If you’re stashing your cash in the bank or in a “safe” investment like Treasury notes, you might as well be standing on the street corner handing out $20 bills.  Even with the interest you’re getting, those investments simply are not keeping up with inflation.

Barron’s reported:

     “...the yield on cash equivalents at 2% or so is negative in real terms, or

            after inflation is deducted.  At less than 4%, the real yield on the 10-year

            note also is in the red...

           

            Which means it will cost money to dock in the safe harbor of the Treasury

            market while the storm rages in the credit and equity markets.”

If you’re keeping your money “safe” by keeping it out of the market right now, the bottom line is that it’s losing value each and every day.

Historically, the stock market appreciates an average of 11% a year, per The Motley Fool.  80% of mutual funds underperform the market.  Thus, if you own a mutual fund or similar investment vehicle there is an 80% chance you will underperform the market if your money is being actively managed!  In the stock market, once the stock goes public, the real money has already been pocketed by insiders such as investment bankers, underwriters and officers of the company.  Consistently, the insiders are the first on the ladder to get paid and the shareholder stands on the last rung holding his or her tin cup for the leftover nickels to drop.  When purchasing and investing in single-family homes, you empower yourself by owning the ladder.  You are the first one to get paid from the monthly cash flows generated.

With inflation running rampant, the dollar losing its value against foreign currency, oil, gas and electric prices on the rise, and wages remaining stagnant, the middle class is being priced out of existence.  While economics in this country have drastically changed, financial products marketed by Wall Street institutions have not been suitably structured to address these pressing issues.  401(k) plans, pension plans, 403(b) plans and IRAs are negative cash flow investments into which the investor pays out of pocket each month, drawing down their disposable income levels in the short term, only to be fully taxed upon withdrawal in their sixties.

Conversely, with single-family investing, the investor receives passive tax free income on a monthly basis, builds equity monthly, captures an unrealized capital gain upon purchase and enjoys appreciation.  Archaic investment strategies now being offered to the middle class were designed before there was such a vast divide between the wealthy 1% and the poor.

Passive Income Properties LLC seeks to bridge this divide.

AFFILIATED WITH GREAT REAL ESTATE, INC.

Investment Perspective