Money Matters:
Expected returns and investment experience

This is the fourth and final article Money Matters series by guest columnist Jake Pence. You can read part one What's the best way to invest in your future here, part two on the importance of Liquidity and diversification and part three covering real estate taxation here.

by Jake Pence, Guest Columnist

This is what so many people get caught up in "Expected Returns". In other words, which investment vehicle will make more money.

In reality, this is like comparing apples to oranges. The most convenient way to compare the returns is using the S&P 500 and a Vanguard Real Estate ETF and throwing them up side by side.

If I’m being honest, I think this is a lazy methodology and it is only used because of the convenience. In general, the returns will be comparable, but it will come down to the specific investment opportunity and it is lazy to make blanket statements about returns. Obviously, you need to invest in an asset that will create a return; however, there are other items to consider such as the investing experience, diversification, taxation, risk management, liquidity, and your financial goals.

Finally, something that is often overlooked in any investment is the experience of that investment.

When I say experience, I mean how is your investment going to make you feel, affect your sleep, make a societal impact, and so on. To this point, this article has been fact-driven, but the remainder of this section is 100% my personal opinion and it is absolutely biased towards real estate.

The stock market is great for people who want to put their money into a system to generate a long-term return without having to make many decisions. I worry about people who have all of their money tied up in the stock market and/or retirement accounts that are exclusively invested in the stock market (you can use them to invest in real estate too). The reason being, I don’t trust the decision makers that control these financial markets and I would rather have my money in Main Street real estate than on Wall Street.

Real estate is great for people who want to have more control over their investment, make a societal impact, and generate long-term wealth.

I love being able to create my own business plan, to meet my residents and give them a place to call home, and the proven path to create a generational financial impact. I worry about real estate investors who think that they will be able to get rich quick and think it will be easy money.

News flash … it’s a grind. There are a lot of bad actors in the industry that only care about money, and I think that is short-sighted in that this is long-term game.

In conclusion, the answer to this question should come from within and it should complement your financial goals and individual skill set.

To me, that means I should heavily invest in real estate and opportunistically invest in the stock market. To you, that could mean an entirely different investing strategy.

I encourage you to further your research on both of these topics and seek out reputable investors that have experience with both real estate and/or the stock market. When talking with other investors, make sure that you come into the conversation with an open mind, do your best to leave your biases at the door, and give yourself the chance to create a better financial future.

About the author:
• Jake Pence is the President of Blue Chip Real Estate and a consultant for Fairlawn Capital, Inc.. A 2019 graduate from the Gies College of Business at the University of Illinois, he is a 2016 graduate from St. Joseph-Ogden High School where he was a three-sport athlete for the Spartans. You can view his latest acquisitions and advice on his YouTube channel here.

Actor's untimely death is a remindar for cancer screening

By Glenn Mollette, Guest Commentator

Actor Chadwick Boseman recently died after a four-year battle with colon cancer. He was 43.

He was young, handsome, and very talented. He had a loving family who was by his Los Angeles bedside when he died. Colon cancer robbed him of another 20 or even 30 years of movie stardom.

Boseman starred in the blockbuster Marvel superhero franchise movie Black Panther rising to stardom. He played Jackie Robinson in the movie 42. He also played James Brown in Get on Up and Thurgood Marshall in Marshall. He received international accolades for his movie roles.

All cancer is serious but colon cancer is the second leading cause of death in the United States when women and men's statistics are combined. Boseman's early diagnosis of colon cancer at the age of 39 reminds us all of the seriousness of colon cancer.

Fifty has always been the yardstick recommended age for the first colonoscopy. Newer reports have recommended age 45.

Television journalist Katie Couric's husband Jay Monahan died in 1998 at the age of 42.

I would suggest talking to your doctor by the age of 40 about a colonoscopy. My doctor has been adamant that my sons have colonoscopies by the time they are 40. There are more and more reports of early death from colon cancer.

Death comes to us all by something. However, a colonoscopy might extend your life several years.

You may know someone who has been impacted by colon cancer. My father was diagnosed with colon cancer at age 60 but after a couple of very serious colon surgeries he survived to live to be 85 years old.

My mother-in-law was diagnosed with colon cancer and lost most of her colon in her early forties, but also lived to be 85. When I was 50, I had my first colonoscopy and had several polyps removed that were not cancerous. Most likely if I had not had routine colonoscopies along the way I would be dead today.

While you are scheduling your colonoscopy eat plenty of fiber. When I was kid in health class, we were taught about the importance of eating fruit and vegetables. I can't underscore enough the importance of eating broccoli, lots of other vegetables, strawberries, oranges, apples and other fruit. A big bowl of plain oatmeal every morning and a handful of walnuts is another good choice.

We would never pour a cup of sand in our automobile's gas tank. Yet, often we consume food choices that do not benefit us much and often hurt us. Good eating choices are vital.

There is no eternal fountain of youth in this world. However, I do hope we can live a lot of more good years and keep in mind that an ounce of prevention is worth a pound of cure.


Dr. Glenn Mollette is a syndicated American columnist and author of American Issues, Every American Has An Opinion and ten other books. He is read in all 50 states. The views expressed are those of the author and are not necessarily representative of any other group or organization.


This article is the sole opinions of the author and does not necessarily reflect the views of PhotoNews Media. We welcome comments and views from our readers.


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