I decided to write a blog revisiting a concept I discussed on one of my podcasts, Episode 11: Why We Don’t Make Financial Decisions called “the raft phenomenon.” For years I have joked about the raft phenomenon when I’d invite friends, family, and clients out on our boat in Lake Tahoe. I would talk about the hesitation to go into the water because it’s capital-C Cold. But once you do, it feels so good.
For those who have not visited Lake Tahoe, I’ll give you a quick summary of the lake. It’s beautiful. It’s over 1,600 feet deep. I believe it’s the second deepest Alpine lake in the United States. It’s crystal clear, and stays cold (typically mid-60’s) through the summer.
My whole concept or idea about the raft phenomenon came to me when I used to lifeguard at Incline Beach in Incline Village, Nevada. It was my summer job for three years while I was earning my Bachelor of Science degree in electrical engineering at the University of Nevada. I loved that job. I was getting paid to be on the beach, help/save people in the water, teach kids how to swim, and play and train in Lake Tahoe. What a cool job!
On some of my breaks I paddled out into the lake on a rescue board or raft (we’ll go with raft), and float in the water. I would get so hot from the sun, but would hesitate to go into the water. I knew it would feel so good to cool down, but I would hesitate for a long time and then eventually muster up the courage to roll in. The water felt amazing after baking in the sun on that raft, so I became curious about why hesitated for 10-15 minutes to do what I was inevitably going to do anyway? No exaggeration, I would actually feel like I was reborn again (OK maybe the tiniest bit of exaggeration, but then again try for yourself and let me know!) It’s such an incredible feeling, So again, why the hesitation?
Because of the pain!
It’s very uncomfortable and even hurts a little for the first 15 to 60 seconds. Like I said, Tahoe is an Alpine lake so the water is very cold even in the summer. But once you get over the initial discomfort and adapt to the new environment, the water is perfect. You wonder why you hesitated for so long. So every time I am out in the boat and I feel hot and I know that I want to jump in the water, I no longer hesitate to dive head first. Because I know it’s going to feel so good after a short moment and it will make my day.
What’s Your Point, Ken?
I equate this raft phenomenon to making–or more accurately, hesitating to make–financial decisions. Making big decisions on what to do with your hard-earned money can be overwhelming, so much so that you procrastinate dealing with it altogether. There’s so many details to consider!
Where do you save it?
Where should you invest it?
Who do you trust to help that money grow so you have more opportunities?
There’s a valid fear of losing your money. You know you need to make a decision but you avoid it or set a grey deadline to take action. If you’ve ever said, “I’ll eventually get to it or I’ll get to it in the next five years or I’ll get to it when …” then I’m talking to you.
You may understand once you create your wish list (priorities & dreams) that working with the right financial advisor could set you up for a much better financial future. But, you still put it off.
I have become a great observer of my financial habits and others, and what I have found is most responsible people pay their auto insurance, home insurance, and taxes on time. I cannot think of anything more boring (yet important) than auto and home insurance and taxes. But most people get it done on time. My guess is because those deadlines have clear external expectations and subsequent consequences if you pay late. In simpler words: it’s financially painful if you miss the deadline! And the pain of not doing it, is greater than the pain of getting it done.
I hate paying my home, auto, toy insurance, umbrella insurance, business insurance, professional liability insurance, … (insurance rant) every year. I hate dealing with income taxes, unemployment taxes, property taxes, … (my tax rant). Yet it is all done on time because there are huge consequences if I don’t pay my taxes on time. If I don’t pay my insurance on time just like my energy bill, they turn it off, and now I have lost one of my cheapest forms of asset protection. So I pay it on time. I bet every responsible reader does the same thing.
It’s much harder to will yourself to make important decisions if there are no clear expectations or subsequent consequences. It’s the same reason why you meet a deadline at work but keep pushing off “deadlines” for personal projects at home.
