Investments for a Tough Economy
Issue# 2685
- WEALTHY: The “miracle” investment medium (Dave Lindahl)
- HEALTHY: Cut your risk of stroke with a simple test (Kelley Herring)
- WISE: Peter Drucker on making business decisions
ALSO IN THIS ISSUE:
- Getting the support you need to achieve your goals
(Bob Cox)
- Another CraigsList-based fiasco (Jason Holland)
- It’s Good to Know… why jet makers are feeling the recession pinch
- Add “caesura” to your vocabulary
* Highly Recommended *
Start Seeing Better Again – Without Annoying Reading Glasses. This Eye Doctor’s Discovery Shows You How.
Eye doctor Dr. Ray Gottlieb is a genius.
Most doctors might tell you that reading glasses are an inevitable part of getting older, but not Dr. Gottlieb.
Instead, Dr. Gottlieb used his 30 years of experience – and his open mind – to research everything he could find about how the eyes work as people get older.
The result?
He re-discovered a secret about vision that had been lost for nearly 150 years.
And when he applied this vision secret to the problem of aging eyesight, his results were nothing short of magic.
The first time I saw him demonstrate his method on a baby boomer, I was stunned!
Within minutes she was reading the finest print – without her reading glasses!
The secret to Dr. Gottlieb’s method is in the special eye chart he developed.
This eye chart isn’t like any you’ve seen before.
It doesn’t test your vision; instead, it improves your vision. You’ll be amazed when you discover that there’s different ways to look at the chart.
Will his method help you get rid of reading glasses?
“Wherever you see a successful business, someone once made a courageous decision.”
- Peter Drucker
Choosing Investments in Tough Economic Times
In today’s economy, there is more uncertainty among investors than there is among novices shopping around at an antique store.
What does the new leadership in Washington mean for the stock market? What do the seemingly endless billion-dollar bailouts mean for the overall economy? I wish I had a crystal ball so I could answer these questions – but, just like everyone else out there, I’m left guessing.
What I can comment on, though, is what I know about the relative stability of some of the investment vehicles we can choose from.
When most investors think of their options, they think of:
- CDs
- Money market accounts
- Savings accounts
- Mutual funds
- Stocks
All of the above are foundational parts of the American economy, and all represent passive investments that require little to no effort. Plus, they all offer the potential for growing your financial portfolio.
That’s the good news. The downsides to these traditional investments are several, and are worth mentioning here so I can give you a full picture of how they stack up against real estate… which is an investment that’s more up my alley.
First, market-based investments are historically more risky. Sure, the market has gone up (overall) in the past century. But just ask someone invested in the market who was set to retire this year if they feel comfortable doing that right now, and you’ll see how important timing is when it comes to being successful with these investments.
For many investors, the risk of the stock market is too much to bear. They prefer the security of CDs, money market accounts, and savings accounts. The downside, here, is that these investment vehicles move in the slow lane, growing at a modest pace that requires time and patience.
Another downside to traditional investments is that (with the exception of dividend-paying stocks) they do not produce any cash flow income. And if you choose to put your money in them, you have to sacrifice liquidity.
The way to avoid these downsides is to consider real estate as an alternative investment vehicle.
Properly purchased real estate pays for itself, can be acquired with little (or none) of your own money, and produces monthly cash flow income. Add to that the appreciation in value over time, and you have a winning investment combination.
Real estate is ripe with advantages that you just can’t find with more traditional market-based investments. You might even all it a “miracle” investment medium. However, many investors still shy away from it, for the following reasons:
- Fear of maintaining/managing income-producing properties
- Lack of familiarity with the purchase process
- Lack of trust in the seemingly volatile real estate market
These are all valid concerns – so let’s look at each one in some detail. (For the purposes of this article, I’m going to limit myself to residential property – single-family homes and multi-family buildings, as opposed to raw land or commercial real estate.)
