January 12, 2021

#NewYearNewPortfolio


After a turbulent year, 2021 couldn’t have come fast enough for many of us. The new year brings with it a new chance for optimistic resolutions. For those resolving to ease some of the uncertainty that may have arisen in 2020, taking a fresh look at your finances — starting with your home — is a great place to start.

The home represents the largest single asset and a significant percentage of many homeowners’ net worth — especially those who’ve lived in their house awhile and have built up equity over time. While this model has proven popular in the past, it presents a greater risk for homeowners than many realize. For the homeowners in this position, it may be time to take some of their eggs out of that one basket and diversify their financial portfolio.

Here are some tips to help:

Check your circumstances: Take a look at your assets and liabilities — your credit cards and other debts, your investments, and your insurance policies — and see if they’re all still a good fit for your current situation. Even in a ‘normal’ year circumstances can change, so it’s important to revisit your portfolio regularly and see if anything needs to be re-evaluated.

Do your research: All investments are not created equally. Take the time to learn about different options and make an informed decision. There are lots of great resources out there — check out our blog for helpful tips and more! If you have questions, a financial advisor can help walk you through your options.

Diversify, diversify, diversify: If 2020 taught us anything, it’s that we can’t bank on a single asset to carry the rest of our finances. Take a look at all of your assets, and if — like many Americans — a large percentage of your net wealth is tied up in your home, consider tapping some of the equity you’ve built up and using it to pay off debts, or invest in something long-term like your retirement plan, or a child’s education.

Home co-investing is still a new concept for many, but it’s one that’s worth learning about as a way of diversifying your portfolio and reducing the concentration of financial risk in your home. Through home co-investments, Unison helps homeowners access their equity flexibly with no monthly payments, interest or added debt. Learn moreabout this smarter, better way to own your home.