How do you protect your money?

Updated: Jul 4, 2020

You can protect your money and assets by passive investments through Real Estate even during these volatile days amid the pandemic. The Passive Cash Flow Show explains how investors can earn truly passive cash flow through real estate investments by teaming up with Peoples Capital Group (PCG). The Passive Cash Flow Podcast is for beginner or experienced investors. Learn how you can diversify out of the stock market, own a part of an apartment building & start earning Passive Cash Flow! Peoples Capital Group has been helping passive investors build wealth in NJ real estate for 10 years. Visit to find out if you qualify to start earning passive income and pay less taxes via investing in real estate. IRA's and 401K's are accepted. -- #NJRealEstateInvesting #AaronFragnito #PassiveCashFlow #PCG --

Aaron Fragnito: Welcome back, ladies and gentlemen. It's Aaron Fragnito, your host of the Passive Cash Flow podcast. Today, I got my Peoples Capital Group swag on, be sure to check out our website if you'd like some swag as well. This episode is going to be about protecting your money. As Warren Buffett once said, "Rule number one, don't lose money." Be sure to subscribe for a new episode every week. [music] As we've recently seen here, of course, the stock market is doing its thing up and down, up and down. There's a pandemic going on. We don't have to go over it. Right now, what a lot of people are saying and what my other videos say as well is the most important thing to do is diversify. What does that really mean? It's a quite a vague word. It's like, "Hey, make better profits." Diversify, what that really means actually taking your money out of the stock market. Now, of course, every investor has their different situation. If your stocks just got nailed, it's not a great time to sell. Really, we should not have the majority of our IRA or the majority of any of aour savings or retirement monies in the stock market. We were all told that, "Hey, the stock market, your IRA should just be riding index funds." If you get a 401k with a company, you really don't have any options except to put that in a big old index fund that just going to ride up and down with the S&P 500 or the Dow Jones or some other industries that it could follow. That's a great way to be diversified, as they say. A lot of financial advisors will say, "Well, listen, you could be diversified in the stock market." That is true, you can own different options and you can own different industries and pools of different industries and index funds. That's great. You want to have some stocks, but at the end of the day, we see them just plummet overnight and then bounce back and then do this and that. The stock market really has a life of its own. As our economy struggles and struggles, the stock market shooting up. Now, we really don't know where's the bottom. It's hard to sleep at night. A lot of people are recognizing that, that what we've been all told and over the many, many years is to just have your money invest in the stock market is wrong. You really need to instead of diversifying in the stock market diversify out of the stock market. You need to protect your money. By diversifying out of the stock market, having about two-thirds of your money in my opinion out of the stock market, you can actually get into other alternative investments such as cryptocurrencies, precious metals, and of course, real estate. Here at Peoples Capital Group, we buy a Class B and Class C apartment buildings that produce cash flow and grow in equity over time. We also manage those assets very closely so we can control, for the most part, what's going on in the building. That allows us to have better control of the asset and therefore control our profits and our profits over time. Investors are looking- we're all looking for two things. We want to make a consistent profit. We don't want to make 20% one year and then lose 10%, the next year. That's a nightmare, then you don't know what's coming in, where your retirement funds are at. You want to see a consistent growth normally 10% plus, if you get a consistent cash on cash growth, 10% a year, year over year, that's phenomenal. That's a really good place to be. If you also add on tax benefits, real estate can be a great avenue for that. Let's talk about bonds for a second as well. States are talking about filing bankruptcy. Bonds are often backed by state. That's a really crazy conversation that's happening right now. A lot of people who thought bonds were super safe investments backed by states, backed by governments and the United States government is a strong investment, but at the same time, if a state files bankruptcy and you have a bond backed by that state, well, there goes your bond. Again, you want tangible assets. Governments are ideas, stocks are backed by businesses, but they're really just an idea. A tangible asset is an actual product. A 25-unit apartment building that rents out to 25 tenants for $2,000 a month each, that's a tangible asset with a parking lot where you can park your car. That's something that, hey, we see that, we could touch that. People still need to park their car right now, people still need to live places right now. We have over 95% collections in some of our buildings, that's just phenomenal. The tangible cash flowing assets, in my opinion, obviously, are really a great place to be. Over the last 10 years, the volatility of the stock market has grown more and more. As many other people notice and as the stats show for themselves, the volatility of the stock market is getting worse. It's not getting better. The market is growing more volatile, things are moving faster. The computers are making micro trades. The market is just moving at a rate that humans are really getting left behind. The way it drops so quickly these days is just incredible. It's not really a great option for IRAs. Because of that, we're seeing a lot of people move their retirement funds out of the stock market. They're looking at other alternative investments. Again, cryptocurrencies, precious metals, that's a good place to also, perhaps look into. Everyone, in my opinion, should have a third of their capital invested into tangible real estate. I don't mean a REIT, that's a publicly-traded stock that's backed by real estate. That's not what I'm suggesting, I mean an actual syndication that buys one or more actual pieces of real estate in a good market with good operators. There's plenty of them out there. Peoples Capital Group buys Class B and Class C apartment buildings in North Jersey. That's our niche, we manage them in-house. Everyone has different options in different markets, but pick your market, pick your strategy there. Real estate sho