Surviving The Global Economic Crisis…
For years, there have been rumblings of an economic crisis.
Financial experts have warned that this current economy is not sustainable…
They’ve said that taking the U.S. off the gold standard practically guaranteed a full-scale failure…
And that, like a ticking time bomb, we were edging closer to that crisis with each passing day.
February 27, 2020 might have been the day that set the final countdown in motion.
As I’m sure you’ve heard, the DOW had a brutal week of losses, and on February 27th, it plunged wildly…
Closing at 1,191 points lower than it opened.
This is the largest single day loss in history.
If you have stocks, you’ve already looked at your accounts with a pit in your stomach.
I don’t have to tell you how bad the losses are; you’ve already seen and felt the effects for yourself.
Now, some people will use this as an opportunity to double down and buy in now that the numbers look pretty low…
And others wonder if this is the true rock bottom, or if it’s just the beginning of the end.
And still others want off this roller coaster. They don’t want to leave their hard earned money and their plans for the future in such a volatile system.
Fortunately, there is a way to continue to invest and grow your money without being subject to the white-knuckled ride that is the stock market.
Don’t get me wrong – the stock market is and will continue to be a perfectly viable way to invest.
But you only have to experience a drop like this once in order to feel soured by it.
If this is you, then according to expert and multimillionaire Robert Kiyosaki, it’s time to consider a safer, even more lucrative path.
That Path Is Real Estate
By now you should know the author of Rich Dad, Poor Dad, the #1 personal finance book of all time, Robert Kiyosaki is also an entrepreneur, an educator, and, of course, an investor. I tend to talk about him alot. He is a massive force in the financial education sector. I want everyone to know he’s teachings to better themselves financially.
He’s on a mission to change the way we look at money. Because of this, he’s become a passionate and outspoken advocate for widespread financial education.
Robert has made millions in real estate, and he thinks this path can work for just about anyone.
With real estate, not only do you get to make the money, you get to keep the money, too.
That’s important, because making money is wonderful… right up until you have to pay massive taxes on what you’ve earned.
With real estate, you get to avoid that harsh side effect.
Oh, and by the way, Robert’s not talking about your own home. That’s not an asset that will make you money. Instead, it’s a liability that costs you money – but more on that another time.
Robert is specifically speaking about owning real estate that other people will rent from you – either single family or multi family units like apartment buildings.
See, when you own real estate that other people pay for the privilege of using, you grow richer in a variety of ways.
First, you directly earn money – assuming the rent they pay is more than what you owe. If you’ve done your homework to make sure the property you’re buying is a good deal, this will be a given.
Second, your portfolio grows. Simply by adding in more properties, you have assets that you can keep and continue to earn with – or you can sell them down the line if you so choose.
And third, unlike with the gains from stocks…
You Get Tax Breaks On The Entire Deal
Think about it. If you purchase your rental property with a loan, you’re earning a return with money you didn’t have to pay taxes on.
Additionally, you get all sorts of tax breaks against the money you made on the rental home. Even the IRS says:
“If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.
You can deduct the ordinary and necessary expenses for managing, conserving and maintaining your rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance.
You can deduct the costs of certain materials, supplies, repairs, and maintenance that you make to your rental property to keep your property in good operating condition.”
That’s a lot of tax breaks.
The government uses the tax code to govern behavior.
Just like a sin tax on cigarettes is intended to disincentivize smoking…
A tax break on owning real estate is meant to incentivize creating places for people to live.
That’s because the government can do many things…
But it can’t effectively create homes.
We’ve all heard about government homes – the projects – and what unmitigated disasters they are.
That’s why the government wants private citizens and companies to own and rent real estate.
Citizens need a place to live, right?
Well, the government will reward us for helping them out with that.
Imagine that. The thing we all hate – that’s taxes, of course – and we can get away from it almost entirely just by doing things the government wants us to do.
And all of this relatively tax free income is safe from the highs and lows of the stock market.
That sounds pretty good right about now, doesn’t it?
Look, if you got beat up this week, you’re probably not all that interested in real estate right now…
But when you recover from the shock, you absolutely should be.
If you want to recover from this hard correction and then outlast the next one – even if it’s “The Big One” they’re all predicting, you need to find a place to put your money that won’t fail.
People will always need a place to live, right?
That’s why this might be the investment that will get you through the crisis and beyond.
Editor, Brian Rose Uncensored