There are really only three ways you can invest:

 1...for income

 2...for capital gains

 3...for a tax break

When buying an investment, you have to decide (up front) why you are buying what you are buying.  Many investors jump into a transaction before they really understand why they are doing it.

The help of a qualified advisor is necessary to determine a good structure for your investments and why you are devoting your hard-earned dollars to buying them.

If you have too much of one type of investment, you may not see the types of "return" that you think you are expecting to achieve.

The key?  Focus on structure!

Make sure that the structure of your investments and why you own them is understood and you will see significantly improved results!

Our contact information:
612-251-3405
mat@sovereignwealthsolutions.com

Sovereign Focus

November 2011

 Teach.  Wealth.  Innovation.

Are Stocks My Only Choice?

In a word - no!  Here are some other options to consider and why.  For further information on which may be right for you, please contact us.  Not all investments are equal, so make sure that you know what you are getting into BEFORE you buy!

Preferred Equities

These investments pay regular dividends and fluctuate less in value than traditional common stocks.

Real Estate Investment Trusts (REITs)

Often overlooked, REITs pool dollars together for the purpose of investing in real estate.  Investment return comes in the form of income off of the properties the fund owns, as well as potential appreciation in value.

Maximum Funded 7702 Accounts

These types of insurance contracts are offered through mutual insurers and are designed to minimize the cost of insurance while providing long-term, tax-advantaged returns.

Peer-to-Peer Lending

For those who don't trust banks, these are loans made between private parties facilitated by a third-party. This market grows larger everyday and can offer attractive returns!

Life Settlements

These are existing life insurance contracts purchased by a third party for the purpose of investment. The investor gets the promised face value after the insured passes, and the insured gets their cash value paid by the investor.

High Grade Corporate Bonds

Investment-grade corporate bonds are safer than many government bonds, and offer attractive returns.

Undervalued Businesses

A business that is being sold by its owner at a discount - a business broker is a necessity for this!

Unit Investment Trusts (UITs)

Similar to mutual funds but with a fixed time horizon.  UITs offer portfolios of investments, and often are less expensive because they are not actively traded like mutual funds.

Rental Real Estate

The buyer's market in real estate has provided some great opportunities for those willing to own rentals.  

Precious Metals & Bullion

Gold, silver, platinum, palladium, copper, and other metals offer a store of value in up markets and down.

Fine Wines

This is the oddball of the list, but fine wine (if purchased correctly) can offer long-term returns.  If you can store it, rare wines offer attractive return potential and collector value.