Don’t follow those strategies. Warren Buffett advises that ‘broad diversification is used by people to protect themselves against their own ignorance.’ If you know what you are doing (high financial intelligence), you should concentrate your portfolio into equities (stocks & mutual funds) as they achieve the highest return. And you can achieve low risk not by simply spreading your money around, but by your competence of knowing which funds and stocks to pick.

So, the strategy I am going to share with you would be deemed highly risky by the general financial advisers and bankers. Again, it’s because most investors lack the competence to do otherwise. However, with the strategies and knowledge you are gaining in this book, you will prove to yourself that it is actually low risk, high return strategy.

You should take your monthly savings of 15-20% and allocate it to four money baskets. These are the security basket, growth basket, high growth basket and the luxury basket. Let me explain each of these.
1. Security Basket (Target Return of 1.5%-4.5%pa)
This is for your own security. If you suddenly lose your job, experience a salary cut or suffer a setback in your business, you know that you will have access to these funds anytime to see you through.
It should include cash, fixed deposits/certificates of deposits, personal housing, insurance & capital guaranteed funds.

2. Growth Basket 1 (Target Return of 8.51%-20%pa)
This is the basket where you build your net worth & positive cash flow assets that will lead you to financial freedom.

3. Growth Basket 2 (15%-25%)
This is the basket where you ACCELERATE the building of your net worth & positive cash flow assets that will lead you to financial freedom. Once again, you should not have to touch this money for five to ten years to let the power of compounding work its magic.

4. Luxury Basket (0%)
This basket is for you to enjoy such as dream house, luxury cars, jewelry, and other luxuries.

While on the surface an investment loan and a mortgage seem the same, in reality they are two completely different types of funding.

It is important that when you are considering any new loan that you first research all of the possibilities available. It is also highly recommended that you ensure that your credit and financial situation is at the level that your financial institution will require to get the best rates possible. All of this research and previous planning will ensure that you will be able to obtain the best rate, which has the potential to save thousands of dollars over the course of your loan. All of this planning should be done before you even approach your financial institution to avoid any surprises during the actual loan process.

Once you have decided that you meet all of the requirements of your financial institution and you have found the investment loan that will meet your specific situation, then it is time to seek pre-approval from your institution. In this case an investment loan and a mortgage are very similar. You should always secure pre-approval for any investment loan or mortgage that you are seeking before you begin the process of searching for the right property. This will give you an edge over other potential buyers and will give you a concrete amount that you will need to work with during the shopping phase of this process.

It is important to remember that in this case an investment loan will work much like a mortgage in many ways; however there are certain programs and benefits that will not be available. While on the surface both an investment loan and a mortgage will act in the same manner, you may see the difference when it is time to refinance, or in the fees that are charged at the close of the loan. It is important to anticipate these differences to avoid any unnecessary stress during this time.

When it comes to investing in property an investment loan is usually the only option open to you. Many both in and outside of the financial industry will use the terms mortgage and investment loan interchangeably when the conversation turns to investment property. The important thing to remember is that these are two very different loans. Most financial advisers will tell you that investing investments will always be real estate, so it may be time to try your hand at the housing market. in real estate is always a wise choice, even in a slow housing market. One of the most secure types of