My Way Or The Highway: Give Your Financial Professionals A G
Martin Thomas
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.
About the Author
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.