a CD that Beats Stocks?! | Episode 111 - a podcast by Bryan Ellis - SelfDirected.org

How would you like to own a certificate of deposit with returns that actually BEAT the stock market?  Something so reliable that it’s a great way to invest that part of your portfolio that you absolutely can not afford to lose… yet you still get a great return?  Well, I’ve got something even better, and I’ll tell you all about it RIGHT NOW.  I’m Bryan Ellis, and this is Episode #111

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Hello, SDI Nation!  Welcome to the podcast of record for smart, individual investors!

I didn’t get to be with you on Friday, and I really missed that!  But boy did I have a great time with some of your colleagues and fellow listeners at our Passive Property Flipping Summit.  That event was for affluent investors seeking to deploy their capital into passive real estate flipping opportunities, and it was an extraordinary experience.  The event filled up many weeks ahead of time and it was just truly wonderful to actually meet so many of you face-to-face!

My friends, I’ve got some great info to share, and I’ll get to that in about 30 seconds.  But first, let me say THANK YOU for listening!  This podcast is only about 6 months old and it’s already a major force to be reckoned with because of YOU.  It’s astounding how many other shows feel the need to respond to what I say, because what I teach is completely counter to the advice given by others who have a conflict of interest.  And heck, there are a lot of shows that are now rather directly ripping off my material now.  Yes, my friends, what you’re now hearing is SHOW PREP for the other shows you listen to.  Hehehehe  You know what they say… imitation is the sincerest form of flattery!  Until the cease-and-desist letter, that is.  Hehehehehe

But seriously, we’re doing so well because of YOU, and I’m SO VERY GRATEFUL to you.  Nobody would care about what I have to say if YOU didn’t care about what I have to say… and so really, YOU are the hero, the person of influence, in this situation.  And I’m so grateful to you.

So, I’m going to give you some great value yet again today!

Here we go:

It would be great if there was a bank that would issue a CD that could beat – or even equal – the long-term average of the stock market.

Well, my friends, such a CD does not exist, as you know.  But something that’s BETTER actually does exist.

And before I tell you about it, let’s determine what is ACTUALLY the long-term return of the stock market.  What would you guess?  A lot of people think that number is 10% or 12%.  What do you think?

Well, my friends, let’s look at the actual numbers, shall we?

We’ll use a period of 80 years, because that’s the average lifespan of an American citizen.  And over the last 80 years, the compounded annual growth rate for BOTH the Dow Jones Industrial Average and the S&P 500 has been in the 6% range.

Surprising, isn’t it?  Much lower than you guessed, no doubt.  But the news is worse than that.  Around 6% is what the MARKET has averaged.  The results for the typical investor in stocks has been FAR WORSE.

There’s a fascinating study that’s published every year called Dalbar’s Quantitative Analysis of Investor Behavior.  Sounds like a great read, doesn’t it?  Hehehehe.  Well, there is one particular piece of information in that you MUST pay attention to:

The average investor who invests in stocks does NOT achieve a 6% rate of return.  Far from it.  According to Dalbar, the average 30-year annualized rate of return is a whopping 1.9%.

Yes, you heard that right:  1.9%.

How could that be?  The painful truth is that you and I aren’t very good at stock picking or timing.  Remember – that magical 76 number is based on the assumption that you put money in 80 years ago, and that you leave that investment alone for the entire 80 years following.  But is that reality?  No, of course not.

Folks, do you remember back as recently as 2008… a year when there were 3 SEPARATE days when the entire S&P500 fell by about 9%?  It was a bloodbath.  Or do you remember back to Black Monday – October 19, 1987 – when the ENTIRE MARKET fell by more than 20% in a single day?

The ugly reality is most investors revert to their baser instincts of survival mode when such things happen.  That’s the nature of the stock market.  It encourages emotion-based decisions, which leads to buying high and selling low.  And that, my dear listeners, is why even though the long-term average for the market is about 6%... the average for people like you who invest in the stock market is less than a third of that, at 1.9%.

Have your results been better than that?

Then pay close attention to this:

My friends, there’s a concept in statistics and finance called “reversion to the mean”.  This means that anything you’re measuring tends to return to it’s long-term average over time.  If right now you’re below average, it’s likely your results will rise.  If right now you’re performing above the average, it’s quite likely your results will revert to the mean.

What’s the answer?  Let’s invest in assets that have a higher average!

How about, say, 7%?  That way, we beat the stock market and the average investor!

So where can you get such a result?  It’s easy:  don’t look to Wall Street.  Look to Main Street.

Imagine a local guy named Joe.  Joe found a piece of real estate he can buy WAY below it’s value.  I mean… WAY below it’s value… about half.  Problem is, he doesn’t have all of the money he needs.

This is an opportunity for you to get a SLAM-DUNK investment.  Here’s how it works:  You make a loan to Joe.  You lend him money at 7% interest, and so that it’s easy for him to make payments, you only require interest-only payments.

Joe loves it… he’s got a really low payment and now he can do his deal, but the reason this deal is safe for you is this:

You will ONLY lend Joe half of the value of the property.  If the property is worth $100,000 then you’ll lend him $50,000.  If it’s worth $300,000 then you’ll lend him $150,000.

Whatever the value… you’ll lend half.

And then, there’s one other thing:  If Joe doesn’t keep up his payments, you get to take that house and sell it.  And the reality is you’ll likely make a WHOLE LOT MORE money from doing that if you must.  In other words, you have a Plan “A”… where you collect 7% interest… and you have a Plan “B”, where you can make FAR MORE than that, if for any reason Plan A doesn’t work!

But you know what?  Joe isn’t going to miss his payments.  Because this house is such a SMOKING-GREAT deal that he wants the profit that’s built into it.

And thus, you get paid 7% interest – guaranteed – every single month.  No volatility, no complication, no trouble.  It’s just simple.  It’s safe.  It’s strong.

Now, you probably don’t want to do this with all of your portfolio.  But folks, most people wisely consider about 1/3 to 2/3 of their portfolio as the “conservative” portion… the part where they just can’t afford to lose money.  You’ll want to really optimize the other 1/3 for high returns, but…

…For that core of your portfolio… the part that matters the MOST to your financial future… isn’t it appealing to think you could BEAT the stock market… and have NO VOLATILITY and virtually NO RISK to your money?  It’s like a REALLY AWESOME Certificate of Deposit… only the rate is much higher… and it just MAKES SENSE to you why it works!

But the big problem for you is finding somebody like JOE who wants to borrow money under those terms.

My friends, I can help you with that.  Actually, I can make the problem go away entirely… it becomes a totally “turnkey” opportunity for you!

Want to learn more?  Join me for a special webinar THIS WEEK for Self Directed Investor Radio listeners ONLY.  I’ll tell you more about the strategy – including why it’s so incredibly safe and predictable, along with very profitable – and further, I’ll show you how to get those results in a totally turnkey manner, so you never even need to understand how to find somebody like Joe or evaluate real estate or any of that stuff.  You just get to make incredibly safe loans at a 7% interest rate and forget about everything else!

To get a link where you can register for this premium webinar at no cost, just text the word RESERVE to 33444.  But there is a limited number of free passes available, and to get one, just text the word RESERVE to 33444.

My friends, invest wisely today… and live well forever!

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