Asset Junkie ! dot Com

With the economy “in recovery” and investments climbing higher on a magic carpet that no body can figure out how it’s flying, we come to a question; how do we invest in this situation?

Investing is not as complex as people make it out to be. Remember, I said Investing not day trading or picking stocks because those are different beast all together. Investing is the means in which a person or group (investment club, orgainization, etc. ) purchases assets which produce security and growth over time.

Over a long investment horizon all financial advisor suggest someone be invested in equities more heavily than other assets. The point financial advisor do not understand is equity mean ownership in something, not just stocks on an exchange. Stocks are liquid most of the time making them quick in and quick out but there are other investments to be had as an equity asset.

Here is a list of some equity assets:

• Real property (land, real estate, water rights, etc.)
• ownership in private companies (sounds like you need a million dollars for this type of investment doesn’t it? Well you don’t have to have lots of money. You can invest as a business lender to a friend or local business wanting to expand by offering cash for ownership rights – ex: $10,000 for 5% ownership and profit.)
• Foreign property – though this is identical to the above you can avoid paying hefty property tax, etc. by owning land or a home in another country.
• Invest in your company. If you own something you rent, or do consulting, etc. you can create a company and write off expenses associated with that company***. (*** be sure to consult an attorney or CPA for specific advice)