What Will Make More Money Over the Next Decade: Stocks or Real Estate?

Whether you are still decades away from retirement or have already started to enjoy your golden years, it’s important to stay on top of your financial portfolio and make sure the assets are properly diversified, so you can take advantage of every potential for growth and avoid the pitfalls of ongoing market volatility. When a recent Bankrate survey asked more than 1,000 real estate experienced investors whether stocks, bonds, real estate, cash, gold and metals or bitcoin and cryptocurrency would be the best investment over the next 10 years or so, the answer - by an impressive margin - was Real Estate!

“The stock and bond markets are currently so overvalued that it’s not only possible, but downright plausible, that real estate will do better than either of these asset classes over the next decade,” wrote MarketWatch. “Given this overvaluation, it’s entirely possible that stocks will join bonds over the next decade in falling far short of their historical averages.”

Real Estate or Stocks, Which Will Make You Richer?

Let’s start by taking a closer look at stocks and real estate investments:

• Real Estate: Investing in real estate typically involves buying physical land or property but innovative real estate investment funds also offer an alternative (and much more hands-off) way to participate in booming property markets without having to personally deal with maintenance and other rental issues. Vacant parcels of land often cost money every month until you are ready to sell while apartment buildings hotels and other rental properties are typically income generating but also require professional management in order to turn a reliable profit (unless they are part of a real estate fund). From a big picture perspective real estate of any kind is much more secure and reliable than the stock market especially if you need ongoing retirement income and it also provides a hedge against inflation.
• Stocks: When you purchase shares of a stock you essentially own a small piece of the company itself which means you’re entitled to a share of any profits. Each company has a board of directors who decide how much of the profit can be reinvested and how much should be paid out to shareholders. As you can imagine playing the stock market tends to be quite volatile and the more conservative investments just don’t pay the kind of returns you need to retire in comfort. Be prepared for your portfolio valuation to fluctuate wildly from one day to the next and make sure you are factoring the influence of inflation into any ROI you are expecting to collect.

According to a recent 10-year forecast compiled by Research Affiliates, the S&P 500 is currently projected to produce inflation-adjusted annual returns on investment of just .5 percent over the next decade, while long-term U.S. Treasury Bonds are projected to produce inflation-adjusted returns of negative -.7 percent! Then there’s a seven-year forecast from GMO in Boston that came out this year, which projects that the S&P 500 will produce and inflation-adjusted total return on minus -4.2 percent between now and 2026, with long-term U.S. Treasury Bonds will lose an at annual rate of minus -1.1 percent.

In addition, it’s important to note that the point at which you invest in stocks over each 10-year cycle will typically determine how much money you will make. And since - as with any value investor - protecting your principal is paramount, it’s hard to imagine why anyone would even consider investing in anything but real estate, where your principal is always 100 percent secured.

Best Real Estate Investments in 2019

It’s important to become acquainted with the various real estate investments on the market today and determine what types of investment properties make the most sense for your current situation. Turnkey investment properties that are professionally managed and produce ongoing premium rental income offer a smart way to participate in the upside potential of real estate investing, without all the headaches that often come with day-to-day property management. Shareholders of world class real estate funds like the KASA Investment Fund also get to enjoy an additional layer of protection that comes with investing in a well-diversified portfolio of luxury beachfront hotels. As a result, the KASA Fund can offer up to 15 percent annual Return on Investment(ROI) and is also approved for purchase with your IRA account.

What ARE Real Estate Funds?

A real estate fund is a type of investment that functions very similar to a mutual fund and is primarily focused on investing in securities that are offered by real estate companies like the KASA Hotel Collection. According to financial gurus like David Swenson, private real estate funds should comprise between 15-20 percent of your total financial portfolio, because they offer a secure, proven path to earning reliable passive income. Real estate investment funds also allow everyday investors to participate in the financial upsides of property ownership without any of the headaches and personal responsibilities that typically come with owning real estate outright.

How Do Real Estate Funds Work?

Presented by the elite KASA Hotel Collection, the KASA Investment Fund provides exposure to the growing hospitality industry, offering Shareholders all the exciting lifestyle benefits of being a hotel owner (more on this below), without any of the stress that typically come along with managing a world-class luxury beachfront hotel. This visionary brand is a member of the highly exclusive Small Luxury Hotels of the World and operates income producing investment properties throughout the Caribbean and the Americas.

What’s more, the Real Estate Fund only buys premium land in the best locations and always pays cash for everything - including construction costs - incurring zero debt in the process. As a result, Shareholder principal is 100 percent secured against both the real estate itself and all other assets of the Company, making this one of the most secure investments available on the market today.

Last but not least, in addition to earning secure, proven ongoing income of up to 15 percent annually, the KASA Investment Fund offers a wide range of travel benefits, giving Shareholders the option of vacationing with friends and family at cost in the hotels, along with a variety of other discounts at the on-site restaurants and bars. While this isn’t the Fund’s main appeal for investors, it’s an amazing added bonus that sure beats worrying about ongoing stock market volatility and the mediocre annual ROI it provides.