Rules for Investing- How To Build a Portfolio of Safe, Secure Investments By Ann Marosy Platinum Quality Author

Developing an Investment Plan:

In order to invest wisely, you need to have a suitable investment plan that will ensure the appropriate amount of growth for you. Your investments will also need to be safe and easy to manage.
The first step in developing an investment plan is to identify what type of an investor you are. Investor types are often determined by their stages in life. Here is a guide:

- Single person under 40 years old. Focus: Long-term investments, medium to high risk. Emphasis: capital gain, compound growth.

- Two-income married couple, no children, aged 20 to 40 years. Focus: Long-term investments, medium to high risk. Emphasis: capital gain, compound growth.

- One-income family, young children, aged 20 to 40 years. Focus: Long-term investments, low to medium risk. Emphasis: compound growth.

- Single person, aged 40 to 60 years. Focus: Medium-term investments, medium risk. Emphasis: capital gain, compound growth.

- Married couple with adolescent or independent children, aged 40 to 60 years. Focus: Medium-term investments, medium risk. Emphasis: capital gain, compound growth.

- All investors, aged 60 and over. Focus: Short to medium-term investments, low risk. Emphasis: Income.
The following are examples of investment portfolio mixes for the various types of investors.

Low Risk Investments:

Low risk investments are predominately cash, fixed interest and superannuation. This has the lowest risk of all investments but has also the lowest return - in today's market, approximately 3% to 6% per annum. Fixed interest includes cash, cash management trusts and bonds. They return approximately 5% to 10% per annum, sometimes as high as 15% if you invest in global bonds in good markets.
Superannuation returns and risk profiles vary from institution to institution, however the best and safest usually return on average 10% per annum.

Medium Risk Investments:

Medium risk investments include property and non-speculative shares. Diversified funds, which invest in a range of asset groups, are also considered to have medium risk profiles. Average returns from these types of investments will range from 8% to 15% per annum.
I also like to include the broad spectrum of mutual funds, to be discussed later, in the range of medium risk investments. Some can return up to 25% and more depending on the fund type and managers.

High Risk Investments:

High risk investments include all speculative shares, futures and any other type of investment that is purely speculative by nature. Because with these types of investments we are betting on whether the price will go up, or sometimes down, I often classify this as a form of gambling. Accordingly, the returns are unlimited but so is the ability to lose the total money invested.
The basic rule for investing in highly speculative stock is to build in "sell-out" thresholds, three up and three down. For example, if you buy a stock at $20.00 per share, your sell-out thresholds might be:

Sell out threshold 3 $30.00

Sell out threshold 2 $25.00

Sell out threshold 1 $22.50

Buy $20.00

Sell out threshold -1 $17.50

Sell-out threshold -2 $15.00

Sell-out threshold -3 $10.00

Each time your stock reaches one of the threshold levels, you sell a third of your stock.
If the stock starts to rise, you sell a third at $22.50 and then another third at $25.00 and so forth. If the stock starts to fall, you also sell a third at $17.50, then another third at $15.00 and the final third at $10.00. In this way, you will never lose all your money, however you have also put a cap on the total profit you will make on the investment. This I have found to be the best and safest method for investing in speculative shares. In 1987, my husband and I were saved from the severe losses of the Wall Street crash because we were well and truly out of the market by taking our profits beforehand. Like all systems, this strategy will only work as long as you obey the rules and do not get too greedy.

Mutual Funds:

Mutual Funds are a selection of investments that are professionally managed by a financial institution or organization. These institutions have a wide range of specialists, researchers and advisor's who devote their time to ensuring that the fund invests in the best companies and assets.

As well as the advantage of having experts manage your investments, managed funds also give you the ability to invest in a wide range of shares, property or fixed interest markets, either locally or internationally, for as small an outlay as $1,000. In the latter case, they also require a 'savings plan' where you agree to deposit additional capital of a minimum $100.00 per month.
Because managed funds cover the whole spectrum of investment risk profiles, you can easily cover your preferred investment portfolio, as described above, by investing in several different funds.

