THE BLOG
07/27/2016 11:39 am ET Updated Dec 06, 2017

Stock Market at All Time Highs - Only Third in Best Investment Survey

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I've been around for quite a while now, always preaching the benefits of real estate investment for control of your own life and financial future. I've done well, my students have done well, and real estate investing is certainly high profile these days.

You can hardly avoid the "flipping" shows on TV, with lots of fun, drama and profits. Maybe this heavy media exposure is contributing to a trend that was just reported in the results of a survey at Bankrate.com. In a new article titled Real estate is top investing choice, with stocks only tied for third, survey finds, a Bankrate national survey gave people choices for the best ways to invest money they wouldn't need for more than 10 years.

It's great timing, as the stock market just hit all-time highs, so you'd think that everybody would be on that bandwagon. It seems that the top choice was real estate, with the stock market tied at third with precious metals. In second place were cash investments, savings accounts and Certificates of Deposit.

It looks to me like there is a large group without a lot of trust in the long term future of stock market investment returns when the tiny interest rates for savings accounts are preferred. I think that this shows a lack of trust, or more a fear of the volatility of the stock market. More survey respondents would rather put their money into a CD than into the stock market. That's dramatic, as the current 5-year CD interest rates are running on average under 1%!

The other really interesting thing about these survey results is that the top 2 responses, real estate and savings accounts, were only 2% apart. 25% of respondents chose real estate, while 23% chose savings accounts or CDs. Why is this interesting to me? I think that the cash savings group is large and many may just need some help in making the move to real estate for their futures.

Someone who feels that they are best served with less than 1% return on their invested money is missing the opportunity of a lifetime. They're investing in safety, not results. A proper education in the various ways to invest in real estate and the controllable risk versus reward would change the minds of many in the cash savings group.

They don't need hype, fun or drama, just an education. Sure, real estate investing can involve "flipping," as wholesaling is one of our preferred strategies. I and most of my students also find it to be a lot of fun. The trick is to learn how to do it well, the fundamental stuff, before the fun.