Wealth Strategies Guiding our Community

For 2024, uncertainty is unusually high, with the biggest names in finance making soft predictions.

Below are my 2024 predictions based in part on the big names in finance and my personal observations:

  • Uncertainty is unusually high, and expert predictions are unusually soft.
  • The economic outlook remains fragile.
  • Interest rates have peaked or will do so soon.
  • Interest rates will stay higher for longer than expected.
  • Investor optimism is too optimistic. Meaning that equities are over-valued.
  • Expect “black swan” events this election year.
  • Commercial real estate will continue to work through bubble-related issues.
  • Many apartment syndicators publicly project strength to raise capital but are quietly hitting existing investors with capital calls. 
  • Real estate investors are tight on cash, with few projects selling successfully in 2023.

Here are wealth strategies guiding our community of investors: 

  1. There are no brave old investment managers. Investing is more about avoiding bad investments than making good investments.
  2. Double your due diligence, especially in this uncertain market environment.
  3. High ignorance equals high risk. If you don’t understand it, don’t invest in it.
  4. Concentrate your efforts on what you can control: your business, your active investments and your personal finances.
  5. Diversify your passive investments (beyond real estate or stock market) to prioritize liquidity, value investments, reliable cash flow, and investments with a strong upside and low downside risk.
  6. Only uncertainty is guaranteed. Plan accordingly.
  7. Avoid trying to time the markets. Instead, use portfolio rebalancing to collect some wins and redeploy to opportunistic investments.
  8. Hold liquid cash in accounts earning 5.2%+ from treasury bonds.
  9. If you can earn 5%+ “risk-free,” don’t invest in anything liquid unless you get at least 8%. You must get at least a 10% return if it’s an illiquid investment. We’re seeing 12%+ for consistent cash flow.
  10. Direct investment into vetted oil & gas operators for strong tax deductions and consistent cash flow.
  11. Motel-to-apartment conversions for strong value investments and converting Traditional to ROTH retirement accounts at a ~50% discount.
  12. Work through due diligence collaboratively. Within the Financial Journey Community, we share specific investment opportunities and work through due diligence collaboratively.