$18,000 Profit or $800,000 Profit? You Decide

By Matthew Milner, on Wednesday, October 31, 2018

For years, Wall Street’s been selling you the same old story:

To retire comfortably, you just need to work hard, save your money, and invest it in the stock market.

But what’s so great about the stock market?

Today, I want to explain Wall Street’s big lie…

Then I’ll show you the real way to prepare for retirement. 

Miles Away from Retirement

Most folks who’ve followed Wall Street’s advice are miles away from being able to retire comfortably...

In fact, many of them won’t be able to retire at all.

You see, a comfortable retirement requires a nest egg of about $1 million.

But not many folks have $1 million saved up:

The average 50-year-old in America today has less than $50,000 saved for retirement…

And 45% of Americans have nothing saved for retirement at all — zero.

These Americans have been working hard, saving, and putting their money into the stock market…

So where are their million-dollar retirement accounts?

The Stock-Market Fallacy

The root of the problem might surprise you.

You see, the problem isn’t your investing strategy, your portfolio allocation, or even your investment advisor…

The problem is stocks.

The sad truth is that the stock market is no place to build wealth.

On average, the stock market has gone up just 6% to 8% per year — and that doesn’t even take inflation, fees, or taxes into consideration.

Even if you could earn 6% a year net of all costs, over ten years, a $10,000 nest egg would only grow to about $18,000.

That’s a good start… but it’s not enough to retire on.

The Truth About Retirement

Unless you’re independently wealthy, there’s only one way to ensure you’ll have enough to retire:

You need to invest your money where you can earn far higher returns.

That’s why, at Crowdability, we focus on the private markets….

You see, private investments tend to generate very high returns.

For example, according to a recent study by Cambridge Associates (an investment firm whose clients include Bill Gates and the Rockefeller Foundation), over the past 20 years, a portfolio of private investments has returned 55% per year.

At 55% per year, over 10 years, you could turn that $10,000 portfolio into a nest egg worth almost $1 million.

For most folks, that would be enough to retire.

And that’s why everyone — including you — should have at least some portion of their portfolio dedicated to the private markets.

Happy Investing

Best Regards,
Matthew Milner

Founder
Crowdability.com

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