A surprising number of emails ask if I can guarantee a set rate of annual return for a stock market account.
They want to earn the 4 % a month which is the most recent return based on the current portfolio choices.We’d all like to see that return forever and a day – without risk – but that is not what history teaches.
Only Bernie Madoff offered such a guarantee – and that only was implied- not written – by a false set of records .
In general the great potential of the stock market is offset by risk .
To avoid risk consider the current returns I can offer ANY investor:
1) leave all your money in cash under the mattress – safe unless thee is a house fire- but zero return and actual negative the rate of inflation.
2) Bank savings accounts – U.S. and Canada – 2 % – about equal to the rate of inflation.
3) Bonds – 3% little better than inflation and now some risk when the Fed starts the ” taper ”
4) Real estate – current projects with which I am familiar 6 % annually plus the appreciation of the property.
5) Promissory notes – a rate equal to Second Mortgages – currently 12 % and the risk is the quality of the guarantee.
Paid monthly at the rate of 1 % you can earn a compound rate and lessen the total exposure.
Renewed every 12 months so you can withdraw all or a portion of funds.
6) Stock market – unlimited potential but a risk that there is a market down turn of 30 or greater per cent.
You can elect to receive 1 % or more as a MONTH as a withdrawal to lessen your exposure.
Managed Accounts require a six month notice to withdraw but that is a formal requirement only to prevent a
” run” if there is a sharp turn in the market.
For assistance at obtaining the rates set out in items 3 to 6 please email firstname.lastname@example.org or call Jack direct at 604-858-3202 ( same time zone as Los Angeles)