In his article yesterday, Matt addressed a frightening situation in America:
The retirement crisis.
As he explained, even if you have a nest egg saved up, two imminent threats are about to destroy your plans:
Threat No. 1 is a stock market correction.
You see, we’re in the longest-running bull market in history. But at some point, the market will crash. And when it does, your nest egg could be left in tatters.
Then there’s threat No. 2: the U.S. Social Security program is on a path to bankruptcy. In fact, studies show that it’s virtually impossible for it to maintain payouts in the future.
So if you were counting on social security to keep you afloat once you retire, think again.
A Simple Solution for a Better Retirement
The retirement crisis is a problem you can’t afford to ignore…
You need to start coming up with some solutions immediately.
That’s why we recently sent out this short survey to some of our readers. Basically, we wanted to know how we could help you prepare for this crisis.
As it turns out, one of our readers’ top responses was this:
“Help me build a bigger nest egg, fast.”
So today, I’ll reveal one of my favorite strategies for building your nest egg fast.
As you’ll learn, it all starts by making one small change to your portfolio…
The “Average Investor’s” Portfolio
If you’re like most folks, your portfolio probably has some stocks, some bonds, and maybe some real estate.
Historically, a portfolio like that has returned about 6% a year.
6% a year isn’t necessarily a “bad” return. But if you didn’t start investing until later in life, or if you’re still recovering from the 2008 crash, it might not be enough to help you retire.
You see, even if you’re starting with a $100,000 portfolio and you’re still 10 years from retirement, a 6% annual return will only help you grow your assets to $179,000.
In other words, if you’re only earning 6%, you may have to delay your retirement for years — or you may have to keep working indefinitely.
But now I’m going to reveal a tiny tweak that could have a big financial impact…
In fact, this single change could cause your portfolio to skyrocket.
The Secret to a Seven-Figure Nest Egg
As long-time Crowdability readers know, historically, early-stage private equity — in other words, investing in “startups” — has trounced the stock market:
As an asset class, startups have returned about 55% per year.
But you don’t have to re-arrange your whole portfolio to take advantage of these returns…
All you need to do is add a tiny amount of private equity.
Let me show you what I mean…
Proof: Double Your Returns
Again, if you have a $100,000 portfolio and earn 6% per year, in 10 years, you’ll have $179,000.
But look what happens if you add some private equity:
Let’s assume you keep 90% of your assets ($90,000) in stocks and bonds, and put the remaining $10,000 into private equity.
- At 6% per year, over ten years, the $90,000 would turn into $161,000.
- But given the 55% historical annual returns of private equity, over 10 years, that $10,000 would turn into $800,418.
So in total, your portfolio would now be worth a staggering $961,594.
This is what makes startup investing so powerful: by allocating just 10% of your portfolio to private equity, you could add more than $800,000 to your retirement account!
Unfortunately, there’s a major drawback to this strategy…
What if You Don’t Want to Lock Up Your Money?
If you have time before you retire — and at least $100,000 to invest — the strategy I just showed you is perhaps the single best way to grow your portfolio.
But what if you’re planning to retire in a couple of years… or what if you’re already retired?
If that’s the case, startup investing may be a tough pill to swallow.
You see, the trade-off in startup investing is time. Once you put your money into an early-stage company, it stays there until the startup gets acquired or goes public in an IPO.
If you need access to that money for an unexpected expense, you’re out of luck.
The “Perfect” Investment?
But don’t worry, because we believe we’ve discovered an even better way to quickly build your retirement nest egg…
It’s an investment where you don’t have to worry about locking up your money.
And as we’ll explain next week, this single investment could help you build a six- or even seven-figure nest egg in no time at all.
So stay tuned!