As high-net-worth individuals consider their estate plans, building generational wealth is top of mind. Investing in real estate is one effective way to achieve portfolio diversity and grow wealth that can be passed on to younger family members—while still offering flexibility.
“Real estate is a pretty unique asset class with a range of underlying characteristics and strategies that can serve multiple purposes for an investor,” says Reuben Bianchin, senior portfolio manager of private equity at BNY Mellon Wealth Management. The asset class inherently has lower volatility and low correlation to stocks and bonds, which can improve the risk/return profile of a portfolio. Real estate investments can help high-net-worth families: