If you think the stock market’s recent wild ride may be over,think again. A day after the Dow Jones largest one-day loss,a terrifying 1,000 point plunge,it bolted from -279 in the morning to black and whipsawed back to -139 where it landed for the day. This is the kind of extraordinary volatility that we have been forced to become accustomed to on a regular basis in America. Art Hogan chief market analyst at Jefferies & Co. put it quite apply,“It’s a pile of uncertainty out there”.
Seven Year Setback
Almost 60% of Americans now say they have lost money in mutual funds,401(k) plans,or the stock market over the last 24 months. Men and women in or near retirement suffered the greatest losses. On average,it will take seven years for their investments to be what they were worth just a few years ago.
For years,stock brokerages and banks have convinced us that the only place to invest our cash and IRA holdings is in stocks and CDs. When the market gyrates uncontrollably the same people advise us to stand by and hold on for dear life as we watch our portfolio and retirement savings evaporate. Few know there are alternatives that are safe,sound,secure and arguably smarter.
Most investors see the need to get off this stock market roller coaster and do something different but fear of making changes to their investment strategy and the feeling that real estate investing is difficult to understand,holds them back,especially when purchasing investment property in a foreign country like Mexico. Many do not yet know that it’s perfectly legal to take control of your own IRA and direct your retirement funds toward more stable growth investments like real estate holdings. In fact,your IRA can buy virtually any kind of real estate that you choose,including properties in Mexico.
The Mexican economy is surging (not swinging),up 10% from a year ago,expecting $20 billion in foreign investment this year,and the home of now the richest living human being on the planet,Carlos Slim. If you had invested $10,000 dollars here just 10 years ago you would have minimally witnessed a 232% gain in your portfolio. There are now over 18,000 major American companies currently investing and operating in Mexico along with over 1 million Americans who are investing,buying,building and or retiring in Mexico with many more on the way.
Diversify or Die
Currently, real estate development in Mexico's Riviera Maya is far outpacing growth in the U.S.,Canada and most other countries for that matter. For example,Playa del Carmen,30 minutes from Cancun,was named the fastest growing area in the world just a few years ago and Tulum,just to the south,is poised to grow even faster in the next 5 years. Those who get in on this land rush now and ride the wave over the next few years are likely to position themselves far ahead of even the likes of Warren Buffett himself.
The lesson here is a simple one. Don’t blindly endure the financial whiplash the stock market is inflicting on you. Yes,it’s a little late to avoid the brutal,knee jerk ups and downs of the stock market of the last few years,but it’s certainly not too late to consider taking at least part of your hard earned cash and retirement portfolio away from the violent waves of Wall Street to the sunny and more stable shores of Mexico.