Grove Family Investments

Many people are making smart moves by saving for the future and choosing low-risk mutual funds and index funds. But what if I told you that this approach could be costing you hundreds of thousands of dollars in the long run?

💡 Hidden Fees
Even low-risk investments often come with hidden fees. These fees might seem small, but they can add up significantly over time, eating into your returns to the tune of tens of thousands.

📉 Missed Earnings
The bigger issue is missed earnings. Investing in traditional funds may seem safe, but it could mean sacrificing substantial growth opportunities.

Here’s an example to illustrate the potential cost of sticking with index funds:

I have a real estate deal in Denver where I’m currently looking for someone to invest $90,000. In exchange they will receive 50% of the profits. Assuming a 6% appreciation rate, loan paydown, and rental income, the profit after 10 years could be as much as $315,000.

In comparison, if you invested that same $90,000 in an index fund with an 8% average annual return, you would end up with about $196,000 in profit. This translates to a loss of $119,000 in potential earnings. And that’s not even considering the tax benefits you could receive from real estate investments.

🔍 The Bottom Line
While low-risk investments have their place, they might not be the best option if you’re looking to maximize your returns. Real estate investing offers significant potential for higher profits and additional tax benefits.

Consider exploring other investment opportunities to ensure you’re not leaving money on the table.