How To Earn A “Hall Of Fame” Interest Rate On Your Money

Have you heard of Peter Lynch? He’s the “hall of fame” investor who averaged about 29% annual gains while he led the Fidelity Magellan fund.

How would you like to earn 29% on your money, year after year?

Sound like a pretty attractive rate, doesn’t it? You’d be able to double your initial investment in about 3 years if you could maintain this kind of performance.

Well, I’m here to share a big secret with you and tell you how you can do it.

Are you ready for this?

Start your own credit card company – that’s the secret.

Okay, maybe it’s not something that just anyone can do. I’m being silly in order to make a point.

A lot of consumer credit charge almost that much interest every year. Most department store credit cards are up around 27% or 28% interest.

So if you’re paying the minimum payment on those cards, the stores are doubling their money roughly every 3 years.

And that means it’s costing you twice as much for any purchases that you finance for more than that.

If you pay $500 today for a new mattress and make the minimum payments for 3 years, it’s going to cost you closer to $1000 for that same mattress. Would you have bought it at that price?

If you think about the fact that the credit card companies are making hall of fame returns on their “investments” – that’s the money they’re lending you at crazy interest rates – it suddenly seems a lot less important to buy that new gadget today, like they try to convince you to.

Think about that next time you’re tempted to put something on that credit card. Do you really want to help the credit card companies put all that money in their pocket?