Compounding the base.
It 'obvious that the long work diligently saved all my life and only gets a small portion of the road. You need something different, but what to do?
Saving is like trying to fill a swimming pool with an eyedropper. He would take a very long time.
When it comes to investments, what they really mean is made. In essence, its composition, we have in mind. And 'the compound that makes all this happen andInvesting is the only activity. So, for the essence, this technology is the first and later. We call this technology, because it is an instrument of capitalization.
In the world of physics is the perpetual motion is impossible. It has proven impossible by the best scientific minds. Energy can not feed on itself to produce more energy. But in the business world is not a force. Power makes money by themselves to make more money, which in turn produce moreSave money.
Capitalization is a matter of fact and not a natural phenomenon. Its complicated by the relationship between the value of money as a commodity and the time element (which is a natural characteristic of demand for commodity money) has
Compounding a tool of the rich has been around for centuries and continue to be. But together is composed of risk. To invest (and thus can handle compounding), we must give our seed capital to another party, they canuse it for any purpose. This end, they have a profit in the stock, so devoted that the capitalization.
Here is the 'investment opportunity comes in.
We do not mind, so do research on the topic of risk. No matter how long it lasts. We guarantee that you will not find a clear case that this awareness about the risks compromising .-
"All risks fundamentally hinges around the provision of these funds to another." We're not sure if the importance of thisOccurred with instructions to return home. Here's another aspect of the same truth.
"If the hand on the funds to another without having to be released in exchange for equal or better value for money, your money is in danger"
Of course, if this is true, then logically, we might be able, without any risk at all, we offer this policy "the same or better safety report" stick to invest.
Were you listening? We hope that you will not miss. If you take something from this site and neverLet them return these phrases, ideas, and these pages.
If you have received about equal or more value for capital, risks to be eliminated completely. If you have the laptop in the VALUE property investment is exchanged for capital, and this value was more than worthy of capital exchanged stored effectively take all the risk illiminate Investing equation.
In other words, if a stranger on the street sold for 70 cents and $ 1 notesnotes were authentic certificate. How many of you would buy from this guy?
(Give me everything you have!)
For this reason, investment opportunities is zero risk. In particular, since PORTABLE stored value you are buying to take immediate possession and not a packaged rate.
The professional investment advisor.
If you are not round in our local offices, lawyers and financial advisors, we say the same thing, almost like parrots. They say things like "The highestthe reward, the greater the risk "and" long-term purchase 6% "
What happened here? What is the underlying situation?
We are controlled and monitored to decide. We are looking for these people because they have the proper credentials, the government waived investment advisory services.
Our profit potential from our investment activities is in exact proportion that we do not control for the other to dilute our investment decisions. 6%, 7%, 8% are not investment. They are simply aPlace to park money and hedge against inflation. Compounding is so far from these figures diluted so that the results were worth it is not removed. But the investments are on offer.
Please do not misunderstand, we believe that this small yield low-risk products have their place. The rich will park their money in these forms of investment with a certain frequency. At least one million U.S. dollars to 7% is $ 70, 000 per year. While there are risks associated with their relatively small. (Parking means that your moneyTo put it in a safe place, if not used for active investment. Another place where money is often parked by the rich owned)
But what if you do not have deep pockets. What if you're just starting out? These investments are necessary for many to find financial independence. After all, this is our ultimate goal. To have a million dollars in the first place, so we just put in a secure government bonds for a return as well, $ 70, 000 per yearexcellent income for the most part, especially a passive income.
We hope you see where we're going with this. We have a strong need to invest to start compounding of money, but the available vehicles are yielding little small to be exact.
Whether you're an asset base of $ 100 in bank $ 1,000 $ 10,000 $ 50,000 $ 300,000. It is not enough, the level at which joint investment vehicle will return a satisfactory compounding.
A return of 7% is fine for millionaires (not reallyBut it is a viable return on investment)
So what are the alternatives? What opportunities are there?
Its absolutely true that 7% is not sufficient to generate the cap mechanism. If we lived 200 years, 7% is useless. There is hardly registered a blip in terms of results.
What can you do?
Increases the compounder.
Aha!
(Who said that? To sit in front of the class, please)
And 'the only known way?
Yep.
(We are one of us has a thread.)
And 'the only knownWay.
Well, there are four known ways to rob a bank to get married, the money, you can ensure a legacy there will come a day, or a lottery luck. They are reliable? Are they realistic? What are the chances? Would your conscience even allow us to draw one of these alternatives can be considered?
No.
If money is a drop in the wind that his hand, but not important for us. We want more money than we need, which is access to money ... TRUST life.
OK, now we're somewhere.We stripped the layers of rhetoric to find a point. We have a huge amount of information. But the value is in small bites and tastes of the mountains, this is reduced. The increase in the compounder is the only known way.
