Everyone looks for a safe investment. With the markets the way they are going, what is a safe investment? If we move away from the stock markets, and look at real estate, how safe is real estate? With all the vacancies coming up and people needing to relocate, the real estate market is bound to become very turbulent in the upcoming months at least. Maybe even years. Of course, you can always consider gold. However, gold, just like real estate doesn’t offer liquidity.
Investing in Mutual Companies
We already discussed the benefits of investing into mutual companies here. You become the co-owner of the company, an investor to say the least. Mutuals omit shareholder supervisory boards and they share profits with you.
Safe investment into MassMutual
So, what makes putting your money into MassMutual a safe investment? The company founded in 1851! As of 2018 its portfolio of managed assets totals $675 billion. Over its 169 year history it has paid dividends to its investors for more than a hundred consecutive years. You an easily google financial rating of this Fortune 100 company.
What makes it extraordinary is its investment strategy. The strategy revolves around a few key points: Strength and stability, Mutuality, and Diversity. We’ve talked about the first two enough, but let’s look at how Mass Mutual achieves diversity.
Diversity Through Barings, LLC
New Barings, LLC was established in 2016 by the integration of four Massachusetts Mutual Life Insurance Company (MassMutual) institutional affiliates and they all now operate under the Barings, LLC name. It is a global investment expert in fixed income, equity and real estate management. The total assets managed by this entity in 2016 exceeded $275 billion.
Barings shares MassMutual’s philosophy relative to the General Investment Account (GIA), which invests policy owner assets. This is what defines the framework for the GIA construction. As of December 31st 2018, the portfolio was made up of public (34.4%) and private (23.1%) bonds. Third highest share are mortgage loans (13.1%) and only a fraction of those are residential mortgage pools.
Safe Investment with a Bonus
So, if you’re looking to diversify your portfolio, then investing with MassMutual is a smart thing to do. Not only are you just about guaranteed to collect dividends year after year, but you get a bonus as well. The bonus is a death benefit. In other words, a piece of mind. Something no other stock brokerage house can offer you. While many will argue that investments into mutual insurances are expensive, they don’t see the bigger picture. That being that you are getting a 2 for 1. Safe cash growth and a piece of mind, from day one. Why? Because no matter how much you pay into your policy at the start, you are covered for the policy’s full face amount.
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