So you want to increase investment returns and it’s too late to buy Bitcoin and Tesla back in 2012. Lacking a time machine and clear clairvoyance, what’s an investor to do?
There are ways to boost your investment returns that don’t require a working crystal ball or a DeLorean hitting 88 mph. They do require some understanding of the factors that influence your return on investment.
Real estate advocates often brag about their high returns; however, part of their high return often comes from the fact that they’ve created value through hard work. Nothing wrong with that—it’s a great way to boost returns.
There is no doubt there is additional risk when you start levering up your investments. The classic levered investment is real estate, but there are other ways to lever your investments.
Stocks have higher expected returns than bonds over the long run, primarily because the risk is higher. So the more of your money that you put into stocks the higher your expected returns, long-term.