What Your Financial Advisor Won't Tell You About Mortgage Investing

When it comes to financial planning, most people turn to their trusted financial advisors for guidance. However, one aspect of investing often goes overlooked or underdiscussed: mortgage investing. 

This form of investment, particularly through Mortgage Investment Corporations (MICs), holds significant benefits that your financial advisor might not readily disclose. Since real estate assets secure mortgages, they offer a level of collateralization that can help protect investors' capital, even during market downturns.

In this blog post, we'll delve into why financial advisors often overlook mortgage investing, explore the benefits of MIC investment, and discuss how they stack up against private lending.

Let us look below!

Reasons Why Financial Advisors Won't Disclose About Mortgage Investments

Lack of Awareness

Financial advisors typically specialize in traditional investment avenues such as stocks, bonds, and mutual funds. While they may have a basic understanding of real estate investments, mortgage investing, primarily through MICs, might not be within their realm of expertise. Consequently, they might need to pay more attention to its potential benefits.

Discomfort Looking Outside Their Usual Offerings

Financial advisors often stick to what they know best. Venturing into lesser-known territory like mortgage investing requires additional research and understanding, which might not align with their established practices. As a result, they may steer clients away from avenues they're less familiar with, even if those avenues could be lucrative.

Commission Structures

Financial advisors often earn commissions or fees based on the products they recommend or sell. Traditional investment products like mutual funds or annuities tend to offer higher commissions compared to mortgage investments. This incentive structure could influence advisors to prioritize products that yield more excellent compensation, even if they're not necessarily the best fit for their clients' portfolios.

The Importance of Diversification

While diversification is a fundamental principle of investing, financial advisors might overlook the role of mortgage investments in achieving a well-rounded portfolio. MIC investments offer exposure to a different asset class, real estate, providing diversification benefits that can help mitigate overall portfolio risk. However, advisors may not emphasize this aspect as much as they should.

Make It Easy With Versa Platinum

MIC investments offer several advantages, making them attractive for investors seeking stable returns and portfolio diversification. One significant benefit is the consistent cash flow generated by mortgage payments, which can provide a steady income stream, especially in uncertain economic times. Also, MICs typically offer higher yields than traditional fixed-income investments, making them appealing for income-oriented investors.

However, Versa Platinum is one such platform that caters to all your investment needs. We are dedicated to providing our customers excellent services and ensuring you get the maximum benefits of MIC investments. We make it worth it by openly communicating with you; nothing is hidden, and there are no surprises. Whether you need to know the perks of investing or MIC vs. private lending, we're always there to assist you. 

In A Nutshell

Mortgage investing through MICs presents a compelling opportunity for investors to diversify their portfolios and generate stable returns. While financial advisors may not always highlight this option, understanding the benefits of MIC investment and how they compare to private lending can empower investors to make informed decisions about their financial futures. So, what are you waiting for? Unlock new opportunities with Versa Platinum and mitigate risks in the long run!