Today I’m going to show you a little magic trick…
I’ll show you how to double your money by tweaking just a tiny piece of your portfolio.
Sound too good to be true?
Read on to see the “magic portfolio” trick in action…
A “Traditional Portfolio”
Most of us understand the benefits of diversification.
That’s why most investors have a “traditional” portfolio that’s split between stocks and fixed-income investments — generally, about 60% in stocks, and 40% in bonds or REITS.
To keep the math simple, let’s say that a traditional portfolio like this returns about 10% each year.
But now let’s see what happens when you take just a tiny bit of your portfolio, and you allocate it to an entirely different asset class.
As you’ll see, your overall returns go through the roof!
Essentially, your wealth will double, just like magic.
The “Magic Portfolio”
When we reveal the secret to this “magic portfolio,” many investors have the same reaction:
They say things like, “No way! That’s too risky,” or “I couldn’t do something like that at my age… I just want to protect what I have!”
But that’s what makes this trick so magical. Without taking significant risk, you can give yourself the chance to earn nearly 100% more on your money.
You see, to make this trick work, you simply need to re-allocate 6% of your overall portfolio.
Basically, just 6 cents of every dollar you have invested.
So, if your portfolio is worth $100,000, you could potentially double its value — simply by re-allocating $6,000.
Like I said, it’s magic.
Let me show you how it works…
The “Magic Ingredient”
The “magic ingredient” to this trick is private equity — in other words, startup companies.
According to a recent study from SharesPost, an expert in private securities, allocating just 6% of your assets to startups can boost your portfolio’s overall returns by 67%.
And with a 67% boost, instead of earning, say, 10% a year, you’d earn 16.7% a year.
Let’s see what this difference would add up to with a hypothetical portfolio of $100,000.
Double Your Wealth with Startups
At an average return of 10% a year, in ten years, a $100,000 portfolio of stocks, bonds, and real estate would turn into about $259,000.
Not bad.
But in that same timeframe, a portfolio that includes a 6% allocation to startups (just $6,000) would grow to $468,000.
So, as you can see, by allocating just a tiny amount to startups, you nearly doubled the size of your investment portfolio.
Keep in mind, these returns include the winners and the losers.
And furthermore, if you happen to invest in a startup like Facebook, Uber, or Airbnb — the type of investment that can deliver 20,000%+ returns — you could become a multi-millionaire.
Bigger Returns WITHOUT Extra Risk
And that’s why we’re doing everything we can in 2021 to make sure that all of our readers allocate at least some of their portfolio to private market investments.
As you just saw, even a tiny allocation to private equity could explode the value of your nest egg.
So, as a way to kick-off the New Year right, I encourage you to download and read some of the free educational resources Matt and I have put together for you…
As you’ll see, these reports not only show you how to get started with private market investing…
But they also provide you with tips, tricks and strategies for finding the best — and potentially, the most profitable — startup investments out there.
You can download all of these reports here (for FREE) today »
Happy New Year — and happy investing!
Best Regards,
Founder
Crowdability.com
