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Starting with nothing, can you really become
a millionaire over the next 15 years through an
aggressive alternative investment strategy? The
compound calculator says yes, but what are your
chances of actually being able to realize the
returns needed to achieve those final results?
The answer depends on your current financial situation,
your willingness and ability to stick with an
aggressive investment plan, and the quality of
the alternative investment vehicles that you choose.
For example, if you start investing $300 every
month today into certain aggressive alternative
investments that return an average of 60% annually,
you will have accumulated well over $2 million
in 10 years time. Yet, this is a poor financial
plan which is unrealistic for several reasons
- not the least of which is that you will be taking
too high of a risk with too much money in the
later years in order to generate that kind of
overall return. However, this is a great way to
start, and if you are careful about the investment
vehicles you choose you can certainly obtain that
return within an acceptable risk profile. My suggestion
is to go three years at this "level"
in your plan, at which point you'll have accumulated
about $30,000.
Now that you are ready for the next level, you
are going to want to reduce your risk profile
and put that $30K into better quality vehicles
~ which invariably means lower returns. Continue
to make that $300 monthly spend to your portfolio.
With a 30% average annual return, you'll have
amassed over $1,450,000 in an additional 12 years
time, or 15 years total. Of course, this figure
assumes that you didn't have to remove any funds
to pay taxes with ~ and that's a big assumption!
For that reason, you should structure as much
of your portfolio in non-taxable growth entities
as possible, including: IRA's, IRA rollovers,
certain variable annuities, or properly structured
offshore accounts. (A good example is the American
Skandia variable annuity which allows swing-trading
the Profunds mutual funds within the account).
So what types of investment vehicles am I talking
about? Aggressive trading accounts (either managed
accounts or self-traded using a good signal service),
private equity arrangements in small businesses,
pooled venture capital funds, and other interesting
opportunities that come your way. Realize that
your choices in the beginning, when you have only
a few hundred dollars to start with, are going
to be quite limited as compared to when you are
ready to move to the next level. But you still
need to insist on only top- quality opportunities.
Playing pyramid games or being duped into a ponzi
scheme will only make you have to start over again.
To be successful, you must avoid the pitfalls
of the online investing community. Stay away from
anonymous e-currency investments that you can't
verify. Do not place money in too-good-too-be-true
offers. Insist on knowing who your financial partners
are and demand credentials along with a verifiable
performance history of any trading account. Do
not become the victim of con-artists or unskilled
money managers/advisors. Avoid affiliate marketers,
degenerate gamblers who want to gamble with your
money, and anyone that you heard breached someone's
trust in the past. Put the odds in your favor
by only doing business with honest, reputable,
real people whom have nothing to hide and whose
operation makes sense. Make a plan that you can
stick to. Stick to your plan. Choose your investment
accounts wisely. Do these things and your aggressive
wealth building strategy will have an excellent
chance of success!
This article courtesy of http://www.investment-index.com.
You may freely reprint this article on your website
or in your newsletter provided this courtesy notice
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