7 Safe Assets to Protect Wealth

About this video

• Video Title: 7 Safe Assets to Protect Wealth
• Channel: Wealth Wisdom
• Speakers: [None explicitly named]
• Duration: 15:36

Overview

This video discusses the importance of protecting accumulated wealth, especially during turbulent economic times. It introduces seven specific safe assets that can preserve purchasing power and provide security, emphasizing that these are for stability rather than rapid gains. The speaker also provides guidance on how to incorporate these assets into a diversified portfolio based on age and risk tolerance.

Key takeaways

• Importance of Wealth Protection: Building wealth is only part of financial success; protecting it from market crashes, economic collapses, and currency devaluation is equally crucial to prevent years of effort from disappearing.
• Seven Safe Assets: The video details seven assets designed for wealth preservation:
  • US Treasury Bonds: Considered the safest investment, backed by the US government, providing stability during market downturns.
  • High Yield Savings Accounts: Offer liquidity, safety (FDIC insured up to $250,000), and decent returns, ideal for emergency funds.
  • Investment Grade Corporate Bonds: Bonds from stable, established companies offering higher yields than treasuries with manageable risk.
  • Primary Residence (Real Estate): Appreciates over time, provides inflation protection, and offers psychological security and stability.
  • Precious Metals (Gold & Silver): Act as a hedge against currency crises and inflation, preserving wealth over the long term.
  • Dividend Aristocrats: Stocks of companies with a long history of increasing dividends, offering a combination of stability, income, and growth.
  • Treasury Inflation-Protected Securities (TIPS): Specifically designed to protect against inflation by adjusting the principal value with the Consumer Price Index.
• Portfolio Allocation Strategy: The video suggests a balanced approach between safe and growth assets, with allocation percentages varying based on age (e.g., 60% safe assets for those 50+, 20% for those 20-30). Diversification across all seven safe asset categories is recommended.
• Psychology of Protection: Safe assets may seem boring, but they provide peace of mind, prevent panic selling during downturns, and minimize regrets by preserving capital during crises.
• Common Mistakes to Avoid: Do not try to time the market, over-concentrate in a single safe asset, leave safe assets uninvested, or neglect annual portfolio rebalancing.