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Before I answer, Insurance agents are never friends. Ask for policy wording and check for the same on website. Quite often the example shown are indicative but are sold as guaranteed returns. Assuming the numbers are true, the best way to calculate is find the returns and compare a similar returns from Banks. I.e. both offer similar low risk. In the first, ...


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The capital asset pricing model gives a theoretical answer to this, which is that you should buy all assets (including oil paintings, real estate, and Elvis dolls) in proportion to their market capitalization, and then if you want a higher return and more risk than that, you should leverage. The CAPM is just a model, and it depends on various assumptions. ...


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Things you can do is to activelly follow the trends, and get out of the market if you see things turning bad. ETF will always follow the market, both down and up, but you don't ahve to move with it. Let's look few years ahead, we are in a period of unprecedented growth in stocks, it's quite probable the correction will come sooner or later. Now is a good ...


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Any time, effort and focus you spend trying to get a slightly better return will maybe make you some money. The same time, effort and focus spent developing your career instead will earn you a lot more money than working on your investment return. If your goal is just "be well off in retirement" then don't even start worrying about picking your ...


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I'm going to be the wet blanket here: You probably can't beat a broad market index fund, reliably, regardless of your risk tolerance. You can take risks that might, but odds are they won't. The problem is, for the most part, that whatever profit your higher risk investment gets you is probably going to be either: Eaten up by transaction costs Cancelled by ...


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You can buy leveraged index funds and ETFs. See, e.g., this list: https://etfdb.com/themes/leveraged-3x-etfs/ Increase the risk, but also increase the reward if the index the ETF is following does well. Note the YTD returns in that link tho for today (5 Oct) so see some, well, risky numbers...


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What are the options to beat the returns of an index fund, taking more risk? Method 1: Use the same index fund, but lever up its returns using margin or derivatives. This increases risk by increasing both the upside and the downside. Refer to @BobBaerker's answer or this: How can I lever up my index fund returns? Method 2: Instead of buying index ETFs, buy ...


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You could leverage via call option LEAPs on the index of your choice. You could approach this several ways. Here are some: (1) Use an ITM call LEAP as a 1:1 replacement for an investment in and ETF such as DIA or SPY, freeing up investment cash to deploy into your "low-fee investment funds." In terms of investment cost, for a two call LEAP 20% ...


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The first option for most people to increase or decrease their level of risk to adjust the split between stocks and bonds in their portfolio. I'm quite a bit older than you so I have about 60% stocks and 40% bonds. Since you are young, a good aggressive strategy could be simply to invest 100% in diversified ETFs. Anything beyond that gets complicated and ...


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In the current historical milieu, as a "civilian" investor (so, you and I are not part of the government-banking complex; you and I are not allowed to bet millions on massively leveraged derivatives) there's only one instrument where you or I are allowed high (roughly 10:1 or more) leverage, real estate. For simplicity say this afternoon you have ...


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With all indexes, you have to differentiate between performance index and price index. The FTSE 100 is a price index, which means that only the current values of the contents are used when calculating it. Dividend payments are not contained and must be accounted for separately. Suppose you have a security which is $100 worth. Its value rises over the next ...


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