As we mentioned in a previous article, we know that our government only represents about 30% of our retirement income, the company retirement pension plan offers another 30% and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plans. In this article, we will discuss Other Investment vehicles.
Beside investing in short, long term certificates and equity market of some public companies, investors may invest their money in private companies (non public), mortgage security of amusement parks, as well as certain private bonds.
Remember, all these types of investment are presented without following any guide line of the security laws and you are the one that have to make the decision. It is wise to ask for additional information from such companies to reduce risk.
These types of private investment usually pay a higher interest rate, but remember the higher the return, the higher risk.
1. Amusement park investment
For what ever reasons, some companies can not borrow money or don't want to borrow money from financial institutions, may pool some of their real estate assets and use that as collateral for a first mortgage bond issue with higher than market interest rate and guaranteed by the companies. Normally, under this types of offer, the companies will only present the independent asset assessment, history of company business and years of experience in such business in the prospectus, it is up to the investor to decide that type of offer is worth to invest.
2. Real estate pooling
For the reasons above, some private real estate companies pool together some of their residential real estates and use that pool of asset as first mortgage for a bond issue.
3. Over counter stocks
Some private companies can not list their companies in public stock exchange may offer their stock in over counter stock exchange. These types of stock use to be bought by investment dealers and re sell them to their clients.
4. Your personal real estate
Real estate always remains an investment option. As you retire, your paid-up home represents a major investment and you can gain extra equity through a home equity loan. Many institution will be happy to lend you the money if you use your home as collateral.
The equity from your home allows you to borrow money to invest in the equity markets and the interests are tax deductible.
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