The 8 Year CD

Would you buy an 8 year CD that paid 8%? That is a long time to tie up your cash and the minimum investment is probably about $40,000. Not such a great deal. You could put that money in the market and do as well (in a pretend place where the market does well). What if I told you that the 8% you were earning was not on your original $40,000, but on $200,000. Would that change you mind? So now you can get a return on money you never had. That my friend is called leverage. Multiply the power of your original investment by five and you come up with a number called cash on cash return. That is how the rich get richer, with other peoples money. Even in this brave new world you can still do it. There is no time like now.