| Compounding Basics. | | | | over 30 years which produced a very mediocre |
| It's evident that working for your whole lifetime and | | | | result. Now for example we have a 14% return |
| saving diligently will only get you a small part of the | | | | which will give us the same mediocre result in half the |
| way there. You have to do something differently but | | | | time or 15 years. |
| what? | | | | What if the compounder could be jacked up really |
| | | | high? |
| When we talk about investing what we are really | | | | "What you are really doing is buying time" |
| referring to is compounding. Essentially, its | | | | It follows that if you are buying time by increasing |
| compounding that we have in mind. It's the | | | | the compounder that there is a cost associated (if |
| compounding that makes it all happen and investing is | | | | we buy anything it means we are paying a price for |
| just the activity. So lets focus on what matters | | | | it) what exactly is the price that is being paid in |
| which is this technology first and fore most. We call it | | | | exchange for the speed/increased compounder? |
| a technology because compounding is a tool. | | | | RISK! (the financial advisor brigade unexpectedly |
| In the world of physics, perpetual motion is an | | | | chime in all at once, except for a slow one that |
| impossibility. It has been proven to be impossible by | | | | whimpers "risk" too late.) |
| the finest scientific minds. Energy cannot feed of | | | | NO! WRONG. (All financial advisors must take a pay |
| itself to produce more energy. Yet, in the world of | | | | cut for being wrong.) |
| economics such a force exists. Money does feed of | | | | The price we pay for a great compounder is personal |
| itself to produce more money, which in turn produces | | | | effort and vision. |
| even more money. | | | | In exchange for much higher compounding rates its |
| Compounding is a manufactured reality and not a | | | | no surprise we must contribute personal effort and |
| natural phenomenon. Its manufactured by the | | | | vision. |
| circumstantial relationship between the value of | | | | You see? |
| money as a commodity and the time element (which | | | | You get 7% returns for handing all your money over |
| is a natural feature of the demand for the | | | | to an investor source. You are far removed from the |
| commodity of money) | | | | returns in fact you get paid last from the income |
| Compounding has been a tool of the Rich for | | | | YOUR money made. If you take the job of the |
| centuries and continues to be. However along with | | | | investor source then you are at the head of the que |
| compounding comes risk. To invest (and therefore | | | | when your money starts working for you. |
| employ compounding) we must surrender our seed | | | | Does this make sense to you? |
| capital to another party, so they may use it for a | | | | Good. |
| purpose. This purpose should deliver them a profit | | | | Let's sum up. |
| which you will share in, giving you your compounding | | | | To sum up the first part of this article we assume |
| yield. | | | | you aren't in the millionaire class yet. Its not investing |
| This is where Opportunity Investment comes in. | | | | that we pursue. Lets not be confused by this any |
| We don't mind how much research you do on the | | | | more. Its compounding we need. It's the |
| topic of risk. We don't care how long it takes you. | | | | compounding of our seed capital that will get us to |
| We guarantee you will not find a clear case that | | | | the next level. We have touched on what's on offer |
| compromises this insight about risk.- | | | | in every corner of the globe, diluted, packaged |
| "All risk fundamentally hinges around the surrender of | | | | investments, that are tailored to committed workers |
| ones money to another." We aren't sure if the | | | | ready to scrape and save in return for 7% per year. |
| significance of this statement has hit home with you | | | | We have identified the real nature of risk. Essentially |
| yet. Here is another facet of the same truth. | | | | that of the relinquishing of control of our seed capital. |
| "If you hand over funds, to another, without | | | | And finally we have identified the one and only factor |
| receiving, in return equal or better VALUE for the | | | | that will take us to the next level. The level where |
| funds released, your money is at risk" | | | | common investments WILL work for us at 7% |
| Clearly, if this is true, then logically we may be able to | | | | Increase the compounder. |
| invest without any risk at all providing we adhere to | | | | Now that we recognize what the goal of our |
| this directive "securing equal or better VALUE". | | | | activities should be, without being confused at all. We |
