I've been invited to more "investment" seminars than I care to count. While I will occasionally attend a few where the speakers are very highly educated, credible and successful, I avoid the ones where someone shows a fancy presentation that ensures you will be retired and living on the beach in no time. They ask questions such as, "Are you keeping your options open?" and then tell you they want to get you "plugged in" to something that is revolutionary and exciting that will ensure your financial success in two years as proven by someone from a far away land who has been highly successful with a previous project. Never mind the fact that you've been working for years trying to do all the right things to make it but they swear that in just a few years somehow, someway you will have a new jet setting lifestyle. I won't mention any by name as there are simply far too many out there just waiting to take advantage of you.
The presenters show luxury homes, expensive cars, beautiful people, yachts, exotic islands and all the jaw dropping things that makes your heart just go pitter patter. You begin thinking you've been doing it all wrong all this time and perhaps hanging around the wrong people but now you've seen the light and if you make this small investment, you will soon be on your way to the promise land. No need to feel that you're above this because Bernie Madoff made off with millions of dollars from highly educated and very sophisticated investors which should humble all of us. It's always been the goal of the Investment Forum to educate people on what they can realistically expect when entering the world of investing.
This should make you leery of get-rich-quick schemes
Whatever you invest in, your return should at the very least exceed inflation which we will assume is 3% on a long term (1 year +) investment. Inflation simply means $100 today is only worth $97 a year from now, so if you're going to risk your money and yes investments means risk, then you should at least beat inflation. Conservative investors are people who don't want to lose any of the $1,000 and assuming they beat inflation, their return should be around 5%. Moderate investors are willing to risk a bit more and their returns should be around 8%. Aggressive guys are willing to risk even more and for that extra effort, their return should fall into the lower double digits. So let's recap for a minute. Assuming you're investing your $1000 as a moderate investor, your new balance after one year assuming everything goes well will now be about $1,080. Observe what just happened here and realize that in no way are you going to be retired doing that in 12 months. No Bentley, no G550, no mansion in Malibu. Still people believe that their $1,000 should somehow miraculously jump to $2, 3 or even $5,000. Is it possible that you can get really, really lucky and find something that will do that? While highly unlikely it is possible. That's where probability and statistics come in. Do you really want to risk your light bill money (people do it all the time) on something where the odds of success are 1 in a million? There is also the possibility of losing the entire investment.
The bottom line for most people is they want to be rich and while rich is possible depending on what your definition of rich is you have to be a part of a system that allows you to get high returns consistently for many years in a proven process.
A one shot deal won't do it and certainly not a $1,000 investment. Don't make the mistake of thinking if you invest $10,000 it will make you more likely to hit the high numbers. The original numbers simply repeat themselves meaning a moderate return on $10,000 is still a new total of $10,800 assuming everything goes right. We won't even account for the fee that you will be charged for whoever it is that introduces you to this investment.
The Details of Exotic Retail
People tend to talk to about the goals of a luxurious lifestyle as what they desire. So how do you get to that world of riches assuming that means all the shiny, expensive things on impressive displays? The absolute best way to get what you want out of life is to make a list of the things you want and draft a plan. That means researching all items including costs, maintenance and seeing if these things fit into your lifestyle. Can you honestly justify a Rolls Royce into your life if the farthest you go is to the grocery store, dry cleaners, work and your parent's house?
A lifestyle of perpetual exotic retail is not something you want to indulge in because whatever the item is today it will be an afterthought in a few years. You can have it all but just not all the time at the highest levels in everything you do. If you want a Lamborghini and a jet for example, one of them is about to be neglected and at very high cost. That's why it's important to focus very clearly on what you want, can legitimately use and are thrilled about maintaining. I love the acceleration of a Lamborghini Murcielago and will never forget that first time on the highway with every one of its 640 raging bulls but replace the $15k clutch a few times while paying the $8k annual insurance premium and you may lose the excitement faster than it gets from 0-60. Pick your poison, make a list, and slowly go about the business of getting what you want. Get in a hurry and you may fall victim to a foolish scheme.
There are no huge pots of gold at the end of small, shallow rainbows. Keep abreast of what a realistic investment return is so you can avoid people who present you with hocus pocus nonsense get-rich-quick schemes. I assure you that nobody is going to beat your door down begging you to be a part of a lucrative deal that's earning them big money. Your initiation fee is commonly where the profits are. Either you figure out what you want out of life and tell your money where to go or it will show you where it has been and the two may not meet at the same destination. Research diligently before you plop down your money and if something looks too good to be true, make them show you receipted proof that it worked for them.
All the best,
