Retiring? Why you need to rethink your investments
Anish Dhanjee, Senior Product Manager of AVANA Companies
Retiring from the workforce is a monumental event, but if you’re not careful with your money you may have to give up hobbies for a new job. The goal must be to preserve wealth through liquidity, longevity, and legacy. Inflation and volatility in the stock markets threaten to shrink retirement funds quickly so personal wealth managers recommend reducing risk by diversifying your portfolio to include safer investments that provide reliable monthly cashflow.
Alternative investments cover a wide range of options. Collecting art can be fun, but it may be difficult for some to tie up their liquidity into a painting. Cryptocurrency carries risk that may be tricky for some retirees. Real estate is a popular alternative investment because it can provide passive income, but fluctuating interest rates can make returns unpredictable, and initial outlay can create a high barrier to entry.
There are other options if you are working with a financial advisor, but retirees should also consider where they are putting their money from a philosophical point of view. They may start to think more about their legacy and how our decisions impact the next generation. Now is a great time to use personal wealth to support organizations that align with your personal values. It may seem counterintuitive to long-standing values of financial discipline, but by shifting the emphasis from maximizing long-term gains to supporting beliefs such as aiding small business owners, creating jobs, or improving the environment, you can not only achieve your retirement goals, but do so while having a positive impact on the communities around you.
As seasoned fund managers, my team at AVANA Companies believes in raising the bar for future generations by providing entrepreneurs across the United States with the capital to help their businesses thrive, while simultaneously providing value to our investors with the ability to invest in that debt. We call it Capital for a Better Tomorrow and we’ve already helped hundreds of small business owners and institutional investors.
We wanted to provide individual investors with a unique opportunity to personalize their investments using a simple platform that didn’t require them to pay high fees. Combining that vision and our decades of experience in the lending space, we created a platform that makes it possible for individual investors to access the private credit market once only reserved for institutional investors.
EqualSeat™ is an online investment platform that provides individual investors access to institutional-quality, commercial, private credit investments on a fractional basis. We designed it to level the playing field for individual investors by providing opportunities to co-invest with institutional investors. All investment opportunities on this platform create jobs or promote the growth of clean energy projects, and all of them provide investors reliable fixed-income returns.
With this unique approach to investing, investors can easily diversify their portfolios and learn about the process using a simple, transparent platform. On average, investors in EqualSeat™ projects have reliable returns each month providing investors with an investment that provides liquidity, longevity and legacy. Investors are truly in charge of their own money. And because AVANA Companies has its own origination funnel of loans – loans which are underwritten and fully funded by AVANA sister companies – there is a vast pipeline of investment opportunities as opposed to relying on other originators. This provides an advantage to investors as compared to other platforms given that AVANA knows the customers or borrowers to whom they are providing loans.
Diversification of your portfolio is essential to generating reliable, risk-adjusted returns while promoting financial health. Through commercial private credit investing, individual investors can fund large-scale projects that align with their investing strategy.
It’s also rewarding. With a wide range of projects to choose from, there is an opportunity to watch your portfolio grow while funding a project in which you personally believe. Equity investments often have more risk associated with them but through commercial private credit investing, investors can be secure in their investments as they see monthly returns that are tied to a loan made in their community or to a cause in which they believe.
Conscious investing provides a sense of ownership over the projects chosen, while simultaneously financially gaining from a project that means something to you. As financial volatility continues in the stock market, your investment could be funding an equitable, sustainable energy project in your community. Since the baby boomer generation has often looked far ahead of themselves throughout their investment journey, this platform also offers the opportunity for them to emphasize a traditional, fixed income, investing goal as they try to preserve the principal amount for their heirs.
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.