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Equal Investment Opportunities for All

DiversyFund is on a mission to help close the wage gap by opening up opportunities for everyday people to invest like the 1%

Did You Know?

  1. The alternative investment industry is expected to grow by 59% by 2023, reaching $14 trillion in assets within a five-year time period.
  2. According to Investopedia, the five types of legitimate alternative investments to consider in 2019 are peer-to-peer lending, real estate, gold, owning your own business, and equity crowdfunding.
  3. 72% of all high-net-worth individuals are proactively protecting and sustaining wealth.
  4. More than 80% of high-net-worth investors say that investing in long-term goals is more important than funding current wants and needs.
  5. The average annual return for S&P 500 stocks is 10%, compared with the 12% average return for REITs (public and private) – and the returns for private REITs are even higher on average, often generating annual returns of 14% or greater

The problem? We’re finding that most everyday people don’t know much about investing.

We asked everyday people how they felt about investing and the opportunities available to them. The reasons why they invest are powerful, but most don’t know how to invest beyond stocks and bonds or where to begin. Investing should be inclusive, easy to understand, and available to everyone - and that's exactly what we're here do.

Take the quiz to see your current investor profile and how you stack up.

How involved are you in your investment decisions?

Are you familiar with alternative investments (i.e. real estate, precious metals, private equity, VC funds, etc.)?

Have you invested money outside of stocks and bonds?

How many different types of investments have you put money into (i.e. stocks, bonds, real estate, precious metals, cryptocurrencies, commodities, futures, mutual funds, collectibles, etc.)

How much of your annual salary do you invest?

The Underachieving Investor

Your investment approach needs work. If you ever want to be a millionaire, you need to make some changes. You’ve likely put your investing on auto-pilot. You may be saving or investing a little money through financial apps, but most is done through employer-sponsored plans, such as 401(k)s or IRAs. This means most, if not all, of your money is being allocated towards stocks and bonds. You’re likely investing about 35% in bonds and 65% in stocks.

This can be problematic. In the event of a recession, you have the most to lose, as you likely won’t have enough invested outside of stocks to stabilize your retirement during a downturn. You could lose your hard-earned savings. Additionally, your annual returns are likely to be lower than other investments.

For example, if you earn $60,000, and invest 5% of your annual salary in stocks and bonds, your annual return is likely to be a mere $248. This comes to $2,480 over a 10-year period.

Compare this to the On-Par Investor, who stands to earn $6,408 over the course of 10 years, or The Millionaire Investor who will earn about $13,370 during the same time period. (These numbers are based on the same salary of $60,000.)

The On-Track Investor

You’re on the right track, but your investment strategy needs a little work. You’re investing around 12 percent of your income, which is about average. If you can, you should consider investing more. You’ve also dabbled in alternative assets, meaning investments outside of stocks and bonds. You’ve likely allocated money to mutual funds or ETFs. However, you have yet to explore the investment options with the highest potential returns, like real estate investment trusts (REITs) or venture capital (VC) funds. You likely feel like you have a decent handle on investing, but you haven’t quite mastered the art – you could definitely use a little financial education and information about your investment options.

If, for example, you earn $60,000 a year and invest 12% of your income – 50% stocks, 30% bonds and 20% mutual funds – you’re likely to see an annual return of around $640. If you continue to make the same investment decisions and experience no changes to your income, you would likely accumulate $6,400 over a 10-year period.

Compared to The Underachieving Investor, expected to only accrue $2,480 in annual returns over 10 years, you’re doing great! However, you need to make some adjustments if you want to be on par with The Millionaire Minded Investor. Based on the same $60,000 salary, they’re likely to see around $13,370 in returns over a 10-year period. What are these investors doing that you aren’t? They’re investing about 20% of their income across an average of five different types of investments.

The Millionaire-Minded Investor

You are a rock star when it comes to investing – congrats! You know how much of your income to invest and what types of investments should be included in your portfolio. You’re likely investing around 20% of your total income across five or more asset classes. Based on a salary of $60,000, you’re likely to bring in about $1,337 in annual returns, which comes to a whopping $13,370 over a ten year period.

Though you have this investing thing down pat, there’s always room for improvements and reallocations. The hottest asset classes of the year are peer-to-peer lending, real estate, gold, owning your own business and equity crowdfunding – if you haven’t already, you should consider investing across these categories.

Learn more about investing in alternatives:

Why You Need Defensive Investments In Your Portfolio

Why You Need Defensive Investments In Your Portfolio

Everyone should make sure a portion of your portfolio is dedicated to defensive investments. This is an important strategy that the 1% use in order to up their wealth game. What is a defensive investment? Read about the different types of defensive investments here!

Alternatives for All

Alternatives for All

Stocks and bonds are not the only investment vehicles out there! So what are alternative investments, why are they important, what are the advantages and drawbacks, and how can you get started? Continue on to find out…

How to invest in REITS to minimize volatility

How to invest in REITS to minimize volatility

When the stock market goes up one day, and then goes down for the next few days, then up again, and down…you get the picture…that’s what you call stock market volatility. Learn more on how you can give your portfolio an added layer of protection today!

Start Your No Fee Investing Today

Targeting higher than expected returns and growing your wealth is easier than you think.

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