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In his most recent letter to investors, BlackRock CEO Larry Fink discussed the company\u2019s latest investment strategies and where he envisions the future of investing heading.<\/p>\n
One of the most significant developments came in his prediction around portfolio splits, noting that \u201cthe classic 60\/40 portfolio may no longer fully represent true diversification.\u201d<\/p>\n
He believes there is a better standard portfolio coming soon \u2014 the 50\/30\/20 split high-income investors already prioritize, which includes \u201cstocks, bonds, and private assets like real estate, infrastructure, and private credit.\u201d<\/p>\n
Fink says BlackRock\u2019s current goal is to bring private asset investments to the masses, freeing these investments from the gatekeeping that has allowed only the wealthiest access.<\/p>\n
\u201cAssets that will define the future \u2014 data centers, ports, power grids, the world\u2019s fastest-growing private companies \u2014 aren\u2019t available to most investors,\u201d Fink wrote. \u201cThey’re in private markets, locked behind high walls, with gates that open only for the wealthiest or largest market participants.\u201d<\/p>\n
Recently, BlackRock has acquired Global Infrastructure Partners, Preqin and HPS Investment Partners, a strategy meant to increase the average investor’s access to the traditionally out-of-reach private market \u2014 just as they did for ETFs on acquiring iShares.<\/p>\n
\u201cPrivate markets don\u2019t have to be as risky. Or opaque. Or out of reach. Not if the investment industry is willing to innovate,\u201d Fink continued.<\/p>\n
BlackRock\u2019s recent acquisitions underscore Fink\u2019s advice against the 60\/40 stock-bond portfolio split. The 50\/30\/20 split means 20% of a person\u2019s investments are in private assets, which could be good for BlackRock\u2019s business as they move in this new private asset-focused direction.<\/p>\n
If the democratization of assets previously reserved for the wealthy and a 50\/30\/20 split sounds appealing to you, there are options that allow you to increase your investment in private assets like real estate right away.<\/p>\n
You can tap into the private real estate market by investing in shares of vacation homes or rental properties through Arrived<\/a>.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties<\/a>, meaning you could earn passive income from real estate without the hassle of being a landlord.<\/p>\n To get started, simply browse through their vetted properties to find potential investments that appeal to you. Once you find your dream investment property, you can start investing with as little as $100<\/a>.<\/p>\n But as alternative assets become increasingly accessible, there are also ways to put more of your money into this sector. Accredited investors could consider commercial real estate to further diversify their portfolios.<\/p>\n For years, direct access to this $22.5 trillion commercial real estate sector has been limited to a select group of elite investors, but First National Realty Partners (FNRP)<\/a> has changed that.<\/p>\n FNRP allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, minus the stress of being a commercial landlord.<\/p>\n With a minimum investment of $50,000, you can own a share of properties leased by commercial brands like Whole Foods, Kroger and Walmart<\/a> and other grocers serving the local community.<\/p>\n Just answer a few quick questions about your investment preferences to start browsing their complete list of available properties<\/a> today.<\/p>\n Gold is another private investment that has become increasingly popular over the past few months, reaching an all-time high of $3,534 on August 8.<\/p>\n If you\u2019re interested in investing in gold, you can open a gold IRA with the help of Thor Metals<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold and gold-related assets within their retirement account, combining the tax advantages of an IRA with the safety of gold. This makes it an attractive option for anyone looking to hedge their retirement funds against economic uncertainties.<\/p>\n Thor Metals offers a free information guide with details on how to get up to $20,000 in free metals<\/a> on qualifying purchases.<\/p>\n Read more: Do you own rental properties in the US? These 6 hacks can help you boost your income and lower your tax burden<\/a><\/p>\n Some advisors are not as comfortable as Fink is with the 50\/30\/20 split for the average investor.<\/p>\n Amy Arnott, portfolio strategist at Morningstar, told CNBC that a 20% allocation in private assets is still considered aggressive.<\/p>\n \u201cIf you want to keep things very simple, the 60\/40 portfolio or a target date fund is a great starting point,\u201d Arnott said.<\/p>\n She noted that the total value of private assets globally is only \u201cabout $14.3 trillion, while the public markets are worth about $247 trillion,\u201d which means private assets account for just 6% of the market \u2014 not 20%.<\/p>\n If you\u2019re not sure what split you should be investing in, you might want to speak with a financial advisor to help give you peace of mind.<\/p>\n Advisor.com can help<\/a> match you with an advisor to find the right portfolio mix for you. Since their advisors are legally obligated to act in your best interest, you know your money is in good hands.<\/p>\n Just answer a few quick questions about yourself, and Advisor.com will match you with a vetted financial advisor<\/a> who can walk you through your portfolio options.<\/p>\n From here, you can book a free, no-obligation call today<\/a> to find the best advisor for you.<\/p>\n If your household income is above $300,000, you might also consider a wealth management team like Range to help you figure out all the possible options.<\/p>\n Range\u2019s<\/a> all-in-one wealth management platform offers modern investing advice \u2014 with no hidden fees.<\/p>\n Traditional advisors typically charge 0.5-2% AUM fees, but Range\u2019s flat-fee pricing with 0% AUM fees offers comprehensive plans at a fraction of the cost of traditional advisors.<\/p>\n Range\u2019s clients receive 24\/7 expert advice and personalized strategies, allowing for complete portfolio customization alongside full wealth management \u2014 including complex tax management, equity compensation and estate planning.<\/p>\n Book a free demo<\/a> with the Range team today to find out more.<\/p>\n