Putting Together Your Investment Program:

After you have identified your investment type, you need to either seek a good financial advisor or devote your own time in researching investment options.

Shares have traditionally outperformed other asset groups over time. However, share markets can widely fluctuate in the short term, so any entry into the market should always be done with a long-term view of up to 10 years. Even the best managed share funds can fall if the stock market crashes or enters a severe downward cycle. As long as you ensure that you are with a reputable fund with good managers and are willing to ride the 'waves', your investment will do well in the long-term. If you are in the short-term, low risk category then your investments should be in the safer, more stable areas with lower returns.

Rules for Investing:

Investing may seem daunting for a lot of people. Maybe you have tried it once and failed, or maybe you are simply frightened of losing your money.

To avoid losing any capital, you simply need to be aware of the main pitfalls and always avoid them. The simple, reliable rules for investing are:

1. Have a plan. Always ensure that you or your financial advisor draws up an appropriate investment strategy for you that incorporates your risk profile, timeframes and financial goals. As foolish as it seems, many people plunge headfirst into investing without thoroughly working through these fundamental issues.

2. Don't put all your eggs in one basket. Obvious advice, but many people fail to follow it. Many people think that they are on the right financial track by paying off the mortgage on their family home and then buying another property for investment purposes. Think about it! You have put all of your financial eggs in one asset basket - property. What happens if the property market collapses? Despite common thinking that this is a safe way to invest, the outcome is very risky. You have invested all of your well-earned money into only one area.

3. Build in appropriate timeframes. There is an old saying, "When the tea lady starts to invest in the stock market, it's time to get out." What this means is, when the share market is so high that everyone starts to clamber on board, it has probably reached its peak. There are two ways of successful investment timing. The first is to always pick the low-end of the market to buy and the high-end of the market to sell. This is extremely hard to do. Even the best-informed experts have trouble. The second way is to choose good investments and stay with them over the long-term (say 10 years or more) and ride the waves of the market. For safe, easy investing, choose the second method. Do not buy into the top-end of the market and sell once it starts to fall. You will definitely lose money this way.

4. Avoid high-risk investments. These include risky business ventures, highly speculative stock, tax avoidance schemes or too-good-to-be-true propositions that promise unusually high returns.

5. Avoid borrowing for your investments. Although some financial advisors advocate "gearing your investments", this can be fraught with danger. Gearing means to borrow. If borrowing for investments takes you over your 40% fixed costs margin, you will be cutting it too fine, particularly if you lose your current income level.

6. Stay with the traditional and known. As described in this chapter, the best and surest investments are fixed interest, property and shares. Work out the optimum mix for your investment profile, have a safe plan to work with and you can't go wrong.

Ann Marosy is an accountant, consultant, and motivational speaker. She was formally the Financial Controller of an Aust subsidiary of the Fortune 500 Company, Jardine Matheson; Finalist of SA Executive Woman of the Year and is the author of 'The Money Program: How to Manage the 6 Stages of Wealth' and 'Money Rules: The 7 Simple Rules of Money Management'.

High Yield Investing By Bobby Ryatt

What does High Yield Really Mean?

High yield investing has taken on a totally new dimension since the introduction of the internet and the basic personal computer. In the United States, a high yield account is considered to be anything over 5% monthly. Of curse as the old adage goes, the higher the yield the larger the risk. This is true. You can not expect to earn more than an average percentage rate with less risk. It just doesn't make sense.

When discussing high yield interest accounts, are we talking about a savings account that produces a 5.4% annual percentage return? Well, yes. And no. It depends on who you are and what you consider to be possibilities and realistic.

By now most of us have heard about investment programs that claim to be able to produce ridiculously high returns. Traditional investors cringes when they hear terms like 25% per month for one year plus the return of principle, and they nearly quiver when they hear claims of 300% in eight weeks. Certainly these high yield investment programs must be scams. How can it be possible to produce such returns in such a short amount of time? And why isn't everyone out there doing this if it can really happen? If these high yield investments hold any water then in just five short years we could wipe out poverty and homelessness and no child would ever go to bed hungry or sick again!

Are High Yield Investments Scams?