| Were you listening? We hope you didn't miss that. If | | | | ask how much of an increase to the compounder, do |
| you take anything away from this web site and | | | | we need to make it worth while. And how we will do |
| never return let it be these sentences, and this | | | | it without risk. |
| pages ideas. | | | | First, let's consider an example, then find what would |
| If you received EQUAL or better VALUE for the | | | | suit us and then commit to it. |
| capital you hand over, you will eliminate risk entirely. | | | | According to our calculations 1000% is a factor of |
| When you take possession of the portable VALUE | | | | ten. Meaning if you start with $100 by the end of |
| stored in the Investment Object that you exchanged | | | | that financial year you will finish up with $1000. The |
| for capital and that Value was worth MORE then the | | | | following year you will be responsible for an increase |
| Capital you exchanged, you effectively illiminate ALL | | | | of tenfold meaning you have $10,000. The third year |
| risk from the Investing Equation. | | | | $100,000 and the fourth year $1 million. |
| Put another way, if a stranger was on the street | | | | Fine. |
| selling 1 dollar notes for 70 cents and they were | | | | Many would dismiss this as unlikely, especially those |
| certified, bonafide bank notes. How many would you | | | | that look credible and have something to gain by |
| buy from the fellow? | | | | looking credible. After all, we visit the stock market |
| (Gimme all you got!) | | | | guru's, mutual fund managers and these professionals |
| This is why Opportunity Investment is riskless. | | | | tell us to savor a poultry 10% surely if they can't |
| Specifically because you are buying STORED | | | | manufacture better returns how can we hope to do |
| PORTABLE VALUE that you take immediate | | | | better right? Just remember the further we are from |
| possession of and not a packaged interest yield. | | | | the control of our seed capital the more diluted the |
| The professional investment advisors. | | | | compounder becomes. |
| When we do the rounds at our local lawyers and | | | | The above is an example. A possible template. |
| investment advisors offices they tell us the same | | | | Compounding is an orientation tool its not responsible |
| thing, almost parrot like. They say things like "The | | | | for direct money production. Compounding itself wont |
| higher the reward the higher the risk" and "buy for | | | | make you wealthy. But the day to day decisions you |
| the long term at 6%" | | | | make based on your compounder goals will. |
| What's happening here? What is the underlying | | | | Getting back to our 1000% compounder. |
| situation? | | | | Like everything in life, this goal is easier to absorb if |
| We are relinquishing control to decide. We seek out | | | | its broken down. |
| these individuals because they have the proper | | | | There are 12 months in one year. To turn $100 into |
| government credentials to dispense investment | | | | $1000 in 12 months your compounding rate would |
| advice. | | | | only need to be approximately 22% per month. |
| Our potential to profit from our investment activities | | | | Check it yourself with your calculator. |
| is diluted to the exact proportion that we relinquish | | | | So you would need to take your initial $100 to $122 |
| control to another for our investment decisions. | | | | within the first month the next month you would |
| 6%,7%,8% are not investments. They are simply a | | | | need to add $26.84 to your $122 dollars, and so on, |
| place to park money and to hedge against inflation. | | | | adding 22% to your total each month. |
| Compounding is so far removed from these diluted | | | | Still sounds high? |
| figures that the results wouldn't be worth the effort. | | | | Lets break it down further. |
| Yet these are the investments on offer. | | | | If you wanted to make $1 million dollars in 4 years, |
| Please don't mis-understand we believe these small | | | | (48 months) starting with just $100, you would need |
| yielding low risk products have their place. The rich | | | | to apply compounding to that single hundred dollar bill |
| will park their money into these investment vehicles | | | | at a rate of approximately 5% per week. |
| quite commonly. After all 1 million dollars at 7% is $70, | | | | Meaning, at the end of the first week, you find a |
| 000 per annum. Although there is risk its quite small. | | | | way, to increase that $100 into $105. |
| (Parking your money means putting it somewhere | | | | Does that sound do-able? |
| safe when it is not utilized for active investing. | | | | Not to be the type to labor a point, but lets labor it |
| Another place money is often parked by the rich is in | | | | to death. |
| property) | | | | On a daily basis, if we added just .7 of 1% that's |
