All this talk about Investing is encouraging lately. Over the last few years, more people have become interested in the duty to invest there money, then ever before. However, when you follow most investment offers to their logical conclusion, they are disgustingly futile.
Yet, many people take up these "offers" nonetheless. Why?
As I mentioned at the opening comments. We really aren't interested in the investing, its the compounding we want. Its the compounding of our seed capital over a specified amount of time that produces the results for us. When most people refer to investing, they really mean compounding their money.
The government accredited investment advisors and other peddlers of paper financial tools offer 7% compounding where ever you go. Didn't anybody tell them we dont live for 200 years? Thats how long it would take to see any reasonably interesting return. Even then, in 200 years, inflation would eat up half of the gains. Why do so many settle for these returns?
Maybe lack of choice. But I believe we have simply swallowed the line "the higher the reward the higher the risk" Therefore, the logic goes, settle for a very small 7% compounder, and my money will be safe. (Whether it is or not, is a matter for the Gods)
Its just not so. Many low yielding investments are VERY risky.
Want to know what they really mean by that statement? "The more in control of your own investments you are, the higher the reward and the higher the risk TO US-our job, our profits" (the investment advisors jobs, the investment advisors profits)
CONTROL is the financial key to rapid asset growth... compounding. Its just so confusing for most people. They see the polished brochures, and marble floored offices, and the pristinely groomed secretaries, and believe these guys MUST be good. Yes they are good, they are good at getting business for themselves. So we work very hard in our jobs/small businesses, trying to aggregate together some funds to hand over to them.
Well, those of us that refuse to become professional investors anyway.
YOUR CONTROL OF YOUR FUNDS
The absolute truth. Completely unbiased, unspoiled, honest to holy, highest of accuracy truth, is that you can do 100 times better then whats on offer. Its possible, it happens and you can make it happen too.
Risk is a managable factor, that can be negated to almost zero. "Low returns and risk are proportional to the exact degree we relinquish control of our asset to another". (I hope you heard that last statement, its the most important sentence on this page.)
The further removed we are from the compounding control of our assets (money), the higher the risk and the lower the return.....guaranteed.
If you could compound your money at a rate of tenfold, (or 1000%) for 48 months starting with just $1000 you would have 10 million dollars IN 4 YEARS. (Try it yourself, just get a calculator and multiply $1000 by ten, then multiply the result by ten for 4 times.)
At 7% over 48 months, you would end up with the grand total of $1310.79 (Try it yourself, but instead of ten, multiply by 1.07 which is equivalent to 7%)
Its a big difference isn't it?
What would it take to multiply your money by 10 every year, consistently? Or even 5 for that matter would be quite acceptable, 3 times? Yes, Yes, and Yes. They are possible, and available to you.
If control is the key, how then can we physically, concretely make these results? If not in the "closed shop" of the worlds stock markets, then where?
Its all around you. Spare value is everywhere, waiting to be scooped and resold for a profit. At every price point imaginable. You can start with $20 or you can start with $20,000 your account size and comfort zone, are your only restrictions.
There's alot to all this. Its beyond the scope of this short article. The main point here, is that the "professionals" are in charge, so they get paid first, and in some cases-the most. You gave them the power over your money by signing their forms. They scooped the cream off, even though ITS YOUR MONEY that did the work.
Its easy to understand if you will just be willing to be honest with yourself. Investing is alot of fun. Especially when you know a few things about it.
I have alot to tell you about these issues, so keep an eye out for my articles here, or visit our web site now for alot of free insights and open content pages.
(c) Martin Thomson 2005.
Martin is an investor who is also part of a team that maintain a website for ordinary people to find rapid resource pathways to wealth. http://www.opportunity-investor.com. With quality content heavily slanted towards good common sense, opportunity-investor.com is the exclusive place on the web to get the highly acclaimed work by Millionaire Investor Hayden Muller. "The Trade Secrets of an Ethical Opportunity Investor: A Step-by-Step Guide". copyright 2005 revised edition. Hayden Muller.
