I was guilty of all five of these mistakes at one point without even knowing it… In fact, many people don’t even realize these mistakes can be avoided until they become aware of the simple, effective alternative to achieve higher returns, lower taxes, and peace of mind with their investments.
(HINT: America’s ultra wealthy have utilized this asset to help build their wealth for generations, see below for more details)
1. Complacency With Low Returns
For decades we investors have been conditioned by Wall Street to be complacent with a 7% average return on our investments in the stock market, purposefully left in the dark regarding viable alternatives which consistently outperform the market. Historically, one can expect average returns between 7% and 9% in the stock market, and then they introduce brokerage and fund fees which lower this return another 1% to 2%. What if there was an alternative Wall Street doesn’t want you to know about… one which historically has doubled the average return of the stock market without the associated fees of stock investments… wouldn’t you at least want to know about it?
2. Paying High Taxes on Earnings
As investors, we have grown accustomed to paying taxes our entire lives. If you are a busy professional earning a high income, odds are you are already paying exorbitant taxes on your income alone, but the pain doesn’t end there. You wisely invest excess income to generate wealth and create a legacy for your family, but the outcome could vary dramatically based on which investment vehicle is chosen. For example, if you invest your hard earned money (which you have already been taxed on once) in the stock market, any gains or returns made on those investments will be subject to even more taxes! Fear not, there is a solution to lower these astronomical taxes which is not only 100% legal, it is actually encouraged and backed by the US government.
3. Having Little to No Control Over Investments
How much say do you have in the direction of your investments? When you buy a large cap stock online, it is unlikely you would ever have a chance to correspond with management or have a choice in the company’s business plan. We rely on companies to accurately and correctly report earnings and projections so we can make educated decisions on whether or not to invest, but ultimately our investment has little to no impact on the company’s outcome. Also when a stock fails, the common shareholders have little to no recourse to recoup value for their investment. There is an alternative investment which gives investors direct access to management and the business plan. Also, in the almost unheard of event where the business fails, investors have a lien position on a physical asset to recoup costs…
4. Trying to Time the Market
Most experts agree attempting to “time the market” will almost always under-perform staying vested over that same period of time. Investment magazines, websites, and guru’s typically claim to have the solution to timing the market (usually for a fee) and boast endlessly about the miraculous returns while using their crystal ball. The truth is, none of these models can consistently succeed over time despite some anecdotal signs of success. For the every day investor, the prudent thing to do is invest for the long run and avoid trying to time the market. It is critical to choose investments which are robust during recessions and preferably have income via a cash-flow component to weather financial storms.
5. Improper Asset Allocation
Success leaves clues. America’s wealthiest families all share one thing in common- they spread risk by never investing 100% of their fortunes in one single investment. Studies show those earning middle to high incomes tend to invest all of their money in the stock market with the remainder of their net worth comprised of their personal residence. Those earning high to very high income show a dramatic uptick in the diversity of their asset allocation. They have unlocked the secret to wealth generation by investing more and more into one asset class in particular… an asset class once thought to be unobtainable to anyone but the ultra-rich. I can assure you not only is this asset class obtainable, but thousands of individuals, including myself, have used it to transform our lives and generate a legacy of wealth for our families.
So what is the simple solution to all 5 of these investing mistakes? The same solution America’s ultra-rich have used for decades to preserve wealth, reduce taxes, and diversify their investments?
You may not know me yet. Even though I will happily discuss my qualifications later, let’s assume you are not yet convinced I am qualified to tell you the answer… No problem, I’ll let some familiar names deliver the solution:
“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
Still don’t think real estate is an obtainable and viable way to increase your returns, decrease your taxes, and generate a legacy of wealth for you and your family?
Or maybe you already knew real estate was the solution, but you are worried you may not have the time, resources, or experience to actively pursue real estate investments?
These are all valid concerns, but I’m here to tell you myself and thousands of other investors just like you have unlocked the secret answer to all of these concerns…
The answer is to become a PASSIVE INVESTOR in a multifamily real estate syndication. This means you pool your investment with other like-minded investors and leverage the expertise of experienced real estate professionals to buy tangible, cash-flowing apartment buildings.
Passive investors enjoy all the benefits of real estate investments (low to no taxes, better returns than stock market, wealth generation) without having to spend years gaining experience in the school of hard knocks. We simply let the experienced, professional teams actively run the asset while us passive investors sit back and collect distributions.
I encourage you to learn more about passive real estate investments.
Download my Essential Guide to Multifamily Real Estate and see for yourself. Usually this guide is reserved for qualified investors I’ve worked with in the past, but today I am happy to hand it out FREE for those of you who made it through this article. Thanks for reading, and I look forward to a chance to share my experience in passive multifamily investing!
