I recently saw a billboard advertising a "High Interest" savings account, giving out a whopping 0.75% per year. I understand the need for savings, but calling this a high interest account is insulting... Then I read this online article recommending people invest their stimulus checks in a high yield saving account.

If you can earn around 0.55% APY in a high-yield account, your $1,200 stimulus check could net you about $6.60 in interest by year's end. While, theoretically, you could earn a larger return from the stock market, savings accounts are far less risky. That's because savings accounts are insured by the FDIC and you can't really lose the money.

So what about stocks? For the period 1950 to 2009, if you adjust the S&P 500 for inflation and account for dividends, the average annual return comes out to exactly 7.0%. Here is a table of long term returns for some common investments made by middle-class investors.

Savings Account	0.10%-0.55%
Money Market	1.40%-2.20%
Corporate Bonds	3.51%-4.25%
US Government Bonds	5.00%-6.00%
S&P	6.00%-8.00%
REITs	6.00%-9.00%
Nasdaq	7.00%-9.00%

What kind of return are you looking for? If you ask the average middle class person that question, most people don't really have an answer. If I tell them that they can get well over 30% they are very skeptical. It is good to be skeptical about high performing investments. In many cases, if it seems to good to be true, it is... but not always. For those who remain skeptical, it is hard to explain that it is quite possible to return more than 50% or even 100%.

On the other hand, if you ask a wealthy person about investing, the response may be very different. The wealthy either want to preserve wealth or take advantage of high powered investments such as hedge funds which can return anywhere from 30-200%. According to Bloomberg:

Singapore-based Vanda is the world's best performing hedge fund this year, Eurekahedge Pte data show, up 278% through August 5th, 2024. The group, named after Singapore's national flower, has delivered an average annualized return of 40% since inception.

Our Dreamfire52 investors are currently up 0% since August 5th, 2024. (see our full verified returns here) Many have a hard time believing this to be possible. Unfortunately, this believe prevents many in the middle class from seeking better investments. So why doesn't the average person invest in hedge funds? That's easy. They can't. To invest in a high performing hedge fund, you need at least $125,000 and have a net worth of around $1,000,000. The rules are setup to protect people from high risk investments. This is a good thing, but the downside is that it also has the effect of excluding the middle class from investing in the best investments. Are there alternative high performing investments? Yes, realestate is probably the most common of these. A person can also learn to trade and do very well, but the learning curve can be brutal and despite what many say, trading is time consuming and not easy.

At Dreamfire52.com our goal is to provide an aggressive investment opportunity for the middle class. We do this through a mechanism called copy trading or mirror trading. This type of investment is not for everyone, but it may be for you? You can get started with as little as $500. I encourage you to read through our documentation and decide for yourself. Start at our home page here. To compare the Dreamfire52 results with other major asset classes, click here.