It’s scary out there for investors today, especially if you have much of your portfolio in stocks. Let’s go to the headlines and find the latest scandal. Scanning…scanning…ah, that didn’t take long. Here’s one. Bailed out insurance sideshow AIG pays $165 million in bonuses. Oops. Bet they wish word of that hadn’t gotten out. Now Congress is on the case again and threatening to use a trap door in the stimulus package wording to impose a 90% tax on the bonuses.
Does anyone trust either of these clowns?
Maybe it’s not immediately apparent but these shenanigans occur at the expense of the American taxpayer and Wall Street investor. It’s sad but true. If you’re relying on profits from stocks, bonds, or mutual funds to fund your family’s future, welcome to Reality 101. You’re the proud owner of the incredible shrinking portfolio.
It doesn’t have to be this way. You can protect your wealth and future financial health by taking your money out of the Wall Street scam game as quickly as you can. But don’t leave it inactive and wait for the stock market to right itself. That ship has sailed and is not coming back to port.
Now more than ever, it’s critical to make smart investing decisions. You’re not getting younger and mistakes take time to correct. Stuffing your mattress or burying loot in the back yard isn’t the way to go. Instead, why not make the rational decision to investigate the investment strategy that has historically turned more people of modest means into millionaires than Wall Street ever will?
It’s called income property investing and we’re going to discuss three BIG ways it can protect your income and grow wealth, even in these murky economic waters. Of course, there are many more than three reasons to choose this path to financial independence but this is a great start. By the way, did you know that there were millionaires made even in the Great Depression? True story. So don’t get a ‘glass is half empty’ complex. You can do this. You can stop spinning your wheels and lining the pockets of greedy CEOs and start building real wealth today.
First of all, there is no more tax-favored investment on this planet than real estate. Why do you think that is? Congress and the IRS come up with the laws and statutes that make it so. Don’t guess it really matters why but it would be interesting to know how many Washington politicians are doing well in real estate. Want to know why something works the way it does? Follow the money. Money never lies. But the point is that you can literally live your entire life and never pay taxes on a property investment through use of the 1031 Exchange. Perfectly legal. Don’t try that in the stock market. Those little scraps of dividends they toss out every now and then to keep you in the game? You’ll pay capital gains taxes on them.
Real estate limits downside risk. There is absolutely no way to limit your risk in the stock market. How many faithful Enron investors plowed their blood and sweat into that scam-riddled scheme only to have it collapse virtually overnight? Don’t think Enron was an isolated case. It could happen to any company listed on any exchange at any time. Maybe even tomorrow. Paper profits can vanish in a heartbeat. Real estate doesn’t work like that. Not only is it intrinsically always going to have some value but by implementing innovative strategies like those used at Empowered Investor Network (https://www.jasonhartman.com) you can almost completely eliminate your downside risk and maximize profit potential. No, it’s not magic. We use two very unique tools called the Hartman Risk Evaluator (HRE) and the Land-to-Improvement Ratio (LTI). These innocuous sounding terms could very well hold the key to life-changing wealth for readers smart enough to investigate further.
Last but definitely not least, there is no better protection against inflation than real estate investing. While we seem to be in a short period of stagflation or even deflation right now, inflation will return with a vengeance before you know it. That’s another thing we can learn from history, especially since the dollar was taken off the gold standard. Inflation and a constantly declining value of our currency is here to stay. The euro is not safe either. This is a global problem created by shortsighted politicians that’s not going away any time soon. The stock market has basically been treading water for 80 years as compared to the price of gold. With real estate you have access to an almost unbelievable ability to purchase property today but pay it off in less valuable future dollars. In common parlance, it’s called using prudent leverage to take out a mortgage.
These are bold thoughts for bold people who believe the American Dream is still possible. If you don’t understand anything presented here or have questions about how to get started, please visit the Empowered Investor Network website at https://www.jasonhartman.com or call one of our expert Investment Counselors at 714-820-4200.
He who hesitates is…likely to have a whole lot less money tomorrow.
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