Rates of Return – Guarantees for Speculation ?

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 info@jackbassteam.com or call Jack direct at 604-858-3202 ( same time zone as Los Angeles)

 

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