A Legacy Investment That’s Also Tax-Free (If You Act Now)
It’s that time of year again…
And you may be scrambling for gift ideas for certain friends and family members.
I have a suggestion that could help.
I’m talking about one of nature’s most-rewarding gifts…
Not gold, frankincense, or myrrh—all three of which you can pick up in a gift box on Amazon for just under US$60 (along with some strange looks on Christmas morning).
Rather, I’m talking about trees…
The kind of tree that, for an investment of just over US$7,000, you can turn into US$94,000 profit.
It’s both one of the smartest investments you could make today… and a legacy-level gift.
The tree in question is teak.
And, the “wise men” of the 21st century are already onto the advantages of an investment in hardwood. Billionaires John Malone and Ted Turner, for example, each hold more than 2 million acres of teak and timber in their portfolios.
Why Is Forestry A Go-To Investment Of The Top 1%?
Over the past century, timber has outperformed the stock market, giving above-average returns. Good-quality teak, in particular, is one of the most in-demand products in the marketplace. It’s valued all over the world for its quality and durability.
You see, once it’s reached three years of age, a teak tree is resistant to fire, insects, termites, and fungus. Hence its popularity in the yacht-building industry… as well as its use for outdoor furniture.
But teak can thrive in only a handful of places in the world. Hence demand far outweighs supply—and it’s expected to continue this way for decades.
How The Small Investor Can Cash In On This Booming Industry
The good news is that you don’t need millions of dollars to break in right now…
All you need is US$7,299… which buys you title to a quarter-acre of land… plus all the trees that eventually grow on it.
The rest is down to time.
Once your teak trees are planted, they’ll need 25 years of growing before they’re ready to harvest. So this is a long-term play, which is part of the reason it makes for an ideal gift.
A Legacy Gift That’s Also Tax-Free
And, important, at a cost of US$7,299, this investment falls well below US$15,000—the IRS threshold for a tax-free gift.
Make this investment before Dec. 31 to enjoy the tax benefit in 2020.
With a US$7,299 investment today, the projected return in 25 years is just over US$94,000. Gifting the parcel to your child or grandchild now may mean that lump sum comes to them at a time they need it to help toward their college fees or to buy their first home…
If you hold it for yourself, it’s a nice boost to your nest egg down the line.
You’ll also see a small return in the intervening years. To help the teak trees grow, they must be thinned in years 12, 18, and 20… meaning some pocket money to you or your loved one in those years…
Given the rough year we’ve had—and the loss of opportunity to travel—you may not have had a chance to do much with your portfolio. But it’s not too late.
If you’d like to set yourself (or a loved one) up for a future return of US$94,000, you have until the ball drops on 2021 to secure a quarter-acre teak parcel at the reduced price of US$7,299.
This teak opportunity is one of the most affordable, high-yield investments you can make in real estate. And the developer behind it makes it all completely hassle-free.
Editor, Overseas Property Alert