Buy and hold. I think of it as the “what if” strategy. Because when people talk about buy and hold, they usually say things like: “If you had bought Apple stock in January 2008 and held it for 10 years, it would have yielded 867% returns.”
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert G. Allen You have a sound knowledge of the alternative investment landscape, and you plan to use that for retirement investing. And just when you’re about to process the first transaction, you find out that your retirement plan provider doesn’t allow alternative investments. That reduces your choices to the traditional asset classes.
(Editor’s Note: This guest post was contributed by Fundrise, one of the real estate investment platforms that we’ve reviewed at Investor Junkie. Click here for a detailed comparison of Fundrise and other services.) Are you like most investors out there still following Modern Portfolio Theory? You know, the theory that says your investment portfolio should be a balance between stocks and bonds, with your allocation shifting away from stocks and more toward bonds as you age?
I have invested in a total of 125 individual transactions through various real estate crowdfunding platforms, with an average of $10,000 per investment. Almost two-thirds of these transactions have been fully completed (principal and interest) with very good monetary gains. Of the 80 or so completed deals, the average return has been slightly over 10%.
The Gig Economy is coming of age. With it, a new generation of workers has come to light, one that is made up of self-employed professionals and freelancers. A survey conducted by the Freelancers Union and Upwork states that as many as 54 million Americans did freelance work in 2015. That is around one-third of the U.S. labor market.
Editor’s Note: Mark Ferguson of Invest Four More loves educating people about what being a real estate investor is really like. In this special Guest Post, he walks us through a recent flip that ended up better — although more challenging — than expected. Spoiler Alert: This isn’t what those reality TV shows will tell you! In June I sold a flip for $279,900 that I had bought in February for $183,000. I made a decent profit on this property and more than I thought I would originally make. There was a huge spread between the purchase price and the selling price, but there are also many costs when flipping houses. While I did well on this flip, I did not make as much money as many would think based on what house-flipping shows teach you.
The following post about peer-to-peer investing is by ESI from ESI Money, a blog about achieving financial independence through earning, saving and investing (ESI). It was written by an early 50s retiree who has achieved financial independence, shares what has worked for him and details how others can implement those successes in their lives. To learn more about retiring early, you can get his free e-book Three Steps to Financial Independence.
I’ve been investing in the stock market for almost 20 years now and I still remember how excited I was when my mom opened my first trading account in high school. I remember the highs and the lows, the emotional roller coaster rides, the euphoria of making the right stock picks. I have fond memories of the late 90’s when I was invincible and anything I bought went straight up.
The very word ‘investing’ can throw the most savvy person into a cold sweat, with the thought of complex and time consuming funds, stock market purchases and complex financial products often first springing to mind. Certainly there has long been a certain mystique attached to investing – the idea that it’s an activity best left to the experts, the rich, the professional management funds, or those with vast tracts of spare time and resources available.
Peer to peer (p2p) lending has been around for several years now, but during this time there has been a wide range of investor returns. The most successful investors are earning more than 20%, but there are some unfortunate individuals who have lost money with returns of -25% or worse. Most investor returns fall somewhere in the 6-12% range. So how can you ensure as an investor that you earn an above average return? Here are five keys that will help you become a successful p2p investor.