The same goes with making smart financial moves, there’s this huge hesitation: the raft phenomenon. You know it’s going to feel so good having more money, and as a result, more options and more freedom than you have today. More available money opens up doors to …
- Go on more vacations
- Free up your spouse to not work as many hours
- Free you up to not work as many hours
- Retire early
- Find a different profession that you love but might not pay as well
- Give more in charity
- Help out a friend or family member
- Pay for your children’s education.
And still we hesitate!
Take the Plunge, I’ll Meet You In The Water
Making drastic changes (that after a few months you don’t even notice) to your financial environment can create a world of freedom within years or sooner … sometimes overnight (not kidding). You’ll become empowered.
You have control of your financial environment and your financial future. You will feel reborn once you make those nagging decisions. You will be in a position where opportunities seek you out. All you have to do is overcome the raft phenomenon. Focus on the reward and the feeling by taking action now. You know that it will feel incredibly good. You know you will do it eventually, so why not dive in head first now?
There will be a little pain, but that pain will go away quickly. What is the pain? Making slight changes to how you control, use, and move your money. That’s it! Quite often it can be no out of pocket expense. But once you endure the little bit of pain (change), I always like to tell myself and others, “with a little bit of discipline, comes a world of freedom!”
Overcome the raft phenomenon with some focused help from someone who has done it many times. Join me for a quick 15-minute introductory call, and maybe I am the right person to help.
Psychological Resistance: What’s Keeping You From Prosperity
I love what I do. I love educating people about a different way to play the financial game. The challenge is that what I teach is unbelievably simple, which has clients thinking this method is too good to be true. A test is easy once you know the answers, and I have the answers. But before we can get to those, you need to unlearn a lifetime’s worth of standard financial practices.
The Bankosaurus® is contrary to what 99% of the financial industry promotes every day, all day long via its advisors, print, articles, and commercials on business news channels (CNBC, Bloomberg, Fox Business, etc.).
The initial struggle with new clients is undoing all this “one and only way” brainwashing we’ve had since we were kids. I’m no different, in that sense. When I first discovered in 2011 how powerful the Bankosaurus® could be for me, my family, friends, and future clients, I knew I needed to teach this to the world. Yet, it still took me nine months of studying, questioning, and testing different designs and concepts before my first client (me) bought in (doubled down actually) on the financial strategy.
Change can be very uncomfortable. But once you embrace it and remove the financial garbage that has been dumped into our brain most of our lives, amazing things start to happen.
My new clients are always baffled when I explain this new way to play the game. “How come no one’s ever taught this to me before? That’s how banks and Wall Street make so much money!?” Together we walk through the math (which does not lie) and they see the numbers and cannot believe the amount of their wealth taken via taxes, commissions, and money management fees in a 401(k). “This can’t be real!” “Why have we been told to do a 401(k)?
Don’t believe me? Try This 5-Minute Homework Assignment: Get your 401(k) statement from the end of 2017 and your most recent statement, subtract everything you put in for this year and ask if you are happy with the rate of return. Or call me and I can do a quick calculation for you to show the number. Spoiler alert: I have prospective clients do this exercise, and I have yet to witness someone who is happy with the results, even though the market has been on a tear since 2009.
The financial industry promotes tying up your money for a very long time with a lot of market volatility, uncertainty, compounding taxes on your investments, money management fees, and giving it back to you in small doses at retirement.
I promote having control, use, enjoyment of your money today, and strategically changing the flow of YOUR money so you can have a way wealthier tomorrow. It’s simple. And fun.
Let’s Review The Matrix
Making the appropriate changes to build your own Bankosaurus® is simple, but that’s not the problem. The problem lies in our psychological resistance to change. There’s no doubt that change in and of itself can be hard. Change requires us to let go of our old reality in order to step fully into a new one.
For those who have watched The Matrix (my family loves that movie), this psychological resistance to change was how Neo responded when he learned the truth about The Matrix.
The change was hard for me initially in 2011. I knew what I was taught was wrong and faulty. I was craving a different way to play the financial game, and I found it. Everything was true to me. The math made sense. All the economic principles made sense. But it was too simple. How come no one taught this to me before? This is why it still took me nine months to pull the trigger.
