Archive for January 2nd, 2009
Real Estate Investment Power
January 2nd, 2009 | 
Author: I would like to show you how powerful investing in Real Estate can be. This is the main reason why we have lots of Real Estate Investors all over the world. Suppose someone gave you $10,000 to invest. What would you do with it?
Put the money in the bank? If you earned 5% interest, your investment would be worth about close to $12,800.00 after five years. Not bad, but with the current rate of inflation of 3% per year, your investment may not make you much in the long run after you pay Federal income taxes.
In other words, you are barely keeping up with inflation. What about investing your $10,000 in the stock market? A good mutual fund can earn 10% to 15% a year. Also not bad, but not all mutual funds will be that high. Some go up and down just like stocks do.
Maybe you can get a much higher rate of return by buying stocks, but which stock do you choose? Even stock analysts can’t agree on which stock will increase in value, and guessing proves nearly as accurate as relying on the advice of stock experts.