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
Commodities
2007-11-01
Ten Timeless Tips For Wealth Creation(7)
Posted by cheahyeankit at 4:20:00 AM
Labels: Don't be overly conservative
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