I can assure you that once you punch through that mental hurdle of going against the financial norm, profound things will happen for you and your family. Do the mental push-ups. Step back, look at what the norm in this country has accomplished for retirement. The average American family between 32 to 61 have a median retirement savings of only $60,000.
Ask yourself, “Do I want to be the norm? Or do I want to embrace a unique approach? A different approach and become the top 5%?”
A very sharp and motivated new client recently asked me in our Strategy & Design Meeting, “Ken, why do you think we have never been taught about finances and how banks and Wall Street make money in elementary school, high school, or college?” We both had our theories, and I’m not going to share our answers at this time. But it’s a great question? What do you think?
Are you ready to get uncomfortable? Are you ready to punch through the huge resistance of change? Are you ready to become the top 5%? I’m here to help–to give you the answers to the test, so it can become easy. And I will coach and help you along the way.
When people come to see me for financial advice, they fall into one of two categories: the accumulation phase or the distribution phase. Those in the accumulation phase are dealing with questions and issues around growing their wealth, whereas people in the distribution phase are reaching retirement age, and they want to start dipping into their nest egg.
Accumulation Phase – Clients in this category are typically under 50 years old. They are focused on protecting and growing their wealth. They have questions about what would be the best savings and investment strategies to use when it comes to safety, liquidity, rates of return, taxes, asset protection. For these people I ask: “Where are you today, where do you want to be, and how do you want to get there?”
Distribution phase – Clients in this category are typically focused on simplifying their life, and they don’t want to work or can’t work as hard as they did in their 20’s, 30’s, and 40’s. They are focused on having financial independence (financial freedom) to do something else they enjoy or want to retire completely (when everyday is a Saturday).
When new clients are nearing or already arrived at the distribution phase and first sit down with me and ask, “so what do I do? Here’s my nest egg, is this enough for me to survive for the rest of my life?”, they are terrified they will outlive their money, and there’s substantiated reason for this terror.
Today isn’t like those pension days when people used to have certainty they would be paid X amount for the rest of their lives once they retired. Pensions are a rarity nowadays, unless you’re working for the local, state, or federal government.
What is the probability that you will outlive your money? Typical financial advisors and money managers are focused on securities (e.g. stock and bonds) in the stock market which aren’t so secure. They will use computer financial simulations, such as the Monte Carlo simulations, to account for a variety of potential variables (e.g. market volatility, returns, inflation, interest rates) that can affect your wealth and passive income.
To answer the question, let’s first address the circumstances. Today we’re looking at a low-interest rate environment, where the consensus in the financial industry used to be the 4% rule, which indicated you can withdraw 4% of your portfolio balance every year at retirement and it’s relatively safe (meaning ~ 80% chance of success) that you won’t outlive your money. Now the number is more like 2.8% per year from your nest egg if it’s all tied up in Wall Street. So let’s say you have a nest egg of $1 million, and let’s inflate the percentage to 3% to keep the math simple.
With these numbers your typical financial advisor is recommending to not withdraw more than $30,000 at a time in order to have an 80% success rate (success meaning not outliving your money). If you do the math, this also means a 20% failure rate. This is what most financial advisors teach and preach, but I say that’s B.S. Here’s why:
- You may own these qualified plans and these investments on Wall Street, but they really control it. They want to control it throughout your accumulation phase (typically 25-65 years old) and they make good money every single year on it.
- On that $30,000/yr there can be a huge impact on the taxation of your social security income, which means less net income.
- On that $30,000 there can be a huge impact on Medicare. How would you like to pay hundreds of thousands of dollars while your neighbor pays $0 for the exact same service?
- A lot of typical financial advisors forget to talk about the required minimum distribution (RMD) that kicks in at 70 and ½ years old. Which is a great (sarcasm) rule created by the IRS that says “Hey, we’re going to mandate that you take out this percentage of money from your qualified plan(s) and if you don’t, we will tax 50% of what we think you should have taken for that year.” Now those rules change all the time, but as it exists today, those are the rules.
