The advantages of having a managed account instead of real estate investments
Everyone wants to invest their hard-earned money in a place that will generate attractive long-term returns. At the same time, they worry about finding an investment that is safe and less risky. Until a few years ago, before the economic crisis to be precise, real estate was hailed as the most stable investment option. The reason was because it allowed him to earn in various ways through rentals and property appreciation. However, the recession proved that notion to be false.
A review of the economy after the recession period showed a large number of homeowners underwater. It was estimated that a quarter of homeowners in the US were trapped in negative home equity. Real estate prices continued to fall and the rate of foreclosures increased day by day. People’s money was locked up, and in an attempt to save their investments, people sold their holdings for prices of almost 50% of the sale price, anticipating a further price decline. Almost 8 years since the worst housing market crash, the housing market is recovering, but the recovery is slow and tenuous.
Given the current scenario, Forex managed accounts are a better way to earn money and build a solid retirement plan. It offers several advantages over real estate and we have discussed the main ones below.
1. A Liquid Investment –
Managed Forex accounts enjoy a high level of liquidity. You can open and close a position at your convenience. In the case of real estate, even if a seller wishes to dissolve his investment, he cannot do so unless he finds a buyer for his property. Therefore, the investment capital is blocked.
two. Low initial investment amount –
If you want to trade Forex and are thinking of setting up a managed account, you don’t need to have a large bank balance or a good credit rating. You can start investing with very little capital; an amount you can afford. Therefore, you can start earning regardless of your investment budget.
3. Higher Level of Transparency and Control –
You can get all the details of the transaction in your account. You also have access to your money manager and can ask them questions about each transaction. Although you manage the account, you enjoy the same amount of control and investment flexibility. You can change account preferences. You can add and remove funds, as well as enter and exit market positions.
Four. Little time and effort required –
When you have real estate, you have to spend time, effort and money to take care of it and maintain it. This is not the case with a managed Forex account. It involves very little, really no investment of time and effort on the part of the investor because the account is professionally managed by a money manager. The money manager will scan the market for good investments and make the right decisions at the right time.
