is straightforward: as prices for goods and services continue to go up, the purchasing power of money decreases. As a result, your money buys you less tomorrow than it would today. And if your paycheck doesn’t increase along with the inflation rate, then, in a sense, it’s like taking a pay cut since your money is devalued while your expenses increase. As much as this can be frustrating in the short-term, if the inflation trend continues and becomes cyclical, that’s when the real, long-term crunch is felt on your pockets and the economy as a whole. Within the context of investing, in a time of high inflation rates, the best way to protect your money is to diversify your portfolio with assets that can act as a hedge against inflation. The challenge, then, becomes what does that actually look like?

How Fundrise is changing the real estate investment game

The bottom line

Almost! The correct answer is D. The pandemic (a) has caused the supply chain (b) to be severely impacted due to workers around the world getting sick.

Both A and B

Supply chain issues

Not enough raw materials

Both A and B

Correct! The pandemic (a) has caused the supply chain (b) to be severely impacted due to workers around the world getting sick.

Yes

Unsure

It Depends

Almost! Inflation under 5% is completely normal within any economy. However the current rate (6.8%) worries some economists because average consumers may not be able to afford household staples like gas and groceries.

It Depends

Correct! Inflation under 5% is completely normal within any economy. However the current rate (6.8%) worries some economists because average consumers may not be able to afford household staples like gas and groceries.

Is inflation inherently bad?

$3.47

$.99

$1.13

$1.50

$1.13

Almost! In 1992 a gallon of milk cost $1.13. Today a gallon of milk will run you a cool $3.77.

$1.13

Correct! In 1992 a gallon of milk cost $1.13. Today a gallon of milk will run you a cool $3.77.

How much do you think a gallon of milk cost in 1992?

Gasoline

Used Cars

Hotels

Beef

Gasoline

Almost! Gas has been through the roof increasing 51% over the past year.

Gasoline

RESTART

Correct! Gas has been through the roof increasing 51% over the past year.

What category do you think has been hit hardest by inflation so far?

RESTART

Restart Quiz

As an actual, non-cash asset, real estate is hot, hot, hot right now. Which also means there’s less of it available on the market. If we recall Econ 101, when supply goes down, and demand goes up, the value of the good (in this case property) also rises. For decades, institutions have poured their capital into private market real estate as a source of stability and long term performance. As they strategize for the year ahead (and beyond), it makes sense that they continue to invest in existing properties and new construction projects. Unfortunately, the same can’t be said for average investors, who, historically, have not had the luxury of opportunity to invest in private real estate since it’s mostly institution-driven. Think of it this way: much like how investing in your favorite tech startup pre-IPO isn’t accessible to the average person, investing in private real estate, too, can only be achieved through channels that are unavailable to most retail investors. As a result, if you want a piece of the action, you end up paying a significant premium if your only option is to invest when the asset enters the public market. The good news is that there is hope. And it comes in the form of brands like Fundrise, who have figured out a way to bring the potential (read: gains) of private real estate investing to the masses. And it couldn’t have come at a better time. As a new generation of investors enter the market and experience the impact of inflation for the first time, Fundrise has opened up a new door for them to diversify their budding portfolio. For those looking to keep their eggs safe from the unpredictable nature of today’s market, real estate provides a great opportunity to increase asset class exposure and acts as a hedge against inflation. It also means bigger potential payouts for investors who use platforms like Fundrise to get active in the market.

Industrial

Companies looking to have a reliable and safe environment to store and make their products choose commercial buildings to ensure their production is kept to a high standard. Some examples include warehouses, food manufacturers, and cold-storage facilities. Currently Fundrise has investment opportunities in AZ, VA, and more.

Single Family Rentals

For families looking to test out a new neighborhood or those saving for their dream home, single-family rental properties offer a chance to understand a community before fully investing. Check out options in SC or TX.

Multi-family properties

Multi family properties like apartment complexes offer a variety of amenities and convenience, while still allowing renters flexibility. In growing regions like the Southeast, get your foot in the door in NC or Tampa.

When starting out, remember that it’s not just about the amount of different assets you have—quality is equally as important.

Stocks are generally a common asset of most investment portfolios. But, stocks alone could be risky as prices are prone to fluctuation.