That’s painful! But there is a different way to play the game.
As an engineer, I spent the first part of my career studying how things work and more importantly, don’t work, and how to fix it (troubleshoot). I can tell you the standard retirement plan strategy (Plan A) is not working.
Plan A: The typical Wall Street scenarios, with typical financial advisors preaching and teaching strategies that do not put you first. What that looked like for your nest egg of $1 million:
- 3% withdrawal rate ($30,000 a year)
- 80% success rate (20% fail rate)
- Taxed if you do, taxed outrageously if you don’t (50%)
Of Course There’s Another Way …
So what if you had a custom designed financial plan that gave you closer to a 99% chance of success? What if your financial plan was designed in such a way that you could withdraw 7-13% per year for the rest of your life?
Plan B: A privately designed pension using my understanding of finance from an engineering perspective combined with the latest research in actuarial science. Below is a taste of what it could be:
- 7-13% withdrawal rate
- $70,000 or more each year
- Income taxes are substantially reduced
- Minimal impact on social security
Let’s break this down. When you’re looking at 7% with a $1 million nest egg, that could be $70,000 or more until you die. You could enjoy $130,000 a different year and have great certainty you will never outlive your money. Not only will you not outlive your money, but you can pass on a huge amount of wealth to your family and charities that you care about. How powerful is that?
The way the majority of the financial industry teaches clients how to use and invest money favors Wall Street and the government, not you. That’s because while you own your money, they control it. They can mandate for you to take out a certain amount so it can be taxed, and they can tax you 50% if you don’t obey. All this for a 20% chance of failure? I don’t think so.
Curious to learn more about how you could enjoy up to a 99% success rate? Schedule an appointment with me and we can design a custom financial plan that suits your needs.
We all love to watch those YouTube videos where crazy people do remarkably stupid things and it’s all caught on video for the world to see. From miscalculated BMX stunts to those awful backyard trampoline accidents, they’re painful to see, but somehow we can’t help watching.
In YouTube lingo, these filmed stunts-gone-bad are called epic fails.
For what I’m about to explain to you, I’d like you to capture and hold onto the feeling of an epic fail… the cringe, the groan, the face plant.
Epic Fails Come in Many Forms
In personal finance, there are many epic fails… maxing out your credit cards to finance a 4-star tour of Europe, for example. Having your future depend solely upon a 401(k) is another big one.
But there’s another fail that comes quickly to mind, and you’ve probably never heard of it. You should know about this type of financial epic fail because there are people committing this terrible error every day and losing thousands—sometimes hundreds of thousands of dollars.
So, what is it? It’s the terrible mistake people make when they let their life insurance policies lapse.
A Lapsed Life Insurance Policy is an ‘Epic Fail’
People pay premiums year after year—usually decades— only to give up and stop making payments when they face tough times. When they do this, they forfeit their benefits, namely, the ‘death benefit’, or the big payout at the end.
The sad part is, some pay hundreds of thousands of dollars into permanent life insurance policies and never get a penny back, simply because they can’t keep up the payments and nobody told them they have other options.
In fact, people are letting over $100 billion in life insurance lapse every year.
So you can see that many financial advisors are letting their clients down by not educating them on how to properly use their policies. I find it shocking and upsetting. Why does it happen?
Bob is 85…
Let’s take hypothetical Bob. He doesn’t have any adult children or a spouse relying on him for his income anymore so he no longer needs his life insurance. The premiums may be rising, as they often do with age. He’s feeling the financial strain.
Like a lot of older adults, those rising premiums combined with the fact that they no longer need the policy… well, it all seems like good reason to just abandon the policy: let it lapse. This makes no financial sense, and I always advise my clients strongly against taking this route.
Bob’s policy has cash value, so what are his smart options if he no longer wants to keep the policy?
- Surrender his policy. He could just give the policy back to the insurance company in exchange for a payout. Let’s say he gets $200,000. That’s far less than the death benefit would have been, had he kept the policy until he died.
