Understanding the TIC: Closing Risk - Part 3

It is very important to understand risk such as the tic: closing risk when you are making an investment and also to assess your own risk because every investor’s risk is different. The economic risks are often the most dangerous with a TIC investment, and these are the risks that are associated with economic timing.

It is here where you need to assess the extent to which the economy is growing or accelerating its pace of growth or the reverse, and then decide whether or not it is a wise time for you to make this investment. There is also the extreme market risk that investors must be concerned with, and this involves valuation, technical conditions, economic issues, as well as sentiment.

Keep in mind that too much risk can be ameliorated by doing things such as raising cash and reallocating to lower betas.

You can and should discuss all of this with a qualified tax consultant, who will be able to work together with you, explain all of the technical information and details to you, including the TIC: closing risk, and help you and your investor partners to decide whether this is going to be a wise investment for you to make.