When it comes to investing, we’ve been lied to for nearly a century:
We’ve been told that there are only a few different ways to invest…
And we’ve been told that if we take the path that’s “tried and true,” we’ll be able to retire comfortably, right on time.
Unfortunately, these statements couldn’t be further from the truth...
And today, I’ll prove it to you.
Lie #1 — “Work, Save, Invest, Retire”
Ever since I was a kid, my parents told me that all I had to do was get a good job, save my money, and invest it wisely.
If I did all those things, I’d have a great life...
I could own a nice home, support a family, and retire comfortably.
But that advice sure didn’t work out for them.
Yes, they saved—but with rising living costs, unexpected medical expenses, and paltry stock market returns, they don’t have much to show for it.
I know this is true—because I’ve had to step in and lend them money.
I know how difficult this is for them...
To have worked so hard all their lives...
To have “played by the rules”...
And still, they have to ask their son for money.
It can’t be easy—and I imagine that many Crowdability readers have faced similar situations.
With the stock market returning just 5% a year, and with the cost of living continuing to rise, it’s next to impossible to grow your nest egg simply by investing in stocks.
Most of us don’t really start saving for retirement until we’re in our 40’s. We know we should start earlier, but life is expensive when you’re just “starting out”—buying your first house, raising children, paying off student loans.
But the end result is that, if we’re trying to retire by the time we’re 65, we only have about 20 years to build up a decent nest egg.
So let’s say you can only save a few thousand dollars every year for retirement...
If you put that money into the stock market and you earn 5% per year, after 20 years, you’ll have roughly $100,000.
$100,000 is a lot of money—but it’s not enough to retire on.
Which brings me to...
Lie #2 — “The Professional Money Manager”
Once folks realize they’re behind the retirement 8-ball, they start looking for help.
Often this means turning to a financial advisor, stockbroker or other form of “professional” money manager.
I put the word “professional” in quotes here because I want to share my skepticism. Frankly, I wouldn’t consider most of the financial advisors I’ve met “professionals.”
Why? Let me explain...
I consider Michael Jordan to be a “professional” basketball player...
And I consider Mike Tyson to be a “professional” boxer...
If you put Michael Jordan on the court with a bunch of high school kids, he’d dunk all over them.
And if you put Mike Tyson in the ring with a bunch of amateurs, he’d knock them out cold.
But if you put a “professional” money manager up against the market averages—or up against a monkey throwing darts at stocks—you’ll quickly realize their deficiencies.
In fact, a recent study by two economists from Goethe University determined that the “Involvement of financial advisors is found to lower portfolio returns.”
So not only are these “professionals” charging you to manage your money—they actually perform worse than the stock market.
That doesn’t sound so professional to me.
But once we realize the pros are full of hot air, many of us still find somewhere else to turn....
Lie #3 — “The Stock Market Guru”
Perhaps you’re an industrious investor and have decided to do your own research.
Or perhaps you found a research service or newsletter that promises to help you make windfalls of cash.
Well, there certainly are some high-quality newsletters out there...
But let me ask you this: have any of the newsletters you’ve subscribed to in your life consistently helped you beat the market averages?
Have any of them put you in a position to retire early, or to live more comfortably than you originally planned to?
If you’re still reading, then I’m guessing your answer is “no.”
But here’s the thing...
It’s Not Their Fault Either...
Like our publisher Ben said in his note to you today... it’s not your fault that you haven’t made the types of returns you’ve been after.
And the money managers and the stock market newsletter gurus aren’t to blame either.
You see, all of these options are flawed because they’re all based on investing in the stock market.
Whether we’re talking about passively investing in the overall market...
Or letting a financial advisor manage your account...
Or following the advice of an alternative investing newsletter...
All of them are dependent on the performance of the underlying asset: stocks.
And no matter where you turn for advice on stock investing, the sad truth is that today’s stock market is no place to build real wealth.
Now, to be clear, we’re not saying you should sell all your stocks. Personally, I’m a proponent of keeping a good portion of your money in the market.
A low-cost index fund, for example, is a great way to provide yourself with consistent, conservative returns.
But those returns are too low to help you build a substantial nest egg.
To do that, you need a way to generate large returns...
Returns that are large enough to provide you with the retirement you deserve...
And large enough where you can start with just a small amount of money, and grow it into a sizeable portfolio.
Turning $5,000 into $2 million
As I explained earlier, even if you saved for 20 years and invested well in the stock market, you’d only be sitting on $100,000.
Even with social security, $100,000 in savings won’t let you retire or live comfortably...
It won’t let you travel, buy gifts for your family, or live the life you deserve after working hard your whole life.
This may sound disappointing—especially if you’re already retired, or close to it. But don’t worry...
There is a way to invest that allows you to build wealth…
It’s a way to multiply the value of your portfolio in a short period of time.
In fact, one of our business partners, Howard, recently used this strategy to turn a small $5,000 investment into more than $2 million.
I don’t know what your financial situation is, but for most folks, $2 million in the bank would allow them not just to retire... but to retire comfortably.
That’s why, in tomorrow’s e-mail, we’ll show you exactly where you can begin investing right now to give yourself the chance at earning similar returns.
Expect an email from us at 9:00 AM Eastern...