Believe it or not this question is not a simple yes or no response. It can't be. The short and safe answer would be yes, they are scams. However, it is important to understand what they are and why they have not all been shut down by the government if they are nothing more than a way to steal your money.

High yield investment programs are not a place to try to earn an income. They are extremely volatile and unpredictable. People can and do make money from them, and sometimes it's a significant amount of money. But don't get excited and start rushing out to re-mortgage your house just yet.

Read every single disclaimer on a high yield investment program website and they will all say the exact same thing. High yield investing comes with the risk of losing money. Never invest more than you can stand to lose. Why? Because every high yield investment program will eventually crumble and those with money invested are going to lose.

High yield investment programs are based on principles similar to gambling. While most of do not, there are people in the world who make their living traveling around to casinos and gambling. Is it a scam? No. In fact most of us at least respect the fact that the individual is competent enough at playing casino games that they can earn a living at it regardless of how we feel about gambling ourselves. The same applies to earning a living from high yield investment programs. Most investors do not even consider them real investments and scoff at those who attempt to earn a living through high yield investing.

Most people who are able to fund their lifestyle and earn a living through high yield investment programs started in using one of two methods. They either jumped in with both feet at the first program that sounded good to them and lost everything they invested or they researched high yield investment programs until their fingers went numb before ever investing a dime. Either way, both parties came to the conclusion that to come out ahead in high yield investments programs they would have to do ample research and completely understand the system and principles before they were going to succeed.

Earning a living through high yield investment programs takes a system that is easy to implement and follow to prevent early closing and hefty losses. This system takes a lot of due diligence and of course, some very specialized knowledge about forex trading and even gambling.

Reading the website's method of investment can tell the average high yield investor a lot about the security, or lack thereof, for any particular program. Most will admit to trading in forex, which any average investor can do with a little knowledge and research. Some will tell you that they are trading in commodities as well and some admit that they are also gambling with the investors' money, literally. Any website that says they are gambling using fool proof methods of winning should absolutely be avoided at all costs. There is no fool proof method of gambling.

High yield investing is probably something to be avoided altogether, although that is an individual choice only an individual investor can make. However, if you choose to get involved with a high yield investment program and you loose your money, that was your choice as well. Just like it is possible to loose money in the stock market, you are likely to loose money in high yield investments. An investor that looses money in the stock market doesn't typically file a lawsuit against the broker, so why are people so quick to file lawsuits and complaints when they loose money in high yield investment programs?

The answer is unpleasant but for the most part it is true. Greed. We can accept that there are poor investments out there and should we loose three or four thousand dollars in a bad investment we accept it as part of the potential outcome of investing. Yet because we got excited and our minds started spending the money we were hoping to see through a high yield investment now suddenly the people who run these programs are thieves. High yield investments are investments even if they do border on scams and you run the risk of losing your money. Remember the basic principle of any investment? The higher the return the more likely you are to lose your money.

High yield investments are incredibly risky and some of them are actually scams. Scam artists are everywhere and if there are people in the world who are willing to fork over thousands of dollars in the unrealistic hope that they can turn it into ten of thousands of dollars in a relatively short period of time then there will be people who are willing to steal that money from potential investors.

People are willing to donate their money to any valuable cause, so there are people who are willing to set up phony charities to steal donations from giving people. That certainly doesn't make every charity a scam and people aren't going to stop donating to charities of their choice. Just as there are individuals who will take advantage of people's kindness and desire to give to charities, there are individuals who are interested in scamming money from people who are trying to improve their financial portfolio through high yield investment programs. That doesn't mean every single high yield investment program is a scam.

The one thing all high yield investment programs do have in common is that sooner or later they will all fold, even those that start out being profitable. Just because a high yield investment program starts off producing the returns that it proposed in the beginning doesn't mean that it will continue to do so over a long period of time. This is how the high yield investor gets dramatically burned. One or two programs that delivers for a period of time doesn't mean it's time to quit the job and devote all the available resources to high yield investing. It means that one or two programs are doing well. They will not do well forever and sooner or later they will crumble. That is the nature of high yield investing.

