Where Can I Invest My Money to Realize at Least a 10% Return?

This article is about Entrepreneurship, Real-Life

In a forum thread called “Why do so many people hate on Dave Ramsey?“, Rush complained that Ramsey’s advice is too conservative. Squished18 replied by saying: “You’re advising me to invest my $100K ‘at 10%’. Where am I going to invest my money? There are ZERO investments that will guarantee me a 10% return.” The following was Rush’s response.

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You asked the million-dollar question: “Where am I going to invest my money [to realize at least 10%]?” Obviously no one can answer that question. What we can do is try and then measure the results. If the results indicate that 10% were achieved, then you’ve answered your question. It seems that most people who talk about “investing” and returns automatically develop visions of the stock market, mutual funds, CDs, and the like. In reality there are many opportunities around us that will return much more than a paltry 10%. Unfortunately, there is no “canned” answer. I can give you examples.
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Everything about earning returns boils down to buying low and selling high. To realize a return, one must first spend cash and then one must redeem for cash. If you buy a stock, you spend $1,000 and wait a certain amount of time and then sell the stock. Same with mutual funds. Same with any other type of investment you can imagine. The “stock market” requires very little participation on your part. You make the purchase and pretty much wait. However, if you think outside the market, you’ll find plenty of scenarios in which you can buy low and sell high and you’ll be directly responsible for the return.

What you buy low and sell high depends greatly on you and your life experiences. For example:
Joe Blow has a niece with a 2000 Ford Taurus she wants to sell for $4,000. Joe also know someone at his church who is looking for a good car for their son. Joe buys the Taurus for $4,000 and sells it to his friend for $4,600. That investment activity took 3 days and returned 1,500% APY. That’s one-thousand-five-hundred percent interest. Joe knows cars and he had a good idea that the Taurus would make a good investment. Yes, there was a risk involved, but Joe is a car guy which minimized the risk. I’m not a car guy and don’t mess with flipping cars because I don’t have the needed knowledge and experience with cars. I have my own niches.
Plenty of folks can buy a $100,000 house at a sheriff’s sale and sell it the following month for $107,000 - it happens daily. This scenario yields an 84% return. EIGHTY FOUR PERCENT RETURN!!!
I know pinball machines. When I see one at a garage sale or listed in the paper, I know what price I need to buy it at to sell at a great return. My friend is an antique aficionado and he goes to estate sales and grabs up stuff throughout the house that I wouldn’t touch. He’ll drop $5,000 on a Friday morning and after a week on eBay he’ll have $10,000. A nice little 5,200% APY.
A friend goes to Dunkin’ Donuts every morning. The clerk there knows my friend by name and they regularly visit when it’s not too busy. One morning the clerk was telling my friend that their dough mixer was on it’s last leg. My friend found a suitable mixer for $6,000 and sold it to the owner of the doughnut shop for $9,000 and even included a 60 day warranty. That was nice 18,250% APY deal and all he did was eat some doughnuts each morning.
How about renting residential real estate? Take $20,000 as a down payment and buy a $100,000 duplex. For merely $20,000 you’ll own all the income, deductions, appreciation, and other intangibles that $100,000 generates. That $20,000 can often easily kick off $2,000 per year in cash (10% APY), but you also get to lower your tax bill (let’s say $600 or 3% APY), get appreciation of the property (15% APY against your $20k), and you get the equity accumulation as your tenants pay off the mortgage (2% APY which grows yearly). One can easily realize a 30% APY in cash and cash equivalents by diving into landlording.
Another friend works for a big company. That company buys 1,000 Dell laptop computers every two years. Normally the retired laptops were sold to a laptop broker. My friend now buys them every two years and pays more for them than the broker did. He makes more than a years salary flipping laptops on eBay. All because he works where he does and took the initiative (and risk) to make a sweeter deal for his employer.
There was a convenience store in a small town that was owned by a husband and wife team. Their marriage went bad and a judge forced them to work different shifts. He would steal money, she would steal money. Soon they could no longer afford to put gasoline in the tanks. The store inventory dwindled. The store soon become filthy and local residents learned to hate the place. A look at the county records told the whole story. A call to the attorneys handling the divorce revealed that the store was in receivership and ordered sold by a third attorney. A call to the third attorney revealed the store could be had at a great price. The deal was made. The store was remodeled, renamed, and reopened to incredible fanfare and profits. Being a local resident and watching the couple’s purchase and subsequent demise and dilapidation of the store set the wheels in motion for a great investment.

