What Is the Best Low Risk Investment?
If you want to open up a controversy, just ask 2 or more people, “What is the best low risk investment? and stand by for opinions.
Wow, talk about a hot potato! Everyone has multiple opinions about the best non volatile investments, and if you ask them at different times during their life, they’ll give you different opinions.
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What Is the Best Low Risk Investment? – High vs Low Risk
For example, my friend Stan bought stocks in a controversial company. The company made Payday loans. If you don’t know, Payday loans are for a segment of the market that has little money. They sometimes need a short-term loan, and the loan rates are outrageously high.
The loan must be paid back quickly, and the Payday lender probably has the title to their car or deed to their property as security. People walk away, lose their security. It’s not pretty.
If you ask Stan about it, you’ll learn very quickly that as far as he’s concerned, this is the best use of his investment money. It’s low risk for him because someone else does all the work.
On the other hand, my grandfather is happy because his mutual fund pays him market rates plus 5% each year. This is a complete opposite of Stan.
My point is I don’t know who you are or where you are so I can’t say what’s best for you. I’m not a financial planner, investment advisor, CPA or attorney at law.
People who are attracted to me and what I do will tell me they’re worried about inflation. They consider the stock market gambling. Many of them feel they’re left out and the real estate market, and the stock market left them behind.
What Is the Best Low Risk Investment? – Risk and Reward
So, what is the best low risk investment? Which investment has least risk? The answers I get from financial planners and investment advisors are government bonds and certificates of deposit at banks.
These investments are safe and secure. However, they generate low interest rates which means you make very little money.
There’s a big difference between being an investor and being an entrepreneur. Entrepreneurs take risks. Investors need to consider risk and reward.
What Is the Best Low Risk Investment? – Real Estate
For decades, I’ve been involved in real estate. I started with single family homes, gradually purchased my first 50-unit apartment, and my second investment was a 60-unit apartment.
My investments grew for the next decade to 150-unit apartments, then 300-unit apartments. With each step in the process, there was a massive increase in complexity and risk. Management is enormous.
What is the best low risk investment? Certainly, it’s not apartments filled with hundreds of residents that require dozens of managers.
Contrast that with banks CDs and government bonds. There’s a huge difference.
What Is the Best Low Risk Investment? – Inflation
What are the safest investments with the lowest returns? Why isn’t everyone investing in government bonds and certificates of deposit? They offer all the security anyone would ever need. However, they depreciate because of inflation, which makes bonds and CDs worth a lot less.
Here’s an example of inflation. In 1964, the price tag for a convertible Ford Mustang was $2,400. Today, a new Mustang costs $45,000 – $60,000. My point isn’t the Mustang, my point is you need to improve your earning power.
You need to generate more money. You need to be looking at low-risk high return investments.
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What Is the Best Low Risk Investment? – Retirement
Everyone wants to retire at 50 – 65 years old, yet people are living longer, probably to 85 years old. That means you need 30 years of money to keep your lifestyle.
CDs and treasuries are only paying 1%.
Let’s further complicate the challenge. The Social Security Administration recently revealed that it may possibly run out of money.
Investors concerned about retirement are facing a double whammy. Inflation at 5 % will destroy your savings over the next 2 decades, and Social Security is a supplement, not a retirement program.
What Is the Best Low Risk Investment? – A Solution
What is the safest investment with the highest return? Here’s a solution that I’ve taught hundreds of my clients. It’s been in use for over 200 years by those in the know.
This alternative investment requires some learning, however, it will generate new income with small investments.
Today only a select group of investors, who realize the financial future may be in danger, have considered developing more revenue to take care of their needs.
Let’s plan on generating new revenue to solve the problem. You will need to earn more.
What Is the Best Low Risk Investment? – Tax Defaulted Property
30-years ago, I discovered a government-mandated and administered program that’s affordable for the little guy.
Local counties can have difficulty collecting taxes from property owners. If the property taxes are uncollectible, they will confiscate the property and sell it at a public auction to the highest bidder.
What Is the Best Low Risk Investment? – Bargain Real Estate
These confiscated properties are sold with the bidding beginning at just the back taxes. Additionally, the mortgage is deleted.
I’ve taught my clients how to purchase these properties for 10 cents, 20 cents or 30 cents on the dollar and then resell them for 50, 60 or 70 cents on the dollar. This is a good business.
What Is the Best Low Risk Investment? – An Example
Here’s a breakdown of a tax defaulted real estate transaction:
Tax assessed value is $90,000
County treasurer seizes the property for $5,000 in defaulted taxes and auctions the property
New auction buyer pays 20 cents on the dollar for a property valued at $90,000
New auction buyer uses Ted Thomas’ buy low, sell low strategy.
The tax assessed value is $90,000, and the auction buyer paid only $18,000
Buyer advertises property for $55,000, way under market, and the price attracts a purchaser
New purchaser agrees to $10,000 down payment and requests installment payments for 10 years.
What Is the Best Low Risk Investment? – Let’s Do the Math
Selling price: $55,000
Down payment: $10,000
Installment sale for 10 years at $450 a month equals $54,000
Add back in down payment and the total received is $64,000
The amount invested was $18,000, and the profit is $46,000.
What Is the Best Low Risk Investment? – Conclusion
We hope you enjoyed Ted’s lesson, “What Is the Best Low Risk Investment?”
The issue with most low risk investments, like bonds and bank CDs, is that they also pay low yields. So, when you factor in inflation, you’re actually losing money.
Ted Thomas discovered a low risk way to invest that pays extremely high yields, and that is tax delinquent real estate investing.
When you purchase mortgage-free properties at county auctions for 10, 20, or 30 cents on the dollar, you can generate cash flow fast by reselling them attractively priced at 50, 60 or 70 cents on the dollar.
If you’d like to know more about tax delinquent property investing, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Get started today at no cost with Ted’s FREE Master Class. It’s only about 1 hour of streaming video and will open your eyes to the incredible opportunities available in tax lien certificates and tax deed investing.