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Manitoba, Canada | Yup. One nice thing about mutual funds, stocks, etc is that YOU can time your investment. With land you can only buy when the market allows it, someone wants to sell it to you. In a person's career there are relatively few chances to invest in it. With most other forms of investments you can invest on any day you want and practically any amount you want. It also allows you to exit the market if it starts turning against you or adding to your position if it is working in your favour. Saying that, if you make your living working the land there is nothing wrong with investing in land. Land is a good investment also. It is just that there are not always good opportunities to invest in land.
Timing is important in all investments but as young as you are there is lots of time for any good investment to recoup any initial losses. Right now there are many good stocks to invest in but proceed with caution as there has been a good run up for the last several years and we are probably due for a pause or a retraction of the markets. If and when??? Who knows. In today's environment, I have been seeking out large stable blue chip companies that have a long history of high dividends. High dividends are a good hedge and a "feel good" tool if a person gets caught holding stocks through a downturn. It is important to remember that there is nothing wrong with cash either. The old "cash is king" type of thinking can make a person a lot of money. Just don't get so attached to it that you let good opportunities go by. You have to dare to invest it AFTER a large downturn. Remember though that at that time you will be hearing nothing but gloom and doom and you have to have the guts to do exactly the opposite of what your instinct will tell you to.
In reality, no one can tell what the best thing to do is. If we could we would all be doing it. I will only know if I am making the right decisions many years from now. | |
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Buy land or stocks?