- Sell his policy. Bob could also sell the policy to a big institution or a suitable investor. He’ll get more than $200,000. It won’t be as much as the death benefit, but it will be more than the cash value the insurance company will give. This is called a “Life Settlement.”
With those other options available, it’s hard to imagine why people don’t take them.
Now for the shocker: 90% of all life insurance policies lapse!
This is a terrible thing to see happening. For a financial advisor, it’s the equivalent of watching a kid on a BMX bicycle wreck his leg during an epic fail stunt gone wrong. So preventable! So painful to watch!
Thankfully, more policy holders are tuning into the fact that lapsing is a bad idea and they’re taking option #2. This is where we come in. This could impact your investing decisions in a big way and here’s why.
Insurance Companies Make Massive Profits When Lapses Occur
When life insurance policies lapse, who benefits? The life insurance companies! If a policy holder stops making payments, there’s a grace period, but after that, the policy is canceled and the insurance carrier is no longer on the hook to pay the death benefit.
But the insurance companies don’t have to be the only ones who win when people no longer want their policies. People like Warren Buffet and big institutions have been winning at this game for a very long time. In 2013, the last year for which we have these stats, total life settlement transactions were $2.57 billion.
Why can’t we win, too?
What We Have Here is a Win-Win
The winners like Warren Buffet are winning because they are the investors and institutions who buy those policies that people no longer want. They buy the good ones, keep making the payments, and then collect the death benefit when the original policy owner passes away.
It’s a win for Bob because he gets to stop making those monthly premiums on a life insurance policy he no longer wants. He also gets a lump sum of cash that’s greater than the cash value he’d get from the insurance company. He now has money that he can use and enjoy today with his family and friends before he passes away.
It’s a win for the investors because when Bob passes away, the death benefit will pay the investors a LARGE sum of cash.
I Cannot Think of a Safer Investment
Stocks and bonds are subject to volatility. There’s economic risk. Economic risk affects the real estate market too.
There are numerous variables (interest rates, labor report, taxes, …) that can send returns flying all over the board on traditional types of assets like stocks, bonds, and real estate. For example, what if the US has a conflict with North Korea, Syria, or Iran and it escalates into a war? Geopolitical events can have devastating effects on traditional investments.
Life settlements are different because they are sheltered from most of those risks. They don’t carry the same risks that traditional investments carry because their returns are correlated to entirely different factors (actuarial science, which can be very predictable).
Of course, investments always carry some risk, but here’s some food for thought: what type of investment would you expect for an asset that has the following characteristics?:
- No stock market risk,
- No bond market risk,
- No economic risk,
- No real estate risk,
- No political risk,
- No geopolitical risk,
- No interest rate risk and,
- No terrorist risk.
Sounds like a savings account, right? Safe, but probably terribly low returns, if any? So maybe you’d expect something like 1% or 2% at best? Nope. Typically, there’s an expected annual NET return of at least 6-8% with investments in life settlements. A report from the AAP Life Settlement Market Update indicated the life settlement rate of return percentage could be in the high teens.
A Comparison With Traditional Assets
A lot of people love the S&P 500. But look at the internal rate of return (IRR):
- Since inception, without dividends: 5.5%
- Since inception, with dividends: 9.47%
- Since 1997, without dividends: 5.69%
- Since 1997, with dividends: 7.65%
Pretty modest returns. And take into account these returns are factoring in the red-hot stock market that’s been blasting off since 2009! There has not been a correction since 2009, and history shows the stock market has a tendency to crash at least once every 7-8 years. Aren’t we due? I don’t know. I don’t have a crystal ball. The market could be on a tear for another 30 years. Or it could crash! That type of uncertainty scares a lot of investors. If you have a low tolerance to losing a lot of your money in Wall Street, why leave it there?
Now also take into account that those S&P 500 returns aren’t showing net. They’re showing gross. That means all the expenses charged by the brokers and Wall Street haven’t yet been figured into those returns. It means the actual net returns can be much lower.
Bottom line: there’s a lot of risk for modest returns.