While growth potential is certainly an important factor when investing, it’s not the only thing that should be considered.

RESTART

Regardless of your time horizon, investing in things like private real estate is a good way to up the diversity of your portfolio.

Restart Poll

Thus far you’ve put more than you’d like into a meme coin or three, as well as some risky technology stocks. Riding their highs and lows has been fun and all, but you’re not sure if you want to throw all of your life’s savings into something so…intangible and volatile. So instead of putting all of your money into the metaverse and tech, you begin to explore other, more stable options like stocks, bonds, and mutual funds, to name a few. The problem is, these types of traditional investments are far from a sure thing. Stocks can be priced at a premium, thus making them risky, bonds can have swiftly rising interest rates, mutual funds can be easily mismanaged, and other traditional asset classes have you feeling just…okay. But okay isn’t good enough! These types of investments have always been easy to access and quick to move around should things get shaky. But they also require close monitoring because of market fluctuations. We always hope that the market will invariably correct itself. And with that in mind, panicking over your portfolio on a daily basis isn't good for anyone. Which is why a more diversified portfolio just makes sense. This means more opportunities for returns that make you feel great. And that’s what we like. With the aforementioned rise in inflation, paired with things like uncertainty about the supply chain (thanks to the pandemic), changing economic policy (which seems to fluctuate everyday), and other very real issues affecting markets, putting your cash into something solid might be what you need to feel secure. And without early intervention, inflation has the potential to be devastating to traditional investment strategies. That’s where real estate comes in. Real estate has historically been what established institutions rely on to keep their portfolios strong. But, in decades past, this market has been inaccessible and intimidating to the average investor due to very high entry thresholds and lack of transparency over where to even get your foot in the door. Fortunately, in 2022, change is here and intimidation is longer welcome. The landscape has changed through platforms like Fundrise, where direct-to-investor real estate investments means the barrier to entry is lower, and the returns are higher. This year, give yourself something to look forward to by changing up where your money goes. You deserve to feel financially secure. Diversified ✓ Risk managed ✓ Meta cheers to that

Now that you’re well informed on the benefits of investing in real estate let’s take a look at some of your options.

SPONSORED ADVERTISING CONTENT BY

6. Charlotte, NC

7. Dallas, TX

9. Seattle, WA

10. Boston, MA

Credit source: PWC

Here’s a look at how the prices of certain goods have increased over the past 10 years

LEARN MORE

In case you haven’t guessed it yet, inflation is real. You can learn more about its impacts within the context of investing.

Both A and B

Almost! The correct answer is D. The pandemic (a) has caused the supply chain (b) to be severely impacted due to workers around the world getting sick.

Both A and B

Almost! The correct answer is D. The pandemic (a) has caused the supply chain (b) to be severely impacted due to workers around the world getting sick.

The first step of a journey can oftentimes be the most difficult. With that in mind, it looks like you’re well on your way.

Great to hear! The more you can diversify your portfolio, the more likely it is that you’ll reduce overall exposure to risk.

Sounds like you’re a seasoned investor. Question: have you given private real estate a look?

Though less vulnerable to price swings and, therefore, less risky, bonds generally offer less upside compared to other asset classes.

Crypto may be trendy at the moment, but, looking ahead, there’s no guarantee what the space will look like. While there’s a ton of upside for gains, there’s just as much potential for things to crash and burn in a hurry.

There are some inherent risks that come with investing in real estate, though some of these risks can be minimized if you’re able to add private real estate to your portfolio.

External factors can add another layer of complexity to the investing landscape, so while these are generally out of our control, it’s important to understand their potential impact on the markets.

Stability is always a good thing when it comes to your portfolio. But it’s only one piece of the larger equation.

Correct! When exploring new asset classes, it’s important to take a multi-pronged approach: to start, consider growth potential, stability, and any external factors that could impact value.

You’re off to a great start. Now might be the time to look at additional types of asset classes to keep the trend going.

Looks like you’ve got a good handle on the concept of spreading out your assets to mitigate risk.

This is expert-level diversification. The question is, what comes next? Perhaps private real estate could be the answer.

In case you haven’t guessed it yet, inflation is real. Click learn more about its impacts within the context of investing

LEARN MORE

Ready to begin diversifying?