Are Your Investment ‘Rules’ Outdated?

Have you ever had a nightmare where you discover one day that everything you believed to be true turns out to be wrong?

I read an article in the “Money” section of U.S. News and World report the other day that listed 10 common investing rules that don’t apply anymore. I think this is a very common phenomenon and not only in investing and finance.

We get something driven into our heads when we’re young and unless we go back to school, we seldom get a chance to benefit from more current thinking. Did you know, for example, that you won’t necessarily drown if you go swimming within an hour after eating?

Investing for retirement

But getting back to our financial topic, it turns out that the economy, how long people live and work, and the investment vehicles available have all changed a lot over the last few decades, so some of the “conventional wisdom” is no longer applicable.

One rule this article tosses out the window is that retired people should have their money in bonds, where they trade growth for safety. But today, with as long as people live during their retirement years, retirees still need growth. It won’t be uncommon for the current and next groups of retirees to exit the workforce at 65 (or earlier) and live another 35 years.

Another “rule of thumb” that doesn’t apply is that in retirement you can live on 75 percent of what you’re making today. Honestly, you’ll need about the same amount of income in retirement as you do today, unless you plan to leave the country and retire in Nicaragua, or some other place where property is cheap low and prices are low.

The general message implied by these “rule changes” is that investors need to pay closer attention to their portfolios and get better returns on their money.

Get the ROI you need

There was one rule change, however, that I don’t totally agree with. This article said that people used to count on an 8 percent return, and that’s not realistic any more. For many investment strategies this is true, but with First Trust Deeds, it’s still very doable. In fact, at Evoque Lending, we’re getting double-digit returns for our investors right now.

Investors who have at least part of their portfolios in First Trust Deeds will be able to escape the downside of these new rules. In other words, with the ROI we’re able to deliver and proper planning, you will be able to grow your money sufficiently to have the retirement savings you need.

Further, once retired, keeping some of your money in First Trust Deeds will help you maintain your monthly income at a level equal to what you enjoyed during your working days.

First Trust Deeds are certainly worth looking into further, right? If you agree, give me a call or drop me an email. I can answer your questions and we can discuss your specific situation and needs.

Keeping your money safe

But even before you make that call, let me explain how we work to insure the safety of your investments. At Evoque Lending we specialize in California property, especially Los Angeles real estate, Orange County real estate, and real estate in the San Francisco area. We’ve been in this business and in these real estate markets for more than 15 years.

We build some 40 percent of protective equity into all our loans and we are experts at vetting our borrowers to be sure they have the ability to meet their obligations. That’s the “Cliff Notes” version of what we do. If you have money to invest and want to improve your yields, contact me today.