Death Benefits Always Pay Out
An investment in life settlements does not mirror traditional assets in any way. Even more important, a life settlement transaction always ends with a death benefit. Investors are always paid from the death benefit, it’s just a matter of when. Yes, you’re hedging your bets by risking how long someone might live after you purchase their policy. That’s why we call it a growth strategy. Your investment is typically tied up (not liquid) for about four to ten years. It can be a great option for the accumulation of cash in a regular investment account or a qualified plan, such as an IRA.
The potential is massive. It’s estimated that between 2014 and 2023, there’s $180 billion in market potential for life settlements with an average volume of around $3 billion annually. See where this is going? It’s a mature industry that’s regulated by 42 states.
Want to learn more about investing in life settlements? Download our report “Warren Buffet’s ‘Secret’ $300 Million Investment”, OR, find a time that we can get together and talk about your specific situation.
Years ago, you probably learned that one of the best deals out there is the IRA/401(k). If you have a job where the employer will match a percentage of what you invest, it seems downright crazy to bypass this amazing form of retirement savings.
Put away enough each month to trigger the maximum match amount, and it’s free money ’til retirement.
Or is it?
To be fair, if you are currently employed and your employer is matching the money you put in then continue to take advantage of that. You can’t move it now anyway. The intent of this article is to help you discover a whole world of opportunities waiting for you that you may have been unaware of.
One more point. If you’ve been investing in the stock market with your IRAs and 401(k)s for years, it’s not the intention of this article to make you feel like you’ve made a mistake. You’re investing and taking advantage of tax incentives. We just want to show you that there are other ways to play the game Off Wall Street.
There are some incredible investments with less volatility than Wall Street with potentially bigger returns. If you’ve recently left or lost your job and suddenly find yourself with an IRA/401(k) you don’t know what to do with, you’re about to learn about some outstanding options!
Are IRA/401(k) Plans Really the Ideal Retirement Vehicle?
If you are reading this article, you probably have begun to take an active interest in how your investments have been performing and discovered the adverse impact (lag) from expense ratios, portfolio-management fees, and plan operating expenses. These are essentially the fees you pay to have your money invested in a plan like a 401(k).
Investment firms, including the one managing your IRA/401(k), charges fees.
Fees vary across the board and can vary depending on which type of investment you’re holding.
IRA/401(k) plan fees can run from around 1% to over 3%. Over a working lifetime, that adds up to paying tens of thousands (even hundreds of thousands!) of dollars more than you would with low-cost investments, just for FEES! (Over 40 years at 2% takes more than half your wealth. And that’s before taxes!)
That’s a good reason to wonder if IRA/401(k) plans are really so ideal after all.
But the real disadvantage of these retirement savings plans is the fact that it puts your money under lock-and-key for years, even decades. You’ve probably been taught to implement the “buy and hold” strategy. The big, glossed over problem is you end up losing tremendous flexibility and are unable to respond to opportunities when they knock.
Not to mention that most IRA/401(k) plans offer participants very little choice in how their money is invested. You’re pretty much stuck with whatever your employer has set up for you and your co-workers.
Those choices are typically limited to various funds comprised of stocks and bonds.
For the Most Part, You’re Stuck in the Stock Market with an IRA/401(k) Plan
What’s wrong with being stuck in the stock market? Volatility. Fluctuating economies. Uncertainty. Potentially much lower yields than the sales guy (I mean advisor) is showing you. And your money is locked away under the “buy and hold” strategy.
If you’re at all distrustful of the stock market or if you’re at all worried about global markets, you might be happy to know that there are alternatives.
Did You Know There are Alternatives?
The last few years have been marked by a large and vibrant crop of alternative investments. As people learn about them, their eyes are being opened up to the idea that these investments can oftentimes make good financial sense.
You don’t have to keep your IRA/401(k) investments all tied up in the stock market.
If you’re employed you can’t yet move that employer’s IRA/401(k), but you have some tantalizing options for any additional money you want to invest. And if you just left your job for a new job and now find yourself with an IRA/401(k) on your hands, you are about to discover a potentially big opportunity!
