Wealth Accumulation Through Long-Term Investments


If you are an average investor you probably invest in mutual funds. If you have a 401(k) at work you likely own mutual fund investments. How can I say this? Because in the vast majority of 401(k) plans, the vast majority of the investment options offered are mutual fund investments.

The average investor’s returns are so low because we, as a whole, love to tinker with things. When the market goes down we tend to sell with it and when the market goes up we tend to buy with it. This cycle is typical and predictable and it will not ever change, it is human nature driven by fear and greed.

When you’re looking at investing in First Trust Deeds, as with any other fixed income investment, your main concern is always the safety of your principal. Remember that these are backed by real property, so the level of risk is directly related to the value of the property. A First Trust Deed is the primary, or first, loan that is secured to a specific property. Now that the real estate market has recovered, the decline in values that we’ve seen the past few years are over, and we should start to see values rise again. That makes trust deeds some of the safest buying a property spain and actually has good potential for high profits.

If you have teenage children with their own vehicles beware of buying a property with a shared drive. This could be the source of future conflict. Even without teenagers in your household, what of your prospective neighbour and his children and visitors? You may well find your neighbour is extremely gregarious – always entertaining. Will you always have clear access to your house when needed?

As with any investment there are risks, but you feel you can understand them. The business may fail after a few years or you might not get the return you had hoped for. You have invested with the sausage maker based on your priorities and values, some of which you share with him. You care about his success not only because you want a good return on your money but also because you love his products. Your life seems richer for having experienced them. The relationship between the business and you as an investor is very tangible and personal.

Size of the property This is another major consideration, keep in the mind the needs of the potential tenant when searching for an investment property. For example, if young families are your target audience, you will need somewhere with an adequate number of rooms, and garden space.

Sounds like an impossible deal? Well, technically not so. Rick Otton, the Australian real estate Guru is the living proof that the concept is doable and he’s not alone. Since Rick introduced the concept of property investing in the market, thousands of people have been able to buy properties and even managed to become successful property investors starting with a small amount of savings.