The Role of Hard Assets in Your Financial Plan

Hard assets and non-traditional investments — like real estate, gold, private businesses, or even collectibles — can be valuable components of a financial portfolio. But they also come with unique risks and planning challenges. I can tell you from first-hand experience, with rental property and cars, that they come with ups and downs. By choosing to work with Mettle Financial Group, we help ensure these assets work with the rest of your financial strategy — not against it.

Here are a few key considerations:

1. Part of the Picture — Not the Whole Plan

Hard assets like rental properties, farmland, precious metals, cars or art can play a role in building wealth. Importantly, a balanced financial plan integrates these assets with more traditional investments to create flexibility and resilience in your entire financial picture. Hard assets can take time to sell — and may not deliver full value in a hurry. That’s why I suggest maintaining liquid assets like savings, money markets, or publicly traded investments, so you can access funds without disrupting your long-term plan or family collection.

2. Know the "Why" Behind Each Asset

Are you holding your duplex for cash flow? Storing gold as a hedge against inflation? Keeping a classic car collection for passion or legacy? Understanding the purpose of each asset, and making these decisions within your values, allows us to plan more intentionally around it.

3. Tax Strategy Matters

From depreciation on investment property to capital gains on land or 1031 exchanges, hard assets come with complex tax rules. If you need to sell any of these items fast, you could be on the hook for some unfortunate surprises. Planning ahead helps minimize taxes and maximize after-tax returns when it's time to sell, transfer, or reinvest.

4. Valuation and Risk Management

Consider an appraisal by a qualified expert to ensure your hard assets are accurately valued, insured, and titled properly. Whether it’s a vacation home, business equity, or rare collectibles, aim to protect their value — and your peace of mind.

5. Succession & Estate Planning

Hard assets don’t always transfer easily. Will your heirs want to manage the real estate portfolio? Do they share your vision for a private business or collectibles? A thoughtful estate plan helps preserve your legacy and prevent future conflict.

6. Balancing the Portfolio

If a large portion of your net worth is tied up in non-liquid assets, you could be missing out on market growth or diversification. Mettle Financial Group assesses your full balance sheet to help make sure you're not overexposed in any one area — and adjust over time as needed.

Final Thought

Hard assets can be powerful tools — but they work best when paired with smart planning. Let’s talk about how your real estate, business, or other alternative investments fit into your long-term financial goals.