Hey ladies & gents,
So I've been looking into ways to start investing... Everyone says, "Invest in 401K and ROTH IRA, max it out, etc etc."
While all of those things sound really good, I'm actually self-employed and have none of that... and also, ROTH IRA and most of these things have such small caps that you can't really create any substantial wealth.
Long story short, I came across Fundrise (I assume you're all familiar with it.. it's like eREITS)
I looked at their historical performance, which was as follows...
2014 = 12.25% Annualized Return
2015 = 12.42% Annualized Return
2016 = 8.76% Annualized Return
2017 = 11.44% Annualized Return
2018 = 9.11% Annualized Return
So I just did some quick math... and if I invested $20,000/year with them for 5 years starting at the beginning of 2014, it would've went something like this...
2014 | $20,000 total deposited | $2,450 Return | $22,450 Investment Worth
2015 | $40,000 total deposited | $5,272 Return | $47,722 Investment Worth
2016 | $60,000 total deposited | $5,932 Return | $73,654 Investment Worth
2017 | $80,000 total deposited | $10,714 Return | $104,368 Investment Worth
2018 | $100,000 total deposited | $11,329 Return | $135,697 Investment Worth
So basically, you're telling me that by putting in 20K/year for 5 years, and reinvesting earnings, a total investment of $100,000 would be worth $135,697... that's $35,697 profit of PASSIVE investing.
Now please explain to me, why are people not doing this? What is the down side that I am not seeing? Is this money somehow being taxed when I withdraw it and that number becomes substantially smaller?
I'm just trying to understand this... because I've found real estate deals where with the same investment I'd make $20K profit + initial investment back over 5 years, and there would be ZERO diversification like here.
Please let me know thanks. Just realized this post sounds like I'm promoting their stuff. I am not affiliated with Fundrise at all. Just curious to hear some opinions before I throw $20K/year into it. Heck, I'd throw $40K/year if it would double the return.
Submitted July 01, 2019 at 08:05PM by olivercarpenter97 https://ift.tt/2J2pEC3
