Med-Wealth

How to Build a Better Portfolio

How to Build a Better Portfolio

How to Build a Better Portfolio
Your Future Begins Here:
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info@med-wealth.ca or call 905-568-2000.

Understand the following:

3 Most Important Factors for Wealth Accumulation & Preservation:

  • Time – it takes time for money to compound – the longer it is invested, the greater the growth – this is also referred to as the ‘magic of compound interest’
  • Amount of Savings – you cannot create growth without the seeds of initial and ongoing investment. The more you save the more you will have over time.
  • Rate-of-Return – the Rule of 72:
    • Dividing an investment’s rate-of-return into the number 72 will tell you how many years it will take your money to double. Ex. 72/6% = 12 years.
    • If you have a 36 year career, your money will double just 3 times. Ex. $100,000 x 2 x 2 x 2 = $800,000.
    • If instead your money were able to grow by 12% annually, then 72/12% = 6 years to double. Over a 36 year career that is 6 doubles which extending the example from above = $6.4 million!
  • Portfolio Boost
    • Allocate up to 40% of your portfolio to a more concentrated, growth-oriented investment strategy for potentially much higher returns.
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