The U.S. economy is projected to expand more resiliently in 2021 than officials projected back in July, but it will likely take several years for economic output to reach its full potential and for the number of employed workers to return to its pre-pandemic peak. Also, likely are modestly higher inflation and higher interest rates over the coming years than anticipated in July. Gross domestic product is expected to return to its pre-pandemic level by the middle of 2021, thanks in part to massive relief spending enacted in 2020, according to the Congressional Budget Office: a 3.7% growth in the fourth quarter of 2021 and another 2.4% in 2022.
Strange Event in Stock Market
An interesting phenomenon happened recently with retail traders ganging up on Wall Street to help create a short squeeze on GameStop. This resulted in taking a financial toll on many hedge funds that bet short on GameStop. Before long, Robinhood, a popular trading platform, decided to restrict the trading of GameStop. Having been involved in trading groups myself, I realized that our point-and-click traders are at a huge disadvantage to the Wall Street firms drawing on proprietary trading algorithms through secret exchanges (i.e. Dark Pools) to which retail investors do not have access. The non-level playing field could be perceived to be a cause of concern for many retail stock investors. This is one of the reasons why we gravitate more toward real hard assets.
With interest rates near 0% and the S&P 500 at all-time highs, it’s never been proven harder to find compelling investments that generate stable passive income. At the end of 2020, the average dividend yield for the S&P 500 was a meager 1.55%, down from 2.24% five years ago.
Our Firm Belief in Real Estate and Offering of Aggregation Fund
The Aggregation Fund is designed to solve this problem and provide our investors with steady passive income streams. We are so confident about the investment vehicle that we are also personally invested in and enjoy the ability to invest alongside a stable, well-capitalized, and reliable investment manager across market cycles. It provides a consistent monthly preferred return ranging from 10% to 12% in an annualized distribution yield, plus capital appreciation in a tax-efficient manner with a target return of 18% to 21%. The Fund has remained sturdy throughout the COVID-19 pandemic, paying 20 consecutive monthly distributions. Our non-traded private fund rids extreme bouts of volatility clearly witnessed in broader public markets and offers stable monthly cash distributions to our investment partners. This stability strengthens the liquidity profile of our investment manager and ties our performance to underlying real estate fundamentals.
Our top-of-mind goal is always “capital preservation.” The Aggregation Fund enables investors to participate in real estate deals as GPs alongside the sponsor, effectively capitalizing on the potential for strong returns while still maintaining a passive position. This unique nature of the Fund archives superior risk-adjusted returns with the benefit of current pay and profit-sharing structure to compensate our investment partners immediately.
Upcoming Webinar
We are thrilled to host another webinar in February: How to unlock the full potential of your retirement investment with self-directed IRAs. When you’re thinking ahead to retirement, it may be prudent to consider tax planning to be an essential part of your retirement strategy from the beginning to maximize compounded returns. There are a wide array of options designed to help grow your investment balances in a tax-advantaged environment. If you desire greater control over your retirement funds and flexibility of investment options more familiar to you, then a self-directed IRA can be a viable way to boost tax-sheltered benefits.
In our webinar, we are inviting Adam Bergman, Founder, and CEO of IRA Financial Technologies, to illuminate how you can maximize benefits from a self-directed IRA, as well as potential downsides and risks, and tax pitfalls to avoid.
If you are interested in taking control of your retirement funds, please click on the link to register and make sure to save this event in your calendar.
Tue, February 23, 7:30 pm EST
Even if you can’t attend it live, we still urge you to sign up so we can send you the link to our replay video. We are looking forward to seeing you all there.
