Wow, we had a massive response to our article last week on the potential for losing money just by sitting in cash and a big thank you to all of you who took the time to send through your comments.
One of the biggest points raised that many were unaware of, was just how low the interest rates on cash were, and that inflation was so high. By putting the two together, you have a black hole or loss on your hard earned (see article).
I note this morning on news.com.au an article titled “how to invest if you don’t have much money” a couple of extracts from which are below:-
Quote #1 from news.com.au:
The sharemarket traditionally outperforms every other investment class, Kirsty Lamont said. “Right now interest rates are so low that if you’ve got $10,000 sitting in a savings account you’re just wasting that money basically,” Ms Lamont said.
Quote #2 from news.com.au mirroring our article last week:
“If you have a savings account, in order to make up for the money you lose through inflation and tax you need to earn at least 3.5 per cent interest. And only one quarter of Australian savings accounts have ongoing rates above that amount.”
Quote #3 from news.com.au:
Barefoot Investor’s Scott Pape says there is no amount of money too small to invest in shares. “Small amounts of money grow into large amounts of money. That’s the secret to becoming rich,” Mr Pape said.
OK all this is making sense but what now?
It’s always easy to get to a headline, acknowledge it and then not really follow through. Some of your comments from last week were more along the lines – I get it – what do I need to do next, and that is what I want to share with you.
While I enjoy writing these articles, I don’t want to fail you by not getting the information you really need, right in front of you. A number of people have asked for a more hands on communication and training – giving them the nuts and bolts of trading and investing successfully.
One Day Wealth
Basically, I want to spend a full day with you, live, running through the key steps to generating upfront and ongoing cashflow using a variety of our strategies, including our Number One cashflow strategy. Being live, it will be interactive and provide you with the opportunity to get what you need to know, as well as a concrete blue print, to go forward with and much more besides. Click here to see more information on the event and how you can secure your seat.
Meantime, another week rolls by and our clients who are taking advantage of our service will be locking in profits on Leighton Holdings – likely to be around 4.3% for 16 days and with the market set for a post election rally, there will be plenty more of that. Get yours here!