How Do You Increase Your Rate of Return?
Coach Mitch’s REFLECTIONS™
Editor’s Note: I commented on this article about increasing yield.
You started to allude to where the real returns within investment are, in your own business. Businessmen know that the best return is created when they invest in themselves, e.g. their knowledge, their interests, their investments.
If you stay away from the equities markets then you have the potential of making real returns because you will be personally involved in the investment. Anytime you turn over your savings to another, you HOPE that they will manage your monies correctly.
However, you have no input in a portfolio managers decisions. The portfolio manager and the stock brokers have no input to the companies and are not in charge of the economy; therefore they cannot accurately predict what will happen. Sometimes they are right in their guesses, sometimes wrong. There is no consistency in the equities markets.
When in charge of your own business – you make the decisions. You are a much better prognosticator in your area of expertise than some uninterested bond fund trader or stock broker.
When I was incensed in equities, I learned quickly that the only way that I could ensure my clients a steady 15% over inflation rate of return, which is the formula for getting rich, is to deal in insider information, which is illegal.
Otherwise, you are doomed to getting the historic 6-8% ROR less commissions, less taxes, less inflation, less losses, which earns you about 1%. This low ROR is hardly worth the effort and certainly not worth the risk nor the anxiety.
I discovered real estate investing. My particular area of expertise is Tax Delinquent Property. I have developed systems which allow me to make 200% + profits without ever having lost any monies. I discuss these ideas at my blog: www.CoachMitch.com.
I am not unique. Actively working your own ideas is the answer to creating wealth. If being a passive investor is your desire then be happy with the 1% return you get.
See Coach Mitch’s “Ridiculously Simple System…” ™ for details.
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