You see, there are plenty of opportunities around us outside of our regular jobs. Telling you how to make these fantastic returns is not possible because I don’t know your skills, knowledge, geography, financial situation, or even your daily routine. Joe knows cars. Steve knows antiques. I know pinball machines. Someone else simply eats doughnuts. Jack knows his employer sells 1,000 laptops every couple of years. What is certain is that if you look for these opportunities and act on them you can easily beat the 10% expected market return.

Notice that in none of my scenarios do you have to quit your day job nor do you have to spend an inordinate amount of time to achieve these results. Most people will not act on these opportunities for fear of failure. I suppose their risk tolerance is too low. But if you load up on retirement mutual funds and put the rest of your money into paying off your home mortgage, you won’t be in a position to seize a deal when it does come up.

Rush isn’t saying that you shouldn’t invest in mutual funds or pay down your mortgage; he’s advising that you keep some of your money liquid so that you can seize opportunities. In essence, he’s encouraging diversification. His ideas aren’t “get rich quick” schemes. They’re examples of the creative thinking that can lead to extra income.


 










This article is about Entrepreneurship, Real-Life

In a forum thread called “Why do so many people hate on Dave Ramsey?“, Rush complained that Ramsey’s advice is too conservative. Squished18 replied by saying: “You’re advising me to invest my $100K ‘at 10%’. Where am I going to invest my money? There are ZERO investments that will guarantee me a 10% return.” The following was Rush’s response.

You asked the million-dollar question: “Where am I going to invest my money [to realize at least 10%]?” Obviously no one can answer that question. What we can do is try and then measure the results. If the results indicate that 10% were achieved, then you’ve answered your question. It seems that most people who talk about “investing” and returns automatically develop visions of the stock market, mutual funds, CDs, and the like. In reality there are many opportunities around us that will return much more than a paltry 10%. Unfortunately, there is no “canned” answer. I can give you examples.

Everything about earning returns boils down to buying low and selling high. To realize a return, one must first spend cash and then one must redeem for cash. If you buy a stock, you spend $1,000 and wait a certain amount of time and then sell the stock. Same with mutual funds. Same with any other type of investment you can imagine. The “stock market” requires very little participation on your part. You make the purchase and pretty much wait. However, if you think outside the market, you’ll find plenty of scenarios in which you can buy low and sell high and you’ll be directly responsible for the return.

What you buy low and sell high depends greatly on you and your life experiences. For example:
Joe Blow has a niece with a 2000 Ford Taurus she wants to sell for $4,000. Joe also know someone at his church who is looking for a good car for their son. Joe buys the Taurus for $4,000 and sells it to his friend for $4,600. That investment activity took 3 days and returned 1,500% APY. That’s one-thousand-five-hundred percent interest. Joe knows cars and he had a good idea that the Taurus would make a good investment. Yes, there was a risk involved, but Joe is a car guy which minimized the risk. I’m not a car guy and don’t mess with flipping cars because I don’t have the needed knowledge and experience with cars. I have my own niches.
Plenty of folks can buy a $100,000 house at a sheriff’s sale and sell it the following month for $107,000 - it happens daily. This scenario yields an 84% return. EIGHTY FOUR PERCENT RETURN!!!
I know pinball machines. When I see one at a garage sale or listed in the paper, I know what price I need to buy it at to sell at a great return. My friend is an antique aficionado and he goes to estate sales and grabs up stuff throughout the house that I wouldn’t touch. He’ll drop $5,000 on a Friday morning and after a week on eBay he’ll have $10,000. A nice little 5,200% APY.
A friend goes to Dunkin’ Donuts every morning. The clerk there knows my friend by name and they regularly visit when it’s not too busy. One morning the clerk was telling my friend that their dough mixer was on it’s last leg. My friend found a suitable mixer for $6,000 and sold it to the owner of the doughnut shop for $9,000 and even included a 60 day warranty. That was nice 18,250% APY deal and all he did was eat some doughnuts each morning.
How about renting residential real estate? Take $20,000 as a down payment and buy a $100,000 duplex. For merely $20,000 you’ll own all the income, deductions, appreciation, and other intangibles that $100,000 generates. That $20,000 can often easily kick off $2,000 per year in cash (10% APY), but you also get to lower your tax bill (let’s say $600 or 3% APY), get appreciation of the property (15% APY against your $20k), and you get the equity accumulation as your tenants pay off the mortgage (2% APY which grows yearly). One can easily realize a 30% APY in cash and cash equivalents by diving into landlording.
Another friend works for a big company. That company buys 1,000 Dell laptop computers every two years. Normally the retired laptops were sold to a laptop broker. My friend now buys them every two years and pays more for them than the broker did. He makes more than a years salary flipping laptops on eBay. All because he works where he does and took the initiative (and risk) to make a sweeter deal for his employer.
There was a convenience store in a small town that was owned by a husband and wife team. Their marriage went bad and a judge forced them to work different shifts. He would steal money, she would steal money. Soon they could no longer afford to put gasoline in the tanks. The store inventory dwindled. The store soon become filthy and local residents learned to hate the place. A look at the county records told the whole story. A call to the attorneys handling the divorce revealed that the store was in receivership and ordered sold by a third attorney. A call to the third attorney revealed the store could be had at a great price. The deal was made. The store was remodeled, renamed, and reopened to incredible fanfare and profits. Being a local resident and watching the couple’s purchase and subsequent demise and dilapidation of the store set the wheels in motion for a great investment.

