Investing 6 min read

The Risk-Free Investment

There is no reward without risk.

That's what we've been taught. We have to risk something to win something.

What if I told you that every rule can be broken, even this one? What if I told you that last month, market conditions created the unheard scenario of investing money risk-free for twenty years? That's absurd!

But before I tell you all about how some people are investing their income risk-free, I need to remind you of the biggest risk of all.

The Risk of Not Taking Risks; Investing in Yourself

I hear this over and over again, especially from people in their forties who have been working for 15-20 years:

I should have taken another path in my life.

This, more often than not, comes down to:

  • not making a lot of money
  • a depressing job

This usually results from not taking risks and working their a$$ off much earlier in life.

While every person's risk tolerance is different, there's no excuse for slacking between the ages of 20 and 35.

I can sympathize with risk-averse people, though. Not everyone's stomach is built to withstand the risk of running a new business, of risking hundreds of dollars at the click of a button (poker comes to mind), of investing thousands in the stock market.

While everyone's life is full of risky decisions, people often tend to choose the easier path. An easy job, a safe trip, a typical marriage.

Yet, I'm here to tell you there has never been a better time to be alive, thanks to the internet. When could you launch a business in a day from the comfort of your living room based on an idea you heard from someone on the other side of the planet? When could you sell your skills and services to people all over the world?

When could anyone have done that before in humankind's history?

I have seen so many opportunities that people took and are still taking at this moment! Businessmen who built empires in the eighties share the same perspective in their books: how the business world has changed since then.

And there is always time to take risks, even if we become more risk-averse as we get older! I'm starting to sound like a motivational speaker now, but it's true!

I've got a few stories to tell of people who turned the boat around in their fifties! It only takes a few degrees of turning for the life's boat to end up at a whole different destination! Granted, the later you turn, the harder the turn as the boat gets bigger with time. But it turns!

Thus, that's what I'm always telling people who decide to take some risk in their life and ask for advice: Invest in yourself.

Spend a few hundreds to launch a website. Launch a Wi-Fi business (a business that only requires internet access to operate). Get that expensive camera that may make you 100x your capital if you put in the hard work.

Find what you want to create, what you want to sell, what you want to be known for (or not). Make that idea happen, and who knows where that will take you?

What's the worst thing that can happen? Lose money?

No, the worst thing is regret. Regret of never starting, of never taking a risk.

The Low-Risk Investment: US Treasury Bonds

People who have taken risks in their lives are sitting on a pile of cash. Those people had a great opportunity a month ago never to have to take a risk again in their lives. And with the risk of sounding over-dramatic, there's a general consensus that the opportunity may never return.

Don't worry. I won't tire you down with financial terms. You do not need to learn what a bond is and why you should care. I'm sure there are many other websites you can run to to find that out.

The point of my post is to show you what a few people are doing and their way of thinking. Because I believe success lies in the minority. Do what the minority does, and you'll have the life of that. Do what everyone does, and you'll have a life that everyone has.

Here's what happened:

So, these people tied down, say, a million dollars to 20-year treasury bonds at a 5.3% rate. For the next 20 years, the US government guarantees their living expenses (50K per year).

Say hello to Risk-Free Investment

Imagine the government paying you 50K every month. What would you do?

Risk EVERY penny of your current income!

Not the bond's 50K reward! Their previous income! The income that made them that million in the first place!

These people aren't lying on a beach doing nothing. That's how rich people get depressed.

They do have a job; they do have a business that continues making them money. They do have an income, like me and you.

Unlike us, they saved a million dollars in the process (remember the general advice to save at least 20% of your income?). And that million will cover their living expenses guaranteed for the next 20 years.

So, they can invest risk-free their regular income for the next 20 years, knowing their standard of living is guaranteed by the US government.

Can you feel the discrepancy this event creates between people of different income classes? While regular people get to a job living paycheck to paycheck and middle-class people are victims of lifestyle inflation as their income increases, truly wealthy people can take even more risks without risk! The risk that you can't afford to take because you need your income to cover your living expenses!

Now, the next question is where they are going to invest.

Before I continue, let me pause here and remind you that this is not financial advice. I'm not advising any of you on how to invest your hard-earned money. This is not a get-rich-quick scheme. I'm simply stating facts that I've come to know.

Via my letters, I'm passing information. That's all there is. And it's what I'll show people in the future, saying, "I told you so."

How I am gathering this kind of information isn't secret; I explained it when I launched my letter.

How you are going to act or not act based on this information is your decision. It's you who will decide if there's value in my writing.

Back to the story.

According to my sources, who come from those wealthy people themselves, they are going to invest in (drumroll)...

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