Have you opened your RRSP statement on more than one occasion and wondered….
“Is this really enough to retire on?”
“Is the measly return I made over the past ten years all there is?”
Have you also ever thought about how the financial industry is rigged against you?
It goes something like this:
• The bank makes money, regardless of the market going up, down or sideways.
• The bank owned brokerage house makes money, regardless of the market going up, down or sideways.
• The broker makes money, regardless of the market going up, down or sideways.
All three are selling you stocks, mutual funds or “advice” and make money by taking hefty fees for assets under management, plus commissions.
You make money only if the market moves up strongly like it did last year…. until last week.
But hey, three out of four ain’t so bad, so let’s keep going.
The stock market sold off the last few days on no real bad news. More significant downside is possible. Not only can you enter or exit the stock market in a heartbeat, but so can tens of millions of others, based on rumors, market sentiment, opinions, misspoken words, correct or false predictions, revolutions, wars or missed yet rising earnings.
Is this the system where the majority of your retirement investment is based on?
Perhaps, just perhaps, you ought to consider some changes in asset allocation. We here at Prestigious Properties are not investment “advisors” and as such cannot give you advice on what to do with your money or how to allocate it. We can only give you opinions on what makes sense to us and what has worked for us.
As President of Prestigious Properties, I initially started with my own money and later, as Prestigious grew, profited for myself and our co-investors by being heavily allocated in income producing real estate.
- Am I extremely smart?
- Do I not understand stocks?
No. It’s because you can borrow money at 3-4% interest and invest it at 5-6%. Because people need a place to live, in good times or in bad. Because cash invested is levered 2-4 times in growth markets, with rental upside and value upside through inflation and improvements.
Add some very prudent basic principles like smart property enhancements, cost control, impeccable property management and the occasional asset sale or re-finance and you have an investment vehicle that will likely produce solid yields outside the volatile and often manipulated, or certainly often irrational, stock market.
A solid base for retirement for myself, my family, my operating partners and our 600+ investment partners and that why I still have a significant portion of my own investment in income producing real estate.
So, choose between an emotional stock market roller coaster making your “advisor”, the brokerage house and the bank wealthy or a solid investment in REAL assets with perpetual inflationary adjusted income and equity growth.
If you haven’t made 100% in your stocks the last 4.5 years since the bottom of the market in mid 2009, do you think you will make anything of size this year with the expected headwind and stock market sell off to more rational levels?
Sincerely + Successful Investing,
President, Prestigious Properties