[l2ridehd]

Every investment has a risk and a reward. And the higher the risk the higher the potential reward. When anyone tells you that you will earn more and the return is guaranteed with an investment product. Run.

There are easy and very simple ways to earn 7 to 9% but they do have risk. I would say moderate risk, not high or low. It is not guaranteed. Only you know what your risk tolerance is and what lets you sleep at night.

I have checked out several of these so called "guaranteed return" investment ads. Many are using real estate investment models or other loan products to get these type returns. Most have a very limited number of clients so if one should fail than the whole scheme falls apart.

To get decent returns with lower risk you need to diversify across a very broad range of investments. The more you diversify the lower the risk profile. The best way for small investors like us to do that is with index funds. With 4 or 5 index funds you can diversify across the globe and be part of every market available. Successful investors who manage huge amounts of money use this for 90% of their portfolio. Look up the Yale University endowment fund and see how that is managed. Check out how the Virginia 529 (largest 529 in the US) and see how that is managed. There are many other examples where billions are managed using very low cost index funds.

I have managed my own money using this simple model for over 30 years. My total return has been slightly less than the S&P 500 with significantly lower risk. 8.3% over 30 years. S&P has been 8.65% during that same time frame. But the S&P swings have been huge. Mine have been minor so much lower risk. I use Vanguard index funds, but Schwab or Fidelity have them as well and all are very low cost. I use a very small amount for a small cap tilt but I can't say that has made much difference in total return. So it's hugely diversified, very low risk and decent returns. Those ads you see are very limited diversify, very high risk and also may provide decent returns.