You see, there are plenty of opportunities around us outside of our regular jobs. Telling you how to make these fantastic returns is not possible because I don’t know your skills, knowledge, geography, financial situation, or even your daily routine. Joe knows cars. Steve knows antiques. I know pinball machines. Someone else simply eats doughnuts. Jack knows his employer sells 1,000 laptops every couple of years. What is certain is that if you look for these opportunities and act on them you can easily beat the 10% expected market return.

Notice that in none of my scenarios do you have to quit your day job nor do you have to spend an inordinate amount of time to achieve these results. Most people will not act on these opportunities for fear of failure. I suppose their risk tolerance is too low. But if you load up on retirement mutual funds and put the rest of your money into paying off your home mortgage, you won’t be in a position to seize a deal when it does come up.

Rush isn’t saying that you shouldn’t invest in mutual funds or pay down your mortgage; he’s advising that you keep some of your money liquid so that you can seize opportunities. In essence, he’s encouraging diversification. His ideas aren’t “get rich quick” schemes. They’re examples of the creative thinking that can lead to extra income.


 
Money Investing for Beginners | Best Ways to Invest Money


The Main Educational Ideas of my Beginner Money Investing site helps train yourself to put money aside, commit money to earn a financial return as well as the Best Ways to Invest Money? Is committing money to earn a financial return the same as playing for money? It must have crossed your mind if you had committed some money every month to acquire shares of any major company during four or five years previous to filing its bankruptcy. Having tried to take some business risks cost you an arm and a leg, but if you had given it a second thought you would have committed your money to a savings account earning a 1,3 or 2,3 annual percent during that time period. Still, during that lapse of time, the Dow Jones Industrial Average scale had raised 100% its price. Middle class property house prices had raised between 6% and 8% in that same time. Certificates gained around 6% per year. Could your possibilities to succeed be higher if you were playing at some casino or race? You may either come out naked or you may triple your cash.

Committing money in certificates, shares and/or properties is not similar to playing for money, even when shares, certificates and property prices fluctuate suddenly. Keeping money aside at home is not the same either. Contrasting ideas come from the following: Putting money aside is to keep your money worth the same when not being used. On the other hand, committing money for profit has to do with risking. Depending on where you put your cash, that is to say what kind of business, you’ll get more or less turnovers. To invest is to put money in the financial market or in real estate to increase its future value. Committing your money includes shares, bonds, real estate, options, and future contracts; savings is usually done through a bank savings account.

Speculating is putting money in a place in which opportunities to get a financial return in blue through a determined period of time are just minimum. With this investment probabilities of getting back some money over a long period of time are really high. Therefore, we can assure that investing and speculating are not the same; moreover, speculating is more related to gambling in which odds are against the individual that decides to invest. The risk of loosing in future contract investments area extremely high. For each dollar earned from commercializing future contracts you loose another one. Then, why are there who invest en speculative values? The answer is very simple. If investments work as one hopes or expects, the investors will count with a substantial turnover.

Having success in investments requires knowledge about values and stocks in which one is investing as well as the risks that those values carry. Investment opportunities are very broad and the abundant information that exists in the internet may help you get more knowledge about those investment opportunities that you feel you can carry on. The negative part that comes along with the internet is that the use of such a simple and quick that you can make investing mistakes much more easily. Without having to talk about your investing ideas to your agent o financial broker, you could end investing in low return shares and bonds, but with a higher risk of loosing it all. Advice about investments are spread freely and easily through internet. But you should take into account that no advice is free. If you had followed the advice of a research analyst having to do with which shares to buy or sell for the 2000-2002 period you would have lost most of the capital you invested. Many analysts recommended the buying of shares and stocks with very little information about those values, and only because the prices had dropped to a very low level. For example, selling shares and stocks suggestions over: Enron, WorldCom, and Global Crossing came only when they were already near to file for bankruptcy.

By understanding how to build a investing portfolio you could keep safe against any potential loss such as those shares and stocks coming from the mentioned companies and corporations.