Knowing how to invest your money to maximize wealth preservation, optimize tax efficiency, and abate inflation is challenging. Finding the right diversification mix, including stocks, bonds, and real estate investments is both an art and a science. Luckily, professionals like Rachel Eckard from Edward Jones and James Sande from Ameriprise Financial are well-versed in the economic landscape of 2025 and have deep understandings of the market cycles and conditions that have shaped our country’s economy for decades. Here, the experts weigh in on a few questions about what people should consider in order to live well now, in the future, and to help care for their loved ones.
What can people do in order to abate the effects of inflation?
“Real estate and development are generally good ways to diversify your overall portfolio of investments,” Sande says. “That can be especially true in Reno as we are a top relocation destination for people and companies. The demand is likely to grow with continued development and with individuals from Southern California moving here to escape the wildfires. Some investors use real estate and the stock market as potential hedges against inflation, depending on market conditions.”
Is using real estate a good idea for retirement planning?
“While the firm does not advise on products we don’t sell, for many, homeownership can be a beneficial investment if it aligns with their financial situation and long-term goals,” Eckard says. “But there can be pitfalls like the additional costs that come with owning a house with repairs and maintenance. There are alternative investments like housing and commercial real estate, among other things, that can be very beneficial to have to diversify your overall investment portfolio and risk. The size of the slice of that investment portfolio in alternative investments will vary by person based on their goals and desires, so it’s best to discuss in depth with a financial professional.”
What are the best ways to use real estate as an investment?
Kristin Zuckerman, with Engel & Volkers representing real estate in Incline Village, Lake Tahoe, and Reno, weighs in. “Rental Properties: Invest in residential or commercial properties to generate a reliable income stream through rental payments. Explore options like long-term leases for consistent cash flow or short-term vacation rentals for potentially higher returns. Flipping Houses: Acquire properties in need of renovation, enhance their appeal with thoughtful improvements, and sell them at a premium. This approach works best with a strong knowledge of the market (or relationship with a Realtor) and construction knowledge and/or relationships with contractors. Buy and Hold Strategy: Acquire properties in sought-after locations and maintain them over the long term. As property values generally appreciate with time, this strategy not only provides steady rental income but also capital appreciation, making it a solid investment choice.”
Why is real estate a good option for those looking to save for the future?
“The down payment acts as a form of forced savings, which can be recouped upon the sale of the property. Additionally, mortgage payments contribute to the reduction of your principal balance, gradually increasing your equity in the home,” Zuckerman says. “Over time, the property is likely to appreciate in value, further enhancing your investment’s worth. Together, these factors make real estate not just a place to live, but a strategic investment for saving for the future.”
Is there anything specific to northern Nevada to consider?
“It’s great to think about projects and investments that the State is involved with. Take for example the University of Nevada, Reno with a few of the projects like the Lithium Loop with mining, battery creation, and recycling, and the designation of the University as a Tech Hub. Being aware of and informed about what is coming out and what is coming up in the area can help people understand the Nevada economic situation,” Sande says.
What should people consider as they make investments in 2025?
“Investing earlier is better,” Eckard says. “If you can start investing in your twenties, or help your children start investing in their twenties, that can help build wealth over time. Our rule of thumb is investing 10-20% of your income into retirement savings. If you are starting in your twenties, closer to the 10% mark is OK, but if you’re starting in your forties, closer to 20% of your income can be a good idea.”
The financial investment market is extremely regulated, for good reason. These experts are not allowed to give broad financial advice but are more than happy to have personalized, honest, and open conversations with individuals. Through in-depth conversations in which the experts learn about your goals, your personality and interests, and what is most important to you, they are then able to give you a plethora of information and options tailored specifically to meet your needs. Given the complexities of investing, consulting a certified financial planner can help individuals explore options that best suit their financial goals.