Increasing the compounder, what you do is really the time to win. Previously, we had a return of 7% over 30 years, who had a very poor showing. Now, for example, we have a 14% return to us the same mediocre results in half the time or 15Years.
What happens if the compound could be very high jacked?
"What you're really doing is buying time"
It follows that if you buy time by increasing the compound, there is a cost associated with (ie if we buy something we pay a price for it), what exactly is the price to pay in exchange for speed / compounder increases?
DANGER! (Brigade unexpectedly hit financial advisor in all at once, except for a slow, whining that "risk" forlate.)
NO! FALSE. (All financial advisors must take a pay cut that they are wrong.)
The price we pay for a great personal commitment and vision tuners.
In exchange for significantly higher interest rates it is no wonder if they need help, personal commitment and vision.
See?
You get the 7% return for the delivery of your money to a source investor. Gone are the yields in fact paid by the last profit and your money to be made out. If you have a task ofInvestor Source, then are at the top of these when you start your money work for you.
Does it make sense?
Good.
Let's see.
In summary, the first part of this article assumes that you are still in the class millionaire. This is not to invest, we are pursuing. Lets not be confused by it anymore. Its capitalization we need. And 'the composition of our seed capital, you get to the next level. We must give it touches every corner of the world,diluted tailor investments packaged, ready to scratch and dedicated employees in exchange for a savings of 7% per year.
We have the true nature of the risks. In essence, that the abandonment of control of our seed capital.
And finally we have the first and only factor that identifies us to the next level. The degree to which we co-investment of 7% WORK
Increases the compounder.
Now that we know what should be the focus of our activities,is not at all confused. We ask how much of an increase in the mixer, we need to make it worth it. And as we have done without risk.
First, consider an example, then find one that was suitable for us and then they are guilty.
According to our calculations, 1000% is a factor of ten. Meaning, if you start with $ 100 by the end of the year, ended with $ 1000. The following year, you are responsible for a tenfold increase means you have $ 10,000.The third year is $ 100,000 and $ 1,000,000 in the fourth year.
Fine.
Many dismiss this as unlikely, especially those that seem credible, and try to gain some credibility. Finally we visit the guru of stock markets, fund managers, and these experts tell us, enjoy a poultry 10% sure that if they can not produce better yields, how can we hope to do better is not it? Only further include the control of our seed capital, the more diluted 'Compounder is.
The above is an example. A possible model. Compounding should be a guide, is not responsible for any direct money creation. Compounding makes it even richer. But the next day decisions about your goals will compounder.
Returning to our compounder 1000%.
Like everything in life, this goal is easier to absorb if its broken.
There are 12 months in a year. To turn $ 100 into $ 1,000 in 12 months the rate of capitalizationwould be only about 22% per month. Check yourself with the calculator.
So you would need to make your first $ 100 to $ 122 within the first month of next month, you must add $ 26.84 to your $ 122 dollars, and so on, adding 22% to the total of each month.
Still sounds high?
Allows you to split further.
If you wanted to make 1 million dollars in four years (48 months), starting at just $ 100, you must apply to capitalization, that a hundredDollar bill with a rate of about 5% per week.
This means that at the end of the first week you will find a way to increase $ 100 $ 105
Does this sound possible?
Not the way to a certain point, the labor market, but it can work to death.
On a daily basis, if only .7 of 1%, which included seven tenths of a percentage point a day, we were a million dollars in 1460 days (4 years) to reach the first day, we would have 70 cents to U.S. $ 100 Add to a total of $ 100.70, the nextDays would add 70.49 cents and so on. Can?
In mind, there are informal investors and does not work for their livelihood. Your job is lost, until you reach the level where you can stop working and get to build a phenomenal business full time to invest.
So, when we say we will be adding 70 cents on the first day, 70 cents is not going to come from your workplace or your bank, or behind the sofa. comes from the $ 100 you get to work. Not a big problem at the beginningbut important to understand. $ 100 was all that money for you, what you did, your money work for them.
But wait you say, is simple to make $ 1,000 a year, but how do I make $ 1 million for the fourth time in a year?
This is a legitimate question. Its end. It shows you are paying attention.
Here's why.
At the beginning of the first year began with a hundred dollars. right? You have easy access to the $ 100 to $ 1,000.
At the beginning offourth year, if all goes according to plan you started with $ 100,000.
There is no difference in proportion.
Their efforts are just foreign direct investment to a different level of value of the dollar, profit margins should remain broadly the same, what did you do?
Instead of investing in low-ticket items that you are investing in high ticket items. Profit margins remain the same.
The way to your financial progress is specific and safe. Due to some people this is seen as a "black art". OfOf course, to provide packaged investment compared to dilute "investment adviser" investment opportunities in the world is relatively black magic, alchemy and witchcraft in one person. But his common sense unhindered by the vague notion of "better informed" employees of the world interest rate of 6%.
Martin Thomas (c) Copyright2005
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