Strategic Land as a Retirement Strategy
The secret of wealth generation for the average person is consistent saving over a long period of time. Get rich quick schemes rarely work and are never without considerable risk of loss. Most asset classes involve risk and volatility, even when expertly managed, the potential for loss is present. Holding cash when pitted against currency fluctuations and inflation is not a very attractive proposition. How we distribute our savings amongst these asset classes determines the growth and volatility of our total worth.
Land is a critical asset class needed to offset the instability of all other banking programs. Warren Buffet, one of the world's richest men who attained his wealth through astute investments in various asset classes states that “land should be a fundamental component of every investor's portfolio”. Over the last twenty years the price of residential land in the UK has risen an average of 800%*, outperforming all other asset classes. Well positioned land has shown a significantly greater appreciation. This is not just a UK or even recent phenomena but is manifest worldwide and has been the basis of creating some of the world's wealthiest individuals over the last century.
Although strategic land can create exceptional wealth it should not be an exclusive method of preparing for retirement. Strategic land is a retirement strategy intended to supplement other retirement opportunities that hopefully have already begun. Strategic Land can be a way of diversifying one’s retirement plan, avoiding over reliance on any one asset class, hence, spreading out the risk.
The position land represents in any portfolio geared for retirement should be determined by an individuals particular circumstances and should be discussed with a financial advisor and the land specialist.
Good past performance with low risk and the prospect of excellent future capital growth makes banking in land for the long term an attractive option for those looking for a secure for retirement.
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Asset Class Comparison(Click for larger image)
Land Value Growth(Click for larger image)
