How to Achieve a High Growth Rate on Your Savings Pt.1

To invest money for high rates of return, you usually either need to take on increased risk, increased volatility, or decreased liquidity.

Here’s an overview of how to achieve your target rate of return. Usually you’ll want a blend of several of these asset classes for optimal diversification:

How to produce 0-3% annually:

• Treasuries
• Corporate bonds
• Municipal bonds
• Savings accounts

How to produce 3-8% annually:

• Preferred stock
• Peer-to-peer lending
• Index funds

As the chart shows, if you want to build wealth, there are really only two things to get right:

• Increase the difference between your income and expenses
• Save that difference and grow it exponentially over time

That’s it.

This chart shows you exactly how much y...