Putting money on the market has always been compared to the casino business, but if you have ever been to Las Vegas you know the feeling of winning and losing. Sure, winning is fun but losing is the worst feeling ever and while it may take decades to make your money it can be lost in a second. The same is true of the markets. Imagine if you could leverage your money using a financial tool that allows your hard-earned dollars to grow tax-deferred and allows you to take your money out tax-free.
Sounds crazy right? So what, its still true and it can work for you. The market averages growth between 7 and 10% annually but you have to take on risk. Lets split the difference and say that a particular stock or bundle of stocks makes 9% annually with 2% going to the money manager and fees (leaving you with 7% growth) and about 15 to 20% going towards capital gains taxes if you sell. We haven"t mentioned that you may lose all the money because of an international war, disease, or social unrest. Conversely, fixed assets earn 5% annually with no market risk and in many instances, no fees, and you will not have to pay taxes. That makes the 5% gain a lot more attractive.
But lets say that you have to make more than 5%. Are there any fixed assets that track an index like the S&P500? Yes, and many of these types of assets offer a fixed rate of 10%. At 10% you can double any amount of money in 7 years and if you reinvest you can double again in another 7 years. Its all about compound interest and working with an expert you can trust. Its not complex and scarly but with a lttle coaching you can acheive financial success in your life time.
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