2007-11-01

Ten Timeless Tips For Wealth Creation(7)

Don't be overly conservative.


Why learn the hard way by losing your hard-earned dollars making the same old common investing mistakes.

It's much better to learn from the experience of thousands of investing professionals over the last 100+ years.

Here are the top ten timeless investing tips



6.Don't be overly conservative.


If you put all of your money into a 4.5% bank account you are missing out on about 75% of the total annual earnings you can make.

Here's the math:

if annual inflation is 2.5%, then that 4.5% bank account is only giving you 2% after tax.

If, instead, you invest in a well-diversified collection of U.S. and global stocks across a variety of sectors,

your long-term risks are nil and your long term average returns will be 8-11%/year.

That's 5.5-8.5%/year after inflation is deducted - a heck of a lot more than that savings account!


By Mitch Mueller

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