First, we have the fear of managing and maintaining the properties. Images of busted plumbing, roof leaks, and eviction notices may come to mind – and there are certainly times when those kinds of things can arise. But you rarely wind up with a major problem if you do your homework before you purchase the property.
In general, multi-family properties tend to be easier to manage and maintain than single-family properties. For one thing, you’ve got the benefit of consolidated maintenance costs. Plus, when one tenant moves out, you’re not stuck with zero income coming in until they’re replaced. You have the financial security of multiple tenants.
Now, we’re talking!
What about people who avoid investing in real estate because they’re not familiar with the process? This is an issue that makes me scratch my head. After all, investors with no real knowledge or savvy put millions into the stock market every year – and feel perfectly comfortable with it.
Meanwhile, with real estate, it’s so easy to become educated about what you’re doing – about how to select, purchase, and then manage the properties that make up your portfolio. And that education is readily available, whether you’re interested in investing in single-family or multi-family properties.
Last on our list of the concerns that prevent people from investing in real estate has to do with perceived market volatility. Well… forget the dismal view of real estate you get from the media. What they’re talking about is just a byproduct of the economic downturn – and, quite honestly, that was a necessary shift to keep real estate affordable for the long haul.
From an investor’s perspective, real estate prices are now excellent, demand is consistent (because people always need a place to live), and there are plenty of properties to choose from.
When you consider all of the above factors, real estate might be the best investment vehicle for you in the current economy. So what are you waiting for?
[Ed. Note: David Lindahl, known as the "Apartment King," has been investing in single-family homes and apartment buildings for eight years. He is the author of several popular moneymaking home-study programs, including "Apartment House Riches." He can be reached at dave@real-estate-fortune.com and www.rementor.com.
Real estate isn't the only moneymaker that can get you through the recession. Discover a recession-proof Plan B that can help you secure your financial future right here.]
* Highly Recommended *
From $16,635 in Debt to an Extra $36,000 per Year
It’s no secret that you want more money.
If you’re like the average American, says U.S. News and World Report, you’re in over your eyeballs to the tune of $16,635 – and that’s excluding mortgages!
So I’m guessing you wouldn’t say “boo!” to an extra $3,120 a month that practically flows straight into your bank account.
Best part is, it takes NO WORK on your part. You simply apply a powerful “forgotten” secret to your everyday life… and watch as the money comes rushing in.
Discover how to get $3,000+ a month just for living your life right here.
It’s Not All About You
By Bob Cox
When you define a goal and ready yourself to commit to the time and energy it will take to achieve it… remember to consider how your efforts are going to be affecting the people in your life. And this isn’t a totally unselfish, “thinking of others” act. You’re going to need their encouragement and support.
So what can you do? How can you get friends, family, and colleagues to endorse and sign off on your goal?
1. Inform them.
Be open and candid with them about what you want to do.
2. Acknowledge them.
Encourage their support by acknowledging that you need them – that their cooperation will be helpful… even vital.
3. Explain what’s in it for them.
Tell them how they’ll be rewarded when you achieve your goal. If, for example, your goal is to get a side business started, explain to your spouse and kids how that second stream of income will give you the ability to update the family car or provide them with more options for the next family vacation.
4. Appreciate them.
Be respectful of what is going on in their lives. Offer assurances that their routines are important to you, and that your intention is to minimize any interference in the achievement of their goals.
[Ed. Note: In the next 11 minutes, you could be well on your way to making an extra $100K, $500K, or even $1 million by this time next year. Get specific advice from Bob "Mentor to Billionaires" Cox about how to change your life and increase your wealth. Find out more here.]
The Fake Landlord Scam
My brother was scanning CraigsList when he found the perfect apartment: cheap, in a great neighborhood, and the landlord was offering all sorts of extras.
Turns out the listing was fake (though the apartment was real). Something on CraigsList that’s not on the up-and-up? Shocking, I know. How did my brother find out? When he inquired about the rental, he got an e-mail asking for his Social Security number, driver’s license info, bank account details, etc. so they could run a “credit check” – and he knew something was amiss.
