WEALTH has been created by investing in the Stock Market and Real Estate

We have witnessed the stock market as much more volatile these days as in the past. So, why do most people have their investments tied to the stock market? It’s simply too easy and many people are not aware of other investment options. If you have a mutual fund or retirement accounts, odds are that you are invested in some fashion – in the stock market via a mutual fund, 401k, 403(b) or some other retirement account.

As a financial advisor for more than thirty years, I have always recommended a diversified investment portfolio which matches one’s goals and objectives, element of risk willing to take (keeping in mind), everything has “risk”, and time horizon before you need income from your investments. Diversification can involve many different types of investments and real estate is one of them. One can own a rental property which they manage or own interest in larger commercial properties with professional management. Other alternative investments can include owning interest in lending institutions which make senior loans to large private businesses providing projected attractive cash flow to investors. Investors can also own interest in multi-family apartments, needed senior housing and HealthCare facilities located throughout the United States.

These alternative investments seek to provide diversification and the potential for projected tax sheltered cash flow with potential appreciation to keep up with inflation – and help you potentially create greater wealth while lowering your exposure to volatile stock markets. While diversification is important, it cannot guarantee a profit or protect against loss. And, keep in mind, past performance is not indicative of future results. As a general rule of thumb:

1. Maintain amount in your checking to equal one month’s expenses.
2. Maintain a savings account which will provide liquidity if needed for an emergency or opportunity. The amount should be based on the reliability of your income.
3. Next, max out all possible retirement accounts.
4. Lastly, plan a personal diversified investment plan. One of these days, you will be happy you planned early. People are living longer and their money needs to do the same.

As mentioned, every investment has risk. However, without risk, there is also little return on your investment. Do your homework and work with a trusted financial advisor – one who is a “Fiduciary” who only has your best interest in mind.

Past performance is not necessarily indicative of future results. There can be no assurance that any investment will achieve its objectives or avoid substantial losses. All investing involves risks, including the loss of principal.