2007-07-10 05:01:40 · 11 answers · asked by NAMELESS ID 1 in Business & Finance ➔ Investing
To do this you would need an effective annual after tax rate of return of approximately 14%, meaning your pre-tax rate of return would have to be closer to 18-20%. I am not aware of any investments paying this kind of return that would be considered "safe". I think you may have to either accept some additional risk, or lower your expectations.
2007-07-10 05:10:00 · answer #1 · answered by John Q 4 · 5⤊ 0⤋
That's not possible. You can make the money, but not in any safe way. You are going to run a risk.
A 'safe' rate of return is 8 to 10%, which will typically double your capital every 10 years. Over time, that return is achievable in index funds, which spread your risk. Even so, to make anything over 4% is going to require some risk.
2007-07-10 12:26:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In a friend's 401, in 31 months, we have turned $ 573,000. into $ 900,000. It has been a fantastic " bull" market and no guarantees can be made...but I will just tell you this: It was all in mutual funds : FCNTX..FDIVX..FINEX..NBGEX..early on there were more conservative funds: FGBLX...a Credit Suisse small-cap ( that I forget)..
Another good sized portion of the money was held in a " real estate" fund managed by "Principal"...it is not a mutual fund, so I don't know how someone would go about getting invested in it....( maybe just a basket of REITS )
I am now trying to rein-in my friend ...to get a little more conservative....but she wants to get even more aggressive!!
Personally I have had phenominal results with FEMKX...EUROX..FLATX..
BUT LIKE I SAID: it has been one fantastic bull market for close to five years... and NO ONE can predict the future!!
Just in general...and according to your risk tolerance...I would say the best areas to be in for the next few years are: international...energy...mining/ metals...
Diversify your holdings..keep a watchful eye..what else can I say ?
2007-07-10 17:12:22 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
You would have to be contributing some serious monthly amounts. We could run a few Monte Carlo simulations for your funds. They crunch data from over 30 years of performance from the stock market and deliver figures that are between 70-90 percent correct in projecting your end value.
Jermaine E. Spence
Licensed Financial Advisor
www.FreedomTreeFinancial.com
2007-07-10 12:16:10 · answer #4 · answered by jermaine1spence 1 · 0⤊ 1⤋
Getting that rate of return can be pretty tough.
I would recommend two different kinds of mutual funds:
- An aggresive growth fund with a manger with a long track record.
- An international fund with good exposure in asia.
This is assuming you aren't going to touch the money during this ten year period. This may not quite get you to $2 million, but it will get you pretty close.
2007-07-10 12:07:10 · answer #5 · answered by TJS 2 · 1⤊ 1⤋
Buy exchange traded funds only. Put half the money in diversified US industries. The other half should be put into Russian, Eastern European, South American, and Asian ETFs.
Don't put more than 10% of your money in any fund.
2007-07-10 14:54:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Not even close to "safe". 14.5% return each year would be very risky... and although "do able" the chance of significantly underperforming this goal is very high.
Bad case..... You lose 50% the first year. In order to make that up, (to break even), you need to grow the money 100%.
Safe and 14.5% is unresonable.
2007-07-10 12:24:11 · answer #7 · answered by Common Sense 7 · 2⤊ 1⤋
can't safely do it. stock market returns about 10 a year....
2007-07-10 13:23:14 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Government Bonds
2007-07-10 12:08:46 · answer #9 · answered by Taylor G 4 · 0⤊ 5⤋
You can't.
Safe and 14% returns are not possible.
2007-07-10 12:54:04 · answer #10 · answered by Anonymous · 0⤊ 0⤋