Please exercise a new way to make capital invesments. Traditionally the common advice has been “invest for the long term growth” and then you are advised to place your investment capital in REITs or some other retail market option.
Here is the bug with that idea. Most investors are rather passive in their investing activity. By passive I mean that investors place their bets and then hold, kind of like a farmer planting a crop and then waiting for it to mature.
Here is the problem with that behavior when investing. A farmer plants the crop somewhat speculatively, he tills, plants, waters and fertilizes and then lets nature run its course. Yet at certain times his planting is vulnerable. Too much rain or not enough or a tornado just before maturity can distroy all his effort. But it’s more likely that his crop will mature and get harvested without a serious incident. So he speculates each season on normalcy.
Mutual funds do not grow like a garden. First of all, it may or may not grow. It is more common that it will surge in one direction and then in the opposite direction on a daily basis. Speculating this way on your retirement portfolio just doesn’t make sense for a passive investor. It certainly would for a day trader because the trader can change his options as the market fluctuates. A passive investor can not. His or her business is somewhere else.
In addition, when investing in a market priced asset you are buying retail. You are buying the final garden not the seed. So there is no built in leverage ensuring growth. That kind of “Let’s try this” approach just doesn’t make sense when your family’s future life style is at risk.
Let’s look at alternative investing. There are a variety of investments where you can buy wholesale like a farmer buying seed and expect a constant yield as a farmer would because it is built into the contract.
Investing in a swing loan might be one example. Buyers of paper never buy at face value (retail) they buy at a discount in order to ensure their yield. The first position mortgage is usually leaning against an alternative asset that is worth at least twenty percent more than the face value of the contract, so the worst that can happen is that you get your investment capital back without gain.
Even if the market goes south you are holding paper that is at least backed by its retail value. What normally happens is that the mortgagee pays on the loan and then refinances or moves and you get paid off – of course, all the while, gaining interest on your principle investment.
There are no wild swings in value therefore growing your wealth like a gardner can provide you with consistent growth of your capital alternative without the ups and downs. This makes much more sense to me than buying into the stocks market where they could be worth less that what you paid for them the day after. At least you know whats on contract upon maturity.
There are many other capital investments where you can buy at a discount, a regular yield and where you are protected on the downside if something goes wrong.
I would consider looking into various other investment options by going to Capital Investments Alternative and looking over what’s there.
If you are a passive investor doing it more like growing a garden makes much more sense.
