I’m not following you. Further down in your post you write that ‘it can take decades to only pull even with the market return.’ So is this ‘very much possible’ meant as ironic?
No, the expected return is nearly 3% higher. You might just have to wait a lifetime to get there somewhat reliably.
Maybe your children will be able to enjoy it. Though, it is quite possible that they won’t be able to hold on to it.
Edit: If that was a math question of sorts:
Always returning the same or more over two decades (cash vs. stocks) is much better than falling into a pit after 50 years of investing and having to wait another 10 to break even, and another 10 to have significant additional return (2x vs 1x stocks).
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Agree, but also would bet that OP wasnt just planning a 2x leveraged diversified ETF.
For me your strategy makes sense @Pinni , especially if you are using leverage and derivatives. You are already diversifying your “low risk” assets (dividends I guess) by keeping them on your personal side. It makes total sense to put your “high risk” assets in a company. And of course you can attain 9% return on average per year (with the extra risk associated).
And that’s the way to do it if you think you’d be qualified as a professional investor. As for a comment saying that since you have a trading company, you are yourself a professional investor, that’s total nonsense. If your personal assets follow the rules, you are just a private investor.
You own a company, and you are an employee; that’s exactly what’s shielding your from personal risk. Your personal tax treatment is totally independent of your company’s tax treatment.