Mutual fund managers use fake fund names to part you... Read More
For those who have never given their financial future a... Read More
College Savings Plans ? are they the best choice for... Read More
Investors are always looking for the best investments that will... Read More
Upper Saddle River, N.J. - May 11, 2005 - Now... Read More
For better or worse, most option trading investors purchase stocks... Read More
Many people hear "retirement" and think- what? 401K? Roth vs.... Read More
Sales Leaseback compared to traditional property investmentCan a Sales Leaseback... Read More
All this talk about Investing is encouraging lately. Over the... Read More
To understand stock options, we need to look at Webster’s... Read More
Larry, Moe and Curley were sitting in their favorite restaurant... Read More
"Hey Joe! I need help finding a broker. I notice... Read More
There is an area in Brazil that has lower crime... Read More
One of the fundamental principles of finance is the concept... Read More
It is a common question when investors review their retirement... Read More
Remember the old saying, "never too late to start"? Well,... Read More
You don't HAVE to be trading.As a novice trader, you'll... Read More
1. Begin investing immediatelyProcrastination is the number one enemy of... Read More
Some lines from a movie never leave your mind; I... Read More
Are you as good an investor as you think? Do... Read More
The Nature of Penny StocksFor anyone new to investing in... Read More
"The American Age of Inflation is finished." So says economist... Read More
The last time you spoke with your broker did he... Read More
I am good at a few things. I can certainly... Read More
While it is rather rare that value gurus sell stocks... Read More
I love to collect quotes as they concisely promote a... Read More
The economic data reported Fri showed continued above trend growth... Read More
Relaxing in Style: Florida Investment PropertiesIn Florida, relaxing in the... Read More
There has been much talk lately about Coca-Cola and its... Read More
Many people buy annuities according to their agent's recommendations. However,... Read More
A fickle stock market encourages good-humored mockery.Recently, as I watched... Read More
The U.S. economic data reported this week showed strong output... Read More
FOREX, the term for the FOReign EXchange market, is an... Read More
"Financial planners are like dentists: they may occasionally inflict pain,... Read More
Many investors think that investing in mutual funds is free.... Read More
The financial characteristics of the automobile dealership are attractive:". .... Read More
Let's face it, you're on a roll. After getting down... Read More
In the last two decades, even though gold prices have... Read More
More and more workers are leaving their jobs and taking... Read More
Investing in New Zealand might be much easier than investing... Read More
Throughout the discussion of speculation and stability, we emphasized that... Read More
Grading coinsThe condition of a coin is commonly summarized by... Read More
Over the long term stocks have provided us with great... Read More
The Roth is kind of weird until you get used... Read More
The straddle strategy is an option strategy that's based on... Read More
Looking Inside Your Tenant's Mind Basic Mind-Reading Report 101 for... Read More
What CA Needs To Do To Address Issues in FranchisingWe... Read More
Some time ago I attended a seminar where participants were... Read More
There is a tremendous amount of software, complicated high priced... Read More
If you want to make the most of your personal... Read More
Where is the second biggest deposit of oil reserves in... Read More
You are 55 years old (or somewhere around there) and... Read More
Discipline can be simply defined as your ability to follow... Read More
While it is rather rare that value gurus sell stocks... Read More
Think carefully on how to invest your money because if... Read More
Q: I own a small decorating business and I'll be... Read More
The practice of economy, directed toward a retirement investment plan... Read More
Today, I am going to start a multi-part series about... Read More
I've been in and interested in the stock market so... Read More
Many people buy annuities according to their agent's recommendations. However,... Read More
In recent months, many advisors have talked a lot about... Read More
Do you rule your superannuation or does it rule you?It's... Read More
They call 'em ETFs.There are hundreds of them.The mutual funds... Read More
Purpose: Expose Opportunities for Smart InvestorsThe move by China's central... Read More
Despite what some people may lead you to believe; day... Read More
Many people hear "retirement" and think- what? 401K? Roth vs.... Read More
Investing |