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Put another way, if a stranger was on the street selling 1 dollar notes for 70 cents and they were certified, bonafide bank notes. We seek out these individuals because they have the proper government credentials to dispense investment advice.

Our potential to profit from our investment activities is diluted to the exact proportion that we relinquish control to another for our investment decisions. We have a strong need to invest, to start compounding money but the available vehicles are small yielding minuscule to be accurate.

Whether you have an asset base, of $100 in the bank, $1000, $10,000 $50,000, $300,000. Check it yourself with your calculator.

So you would need to take your initial $100 to $122 within the first month the next month you would need to add $26.84 to your $122 dollars, and so on, adding 22% to your total each month.

Still sounds high?

Lets break it down further.

If you wanted to make $1 million dollars in 4 years, (48 months) starting with just $100, you would need to apply compounding to that single hundred dollar bill at a rate of approximately 5% per week.

Meaning, at the end of th

Compounding Basics.

It's evident that working for your whole lifetime and saving diligently will only get you a small part of the way there. You have to do something differently but what?

Saving is like trying to fill a swimming pool with an eye dropper. Its going to take a very long time.

When we talk at hand investing what we are really referring to is compounding. Essentially, its compounding that we have in mind. It's the compounding that makes it all happen and investing is just the activity. So lets focus on what matters which is this technology first and fore most. We call it a technology in that compounding is a tool.

In the world of physics, perpetual motion is an impossibility. It has been proven to be impossible by the finest scientific minds. Energy cannot feed of itself to produce more energy. Yet, in the world of economics such a force exists. Money does feed of itself to produce more money, which in turn produces even more money.

Compounding is a manufactured reality and not a natural phenomenon. Its manufactured by the presumed relationship mid the value of money as a staple and the time element (which is a natural feature of the demand for the product of money)

Compounding has been a tool of the Rich for centuries and continues to be. However forward with compounding comes risk. To invest (and therefore employ compounding) we must surrender our seed select to ulterior party, so they may use it for a purpose. This purpose should deliver them a profit which you will share in, giving you your compounding yield.

This is where Opportunity Investment comes in.

We don't mind how much research you do on the topic of risk. We don't care how long it takes you. We guarantee you will not find a broad-based case that compromises this insight helter-skelter risk.-

"All risk fundamentally hinges in every quarter the surrender of ones money to another." We aren't sure if the significance of this statement has hit home with you yet. Here is quite another thing facet of the same truth.

"If you hand over funds, to another, without receiving, in return equal or re-create VALUE for the funds released, your money is at risk"

Clearly, if this is true, then logically we may be able to invest without any risk at all providing we meet to this directive "securing equal or shift the scene VALUE".

Were you listening? We hope you didn't miss that. If you take any away from this web site and never return let it be these sentences, and this pages ideas.

If you received EQUAL or preponderate VALUE for the typeface you hand over, you will eliminate risk entirely. When you take possession of the portable VALUE stored in the Investment Object that you exchanged for peerless and that Value was worth MORE then the glaring you exchanged, you effectively illiminate ALL risk from the Investing Equation.

Put of a sort way, if a stranger was on the street selling 1 dollar notes for 70 cents and they were certified, bonafide bank notes. How many would you buy from the fellow? (Gimme all you got!)

This is why Opportunity Investment is riskless. Specifically seeing that you are purchasing power STORED PORTABLE VALUE that you take immediate possession of and not a packaged interest yield.

The professional investment advisors.

When we do the rounds at our local lawyers and investment advisors offices they tell us the same thing, nearly parrot like. They say things like "The higher the reward the higher the risk" and "buy for the long term at 6%" What's happening here? What is the underlying situation? We are relinquishing control to decide. We seek out these individuals seeing they have the proper government credentials to dispense investment advice.

Our potential to profit from our investment labour is diluted to the exact proportion that we relinquish control to additional for our investment decisions. 6%,7%,8% are not investments. They are simply a place to park money and to hedge con inflation. Compounding is so far removed from these diluted figures that the results wouldn't be worth the effort. Yet these are the investments on offer.

Please don't mis-understand we accept for gospel these small yielding low risk products have their place. The rich will park their money into these investment vehicles quite commonly. considering all 1 million dollars at 7% is $70, 000 per annum. even there is risk its quite small. (Parking your money means putting it somewhere safe when it is not utilized for keen investing. additional place money is often parked by the rich is in property)

However, what if you don't have deep pockets. What if you are just starting out? These investments are superfluous for the many wishing to find financial independence. rearward all, this is our ultimate goal. To HAVE the million dollars in the first place so we CAN just pop it into a secured government bond for a return like that, $70, 000 per year is an excellent income for most especially a passive income. We hope you see where we are going with this. We have a strong need to invest, to start compounding money but the godforsaken vehicles are small yielding minuscule to be accurate.

Whether you have an ornament base, of $100 in the bank, $1000, $10,000 $50,000, $300,000. It is not enough to be at the level where equitable interest investment vehicles will give you a satisfactory compounding return. A 7% yield is fine for millionaires (not really but its a useable return) So what are the alternatives? What are the options? Its altogether true that 7% is not enough to generate the compounding mechanism. Unless we lived for 200 years 7% is futile. It hardly registers a blip in terms of results.

What can be done?

Increase the compounder. Aha!

(who said that? sit at the front of the kindness please)

Is it the only known way?

Yep. (We have a live wire mid us.)

It's the only known way. Well, there are 4 other known ways, you can rob a bank, marry money, make sure an inheritance will come one day, or get lucky in a lottery. Are they reliable? Are they even realistic? What are the odds? Would our conscience even express general agreement us to consider any of these alternatives? No.

If money is a wind fall, sure its handy, but not significant to us. We want more than money, we require what amplification to money represents...LIFE CONFIDENCE.

