Investment Strategies to keep pace with inflation
If you need $1000 per month for expenses and you have $1,000,000 in deposit accounts (for example a guaranteed investment certificate, term deposit or savings account) earning 1.2% you are set, right? Well, if inflation is 2% the expenses will increase from $12,000 to $14,628 in 10 years and to $17,831 in 20 years. Your investment falls short of the income you need so you end up spending your original capital to make up the shortfall. What you need is a return that will allow you to draw an income that keeps up with the cost of living. Let’s simplify further with an example of the poor current deposit account returns:
In 1991 $150,000 invested in one year GIC’s earned enough to purchase a new Ford.
In 2011 $150,000 invested in 1 year GIC’s earned enough to purchase the same 1991 Ford.
Despite record low interest rates, you still need an income from your investments. If your investment return is coming from a guaranteed deposit account currently, you may not even be keeping up with inflation.
What if there were a way to get a better return, a reasonable return, and still remain low risk? Unfortunately many people that need income for retirement or even just an investment return that is reasonable are not getting this direction. I will provide you with access to unique methods to reduce risk, while allowing you the returns you deservewith the objective of maximizing your returns.
I want to assure you there are investment strategies that can outpace inflation and provide you with reasonable retirement income. I thank you for visiting my web site and would like to offer you a value added service for your time. I will make myself available to act as a sounding board. Please understand, you do not need to become a client to take advantage of this service. The reason I do this is because I became a financial advisor to help people make informed choices with their financial future. It’s very gratifying.
One of two things typically occurs when going through this process; either I validate for you that your current approach is fundamentally solid, or I reveal a few minor flaws that you might want to consider adjusting. As you know, minor adjustments can often lead to major improvements down the road. Either way, I will make myself available and ensure that this is a great investment of your time.