Uncategorized 
No Comments Diversify
Diversify, that’s what we’re all encouraged to do. In the broker’s mind, that means a certain mix of equities, mutual funds, etc. with a two percent allocation for cash just in case you need to throw a pizza party.
Of course, some diversification of your portfolio is wise, but in my mind, it is best if you pick companies that are well managed, use debt well, and are an essential part of the economy. But stocks and such should only be a part of your saving goal
Real estate has always been a way to build wealth. If you’re cut out to be a landlord, go for it; just be sure you are. If that’s the route you take I would consider buying upper scale property. It’s hard for most to come up with the rent and therefore people with better incomes are more able to be dependable in doing so.
Purchasing land, especially in areas where businesses build is a better approach. It shouldn’t be zoned commercial as that drives up the taxes. Land goes up in value more than the building that sits on it. It also has the advantage of not needing painting, plumbing, and the rest of the repairs that come with building ownership. I live in Phoenix. When the boom hit, houses went up fifty percent; land went up five times that. Accessible dirt is where it is at.
Next time we’ll think of what to have when the bottom falls out of the bucket.