High Yield versus Conservative Investing

Which investment strategy is right for you? Only an individual investor can answer that question for their own interests. Some people can tolerate the significant risk factors while others prefer the stability of the more conservative and conventional methods of investing. Some people are more willing to take a gamble than others, and by all means high yield investing is a form of gambling.

There are dramatically fewer scams in conventional investing. Some people will always believe that high yield investing is a scam and there is nothing that will convince them otherwise. Just because some people are able to be successful doesn't mean that a program is not a scam. And just because something is a scam doesn't mean that some money can't be made anyway. Does it make it right or real or worthwhile? Again this is something that each individual investor needs to determine for themselves.

For solid investment advice and a clearer path to investment success, independent advice and research is the best way to go. For all kinds of independent investment advice, stop by onlinetradingideas for comprehensive investment strategies, advice, and independent research. This site is particularly useful for making the most from conventional trading ideas and profiting from forex trades without having to enter the realm of high yield investment programs.

How to Be a Self-made Millionaire by Investing - Investment Philosophies and Strategies of Warren Buffett by Darl Fuwong

Investment in stocks and shares is one of the fastest and most common ways to become a millionaire. Warren Buffett is undeniably the best example of a billion-dollar investor. To be a successful investor like Warren Buffet, it is important to get into his mind - understand his beliefs towards the market and his investment strategies.

1. The market is irrational

Warren Buffett believes the market is irrational. The market is always driven by greed and fear. I bet you know of people who buy stocks when the market has gone up and sell them when the market came down. Or are you one of them? If you have done your homework and understand the intrinsic value of the companies you have bought into, you will feel secure and will not worried about roller-coaster stock prices.

2. No one can predict the market consistently

Have you heard stories of people who spend money to buy mysterious trading systems, hoping to make good profits but only to be disappointed? Average investors always try to predict the market's next move. When they cannot predict themselves, they give money to the "experts" who claim they can. Warren Buffett believes successful investment has nothing to do with the ability to predict. Master investors know that no one can predict the market consistently.

3. Huge returns with little risk

Most people talk about "high risk, high return" but Warren Buffett believes in huge returns with little risk. In fact, Warren Buffett is an extremely risk adverse investor. His first rule for investment is "Never lose money" and his second rule is "Never forget the first rule". People think investment is risky because they have not learnt how to do it properly. Just like driving, isn't it risky to drive on the road if you haven't learnt how to drive properly? If you learn the proper way to do it, you can reduce the risk substantially.

4. Invest in few great companies

Most investors are taught by the experts to "diversify, diversify, diversify". Hence, they bought into many mutual funds and keep small holdings in many different stocks. Warren Buffett thinks diversification is for people who don't know better. By investing across the market, you will go up and down with the market. The key to outperform the market is to identify great companies and focus your investments in them.

5. Make decisions base on strict criteria

Most average investors make decisions based on emotions. They are tempted when they learn of hot tips or see their friends making quick profits, only to sell immediately when the stock price fall the next day. Successful investors follow a set of strict criteria to decide when to buy and sell. Investment criteria are rules that you follow to determine which stocks to buy, when to buy and after buying, when to sell. Some examples of investment criteria are: the company must have growing revenue and profit for the last 5 years, return of equity must be more than 15%, long-term debt must be less then 3 times of earnings, etc.

Do you base your decisions on investment criteria like the successful investors? If you have not set your investment criteria, it is the most urgent thing you must do before your next move. Learning the proper way to invest can help you avoid the pain of losing your hard-earned money and saves you from worrying when the market crashes again. Not only will you learn how to become a millionaire by investing, you will also discover how to create multiple income streams and build a million-dollar net worth, starting from scratch.

About the Author

Darl Fuwong is a consultant who works closely with publicly- listed companies. He writes extensively on the topics of wealth, success, financial management, investment and sales training.

How Much Capital Should You Invest?

