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One Simple Trick for Doubling Your Money

Today I’m going to show you a little magic trick…

I’ll show you how to double your money by tweaking just a tiny piece of your portfolio.

Sound too good to be true?

Read on to see the “magic portfolio” trick in action…

A “Traditional Portfolio”

Most of us understand the benefits of diversification.

That’s why most investors have a “traditional” portfolio that’s split between stocks and fixed-income investments — generally, about 60% in stocks, and 40% in bonds or REITS.

To keep the math simple, let’s say a traditional portfolio returns about 10% each year.

But now let’s see what happens when you take just a tiny bit of your portfolio, and you allocate it to an entirely different asset class…

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As you’re about to see, your overall returns go through the roof…

Essentially, your wealth will double, just like magic!

The “Magic Portfolio”

When we reveal the secret to this “magic portfolio,” many investors have the same reaction:

They say things like, “No way! That’s too risky.” Or, “I couldn’t do something like that at my age. I just want to protect what I have!

But that’s what makes this trick so magical. Without taking significant risk, you can give yourself the chance to earn nearly 100% more on your money.

You see, to make this trick work, you simply need to re-allocate 6% of your overall portfolio.

Basically, just 6 cents of every dollar you have invested.

So, if your portfolio is worth $100,000, you could potentially double its value — simply by re-allocating $6,000.

Like I said, it’s magic.

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Let me show you how it works…

The “Magic Ingredient”

The “magic ingredient” to this trick is private equity — in other words, startup companies.

According to a recent study from SharesPost, an expert in private securities, allocating just 6% of your assets to startups can boost your portfolio’s overall returns by 67%.

And with a 67% boost, instead of earning, say, 10% a year, you’d earn 16.7% a year.

Let’s see what this difference would add up to with a hypothetical portfolio of $100,000.

Double Your Wealth with Startups

At an average return of 10% a year, in ten years, a $100,000 portfolio of stocks, bonds, and real estate would turn into about $259,000.

Not bad.

But in that same timeframe, a portfolio that includes a 6% allocation to startups (just $6,000) would grow to $468,000.

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So, as you can see, by allocating just a tiny amount to startups, you nearly doubled the size of your investment portfolio.

Keep in mind, these returns include the winners and the losers.

And furthermore, if you happen to invest in a startup like Facebook, Uber, or Airbnb — the type of investment that can deliver 20,000%+ returns — you could become a multi-millionaire.

The “Real” Secret to Startup Success

With that said, if you do decide to allocate a small portion of your portfolio to startups, please keep something important in mind:

You should NEVER invest your entire allocation into a single startup.

Sure, you could get lucky and hit a homerun…

But by making just one startup investment, you’re putting all your eggs into one basket — and therefore, you risk damaging your entire portfolio’s returns if that startup doesn’t work out.

The key to success in this asset class is to diversify!

Over the course of months and even years, you should plan to build a portfolio of high-quality startups. That’s what’ll give you the greatest odds of doubling your overall returns.

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In fact, some studies have shown that you’ll want to make 25, 50, or even 100 startup investments or more to be fully diversified.

So, whatever you decide to allocate to startups as an asset class, be sure to spread your bets around…

That’s what helps you decrease your risk — and increase your potential rewards!

Happy investing.

Best Regards,
Wayne Mulligan
Wayne Mulligan
Founder
Crowdability.com

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Source: https://www.crowdability.com/article/one-simple-trick-for-doubling-your-money

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