Aggressive Wealth Building Strategies|
by Andrew "Bud" Fox
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
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 and the author
name and URL remain intact.
Submit Your Article
List Your Ezine in Our Free Newsletter Directory!