Liquid Millionaire - isaco

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Liquid Millionaire
As you can see, it went on a 20 year run. And if it goes on a similar
run over the next ten to twenty years, what is going to happen to your
portfolio? You don’t have to be a rocket scientist to work that one out.
Let’s summarise what we have learned so far.
If you have a reliable and consistent system of fi nding the best funds,
buying them when the market is strong and healthy, moving out onto the
sidelines when the market weakens and the market does have a strong
upwards move over the next 10-20 years, you, my friend could hit the
jackpot.
Nasdaq 76,430
Th e Nasdaq market at the end of 2007 closed at 2652. If the market
does what it did in the past, at the end of 2027, the Nasdaq is going to
be trading at 76,430. 61 Th at’s more than a 2780% move.
But before we get too far ahead of ourselves, let’s focus in on the next
10 years. And what sort of returns can you expect if the market does
make a strong move over the next 10 years? I reckon that with some
fancy fund picking and a touch of luck, you could make close to 30%
annualised returns.
Really?
Yes, really.
… but that would only be possible in a very strong market
environment.
However, if the decade of 1990-2000 was replicated (which I believe
is highly probable) where we saw the Nasdaq go up on average 24.5%
per year and if you have a system of being able to beat the Nasdaq, 30%
returns might just be achievable. But what is achievable for people who
have generally no idea what they are doing and rely on a fi nancial adviser,
stock broker or their local bank manager?