High Return on Investment: How Private Free Market Assets can Generate Greater Cash Flow
Getting a high return on investment doesn’t seem to be easy these days. Traditional low risk investments, like bank CDs, pay next to nothing. And risky investments, like stocks, suffer from huge market swings and low dividend payments.
But there are better alternatives that many people are not aware of.
Until recently, Private Free Market Assets were not available to the average investor. But the JOBS Act, passed in 2012, is changing that for the better.
The JOBS Act
The JOBS Act stands for “Jumpstart Our Business Startup” and is being phased in over a period of a few years1. In May 2016 the most important phase (Title IV – Small Company Capital Formation) takes effect and will allow regular investors access to a much broader class of assets offered by private businesses and entrepreneurs.
Small businesses in the United States account for well over half of economic growth, but before the JOBS Act took effect, investment opportunities were usually limited to accredited investors only.
An accredited investor is defined by the Securities and Exchange Commission (SEC) as an individual with more than $1 million in net worth (excluding their primary residence) or more than $200,000 annual income.
But with the passage of the JOBS Act, many new investments will open up to non-accredited investors.
Private Free Market Assets include commercial real estate, private lending and private equity funds, just to name a few.
Like any investments, there are good ones and bad ones. But unlike banks and Wall Street, Private Free Market investments offer potentially high return on investment at lower risk.
High Return on Investment: The Numbers
While Wall Street flounders on the edge of a stock market downturn, Private Free Market assets are often producing 10% annual return or even better.
Fundrise is one example.
Fundrise is a crowdfunded commercial real estate platform that allows ordinary investors to own high return on investment, low risk assets.
Unlike Wall Street REITs (Real Estate Investment Trusts), Fundrise has no middlemen and very low fees (90% less than typical REITs). And even more importantly, in 2015 Fundrise produced an average return of 13.1% 2.
And to make it easy for nearly anyone to invest, minimum investments are often as low as $1000, not hundreds of thousands.
Fundrise is just one example of how you can get a high return on investment.
Taking the First Step
We’re not suggesting you just jump in with both feet. Educate yourself first so you can make a wise investment, not just an uneducated gamble.
If you are like most people, your retirement savings is going to be your primary source of investment capital. But while your retirement is locked up in a Wall Street custodian’s account, you won’t have access to Private Free Markets.
We’ll help you fix that problem quickly and easily.
With the right self-directed retirement account, you can unlock your retirement savings and get access to better investments so you can grow your wealth more quickly and at lower risk.
Learn more here about the Solo 401k and how you can benefit by unlocking your retirement savings.
Next we’ll look at just how much difference a higher return makes over time.
PS: If you missed the previous article on How to Get Higher Returns, you can read it here.