The ROI Illusion
In our last email, we saw that professional money managers tend to under-perform the stock market as a whole, and individual investors historically do much worse than that!
So why do people keep investing in – or rather, speculating in – the stock market?
First, because they believe the most important thing is to chase a high rate of return.
We call this “the ROI illusion.”
The ROI Illusion is a mistaken belief that
- Nothing matters except for rate of return. Investors should always pick the investment they believe will get the highest returns, and everything will work out.
- And since nothing matters except for rate of return, then fees, taxes, liquidity, control, the ability to leverage, and other considerations aren’t understood to be important.
However, creating a life of Prosperity is about MUCH more than chasing a rate of return, or even growing a big net worth. There are plenty of investors who can’t turn off the internet for fear of what the market might do, and who are cash-poor millionaires strapped by low interest rates.
You see, Prosperity has more to do with how much FREEDOM you have with your money than how much MONEY you have.
Secondly, people believe that stocks have the best rate of return available to them.
That’s simply not true. Investors – especially accredited investors (those with assets of a million dollars or more and incomes of $200k/year or $300/year per couple) – can earn healthy returns… without the market risk and roller coaster ride.
Third, because people aren’t informed about better options. (This is even true among many financial planners, representatives and advisors, too. They are only aware of the limited products they sell!)
This popular article reveals how our thinking and investing have been influenced:
“The Questions Wall Street Hopes You’re Not Asking” – questions such as:
- Are there alternatives to the roller coaster ride of the market?
- What are better options than stocks and bonds?
- How can I keep control of my own money?
The good news is this: There ARE better options for investing OUTSIDE of the stock market!
In my next email, I’ll give you specific information about one of our FAVORITE investments for GROWTH. It often delivers double-digit growth while being immune to market swings and resistant to downside risk.
It does not decline with the financial markets because it has nothing to do with stocks, bonds, interest rates, commodity prices, or anything like that.
Watch your email for details about this investment that so many of our private clients have utilized to help build their wealth without the roller coaster ride of the STOCK market.