Protect Your Retirement Savings with 4 Simple Questions — and a Surprising Strategy
Protect Your Retirement Savings with 4 Simple Questions — and a Surprising Strategy
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Most Americans take risks with their retirement savings without even realizing it. In this story, see how one of our investors analyzed her portfolio, reduced her risk, and took control of her retirement with four simple questions.
In 1999, Jessica turned 40. Besides her family and career, one of her proudest achievements was her retirement account, which had enjoyed strong gains over the years. At this stage of her life, she was finally feeling like all her hard work and sacrifice were starting to pay off.
Just a year later, in 2000, the dot-com bubble burst, and the market followed tech stocks over the cliff. Jessica’s retirement account was cut almost in half. She immediately began to worry about her family’s financial security and her own retirement.
Over the next seven years, Jessica’s portfolio made some good progress toward recovery. Her kids were in college, and she was starting to feel hopeful about the future again. We all know what happened next.
In 2007, the market roller coaster plunged again as the Great Recession rocked the economy — and Jessica’s retirement account — for the second time in less than a decade. Again, she crossed her fingers and began patiently waiting for her account to climb back.
What happened next almost seemed like a cruel joke. In 2020, the COVID-19 pandemic swept the globe, and Jessica watched her retirement account nosedive, this time on the virtual eve of her retirement.
Jessica could see the pattern clearly and could not blame it on a lack of education or simply bad luck. Huge market fluctuations were happening regularly, and with each one, her retirement was set back further. Even if the markets eventually recovered each time, she was missing out on years of potential growth and spending a large portion of her working life rebuilding the savings lost with each crash.
By 2021, the market had mostly recovered, and this time, Jessica was finished riding the roller coaster. She was ready to take matters into her own hands while she was ahead. She stopped relying on traditional investments and started looking for an alternative investment that would provide greater protection, cash flow, and peace of mind.
Jessica found a new retirement investment strategy by asking herself four simple questions and answering them with brutal honesty. We can all learn from her experience.
4 Questions to Protect Your Retirement Savings
Jessica used these four questions to analyze her investment decisions and find a strategy that would help her portfolio grow at a similar pace to the stock market, while insulating her from volatility and downside risk. She took off the rose-colored glasses and was truly honest with herself about her investments.
If all markets start a downward trend tomorrow, will I likely experience losses?
If the markets all crashed tomorrow, how would your investments perform? Would your portfolio lose money? Most investors make money when the market goes their way, but when the market moves in a different direction, they lose money. In the worst case, their portfolios can lose all their value. That might be acceptable for a high-risk, growth-oriented portfolio, but retirement accounts should be insulated from market risk and recessions.
In the midst of a market crash, will my investments actually make me money?
Would your investments pay a dividend during a market crash? Would they produce income through a period of economic recession? Most traditional investments won’t, but there are alternatives that can.
Will the asset behind my investment still be there, no matter what?
Do you remember Enron? Jessica does. Her portfolio was partially invested in the company when it was the hottest thing on the market in 2000. Then she watched her money disappear when Enron folded a year later. If there is one thing we’ve all learned over the past few years, it’s that the world can change overnight, and only some alternative investment strategies are resistant to those changes.
Do I trust where my money is invested?
How much of a direct personal connection do you have to the principles behind your investments? Are you trusting a middleman, who could be motivated by fees, to invest on your behalf? Do you truly know where your money is invested? Have you researched the companies whose stock you own, and are their goals aligned with yours?
Don’t feel bad if you answered “no” to any or all of these questions. Most people have been led to invest the same old way. They place their money in traditional investments because they simply don’t know alternatives exist. But your answers may be a wake-up call to consider a better alternative, just like Jessica did.
What to Look for in an Alternative Investment
By answering these questions, Jessica realized that her retirement investments were too closely correlated with Wall Street. Her portfolio was not insulated from losses and was only growing during good times. She didn’t fully trust that the investments would be there when she needed them most.
As she explored her options, Jessica zeroed in on the key characteristics of the best alternative investments:
Insulation from Losses Nobody likes to lose money. The best alternative investments have minimal exposure to risk of loss when markets turn sour.
Stable Income During difficult times, receiving income from your investments is a powerful advantage. Some investments can produce consistent income year after year, regardless of economic conditions or market volatility.
Non-Correlated Performance Some alternatives are not correlated with the stock market, the economy, or the broader markets in general. When everything else is in chaos, the best alternatives investments can offer the most predictable returns with the least amount of volatility.
A Great Experience Investors tend to focus on returns, but that focus is what gave Jessica countless sleepless nights over the years. One of the most overlooked characteristics of a great investment is the comfort and peace of mind that comes along with it. Make sure the alternative you choose helps you sleep well at night.
Mobile Home Park Investments: An Ideal Alternative Investment for Retirement Accounts
In her search of the best alternative investment to meet her goals, Jessica finally landed on real estate. She was already aware that real estate is considered one of the best hedges against inflation, but she also discovered this interesting fact: Over the last two centuries, almost 90% of the world’s millionaires have been created through investments in real estate.
However, she also knew that all real estate is not created equal, and most types are exposed to market volatility, like we saw in the Great Recession. When she dug a little deeper, Jessica discovered a little-known alternative strategy that consistently outperforms others in good times and in bad: mobile home park investments.
The unique characteristics of mobile home parks give them a powerful ability to weather recessions. They can deliver predictable cash flow even during difficult times and insulate investment dollars from losses.
Mobile home parks also satisfy each of the four characteristics that Jessica was looking for. Mobile home park investments are lower-risk, recession-resistant, and one of the best alternatives to insulate investment dollars from losses. They have the unique ability to produce predictable cash flow even when markets crash, and their performance is not correlated with the stock market, the economy, or other types of real estate.
By networking and doing proper due diligence, Jessica also discovered the easy way to invest in mobile home parks: through a verified sponsor. This gave her access to a great investment experience that will ensure peace of mind through her retirement years.
Jessica’s discovery of mobile home parks was a revelation. After 20 years of watching her retirement account struggle with market fluctuations, she is finally able to relax as her investments take care of themselves. The experience has been life-changing, and as her retirement approaches, she finally looks to the future with peace of mind.
This content is the perspective of the author and is not intended to be relied upon as a forecast, recommendation or investment advice, and is not an offer or solicitation to buy any securities or to adopt any investment strategy. The information and opinions contained in this content are derived from experience, historic data, and other sources deemed to be reliable, are as of the date of this content, and may change as subsequent conditions vary.
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