For most people, earning a return on your money of 3-5% is considered acceptable. In fact, in tough economic times, earning a return on your money that is positive at all is considered acceptable! Based on past performance, investments such as gold stocks or resource stocks can likely provide much higher returns than 3-5%.
Many people have experienced going to the mailbox, opening the statement from their mutual fund manager and showing a year over year decline in the overall value of their portfolio. What if your investments could net you an ROI (return on investment) percentage in the double digits or even triple digits? It is clear based on the above example that traditional means of investments such as mutual funds and GICs may not be the most effective vehicles for building wealth.
Most wealthy investors would never dream of investing in a vehicle that brought them a return of 3-5%. In order to build true wealth and abundance over time, you need to ensure that your money is working hard for you, not having you work so hard for your money.
Some would argue that the best way to build wealth over time would be to choose investments that have traditionally provided a higher yield. For example, the amount of wealth you would build over time in an investment that yields 1-5% per year would be significantly lower than an investment that earned you 10% per year. This may seem like the obvious is being stated here but once again, the amount of long term wealth that is built by using a higher yeild investment is signifcantly more than a lower yielding one.
By using investments that provide you with a higher percentage of return and combining this with the magic of compound interest (earning a return on the funds that you have invested as well as earning a return on the profits you have made from your investments), your path to financial freedom could be significantly shorter.
Like all investments, knowing which vehicles to invest in such as energy stocks or gold stocks takes some knowledge and education. Using gold as an investment for example can come in many forms such as investing in gold bars, rare gold coins, futures and options, among others.
Two key elements in the wealth building equation are time + ROI (return on investment). One way to shorten the time it takes to build wealth is by choosing investments that historically have provided a higher rate of return.
The first step for many investors is seeking guidance from an investment professional. It is always better to know more about the investments you are interested in. By asking your professional advisor about higher yielding investments, you can help ensure your money is working harder for you.
Click here if you are looking to find more information on Resource Stocks. You can also visit us to learn more about the Gold Standard.