While the traditional 60/40 portfolio served investors well for decades, the increased volatility and shifting macroeconomic conditions of the past decade underscore the strategic imperative of broad diversification that includes private real estate such as, stabilized Class A (core) multifamily and medical office assets. This asset class, with it's low correlation to public markets, stable income production, and inflation-aligned appreciation characteristics, make it a foundational asset for today’s diversified portfolios seeking an alternative to the standard 60/40 structure based on Modern Portfolio Theory.

Our white paper, A Strategic Shift for Modern Wealth Management: Navigating Volatility with a Diversified Approach After “Liberation Day” provides a retrospective performance evaluation of two hypothetical investment portfolio models, a traditional 60/40 asset mix, and a public/private asset allocation of 50/30/20 which emphasizes a strategic shift in portfolio investing to include 20% of one’s portfolio allocation to alternative investments, such as Class A multifamily and medical office real estate, as an improved means of sustaining and building wealth in a structurally altered macroeconomic landscape.

The hypothetical 50/30/20 portfolio, specifically incorporating resilient sectors like Class A multifamily and medical office real estate, consistently demonstrates superior performance across key metrics: higher risk-adjusted returns (Sharpe Ratio), enhanced real (inflation-adjusted) gains, and competitive overall growth (CAGR and IRR). Moreover, the unique tax efficiencies available when investing in these assets through a Self-Directed IRA further amplify net returns for sophisticated investors.

For a free copy of A Strategic Shift for Modern Wealth Management: Navigating Volatility with a Diversified Approach After “Liberation Day”