How Real Estate Investors Control Their Money
Since the early 1900′s hedge fund managers and Wall Street greats have proved themselves untrustworthy to the American people. Men and women have been burned again and again with every stock market crash and are painfully aware of the volatility and risk that stock market investing entails- yet they continue to count on stock market speculation to generate wealth and “ensure” financial security and a carefree retirement. Why?
The list of unsavory businessmen who have taken advantage of the trust of the American people for personal gain and financial affluence is too long to detail, but everyone is aware that these crooks exist. It’s difficult to turn on the news without reports of major companies, many of whose stock are widely included in 401k plans, using American tax dollars for jetsetting and bonuses even in the midst of bailouts.
If you ask most people what financial holdings they have for the future- they’ll speak of their “nest egg” (what they’ve been scrimping and saving to build up) or their 401k (which most likely has more “value.”) Knowing this, that if your like most Americans you will need every penny of your 401k to retire, isn’t it scary that you are not truly in control of the money in it? Most Americans are extremely limited in their investment options, and are primarily restricted to stock and bond mutual funds. Recently with rising unemployment, it’s increasingly difficult to find an employer willing to match the funds you contribute to your 401k, on top of this many employers who have already made this decision are contemplating discontinuing their programs. With the stock market down, and many workers only 5-10 years away from retirement, there is little opportunity to beef up their reserves (although they most likely didn’t have enough in it to begin with.)
Contrast the 401k, scrimping and saving, “employee mentality” with the financial plan of someone investing in real estate. Someone who achieves financial freedom through passive income from investment property, knowing that they are in full control of their money- and other people’s for that matter! Because they are able to secure financing a lot easier than stock market speculators, it is not uncommon for an investor to profit from a deal that he has put only 10% of his personal money in.
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