How Much Capital Should You Invest?
I get a lot of questions from first time investors regarding the topic of how much they should start investing with.
Many investors think when they first start out that they should invest all of their savings. This isn't only unnecessarily true but could also be very dangerous, if you don't have a trading system or the disciple to follow it. As you could easily wipe out your whole account if you don't have a trading system in place.
To determine how much capital you should invest, you must first determine what your financial goals are and how much you actually can afford to invest.
First, let's address the issue of how much capital you can currently afford to invest. Do you have any savings that you can use? If you do, that's great! However, remember that you want to be able to live comfortably so don't cut yourself short when you tie your capital up in an investment. What were your savings originally going to be used for?
It is always important to keep a reserve of three to six months living expenses in a readily accessible savings account - DO NOT invest that money! Don't invest any money that you may need in a hurry in the near future.
Begin by determining how much of your savings should be used for investment purposes and how much should stay in your savings account. Unless you have funds from other sources, such as an inheritance that you've recently received or you got really luck and won the lottery, this will probably be all the capital that you currently have to invest.
Next, determine how much you can comfortably add to your investments in the future. If you are holding a job, you will continue to receive a monthly salary, and you can plan to use a percentage of that income to build your investment portfolio over time. Another thing you can do is speak with a qualified financial planner to set up a budget plan to determine how much of your future income you will be able to invest.
With the help of a good financial planner, you can be sure that you are not investing more than you comfortably should - or less than you should in order to reach your investment goals.
For many types of investments, a certain initial capital investment amount will be required. Hopefully, you've done your research, and you have found an investment that will prove to be sound. If this is the case, you probably should already know what the required initial investment amount is.
If the money that you have available for investments does not meet the required initial investment, you may have to look at other investments. Always remember to never borrow money to invest, and that you should never use money that you have not set aside for investing!

Four Investing Mistakes You Should Keep Away From

Investing as early as possible is very advisable. Having investments gives you an opportunity to accumulate more wealth. There are various ways where you can put your money. You can invest in stocks, real estate, mutual funds, bonds and other financial instruments. There are kinds of investments where profit is really big. However, not all investments are perfect. There are instances of investing mistakes you will encounter. As much as possible you should be careful about your investment strategies. Even experienced investors made mistakes. So, if you want to start investing for your future, you must avoid mistakes. Of course, it is inevitable to make mistakes but at least you can avoid it.

If you have enough knowledge, you will be able to handle all your investments well. Investing is not always a success. You will also deal with failures especially if you're just starting. One of the common investing mistakes is untimely investments. Before you should contemplate on investing, you should be aware of your resources. Make sure you have excess money in your account. Your basic needs must not suffer because of your investing decisions. Some people invest money even though they still have lots of outstanding debts. The very purpose of having investment is sufficiency of resources. If you're still not ready, then don't do it.

You should clear all your debts before deciding to have your first investment. Part also of the investing mistakes is not doing a research on particular investment. For example, some people will just put their money in mutual funds because they heard success stories. Don't you ever do that- it's different for every investors. It's all right to invest in profitable investment but make sure to have a particular knowledge about it. If you want to invest in real estate, you should be aware of the real estate industry. Determine the ways on how you can gain profit in your investment.

Another mistake you can avoid is looking for fast results. Always remember that investing is like gambling. You will never know what will happen to your investment. If the universe will conspire to your favor, then you'll be lucky. Not all investment leads to profits. There are times when your investment strategy will not work out. Investments mistakes also constitute lack of diversification. It's not advisable to stick with one investment only. If you have already invested in real estate, try other kinds of investments. You can either invest in stocks, bonds and others. There are high risks investments which gives you big profits.

Remember the rule of financial leverage. If you will hit the jackpot, you'll be lucky. But if you're in the losing side, you'll incur extreme losses. It's better to have diversified investments. Make sure not to put all your money in just one trade. Try to diversify as much as possible. Lastly, investing mistakes include not paying attention to investments. Some investors often lose their interest. They are just interested at first then the next time, they don't follow up anymore. The best thing to do is to keep updates on your investments. Investing is really healthy on your financial resources.

It will increase your wealth and create abundance in your life. Just make sure to invest wisely.

