First, let’s look at your investment options…
Well, surprise, surprise - the financial world is a hot mess - a Dumpster Fire if you will!
Let’s say you work hard and sock away all the cash you can. You scrimp. You save. You clip coupons and go without.
Where do you put your money?
Savings accounts are a JOKE.
You give your cash to the bank, and they pay you, what - less than 1% a year!
I just looked it up - the national average for savings accounts is 0.13%... no not 13%... ZERO point one three. If you invest $100,000, you make $130 every year - I don’t think we’re living off that!
Bonds aren’t much better.
The 10 Year government bond pays a whopping 2.9%... but wait, there’s a catch.
With the direction interest rates are going, there’s a real chance you can lose money investing in long term bonds. And once you tack on inflation - your real yield is actually negative!
So, you pay for the privilege of loaning the government money. I bet your broker and fund manager aren't telling you that!