Invest Like A Boss: High Returns, Low Risk, Stress Free
Challenge 3 of 5: “I should invest, and I'd like to, but I don't have the capital, the time, or the knowledge. All I have is confusion, fear, and overwhelm. And I'd like to make huge returns, not take forever just to get small returns. What do I do?”
So back in the days when I finally started making some decent money, I did what many people do in the beginning.
I blew it on beer, buds, and bullshit.
And then it occurred to me that because I was pissing it all away, down the drain, I was paying everyone else except me.
I had nothing to show for all that work, all those years - except my beer stories, bud memories (if any), and bullshit ‘assets’ (bling) that simply held me down in maintenance costs and worry.
I needed to start paying myself, investing in myself, creating a system to exit the rat race, to be truly free.
I needed to create a garden.
A garden of investments that made my money work for me…
…creating more and more money automatically, even as I slept.
I had to invest.
So back then, I opened an account with e-trade online (I wouldn’t do that today).
I bought a bunch of books and magazines and read them all.
I just got more confused and overwhelmed!
I looked at the markets - thousands of stocks and currencies and futures and options and CFDs and ETFs and WTFs!
So I gave up and just bought some ‘safe’ shares, and sat.
It was like watching paint drying on the wall.
Nothing happened much, except maybe a 3% gain here, a 2% loss here - over long stretches of time.
And then, after many years of searching, I bumped into several interviews of self-made billionaires.
I was shocked by what they all said.
It was so simple.
Yes, also a little boring sometimes, but so simple to invest wisely, safely, hands-free, and ultra-profitably!
I very much liked that kind of boring 🙂
Without stress and without having to read the markets all the time or study tons of books and get crazy!
This is what the billionaires all said…
Simply follow the following 4 simple steps and forget everything else, and you will do very well, stress-free:
- Asset Allocation (Once a year only, you decide on 5 to 7 complimentary assets you shall invest in, and the proportion each asset will take in your overall portfolio, and then stick to it for the rest of the year.)
- Dollar Cost Averaging (Every week/fortnight/month, invest the exact same amount of money into your selected assets, in the proportion dictated in your Asset Allocation plan, regardless of price movement, regardless of news, etc. Simply set and forget.)
- Rebalancing (Once every 3 or 6 months, "correct" the asset proportions of your portfolio and bring it back to the original plan.)
- Compounding (Relax, let the system work for you over time. That's the magic, when all these first 3 elements work together over time.)
Now, that formula above is actually quite common knowledge amongst the wealthy class.
Nothing new there (except I didn’t know it then).
What is new, is the new mix of assets (this one I came up with myself) that go into your Asset Allocation plan, your portfolio.
Here is what I suggest (at your own risk - but so far it works).
In your portfolio, get rid of everything else except these:
1. Hold only a little cash (enough for 1 or 2 months living expenses)
2. One good, simple Index Fund (never mutual funds - big difference).
2. Some gold and/or silver (this is real money, proven for thousands of years to hold value, especially in times of crisis - buy it as a gold 'sim' card, jewellery or coin or bullion - physical metal)
3. Plenty of cryptocurrencies like Bitcoin, Ethereum, Litecoin (once you truly understand what these are, you realise they are much, much safer than cash, bonds/t-bills, and most shares - and they currently grow at more than 10X almost anything else)
You can do very well investing in only those things.
Now, to make it work smooth, without stress and with minimal risk, you apply Dollar Cost Averaging and Rebalancing to the Assets above.
Secondly, ensure that the bulk of your portfolio is in the cryptocurrencies - those are the future of the world.
See the performance on just 3 of those cryptos, for just the last 1 month and 1 year:
I gave my brother this tip back in early February this year (2017) and forgot about it.
Two months later, out of the blue, the guy casually tells me on Whatsapp that he had put in $10,000 into the plan back in Feb, and it rose to $50,000 effortlessly (a $40,000 gain).
That was in early April. Today(early May), I'm guessing its about $70,000 up because of the gains in Bitcoin and Eth.
Good news is, you can do the same.
You don’t have to buy a whole Bitcoin or ETH, you can buy a fraction. And there is Litecoin.
All this means that you can get in the game with as little as $50!
WARNING! Resist the temptation to ‘pick a winner’ and ‘time the market’.
The system works when you put it all together, especially by applying Dollar Cost Averaging and Rebalancing.
If you leave out DCA and Rebalancing - you are on your own! Exposed!
And if you only invest in one thing (rather than a basket, a portfolio), again you are exposed.
Don’t make that mistake.
You have to combine AA, DCA and Rebalancing, for it to keep you safe from losses, and capture your gains regardless of market swings.
If you would like to learn a bit more on this strategy, watch this free video I made for you.