When you think of investing, you’re likely contemplating the variety of options: stock, bonds, real estate, precious metals. Well rather than going for the “OR” approach, we suggest an “AND” mentality. The best combination for your portfolio diversification is precious metals and real estate investing.
Real Estate Investing and Precious Metals: Hedge Against Inflation
Both precious metals and real estate investing can offer a potential hedge against inflation.
On the real estate side, rental rates and home prices historically rise with inflation. However, since your mortgage payments will not increase with inflation, your rental profit margins increase as does your home equity.
On the precious metals side, gold has historically performed well during high inflationary periods. While the US Dollar loses purchasing power due to inflation, gold retains its intrinsic value allowing the asset holder peace of mind when government bailouts occur and the stock market crashes.
Real Estate Investing and Precious Metals: Using Your Time Wisely
Real estate investing and precious metals compliment each other in regards to time. We’ve all heard the old adage “time is money”. If that is true, then wouldn’t the perfect combination of investments be something that yields profit with little time invested? Enter real estate investing and precious metals.
Real estate investments take a bit of time upfront, but the returns can be tremendous. And, if you have an expert real estate agent and property management company, the time you spend managing this asset compared to the dividends earned is quite positive.
Additionally, when you adopt a buy and hold strategy in regards to precious metals, you are earning money while spending your time elsewhere, for example, swinging the golf club on the local fairway.
Real Estate Investing and Precious Metals = A Tangible Asset
Can you please pass the stocks? That doesn’t make a lick of sense does it? Why? Because stocks are not a tangible asset. There’s nothing to touch, see, or store. Real estate and Precious Metals however, are tangible assets. Stephen Doucette, a certified financial planner and vice president of Proctor Financial in Sherborn, Massachusetts, was quoted in a CNBC article saying “the tangible nature of real estate simply offers much more peace of mind than the intangible nature of stock and bonds”.
Stocks and bonds leave the your funds to the whim of a CEO or the fancy of the consumer market, yet real estate assets are in your direct management.
The tangibility of precious metals likewise offers a sense of control as you can store physical metals in Gold and Silver IRAs. The benefit of putting these physical assets into your Gold and Silver IRA means you will always be in possession of a investment with intrinsic value.
Diversity University Takeaway
There are many ways to diversify your portfolio. The real key to winning is to include assets that compliment each other in a similar way that real estate investing and precious metals do. No other combinations that we know of deliver a safeguard against inflation, earn dividends with little time invested, and bring the peace of mind that only physical assets can provide.
With interest rates low and the ability to store precious metals in Gold and Silver IRAs, there is no better time to capitalize on this winning investment combination. Our diversifying experts at Landmark Gold are available by phone or online chat to answer any questions you may have.