OK - let's get back to the chessboard analogy.
Remember - if someone promises an investment that doubles in value every month, the logical question to ask is - when will the investment simply consume all the money in the world?
If I invest $10,000 in an investment that promises a fantastic rate of return, then for how long can this rate of return continue? Suppose, for example, I am told that I can double my money in one year. So - within 12 months, I now have $20,000. I leave the money in the account. The next year, I have $40,000. Year 3 I have $80,000. Year 4 $160,000. Year 5 $320,000. Year 6 - $640,000. Year 7 - $1,280,000.
So, an investment of $10,000 within 7 years is now worth more than a million. Quite an impressive rate of return.
Quite better than stocks, which historically have brought an average rate of return of about 10% per year. So, an average stock return will bring me $1000 after my one year of investment, while a "fantastic" investment will bring me $10,000.
You can start to see the problems we face here.
Remember - if someone promises an investment that doubles in value every month, the logical question to ask is - when will the investment simply consume all the money in the world?
If I invest $10,000 in an investment that promises a fantastic rate of return, then for how long can this rate of return continue? Suppose, for example, I am told that I can double my money in one year. So - within 12 months, I now have $20,000. I leave the money in the account. The next year, I have $40,000. Year 3 I have $80,000. Year 4 $160,000. Year 5 $320,000. Year 6 - $640,000. Year 7 - $1,280,000.
So, an investment of $10,000 within 7 years is now worth more than a million. Quite an impressive rate of return.
Quite better than stocks, which historically have brought an average rate of return of about 10% per year. So, an average stock return will bring me $1000 after my one year of investment, while a "fantastic" investment will bring me $10,000.
You can start to see the problems we face here.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR
IS IT INTENDED TO BE LEGAL ADVICE. IF
THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
Have a great and fraud-free day.
----------à>>>>>>>>>>>>>>>gene
tausk
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