The Plan B Every Stock Investor Deserves

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Broadly speaking, there are two kinds of stock market investors. The first kind heads to the pharmacy for anti-anxiety and antacid pills when the market crashes, while the second kind heads to the same pharmacy to collect the month's rent. 

If you're the first kind of investor, it's high time to consider branching out into the world of real estate. To be honest, a real estate investment is like a lifeline when stock values sink like stones in a lake. 

Here Are 3 Reasons Why:

📉 No Need To Liquidate Portfolio At A Low: Good stock advice warrants investors to leave their portfolios untouched during a stock market meltdown to avoid raking in losses. But when you need the money, that is far easier said than done.

However, if you own a few income properties, you may not have to liquidate a chunk of your portfolio at a loss when you need money. That's because you have the option to easily borrow against the equity you have in your investment properties.

📉 Rental Income Can Offset Stock Market Loss: Owning rental properties is one of the most written about ways to generate consistent income. And guess what? That consistency could come in very handy when the stock market misbehaves. 

If you have rental income flowing into your bank account, a temporary loss in your stock portfolio is something you might ride out more easily without beta-blockers or insulin jabs. 

📉 REIT Dividends Can Minimise Antacid Use: Today, we all know it's possible to invest in real estate without buying physical properties - by loading up on real estate investment trusts (REITs).

💡 REITs are companies that own and operate commercial properties. There are different REIT sectors you can invest in, and as is the case with stocks, diversifying is best. 

While REIT values often drop when stocks are in a free fall, its not the case always. Even so, the great thing about REITs is that they typically pay higher-than-average dividends. And when stock values are plummeting, having that extra income in your portfolio could go a long way.