Sunday, October 18, 2009

How to Maximize Return on Investment (ROI)

This article explains the world's easiest way to maximize your portfolio's return on investment. But there's one catch! Before you can gain access to the most lucrative investments available, you have to meet certain qualifications. If you qualify, an exciting new world of opportunities awaits you!

According to Wikipedia, "Return On Investment" (also known as ROI or "Rate of Return") is the ratio of money gained or lost on an investment relative to the amount of money invested. Return on investment is a common benchmark, expressed as a percentage, that is used by investors to evaluate how their investments are performing.

It may surprise you to learn that most investors in the U.S. do not currently have access to (or even know about) many of the most lucrative investment opportunities available -- and this is mandated by Federal Law!

Meanwhile, a select group of people who meet certain qualifications under this law have access to a spectrum of investments with extraordinary return on investment potential that most investors wouldn't believe possible AND will also never see.

QUESTION: What is the "world's simplest way" to maximize your portfolio return on investment?

ANSWER: Determine if you qualify as an "Accredited Investor"

Surprisingly, there are a lot of people who qualify as Accredited Investors that don't even know it! Also, most people don't know what the term means or the benefits associated with being an Accredited Investor. But as mentioned earlier, if you do meet the qualifications, a whole new array of investments are available to you. And, the potential return on investment for most of these will rock your world!

On the flip side, if you don't qualify, you will never hear about these investments. And the reason for this is because it is actually illegal for investment companies and financial advisors, according to the Federal Securities Act of 1933, to share information about them with Non-Accredited Investors.

BACKGROUND:

After the stock market crash of 1929 and the ensuing "Great Depression", the US Congress decided that it needed to institute tighter controls on the investment securities industry and financial markets. So, in 1933, the Securities Act of 1933 was passed. One component of this act defines the qualifications required for investors to participate in certain types of investment securities based upon their personal net worth and income levels. Those persons who meet these qualifications are known as "Accredited Investors".

DEFINITION OF AN ACCREDITED INVESTOR:

In the United States, for an individual to be considered an Accredited Investor, they must have a Net Worth of at least one million US dollars or have made at least $200,000 gross income each year for the last two years ($300,000 combined with his or her spouse's income if married) and have the expectation to make the same amount in the current year.

NEXT STEPS:

If you meet the qualifications above, you should get together with your Financial Adviser right away. Tell them that you qualify and would like to be made aware of all current and future investment opportunities to which only Accredited Investors have access.

If you do not have a Financial Advisor, you should get one soon to learn how to maximize your portfolio's return on investment with the spectrum of investment opportunities now available to you!

IMPORTANT NOTE:

One pitfall to be aware of when dealing with most Financial Advisors is that they will typically restrict the investments that they share with their investors (Accredited or not) to the investments offered by their company (the ones they earn commission on). And most often, they will only deal in "Traditional Investments" like stocks, bonds and mutual funds. As a result, you will never hear about investment opportunities in real estate, precious metals, commodities and other "Alternative Investments" because the Financial Advisor won't earn a commission on them.

To overcome this issue, look for an Independent Investment Advisor. They are not restricted to one particular company's investment offerings. For more information, visit this website: Free Independent Financial Advice

ABOUT THE AUTHOR:

In addition to being an author, John Hanlin is an Independent Investment Consultant specializing in high yield investments secured by real estate for investor security. Click here for a copy of his FREE Special Report: "The Safest High Yield Investments You Can Make Today".

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