Investing Secrets of the Wealthy

My favorite subject. Investment. Investing in your own e commerce business is the best, most time efficient way to make money. But to grow real wealth you need to diversify into other investments as well. Your e commerce business (or other business / high paying job) provides the cash for investing. It is the interest earned of those investments however that pays for your luxury lifestyle.

1. Real Estate investment.

The most important and first investment you should make is to buy your own home. Initially live off your income from your e commerce business by paying yourself a modest wage. Save the rest for a deposit on your own home. Decide where you want to live and go house hunting there. The real estate market moves in cycles.

The top of the cycle is definitely not the time to own investment residential property. If you own it, sell it, especially if you have a mortgage over it or you may end up owing more than the property is worth. Remember if your equity in a property drops below a certain level the bank can foreclose on your property even if you have never missed a payment. Many people have come undone that way.

When it does become time to invest in property again, seize the day! Investing in property can be very lucrative as you can be paid four ways -

If you buy below market value (as you always should) you make immediate equity.

If you buy a positive cash flow property you get paid weekly. A positive cash flow property is one where the money you collect in rent is more than the outgoing expenses for the property.

In many countries you can can tax advantages by owning property using depreciation.
You can gain capital growth by buying a fixer upper and renovating. You also get capital growth over time if you buy at the bottom of the cycle.

Factors that affect the property cycle include:
supply and demand
interest rates
migration & population
economic growth
inflation
zoning and planning
what returns are being had in other investments
and confidence which is affected by positive or negative media reporting on property.

When buying investment property never, ever buy on emotion. Emotion IS a factor when you are buying your family home, you have to love it. But emotion has no place in investment decisions. Buying investment property is all about the figures. Never be afraid to walk away from an opportunity as there are always plenty more. Don't buy property at auction as the emotions of the participants often push the price too high. And you don't need to live in an investment property so don't impose your own personal standards on it, your tenants will accept a lower standard of living than you will.

Always do due diligence on any potential property purchase. This includes a building inspection by a qualified builder and also get a pest inspection done. When you decide to buy and you hire a conveyancer to handle the legals always make sure the contract you sign is subject to legal due diligence. That way if your conveyancer finds some legal problem you can get out of the deal.

I recommend you set the following rules for yourself when buying investment property. Buy at a minimum of 10% under market value, only buy properties that are positive cash flow and/or high capital growth, buy properties that can be value added with a cosmetic makeover and only buy houses or blocks of apartments because the land it sits on is what gains value. The buildings themselves depreciate over time.

So how do you find below market investment properties? Look for sellers who are selling because of death, divorce, bank foreclosure, because they are moving and have a deadline or sellers who don't know what they are doing. I'm not suggesting you rip people off but equally you are not their mother, your responsibility is to you, they can look after themselves. If they accept your low offer price that's their business. Hot deals can often be found in the local newspapers, look for words in the ads like urgent, desperate, heavily reduced, well below valuation, transferring overseas, vendor has already bought etc.

Investment property hunting can be a long frustrating business but it's more than worth it. I follow the 100-10-3-1 rule. Look at 100 properties, put offers in on 10, have 3 accepted and buy 1. If you don't review enough properties you will not understand enough about the market values and returns in any particular area to pick a winner.

Whatever you do, be careful trusting real estate agents. Many agents will do whatever it takes to earn their commission check. They often recommend auctions as they shut out other agents, unlike general listings. Always remember agents work for themselves not for you. Be prepared to be knocked, mocked, spoken to in a condescending manner and generally treated as though what you want is unachievable. Buy privately if at all possible.

Do use agents to manage your tenants for you though. Tenants are an even bigger pain in the neck than agents. Also if a tenant does something illegal in your property you as the owner don't want to also be the manager or the police will try to implicate you in the conspiracy so they can seize the property.

The wealthy don't follow the crowd. They buy when shares, property etc are unpopular and cheap after they have identified the future trends based on what is going on in the world around them. The wealthy sell when the crowd wakes up to late and jumps on the bandwagon. The wealthy are contrarian investors. Most investors are afraid to invest in this way because at first they appear wrong. It takes guts to invest this way but you always get the last laugh.

