Stocks or Real Estate?

Posted by on Aug 14, 2016 in real estate investing, Retirement, stock market investing | Comments Off on Stocks or Real Estate?

Trying to decide on investing in the stock market versus real estate?

Let us help you decide because it can make a big difference on what you choose to do.

First, let’s look at the stock market. Research shows an average of 6.X% increase in stock market value over a 100 year period. Now that’s not to say you can’t have higher gains, IF you find the right 10 year period you could hit 14% let’s say, even with a drop, but the trick is knowing when to get in and get out. Hindsight is great for this, but by then it’s too late.

Knowing the right time (which is not easy) is why the stock market is known mainly as a “young man’s game” because you are able to take the hits, the losses and move on, to hopefully win out in the long run. What do they say to do in old age? Go for the more stable, lower return, investments.

So how does that compare to real estate? Well, this video makes a great case, basically because owning a home FORCES you to save, whereas if you don’t own, you won’t always invest how much you would be putting into a home. One item of note though is that when things fluctuate, your results will wildly vary.

But… can you get a standard double digit rate of return with real estate? Find out below the video…

Ok, now that you’ve watched that, here’s what we feel is the most important part of the puzzle.

With stocks, once you retire you have to start eating away at your portfolio, which means there’s less and less to offer a return, until you drain it dry.

With real estate, IF you find a nice double-digit ROI property (we find them daily), and you reinvest to buy more, that compounding adds up to potentially twice as much as the stock market would.

BUT, once you retire you do NOT have to start eating away at your investments.

NOTE: this is for rental properties only. With a portfolio of rental properties the strategy is not to start selling off your homes, but to live off of the rental income which can support you very comfortably with enough of them. Then you use your actual homes to pass on to your kids, letting them live off of the rental income and wait until the market is prime for selling.

Questions?

Please contact us because we’d love to help you find a strategy that works best for you.

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How to invest for retirement days

Posted by on Jun 10, 2016 in Bussines, Investment, Retirement | Comments Off on How to invest for retirement days

How to invest for retirement days

Hoping to have predicted days upon when you go in a certain age is something that most people are hoping for. Investments that you are prepared to take are the solutions which can give you great life possibilities after going in retirement. One of the thing that you want for your investing is the growth of your money. Well known fact is that the longer you leave your money invested chances for growth will be higher.

If we look on short term basis the chances will go up and down, of course, but again the research that is out there on the net suggests that in these short period the investments was better choice for growth than with cash savings- 91% of these investments had a better return and average rate was 6.08% by year. So, this could be much better than you have expected, but then again, there are no guarantees that this will always happen in future. On another hand, the level of risks always is a key difference.

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Investment is better solutions when it comes to retirement. It is true that with this kind of retirement program you will have some risks, but don’t fool yourself, risks are everywhere in any business deals. Not taking risks are a much greater risk of all in these days. All successful people took many risks in their lifetime but with smart decisions and well-prepared plans, they have been managed to accomplish many great things. So, be one of them, don’t be shy when it comes to your future.

Newer the less, when you are prepared to invest for 20 or 30 years, the most important thing is to be prepared to think on a longer term or, if you don’t do that it could quite regret. So, when you are thinking about how to deal with all obstacles on the way for your retirement, you should concentrate on one thing; how to deal with the silent assassin of savings today – inflation.

Yea, inflation is a real stab in the back. It seems that no one can do anything about it. And sometimes give us the feel that we are left alone to deal with the complete dark of banking system. So, you are choosing saving account? Please don’t, instead think about your family and start some good investment.  Otherwise, you will just be one of the witnesses who are also the victims of their misjudgment.

What inflation exactly means? To answer that question, we will go directly to the point. It means that through saves cash investment you directly losing your money for good. Inflation directly kills your saving account, silently. And if you are having an account for 30 years, inflation will be there ready for the kill and your account money will just vanish.

Long story short; if you open saving account and deposit 5000 in the year, and you get 5% income, in 20 years you can expect 100000 for your pension days, in fact, you will have $72,800 left after 20 years. But, if you calculate the effect of inflation, after factoring it you will have only $32,800 left. That looks bad.

On another hand, if you did investments for this period of 20 years, you will have $117, 900 left, and after calculating the percentage of inflation, then you will have almost $60000 left. That seems much better. Don’t you agree?

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