I implore you to view capital investments differently.  Often the generic recomendation has been “invest for the long term growth” and then you are told to place your investment capital in mutual funds or some other retail market offering.

What’s wrong with that advise?  Most people are rather passive in their investing activity.  By passive I mean that investors stick their money somewhere and then let it ride, kind of like a farmer planting a crop and then waiting for it to mature.

Here is the rub with that action when investing.  A farmer plants the crop kind of speculatively, he tills, plants, waters and fertilizes and then lets mother nature take care of the rest.  Yet at certain times his garden is vulnerable.  Too much rain or not enough or a tornado just before harvest can wipe him out.  But it’s more likely that his investment will grow and get harvested without a serious incident.  So he speculates every year on normalcy.

The stock market does not grow like a garden.  First of all, it may or may not grow.  It is more common that it will surge in one direction and then in the opposite direction on a daily basis.  Speculating this way on your retirement portfolio just doesn’t add up for a passive investor.  It certainly would for a day trader because the trader can move in and out of positions as the market fluctuates.  A passive investor can not. His or her business is somewhere else.

In addition, when investing in a market priced asset you are buying retail.  You are buying the final garden not the seed.  So there is no built in leverage securing a apositive yield.  That kind of “Let’s try this” approach just doesn’t make sense when your retirement is in the balance.

Let’s look at alternative investing.  There are a variety of investments where you can buy wholesale like a farmer buying seed and expect a continued growth as a farmer would because it is written into the deal.

Investing in a swing loan might be one example.  Buyers of paper never buy at face value (retail) they buy at a discount in order to warrant their yield.  The first position mortgage is usually leaning against an alternative asset that is worth at least twenty percent more than the face value of the contract, so the worst that can happen is that you get your investment capital back without gain.

Even if the economy crashes you are holding paper that is at least backed by its retail value.  What normally happens is that the mortgagee pays on the loan and then refinances or moves and you get your principal back – of course, all the while, getting a yield on your principle investment.

There are no wild swings in value therefore investing like a farmer does can provide you with consistent growth of your capital alternative without the volatility.  This makes much more sense to me than buying into the stocks market where they could be worth less that what you paid for them the day after.  At least you know whats on contract upon maturity.

There are many other capital investments where you can buy at a discount, a consistent yield and where you are protected on the downside if something goes wrong.
Please consider looking into various other investment options by going to Capital Investments Alternative and looking over what’s there.

If you are a passive investor investing more like planting a crop makes much more sense.