Wouldn’t it be interesting if I told you the exact five places that I’ve placed my own money over the past year? Today, I will. I even made a video on this subject:
Consider this—what if you were invested in an asset that you absolutely knew was going to depreciate?
You already are. It’s the Dollar.
Same if your home currency is the: Euro, Pound, Rupee, Yen, Franc, Rial, Ruble, Dinar or Peso.
The US government now admits to 7% inflation. Many believe it’s really above 15%.
The same dollar that you’ve held for a year is worth perhaps 90¢ today.
It’s prudent to have some liquidity for emergencies. But an attentive investor must almost be desperate to get their dollars placed now.
Otherwise, you’re certain to lose your prosperity. You’re being robbed by a stealthy thief.
You don’t have to invest like you only wear Italian suits. As you’ll see, this is available to many.
Ranked lowest-to-highest in new allocation, here’s exactly how I’ve placed my own money in the last year.
5th – Spend
One way to beat inflation is to spend your dollars. If today’s $10,000 family vacation to Portugal would cost you $11,000 next year, then you win by going this year. I just had a great two week vacation in winter 2022 Ecuador.
I went for more than the great Zoom backgrounds, exploring Quito, Guayaquil, The Amazon, and The Galapagos Islands, The High Andes Mountains and prehistoric giant tortoises! Photos here.
Old school, Dockers-wearing financial advisors get caught off guard with a suggestion to spend. But this isn’t a license to spend recklessly.
The risk of delayed gratification is denied gratification. Spending ensures that you improve you and your family’s quality of life.
What’s more important than this?
Here’s one dirty truth about the finance industry. Equity fund managers and real estate promoters pump “delayed gratification” so that you hand over your money to them.
But at some point, you want to turn your income into an outcome. Die with memories, not dreams.
It’s not about having more money; it’s about living your days as you wish.
4th – Gold
I added more gold last year because it’s one of the few assets where the price hasn’t run up torridly this decade, making it a comparatively good buy.
Gold has had enduring value for five millennia. Exceedingly few assets have this track record.
It’s really like “money insurance” and a classic inflation hedge.
I bought mine through friend and eQRP Company Founder, Damion Lupo. I wired the funds and he had gold bars in my hand the next day.
This is defensive. It’s not a home run. There’s no leverage. Gold doesn’t create cash flow. That’s why even with my new purchase, it is still just 2% of my net worth. That’s enough for me.
3rd – Bitcoin
Unlike gold and its long track record, converting dollars into this best-known cryptocurrency is the allocation to risk.
The most compelling value feature of Bitcoin is its fixed supply of 21 million. Dollars have an unlimited supply.
Some sovereign individuals like it because it’s a cannon shot to the castle walls of the kleptocracy, disabling central governments’ power of currency control.
I bought most of my Bitcoin in August 2020 when the price was $11K. It’s psychologically hard to buy more now when the price nears $40K.
My Bitcoin is stored on the Celsius Network, where the entire balance earns 3% interest—an income stream. Other platforms use teaser rates.
You can read all my Bitcoin thoughts here.
2nd – Real Estate Lending
I don’t allocate too much here. With high inflation, it’s better to be a borrower than a lender. It’s defensive.
By making a loan to a reputable real estate company so that they can fix and flip homes, they pay me 8% to 10% in “clean interest”.
What I mean by “clean” is that it’s a simple, low hassle transaction where e-distributions simply show up in my account. It’s all about the cash flow.
It’s smooth. There’s no loan to qualify for. (Remember, you’re the lender.) You need at least $50K – $100K.
There’s an investor portal where I can view my account anytime. I have 1-year liquidity on my principal. Though my loan is secured with real property, a trusted operator is still key here.
As I’ve shared with you before, I invest through my Forbes RE Council colleague and friend, Dani Lynn Robison and Freedom Real Estate Group right here. You need a GRE Marketplace login.
1st – Turnkey Real Estate
This is likely the best thing you can do for the health of your wealth. Because you have five dimensions of profit, you’re being offensive and defensive at the same time.
C’mon now. What did you think I was going to say was #1—vintage G.I. Joe guys?
You already know turnkey real estate is our main formula here at GRE. It’s exactly where I focus myself. I believe that it’s the best way to create wealth from mediocrity.
When you directly buy income-producing real estate tied to long-term fixed interest rate debt, what you’ve really accomplished is that you’ve…
… purchased what will go up in value while borrowing what will go down in value.
That’s why your wealth creation often goes exponential.
Even here in February 2022, $25K – $30K is enough for a down payment and closing costs on a real rental property that you own in: St. Louis, Memphis, Little Rock, Cincinnati, or Dayton.
I’ve devoted hundreds of hours to building a great resource that connects you with these property providers.
Sign up, connect, buy real estate, and build freedom at: GREmarketplace.com.
Other than a liquidity cushion, it’s prudent to get out of the dollar. It’s assured to keep losing value. That’s one of the few guarantees in investing today.
Thought getting your money to work for you creates wealth? It doesn’t! That’s a myth. My one-hour investing video course is now 100% free: Real Estate Pays 5 Ways. For a limited time, you can learn how wealth is really created, here.