If you search online, you will find that most of the articles claim that stocks have broken property as a long-term investment. They summon the statistics of various companies that are fully focused stocks. The bias is clear. Although there are clear years when inventories have issued properties, one of the most important reasons for debating real estate is to ignore better long-term investments in all the comparisons made on the Internet.
This may be the best single reason for real estate investment. Some retirees lost part of their retirement fund in a collapsed stock exchange (April 2001), many of them have lost most of their retirement as a result of technical hyperbola by venture capitalists and major brokerage firms, and some have lost their pension funds through corporate accounting fraud. This last is the most important reason to invest in real estate, or at least not put all the eggs in the stock exchange basket. So real estate is not just a bit better than investing, but 10,000 times better. How can I compare two investments that could disappear through economic catastrophes, fraud or other crimes and the other would not disappear because it is a piece of land. Real estate simply does not suffer from this type of fraud and the tragedy of non-economic stocks.
See that the following companies are just a few of the accounting frauds or types of corporate fraud: Adelphia, AES Time Warner, Dollar General, PNC Bank, Cendant, Citigroup, Computer Associates, General Electric, ImClone , Peregrin, Xerox, Bristol Myers, HPL, AES Time Energy, El Paso, Merrill Lynch, Reliant Energy, JP Morgan Chase, Kmart, Lucent, MicroStrategy, Network Associates, Tyco, Enron, Global Crossing , Halliburton, Omnimedia, Merck, Qwest, Sunbeam and many other companies. The losses associated with these companies are billion . These millions of hard-working Americans suffer. These losses have nothing to do with the refused market. These losses have nothing to do with our economy or our investment principles. These are the losses people suffered because of corporate and accounting fraud. How well does the stock market look good? Dell lost $ 50 billion in market value in one day, as quarterly profits did not wait for it. In the same day, KPMG was brought to justice for the largest accounting fraud in American history. How safe is your retirement pension? 19459002
You can read articles in the newspapers in the country almost every day, from multiple scandals, from another brokerage firm, a financial service provider, or from an investment fund that pays fraud, misrepresentation or other offenses as extraordinary punishment or giant settlement. On 29 August 2006, Wall Street Journal reported major problems at Ameriprise, formerly American Express Financial Adviser. Securities America, Ameriprise's arm, paid $ 22 million. The story is that David McFadden, the hot shots of Securities America, lied about the retirement bases of Exxon's employees. Under McFadden's management, Bradley Simon's pension fund fell from $ 700,000 to $ 267,000. Or take another McFadden client, 73-year-old Pat Salatich, a nurse for 25 years at Exxon. McFadden deposited $ 565,383 in 2001, and after only $ 189,000, he learned that he had only $ 73,000 in the account before he stopped bleeding. One month, about $ 1,500 in social security. Ron and Pam Yandell in Texas, Mansfield, have invested a $ 1.4 million pension fund to a stockbroker who has invested risky technical stocks without their approval. $ 230,000 have been lost in the technical collapse. After a five-year legal battle and a lot of cost and stress, they won $ 990,000 against their stockbrokers, but nobody could find it to collect. Disappeared. Such cases are a dozen or dozen.
While real estates are turning dramatically down the real estate market (which means that the holding has its tanks and probably the stocks as well), it rarely occurs on the stock market and corporate scams. The property does not have such wild roller coaster tours, which are almost daily. More significant in today and age is that you do not have to suffer from scams and scams that someone is managing (and losing) to you.
Look around. Real estate is everywhere and someone has all the parcels. It can not disappear as a stock certificate. While there may be catastrophes and God's actions that can cause losses to your property, you can provide very low insurance premiums for such things. Does your warehouse broker personally guarantee that you will not lose your inventory value or take out insurance cover against losses?
Source by Chuck Marunde