1. Review Current Investments
Reviewing your investments is something that is done all year long, but especially before entering a new year. Pull up all of the investments in your portfolio and examine how well they have performed and if you need to change your strategy. Now is a great time to re-balance your portfolio to ensure you are still aligned with your risk tolerance.
This also applies to your business relationships with your money managers, accountants, bookkeepers, attorneys, and other professionals who help you manage your wealth and legacy.
2. Your Portfolio Includes Safe and Secure Growing Investments
Investment vehicles are sometimes considered unpredictable or volatile. Even conservative investment options come with risks. For example, insured investments, such as certificates of deposit (CDs), offer fixed interest rates over a set period but typically do not keep pace with inflation. Money market funds pool money from investors to purchase short-term, high-quality securities. Therefore, the income can fluctuate based on the yields of the securities invested. Money market funds are not protected by the FDIC or NCUA. High-yield savings accounts are only government-insured up to $250,000 per account type per bank. Even real estate can be impacted by natural disasters or can even become an underwater investment with unexpected infrastructure surprises.
A-rated Fancy Color Diamonds outperform ALL other markets.
This cannot be stressed highly enough. No other investments compare to the strong and steady growth of Fancy Color Diamonds, which are considered stealth wealth because they are the smallest form of currency in the world. The best-performing investments typically produce 4%-14% ROI while Fancy Color Diamonds have an average baseline return of 20%-30%.
The largest risks when it comes to investing in Fancy Color Diamonds is ensuring that the diamonds are real, natural, and that the diamonds are valuable. There are many scams now that lab-grown diamond technology is getting more advanced. There are also many individuals and brokers claiming that they have inside connections when they don’t. Many of our clients have purchased diamonds and jewelry before, but there is a huge difference between a diamond bought for personal use and an A-rated investment-grade diamond. Fancy Color Diamonds can also take a longer time to sell when compared to other investments. FCD Invest has access to the top off-market A-rated Fancy Colored Diamonds available worldwide.
3. Ensure Proper Structures Are In Place
A service we provide is help with setting up a trust and holding company for our clients and their heirs which operates like a business, allowing our clients to invest in diamonds easily. This is done externally, through a senior sought-after wealth protection attorney to ensure all documents and legal contracts are in place. Once you are set up, FCD Invest can create a long-term investment strategy for the trust and holding company benefiting our clients and their heirs at minimal cost.
4. Art Collections
Part of your annual financial check-up should include planning strategic expenses and non-cash charitable donations to use as tax write-offs.
We can help facilitate art donations to museums and institutions we work closely with and coordinate all the legal paperwork for the IRS-acceptable donation process.
5. How to Store Your Wealth
The most impactful way to store wealth is, of course, investment diversification. There is no better way to diversify your investment portfolio than to invest in Fancy Color Diamonds, which are a commodity as a loose stone(s) and personal property when set jewelry.
Here are some excerpts from the FCRF article, “Fancy Color Diamonds, A Guardian Angel for the Next Generations”:
In the last few decades, the category of rare Fancy Color Diamonds has constantly increased in price. The Natural Colored Diamond segment is considered to be the least volatile among traditional and alternative asset classes. For example, Blue Fancy Color Diamonds have appreciated by 241% since 2005, while Pink Fancy Color Diamonds have increased by 366%. Incidentally, both categories experienced no significant decreases throughout that period.
Unlike traditional investments that yield income but may fluctuate in value, Fancy Color Diamonds are primarily objects of beauty and passion; they became desirable collectibles among those who realized that Fancy Color Diamonds are a limited resource. As supply is constantly diminishing, new collectors continue to join the club, which enables this exclusive niche to remain stable over the years.
Fancy Color Diamond jewelry, owned by an individual, will most likely mature as an investment following a long period. However, during this time, owners can enjoy a different set of advantages in case the need for a ‘cash-out’ arises. A Fancy Color Diamond mounted in jewelry can be sold globally and privately, much more readily than a colorless diamond can, and without being subjected to any price list or sharp price drops.
When it comes to the stone’s physical aspects, we recognize a few benefits for the diamond category as a whole. The first is a unique value-to-size ratio when compared with other alternative asset classes such as gold, art, vintage cars, or wine. The second, the fact that a multi-million dollar diamond is an eminently wearable object, gives its owner a strong sense of freedom and independence, two advantages that should not be underestimated in times of crisis.
The latter is tied to regulation and inheritance tax: Because diamonds are personal, wearable objects (similar to collectible watches), they are among the few multi-million dollar assets that, in most countries, can be physically handed over to loved ones without being subjected to any legal proceedings.
The issue of fixed cost in alternative investments such as vintage cars, thoroughbred horses, collectible wine, and, in some cases, even commercial real estate, can be crucial as well. This is especially the case when we need to include maintenance or storage in the equation. The substantial amount generated by fixed costs may easily become burdensome in periods of financial distress. A diamond portfolio or a jewelry collection, regardless of its value, requires no maintenance, nor does it take up any space when stored in a home safe.
Other collectors feel that such a diamond is an ideal and timeless commodity, one that can be passed on continuously within the family as “the guardian angel of portable wealth.” The fact that the vast majority of mines will stop unearthing rough in about 60 years reinforces this notion exponentially.
6. Plan For the Coming Year
It’s always essential for investors to assess their goals and plan ahead for the future. For the 2025 year coming up, think about your goals. What are your key financial goals for 2025, and is your team supporting your vision?
FCD Invest can help you achieve your financial goals and increase your net worth, both short-term and long-term.
Please email FCD Invest at info@fcdinvest.diamonds to discuss your personalized long-term investment strategy.
For more information on Fancy Color Diamonds as an investment, please visit our Fancy Color Diamond informational page linked here.
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