This is why the luxury lifestyle is enjoyed by so few in society. Don't be a sheep, be the wolf. Hunt, don't follow. Seek out the best advice, ask yourself...does this fit into my personal circumstances? If it does then act.

2. Shares

With shares, always employ risk management strategies. Always use stop losses on any investment you make. Decide in advance how much you can afford to lose on any one investment. If your investment drops in value by that amount (I recommend a 15% stop loss in general for shares) sell it. Don't hang in there hoping it will get better. Cut your losses. Not even the best investment gurus get it right every time. Also use position sizing in your investments. Invest the same amount of money in every share investment. If you have $10,000 to invest in 10 companies, then invest $1,000 in each. Don't put more in one company because it appears to be doing better than the others. Don't put too many of your eggs in one basket. These two tips are the basics of all risk management strategies of the successful investor. You can't always win but you can control how much you lose. In the above example if you invest $10,000 in 10 companies ($1,000 in each with a 15% stop loss) and two of your stock picks turn out to be duds you limit your losses to $300.

3. Final advice

If I had to choose the 3 most important things I have learned from the wealthy they would be these.

Don't spend money on depreciating assets until you are spending your interest from your investments. Then you can live a little. Certainly never borrow money to buy depreciating assets.

Limit your losses. Ask yourself what is the worst that can happen. Manage that risk to a level you feel is acceptable then go for it. Stick to your risk management plan when you make a mistake.

Learn from your mistakes and more importantly learn from the mistakes of others.

Happy investing.

High Return Investments - The Investment Millionaires Secret Revealed!

We all want high return investments, but what is the best way to achieve substantial long-term capital growth?

Let's look at the best investment, combined with the most powerful force in investing, and how they can create a high return investment that grows rapidly.

The Secret of High Return Investments

Albert Einstein called this: "The most powerful force in the universe" and investment terms he's right.

Compound interest on an investment with low downside volatility is really the secret of getting high return investments to make huge gains over the long term.

Which is the Best High Return Investment?

When looking at high return investments the best combination is an above average return, linked to low volatility, combined with compound growth.

As an investment, UK land has provided better capital growth over time than most hedge funds, mutual funds, investment trusts, equities, or shares, and with a lower downside risk.

The overall price of farmland has increased by 30% in the last 12 months, and by 130% since the early 1990s, with an average 920% growth in the last 20 years.

The 920% over 20 years is average growth, and many investors have achieved far greater gains by careful plot selection.

Why UK Land is Providing Stunning Returns with Low Risk

UK land provides above average solid growth for the following reasons:

1. Population Growth - The population of the UK in 1981 was 56.2 million. In 2001, the population had increased by about 2.6 million to 58.8 million inhabitants.

2. Immigration - In terms of immigration, there is the granting of entry to the UK, of over 170,000 people per year. This constitutes over 60% of the annual population growth. Therefore, at current rates of growth the UK can expect to see at least an additional 3.4 million inhabitants within the next 20 years.

3. Social Trends - There is a rising divorce rate in the UK. Furthermore, more people are staying single by choice, and getting married later in life.

In the next 17 years, with the rising population and increased lack of affordable housing, the UK will need another 1.5 million homes.

Compounding a Small Sum to a Million!

We can see already that land has had fantastic growth year on year, and looks set to continue. The average gain was 30%, in 2004 alone.

Lets take an example now of compound growth in action:

$50,000 invested with a compound grow of 30% annually would take just 12 years to be worth over $1,250,000!

A steady compound growth soon adds up!

Of course, bear in mind that the above illustration is subject to the fact that investors may use bigger or smaller deposits, and there is no guarantee of 30% annual growth.

To make big gains, the formula for investment success over the long term is:

A High return investment + low downside volatility + the power of compound interest = big capital growth potential

Compound interest makes you money work harder, and as the amount increases, it soon adds up.

For High Return Investments Look no Further than Land!

Land tends to rise steadily in value year on year and with low downside volatility giving steady solid growth

Many hedge funds, unit or investment trusts, can be negative for years on money invested, or even never recover at all!

When considering long-term investments, land with its good growth potential and low downside volatility, makes it the ideal investment to benefit from compound growth