Yes, that’s the kind of information a prospective landlord is likely to ask for (legitimately) – but only when you meet him in person and after you have seen the property. And what have you learned about e-mailed requests for personal information from people you don’t know? That’s right, you’re probably dealing with an identity thief who’s doing some “phishing.”
It turns out that identity thieves aren’t the only ones misusing CraigsList apartment ads. Scammers are posting vague listings with no specific addresses – but rock-bottom rents. Those who inquire are asked to provide a credit report before they can see the apartment, and are helpfully given a link to get a “free” one. It’s a link to a company that actually does offer a free report… after you’ve signed up for their expensive credit monitoring service.
The lesson? CraigsList is a great resource, but caveat emptor. When a deal sounds too good to be true – it probably is.
[Ed. Note: Unscrupulous businesses got you down? Why not Unscrew Your Life with ETR's monthly newsletter designed to help you overcome life's annoyances, scams, and more.]
Get The Lead Out!
Nearly 17 million people worldwide suffer from stroke each year. But nearly half of those strokes could be prevented just by eliminating one thing.
The Third National Health and Nutrition Survey found that any level of lead in the blood that exceeds 2 mcg/dL significantly increased the risk for heart attack, stroke, and death. And here’s the really scary part… nearly 40 percent of Americans have lead levels high enough to increase their risk of stroke by 89 percent and their risk of heart attack by 151 percent!
Get your lead levels tested. You can get a do-it-yourself kit for $199 at labsafe.com. And if you’re in the danger zone, consult with a healthcare practitioner trained in chelation therapy who can help you get the lead out.
[Ed. Note: Nutrition expert Kelley Herring - founder of Healing Gourmet - has created a revolutionary 7-part health transformation program called Your Plate, Your Fate that reveals how you can protect your health and optimize your weight by maximizing the nutrients in your food. Get all the details and learn how to get 3 bonus books right here.
For advice about which foods you should - and shouldn't - be eating to stay in top health, sign up for ETR's free natural health newsletter.]
Tell Wall Street Where to Get Off
While the Wall Street hot-shots who engineered this entire market disaster sit back and collect multi-million dollar bailouts…
… and the Feds plow hundreds of billions of dollars into the economy, hoping for some signs of life…
… a small group of private investors have been quietly making money – over and over again – without worrying about Wall Street, the Feds, or anyone else. They’ve developed strategies for creating multiple streams of income, so simple and so profitable, they tell me just about anyone can follow their lead and make money doing what they do.
And right now, for a limited time, you can hook up with these extraordinary individuals, as they show how you can make money – Off Street. You can read their story here…
It’s Good to Know: Jet Makers Feeling Recession Pinch
When profits are down and bankruptcy is right around the corner, it’s hard to justify whisking executives around in company planes. As a result many struggling corporations are downsizing or eliminating this perk. And that means manufacturers of private jets are hurting.
Sales are down 7.1 percent, and 12 percent of the workforce has been laid off. This is a big hit to what was once a $150 billion industry with 1.2 million employees, most of them in the United States.
Thanks to the trip made to Washington last year by the blatantly brazen CEOs of the Big 3 automakers – in three separate jets – public opinion has turned firmly against the practice. But aviation industry officials claim that private fleets are a necessary expense for many companies, especially those in areas without adequate commercial service.
They also say CEOs have better things to do than go through security, risk delays, and so on. (You know… like everybody else has to do when they fly.)
(Source: Wired)
Word to the Wise: Caesura
A “caesura” (sih-ZHUR-uh) – from the Latin for “to cut” – is a break or pause in a line of verse. The word is also used for any break, pause, or interruption.
Example (as used by Michael Dirda in the Washington Post): “Say her name today in the right circles and you’ll notice a sudden intake of breath, a caesura of pure awe.”
[Ed. Note: Become a more persuasive writer and speaker... build your self-confidence and intellect... increase your attractiveness to others... just by spending 10 VERY enjoyable minutes a day with ETR's Words to the Wise CD Library.]
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