Heroic Investing
Welcome! If this is your first time visiting Jason Hartman's website, please read this page to learn more about what we do here. You may also be interested in receiving updates from our blog via RSS or via email if you prefer. If you have any questions about first responder finance feel free to contact us anytime! Thanks!

First responder training doesn’t prepare you for wealth management

You know how to manage the aftermath of a car wreck, a building in flames with people trapped inside, and fleeing felons, but when it comes to the wealth management of your retirement portfolio, it feels like you have three left thumbs and can’t decide which way is up. It wouldn’t be so bad if none of it amounted to anything but we’re talking about the rest of your life here.

You don’t want to screw that up or the golden years might become the coupon years.

Heroic Investing’s general advice is get your money out of the stock market and put it into income property investments. Now that we think about it, that’s our specific advice also. There are more reasons than we can go into within the confines of this space but a big one is inflation. The stock market has absolutely no protection against the debilitating effect of inflation. The opposite is true with with real estate. Inflation is actually a benefit to you real estate investments when executed properly via the method of fixed-rate, long-term mortgages.

Consider this tidbit: the devaluing effect of inflation will decrease the amount of money owed on your mortgage, in real terms, as the years roll by. You tenant pays the monthly note while you knock off about 10% (the REAL inflation rate) from the debt amount each and every year. Don’t worry if the mechanics of this don’t sink in right away. We’ll return to the topic soon. For now, begin to ponder the idea that inflation can make you rich, and true wealth management goes far beyond checking your IRA statement every month.

The Heroic Investing Team

Flickr / rockmixer