The “Stockmarket is King” Myth Debunked
“Stockmarket is King” Isn’t Right!
Question is, why?
The stockmarket is home to trillions of pounds.
The stockmarket is where many fortunes have been made.
So, what’s the problem?
The “Real King” Unmasked
It dwarfs the stockmarket.
It’s made many more millionaires than the stockmarket, including half the people on the Times “Rich List”.
As a nation, we absolutely love it.
The “Real King” is …
Property is easily the best long term investment there is. It knocks spots of the stockmarket as you’ll see below.
Everyone gets property.
Everyone, it seems, except the good old Financial Conduct Authority, the UK’s regulator for all things monetary.
It doesn’t have a thing to say about it because it doesn’t regulate property. It regulates the stockmarket.
And that, perhaps, is the reason people mistakenly assume the stockmarket is king.
However, there's no debate. Despite it being unregulated, "Property Is King"!
7 Reasons Why Property Trounces The Stockmarket
1. ‘Bricks And Mortar’ Security
Property values may fall, but there’s always a residual asset value. Ask those who lost everything in spectacular collapses like Woolwich, Lehman Bros and Comet how they feel about stockmarket investments.
2. Lower Volatility
Stockmarket prices can fluctuate wildly at the slightest rumour. Since the 2008 credit crunch, it’s been a very bumpy ride, and it'll continue for some time yet. The property market has a much longer cycle, which reduces stress.
Borrowing against the property value can generate double, and in some cases, treble digit returns. You can’t do that with your shares.
4. Additional Value
Increased profit can be created through buying property at below market value, renovation, refurbishment and conversion. There’s nothing you can do to add value to share certificates!
5. Control Through Ownership
If you want more income from your property, it’s simple. Put the rent up. Try getting an increased dividend on your shares when you fancy.
6. Realise Capital Without Selling
It’s possible to release equity through refinancing property, and usually the proceeds are tax free. There’s no such thing as ‘share equity release’.
7. No Training Required
The property market is easy to understand, but the stockmarket is a very confusing place. Maybe that’s why it’s so tightly regulated, with advisers having to go through years of training!
Property or Stockmarket?
If You're Interested In Property
For the reasons above, you should be, so please join our campaign to allow residential property in a SIPP. We'd really love you to help us - Residential Property In A SIPP
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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
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