Friday, December 7, 2018

Make Money Regardless of the Fed's Policy

The Fed will raise rates.  

Does that come as a shock to you?  It shouldn't.   The fiscal policies of the last 10 years have been like a drunk on a bender, grabbing everything he/she can to get the next little fix.

The most damaging was the Quantitative Easing policies from the last 2 administrations.    Both Presidents Bush (the younger) and President Obama subscribed to the philosophy of printing money to buy our debt (T-Bills) was not going to have an impact on our long term health.  It was a lesson many entrepreneurs and Americans faced in the last recession.  Borrow and borrow and borrow your lifestyle to keep the economy afloat.  (insert eyeroll here).

The country has a debt-crisis, more on that later.  The financial stability of your household should be primary concern, and it's ultimately what this blog is about.  How to build a portfolio of cash flowing assets that are fed-policy proof.   How to build certain safeguards into your investments so whatever happens in the economy, you make money.  If the stock market goes down, you make money.  If the fed raises interest rates, you make money.    How do we build a portfolio of assets that complete one another no-matter what the market.

Let's talk about my favorite and then I'll expand on this in my next posting.   Purchasing or investing in real estate notes is a great way to move to the wealth side of the money equation.  Structuring them in a way where you get to take advantage of the fed's policies.  Such as aligning your term and terms along with how the banks do it - tied to interest rates.  You can also have inspection periods and other terms that make your investment safer than other types of investments where you lack control.  The investment world is full of variation and negotiation, use this to your advantage.

If you have any questions about investing in real estate assets, I can't give legal advice because I'm not an attorney, and I can't give tax advice because I'm not a CPA, but I may be able to point you in the right direction if you post a comment below.

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