Financial security is important to all of us. We all want to feel like our investments are low-risk and secure, that we'll be comfortable in retirement, and that our children won't have to worry about money. But the truth is, most of us have been fed lies about the nest egg and the 401k when in reality, this is not the route to financial security.
Last week, I talked about why the 401k isn't as cushy as you might have been led to believe. So if you've been lied to, like most Americans, how do you actually go about creating financial security for your family? Always do your own research, but in our family we've been able to create financial freedom through real estate. Here are five things that make real estate an incredibly safe investment:
- Real estate can never go down to zero in value! When you own a piece of real estate, you can always sell it! Even if the value drops, it never becomes worth nothing, unlike a stock.
- Real estate is a tangible asset. A rental property is an actual structure on a real piece of land. A stock certificate is just a piece of paper that indicates that you own a share. Since real estate is tangible, it can always be sold and you can claim depreciation!
- The real estate investing market is stable. Historically speaking, the real estate market (for investors) has more stability than the stock market. In the areas where we advise investing, you won’t see a dip in values or rental income even in a recession.
- Real estate investments appreciate! The value of your property won’t decline—you can count on your rental property to appreciate, even if that amount is small.
- Real estate is the best, most reliable way to create passive income. When you purchase a piece of real estate, you’re turning a lump of cash into a stream of cash. That’s true financial freedom! Download our Freedom Cheat Sheet to learn more about creating passive income for your family.