If Not Stocks, Then What?
For people who want a possible higher level of certainty than what’s offered by the stock market, there are a number of attractive options.
We call these Alternative Investments. They offer not only an alternative to the stock market but also the possibility of higher yields.
Perhaps it’s time to take your investing strategy up a notch.
Why not have safer investments and pursue higher yields than what you often get in stocks and bonds?
Advisors talk about creating a diverse portfolio in the stock market. How diverse are the investments if they are all in Wall Street. When the stock market crashed in 2008 – 2009 almost all funds were severely impacted.
If you want diversity, use alternative investments Off Wall Street.
Very often, alternative investments do not rise and fall with the stock market. They can provide nice returns without the potential chaos and volatility of investments that inflate and deflate with every national or global event.
What are Some Alternative Investments?
Here some examples of alternative investments available to today’s investors:
- Life Settlements
- Bridge Loans
- Real Estate
You may not be familiar with some (or all) of these investments. So let’s give you a brief summary of each just to whet your appetite a bit to the possibilities.
Life Settlements: An Excellent Investment for Growth Non-correlated with Stocks
For accredited investors looking for excellent asset growth with minimal risk, life settlements are very attractive options, offering investors a way to participate in the secondary market for life insurance policies.
Life insurance has been considered an asset class since a Supreme Court ruling in 1911 judged that life insurance policies are private property that can be assigned or sold to others at the will of the policy owner.
Life settlements invest in life insurance by purchasing policies that have become unwanted, unneeded, or unaffordable to elderly policyholders.
Life settlement investments are not correlated to interest rates, housing prices, stock prices, political events, or any outside influences. They have very limited downside risk. Life settlements are based on actuarial math, not stock market speculation. As policies are purchased for a discount and costs such as future premiums are factored in, losses are unusual.
Commercial Bridge Loans: A Top Investment for Cash Flow
Bridge loans on commercial and investment property can be an excellent choice for investors looking for immediate, steady, substantial income. Bridge loans allow investors to capitalize on real estate without the hassles of being a landlord.
No flipping, no plungers, and no buying a duplex and renting out the other half. It can be a great way to simplify your life and enjoy nice returns.
Investing in carefully screened commercial mortgages and bridge loans can provide you with reliable monthly income with high single-digit and even low double-digit returns, with low risk… provided that the loans are properly vetted.
Commercial Real Estate Investing: Proven High Yield Investments
Accredited investors will find an opportunity to invest directly in commercial real estate by becoming private lenders for commercial projects, typically cash-flowing apartment buildings.
This option provides investors with an opportunity to invest in secure cash-flowing real estate without the hassle of finding, acquiring and managing the day-to-day operations of the property.
These types of investments offer qualified investors cash flow as well as equity, and help real estate investors avoid the most common (and most costly!) real estate investing mistakes, such as limiting themselves only to properties in their local area, not evaluating enough properties before purchasing, not forecasting future costs accurately or managing the properties effectively.
How Do You Invest in Alternatives?: Enter the Self-Directed IRA
For investors who’ve been disappointed with typical Wall Street offerings and want more control over their investments, the Self-Directed IRA is a great solution.
Unlike IRA or 401(k) plans, the self-directed IRA allows the freedom to invest in alternatives like you’ve just read about.
The best news is that people who lost or left a job can simply roll their IRA/401(k) from their previous employer right over into a self-directed IRA! That means direct and immediate control over your funds, and you’re free to pursue higher yields through alternative investments.
If you have an active IRA or 401(k) with your employer, begin to think about the possibilities of investing funds “beyond the match” so that you can take full advantage of the incredible opportunities Off Wall Street!
Want to learn more? Greene offers expert guidance in language you understand. If you’d like to learn more about getting ‘unstuck’ from stocks, a self-directed IRA might be for you. CLICK HERE and you can download our 1-page, “quick-start” guide or, if you want to know more right now and get your questions answered,
Call us at (775) 624-8839.