| However, what if you don't have deep pockets. | | | | seven tenths of one percent per day, we would |
| What if you are just starting out? These | | | | achieve a million dollars in 1460 days (4 years) On |
| investments are superfluous for the many wishing to | | | | your first day, you would add 70 cents to your |
| find financial independence. After all, this is our | | | | hundred dollars for a total of $100.70, the next day |
| ultimate goal. To HAVE the million dollars in the first | | | | you would add 70.49 cents, and so on. Could you do |
| place so we CAN just pop it into a secured | | | | that? |
| government bond for a return like that, $70, 000 per | | | | Always keeping in mind we are Opportunity |
| year is an excellent income for most especially a | | | | Investors and not working for a living. Your day job |
| passive income. | | | | will be separate until you get to the level where you |
| We hope you see where we are going with this. We | | | | can quit work and build a phenomenal Investing |
| have a strong need to invest, to start compounding | | | | Company full time. |
| money but the available vehicles are small yielding | | | | So when we say we will add 70 cents on the first |
| minuscule to be accurate. | | | | day, the 70 cents doesn't come from your job or |
| Whether you have an asset base, of $100 in the | | | | your piggy bank, or from behind the sofa. it comes |
| bank, $1000, $10,000 $50,000, $300,000. It is not | | | | from the $100 you put to work. Not a big deal in the |
| enough to be at the level where common investment | | | | beginning but essential to understand. The $100 made |
| vehicles will give you a satisfactory compounding | | | | that money for you all you did was make your |
| return. | | | | money work for you. |
| A 7% yield is fine for millionaires (not really but its a | | | | But hold on you say, its easy to make $1000 in one |
| useable return) | | | | year, but how do I make $1 million in one year at the |
| So what are the alternatives? What are the options? | | | | fourth year? |
| Its absolutely true that 7% is not enough to | | | | This is a reasonable question. Its fine. It shows you |
| generate the compounding mechanism. Unless we | | | | are paying attention. |
| lived for 200 years 7% is futile. It hardly registers a | | | | Here's why. |
| blip in terms of results. | | | | At the beginning of the first year you started with |
| What can be done? | | | | one hundred dollars. right? You found it easy to |
| Increase the compounder. | | | | compound your $100 into $1000. |
| Aha! | | | | At the beginning of the fourth year, if all went to |
| (who said that? sit at the front of the class please) | | | | plan you started with $100,000. |
| Is it the only known way? | | | | There is no proportional difference. |
| Yep. | | | | Your Investment efforts are just directed at a |
| (We have a live wire amongst us.) | | | | different level of dollar value, the profit margins stay |
| It's the only known way. | | | | roughly the same, what ever you do right? |
| Well, there are 4 other known ways, you can rob a | | | | Instead of investing in low ticket items you are now |
| bank, marry money, make sure an inheritance will | | | | investing in high ticket items. The profit margins stay |
| come one day, or get lucky in a lottery. Are they | | | | the same. |
| reliable? Are they even realistic? What are the odds? | | | | The path to your financial progress is specific and |
| Would our conscience even allow us to consider any | | | | sure. By some people, this is seen as "the black arts". |
| of these alternatives? | | | | Of course, compared to the diluted packaged |
| No. | | | | investments on offer in the "investments advisor" |
| If money is a wind fall, sure its handy, but not | | | | world Opportunity Investment is comparatively Black |
| significant to us. We want more than money, we | | | | magic, alchemy, and witch craft all rolled into one. |
| require what access to money represents...LIFE | | | | However, its simply common sense unfettered by |
| CONFIDENCE. | | | | the hazy ideas of "more informed" employees of the |
| OK, so we are now getting somewhere. We have | | | | 6% compounding world. |
| stripped back the layers of rhetoric to find a point. | | | | Martin Thomas(c)copyright2005 |
| We could cover reams of information. But value | | | | This article may be cut and pasted by anybody, any |
| comes in small bites and this one tastes like mountain | | | | time for use in forums, blogs and other websites, as |
| due drops. Increasing the compounder is the only | | | | long as the article is not altered and the resource box |
| known way. | | | | below accompanies the article with the link remaining |
| By increasing the compounder what you are really | | | | active. |
| doing is buying time. Before we had a 7% return | | | | |