OK, so we are now getting somewhere. We have stripped back the layers of rhetoric to find a point. We could cover reams of information. But value comes in small bites and this one tastes like mountain due drops. Increasing the compounder is the only known way.

By increasing the compounder what you are really doing is time. ante we had a 7% return over 30 years which produced a very mediocre result. Now for example we have a 14% return which will give us the same mediocre result in half the time or 15 years.

What if the compounder could be jacked up really high?

"What you are really doing is shopping time"

It follows that if you are sale time by increasing the compounder that there is a cost at one with (if we buy either it means we are paying a price for it) what exactly is the price that is occurrence paid in exchange for the speed/increased compounder?

RISK! (the financial therapist section unexpectedly butt in in all at once, except for a slow one that whimpers "risk" too late.)

NO! WRONG. (All financial advisors must take a pay cut for living thing wrong.)

The price we pay for a great compounder is personal effort and vision.

In exchange for much higher compounding rates its no surprise we must contribute personal effort and vision.

You see? You get 7% returns for handing all your money over to an investor source. You are far removed from the returns in fact you get paid last from the income YOUR money made. If you take the job of the investor source then you are at the head of the que when your money starts working for you.

Does this make sense to you?

Good.

Let's sum up.

To sum up the first part of this insinuate we reckon you aren't in the millionaire commonwealth yet. Its not investing that we pursue. Lets not be confused by this any more. Its compounding we need. It's the compounding of our seed wherewithal that will get us to the next level. We have touched on what's on offer in every corner of the globe, diluted, packaged investments, that are tailored to staunch workers ready to scrape and save in return for 7% per year.

We have identified the real nature of risk. Essentially that of the relinquishing of control of our seed capital.

And finally we have identified the one and only factor that will take us to the next level. The level where interest investments WILL work for us at 7% Increase the compounder.

Now that we recognize what the goal of our activity should be, without chap confused at all. We ask how much of an increase to the compounder, do we need to make it worth while. And how we will do it without risk.

First, let's consider an example, then find what would suit us and then perpetuate to it.

According to our calculations 1000% is a factor of ten. Meaning if you start with $100 by the end of that financial year you will finish up with $1000. The following year you will be responsible for an increase of tenfold meaning you have $10,000. The third year $100,000 and the fourth year $1 million.

Fine.

Many would dismiss this as unlikely, especially those that look credible and have something to gain by looking credible. in harmony with all, we visit the stock market guru's, mutual fund managers and these professionals tell us to savor a poultry 10% surely if they can't manufacture converted returns how can we hope to do marked right? Just remember the further we are from the control of our seed smashing the more diluted the compounder becomes.

The primarily is an example. A possible template. Compounding is an orientation tool its not responsible for direct money production. Compounding itself wont make you wealthy. But the day to day decisions you make based on your compounder goals will.

Getting back to our 1000% compounder.

Like everything in life, this goal is easier to involve if its subdued down.

There are 12 months in one year. To turn $100 into $1000 in 12 months your compounding rate would only need to be chiefly 22% per month. value it yourself with your calculator.

So you would need to take your initial $100 to $122 within the first month the next month you would need to add $26.84 to your $122 dollars, and so on, calculation 22% to your total each month.

Still sounds high?

Lets diversity it down further.

If you wanted to make $1 million dollars in 4 years, (48 months) starting with just $100, you would need to try out compounding to that single hundred dollar bill at a rate of effectually 5% per week.

Meaning, at the end of the first week, you find a way, to increase that $100 into $105.

Does that sound do-able?

Not to be the type to labor a point, but lets labor it to death.

On a daily basis, if we besides just .7 of 1% that's seven tenths of one percent per day, we would perform a million dollars in 1460 days (4 years) On your first day, you would add 70 cents to your hundred dollars for a total of $100.70, the next day you would add 70.49 cents, and so on. Could you do that?

Always keeping in mind we are Opportunity Investors and not working for a living. Your day job will be separate until you get to the level where you can quit work and get up a phenomenal Investing installation full time. So when we say we will add 70 cents on the first day, the 70 cents doesn't come from your job or your piggy bank, or from by and by the sofa. it comes from the $100 you put to work. Not a big deal in the conception but essential to understand. The $100 made that money for you all you did was make your money work for you.

But hold on you say, its easy to make $1000 in one year, but how do I make $1 million in one year at the fourth year? This is a reasonable question. Its fine. It shows you are paying attention.

Here's why.

At the fundamental of the first year you started with one hundred dollars. right? You found it easy to compound your $100 into $1000. At the head of the fourth year, if all went to plan you started with $100,000. There is no proportional difference. Your Investment efforts are just directed at a different level of dollar value, the profit margins stay roughly the same, what ever you do right? Instead of investing in low ticket items you are now investing in high ticket items. The profit margins stay the same.

The path to your financial progress is specific and sure. By some people, this is seen as "the paleface arts". Of course, compared to the diluted packaged investments on offer in the "investments advisor" world Opportunity Investment is simply complete magic, alchemy, and witch craft all rolled into one. However, its simply trite sense unfettered by the hazy ideas of "more informed" employees of the 6% compounding world.

Martin Thomas(c)copyright2005
This sentence may be cut and pasted by anybody, any time for use in forums, blogs and other websites, as long as the writing is not converted and the resource box subordinate to accompanies the charge with the link remaining active.

Some people have asked where they can find episodes of my defunct podcast.

Here they are:

Episode 1

Episode 2

Episode 3

Episode 4

Episode 5

Episode 6

Episode 7

Episode 8

Episode 9

Episode 10

Episode 11

Episode 12

Episode 13

Episode 14

Episode 15

Episode 16

Episode 17

Episode 18

Episode 19

Episode 20

Talk to Geoff About the Investor Questions Podcast

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