Where is the best place to invest your money to achieve the greatest return?
A regular savings account will offer you a paltry return.
You’re lucky if you can get a 2% return with a high-interest savings account. Most accounts will over 1.2-1.8%.
You can try to hold off investing in your business for as long as you can, just remember that the longer you do that, the longer it will take you to see BIG results.
With the current rate of inflation at 2%, your money, sitting in such a position is losing value rather than gaining value.
Next you might choose a conservative fund or some bonds and ‘rake in’ a 4% return. Nothing to get excited about.
Getting into the equity markets with stocks is where you’ll find the highest opportunity for a return. Most investors are jumping for joy to achieve a return greater than 12% consistently. Most aim for 10% and historical averages produce slightly less than that.
A Great Investing Lie
Here’s where things get interesting.
Let’s say you have $5000 to invest and you achieve a spectacular 12% return every year for 5 years. At the end of the fifth year, you’ll have turned the $5000 into $8,811.71
On average that means you’ll make $762.34 each year from your $5000 investment over the 5 years.
Does that sound exciting?
If you are looking to grow your consulting income and create more wealth for yourself and your family would you choose this investment strategy as your main one?
If you said, yes to either of these questions, you’re likely leaving a GREAT deal of money on the table. Continue Reading