Investing is, by nature, a long-term proposition. The opposite of a get-rich-quick scheme, smart investment promises the potential to grow your money over time in as safe and reliable a way as possible in an uncertain market. Investing in teak or any other forestry project is an apt illustration of the process: just as a tall, sturdy tree grows from an insignificant sapling, so too can personal wealth develop from modest, but carefully considered investments. Teak investment comes with many benefits over more traditional methods of wealth management, and there are good reasons for everyone, no matter their age, to consider investing in teak.
For young people starting out with a certain amount of capital and perhaps a limited understanding of the market, due to sheer inexperience with it, teak is one of the safest bets out there. Rather than diving into the confusing mire of the stock market, someone without years of experience buying and selling can choose an easier path of entry into the world of smart investing by choosing teak, with its numerous clear benefits. It is an asset in high demand with historically rising prices, and one that you can literally watch grow with your own eyes. Imagine being able to grow up with your investments in the form of a tree that can reach heights of 40 feet. Sounds good, doesn’t it?
More than just a way to grow your wealth, investing in teak is also a way to contribute positively to the global environment. With climate change becoming an ever-pressing issue, investing in forestry projects can be a concrete action plan to help make the world green again. This is a particularly salient concern for today’s young people, who will have to bear the consequences of previous generations’ actions (or inaction) with regards to global warming. Don’t just stand aside and hope for the best; put your money into a stable property that will do good for the Earth whiled it does good for your investment portfolio.
Today’s youth are more socially and environmentally conscious than ever before, but that doesn’t mean they have to choose ethics over profit, or vice versa. It is entirely possible to invest with an eye toward the future when choosing to own teak. Even if the plantations are hundreds of miles away from your home, you can think of owning teak like gardening: working with nature while reaping the benefits, free of guilt. In fact, you should be proud to know that you’ve contributed to such valuable reforestation efforts of an over-harvested species.
With 25 years until a teak tree can grow from a sapling into a mature tree, ready to be harvested for lumber, it seems to make less sense for an older investor to sink their money into plantation shares. While it’s true that there’s no immediate payoff for teak, the same can be said for all investments. Other investments, however, can hardly claim the same return on investment that teak offers with such near-certainty. In 25 years, a fully-grown tree will always be worth more than it was before, period. Who gets to reap the benefits then? Whomever you decide.
Having long-term assets like shares in a teak plantation is a highly advisable component of generational wealth stewardship. In order to maintain your wealth not just for yourself, but for your children and their children for years to come, you must have not only liquid assets, but ownership of hard assets that will only increase in value over time. The value of teak grows along with the tree itself and remains unaffected by the kind of unpredictable fluctuations that plague more traditional investments. By buying teak, an older investor can be sure not only that its value will appreciate, but that it will still be worth passing on when the time comes.
In addition to the financial benefits, teak investment has an additional upside: the potential for you to gain residency or even citizenship in Panama or Nicaragua, depending on where you choose to invest. Thanks to generous federal programs to encourage outside investment, qualified investors over a certain threshold are offered the opportunity to take up a second residency in their investment country. This residency offers a “plan B” in case anything should go wrong at home, and a welcome vacation option otherwise.
A second residency in Panama or Nicaragua can also provide significant benefits into older age. For anyone ready to settle down in their retirement years, citizenship in a Central American country has the potential to provide the comforts of home in a tropical paradise at a fraction of the cost of living in the United States. While waiting for the teak trees to grow, savvy investors will appreciate being able to maintain or upgrade their standard of living for far less than North American prices. Picture it: a summer holiday all year round, with fresh tropical fruit, sunshine, and a maid to take care of the housekeeping. It’s an enticing prospect and comes bundled with the inherent benefits of teak ownership.
Owning teak in Nicaragua or Panama even comes with additional perks to sweeten the deal. For example, retirees in Panama on the Friendly Nations Visa program can enjoy significant discounts on movie tickets, train fares, flights, hotel stays, and more. While the promise of some savings may not be enough on its own to sway a potential investor, it’s certainly a welcome bonus to what is already a sound investment. For older investors, teak ownership can be the perfect way to enjoy your investment now, while still saving value for later…your children and grandchildren will thank you.
