Alternative Investing with No Crop Failure
I plead with you to look at capital investments differently. Often the generic recomendation has been “invest for long term growth” and then you are told to place your investment capital in mutual funds or some other retail market offering.
Here is the bug with that idea. Most people are rather passive in their investing activity. By passive I mean that investors place their bets and then hold, kind of like a farmer planting a crop and then waiting for it to grow.
Here is the problem with that behavior when investing. A farmer plants the crop kind of speculatively, he tills, plants, waters and fertilizes and then lets mother nature take care of the rest. Yet at certain times his investment is vulnerable. Too much rain or not enough, or a straight line wind just before harvest can ruin his garden. But it’s more often that his investment will mature and get harvested without a serious incident. So he speculates each season on normalcy.
Mutual funds do not grow like a garden. First of all, it may or may not grow. It is more likely that it will surge in one direction and then in the opposite direction on a daily basis. Speculating this way on your retirement portfolio just doesn’t add up for a passive investor or for a gardner. It certainly would for a day trader because the trader can change his options as the market fluctuates. A passive investor can not. His or her business is somewhere else.
Add to that, when investing in a market priced asset you are buying retail. You are buying the final crop not the seed. So there is no built in leverage securing growth. That kind of “Let’s try this” approach just doesn’t make sense when your future is at stake.
Let’s look at some alternative investing. There are many types of investments where you can buy wholesale like a farmer buying seed and expect a continued growth as a gardner would because it is written into the deal.
Investing in a mortgage might be one example. Buyers of paper never buy at face value (retail) they buy at a discount in order to create their yield. The first position mortgage is usually leaning against an alternative asset that is worth at least twenty percent more than the face value of the contract, so the worst that can happen is that you get your investment capital back without gain.
Even if the market goes south you are holding paper that is at least backed by its retail value. What normally happens is that the mortgagee pays on the loan and then refinances or moves and you get paid off - of course, all the while, getting a yield on your principle investment.
There are no wild swings in value therefore growing your wealth like a gardner can provide you with consistent growth of your capital alternative without the ups and downs. This makes much more sense to me than buying into the stocks market where they could be worth less that what you paid for them the very next day. At least you know whats on the contract upon maturity.
There are many other capital investments where you can get up front leverage, a regular yield and where you are protected on the downside if something goes wrong.
I would consider looking into various other investment options by going to Capital Investments Alternative and looking over what’s there.
If you are a passive investor doing it more like planting a crop makes much more sense.
