And what to do savings except shares?

25 сентября, 2021 от fake Выкл

«With all the wealth of choice, there is no other alternative»

(c) Old advertising slogan

It was good to people in the old days. Got from grandfather the chest with gold coins. If it is not unrigible, the number of coins has increased. And left the grandchildren in the chest of the same piastra, but already a hundred pieces more.

In a difficult time, a family of coin chest takes. In good — puts. Instead of inflation (which many now almost for the law of nature are issued) — you will not believe — deflation even happened at long periods. Gold was not so much mined, the economy developed actively. Well, there were inflation points then. Here, say, Spain has flooded one time by Europe with American gold, so that prices have grown sharply. But for this, it was necessary to immediately open America and the Aztecs with the Incas — in general, everyone is clear that there was such a misfortune every year.

And now what?

Chaos. Breakdown and tents.

What is now an honest person to make savings with a horizon in decades?

Cash rules

And alternatives what?

Ruble deposit

The Central Bank seems to and raises the key bid, and behind it and commercial banks seems to be stretched — the bets on deposits will grame it. Yes where to keep up for inflation.

What do we leave on the list?

So for long-term savings, it seems, the dollar is also not particularly suitable. Moreover, the rates on currency deposits are generally strive for zero (well, actually — and Thank you — in some countries, people have already begun to get acquainted with negative rates).

Well, by overwhelming completely unfit options, go to those that somehow can be considered suitable. Let’s dwell on them in more detail and squeeze / squeeze.

Gold

Well, «We say Lenin — mean -» Party «. We say «gold» — imply any precious metals.

Is it possible to save savings on the old man in our difficult time in gold?

Let’s just say — not the most, probably, the worst option on the interval is ten years old. However, it is necessary to understand a number of important aspects for the investor:

Gold is now the object of strong manipulations from powerful market players and therefore in short and middle intervals (up to several years) may be a very volatile tool for investments.

Anyway, gold is already at least some kind of attachment, which, at least at first glance, is not a deliberate loss from the point of view of investments for many years. It is possible to save your earned money.

Actually, gold is just about «save». My favorite financial guru said that «Gold is the only real money.» Many wise financiers — from J.P. Morgana to Alan Greenspina (of course, not during his stay as a header of the Fed) spoke to similar things.

Let’s in this context and

I am afraid that the Bitcoin will be forced to refuse the right to be called «digital gold» or a good idea for attachments with the horizon of decades, only for one reason — its status is not yet clear. It (one or together with other cryptocurrencies) may well be an excellent way for savings — with limitations of production and understandable liquidity. But for this, a clear legal regulation should appear, which is not yet available (for which investors do even in the USA) and go some time.

In the meantime, I am more ready to recognize cryptocurrency as a promising speculative tool than a safe and reliable way to make long-term savings with a serious horizon.

Real estate

If seriously — as a way to preserve savings, real estate has a number of shortcomings, which are already dismantled in detail without me, simply list in brief:

High input threshold. Obviously, «to save» immediately notorious «odds» or especially «shops» is only Colonel Zakharchenko can. And «paper» real estate (real estate zpiph) is poorly developed.

Prices. So that you «saved» in the form of real estate, and did not lose money on it — I would like to buy it not too expensive — we still have not too adequate pricing on the market of concreteometers.

Liquidity. Here, too, everything is quite obvious — the object of real estate is to sell long and difficult.

Changing world. That I would have added from myself. The usual investment issues in real estate are their meditation about what will be the real estate market in 10-20 years. Many aspects of «new reality — remant, e-commerce, food delivery, etc. Change the demand for real estate. And those objects that were previously considered perfect begin to lose attractiveness. But the trends of the «new reality» only raise their heads.

In general, real estate looks quite a decent way to save money on the long term, if this method is available for you. In addition to the ownership of the object (which will be expected, as we assume, on the interval of 10-20 years), there will be a rental flow, which will improve financial performance and smooth potential problems with liquidity at this long time interval, or will allow the investor to live at the expense generated cash flow, without reducing fixed capital.

Stock

For starters actually — why stocks? Why not talk about securities in general, in aggregate, about promotions and bonds? Yes, because the bonds are a tool with fixed profitability and on a long period of bonds of solid issuers lose inflation, and the bonds of insolidated issuers acquire for a long period — not the best idea.

What attracts long-term investors in stocks? Several aspects:

Low starting threshold. Now you can start investing literally from the most modest amounts. Less one thousand rubles.

Practical convenience. Brokerage account can be opened without getting off the sofa.

Liquidity. (Certainly, this applies not to all shares, but no one pulls the investor in the third echelon forn)))

Historical yield. Non-breaking (less than three decades) The history of the Russian stock market shows that it was significantly more income than the Russian residential real estate market (which also grew high rates). This causes many real estate apologists shock and desire to argue hotly — but this statement is not difficult to check — all data in free access. A more than a long history of the American stock market shows the yield of about 7% and dollars, which should be honestly regarded as a very high result. At the same time, it can be seen on the charts that it is on a long period — in decades — stocks become a fairly safe tool when the laws of the economy begin to play an investor side.

Diversification. Even invested independently in separate shares, you can create a very diversified portfolio for a couple of tens of thousand rubles. And invested in the funds you can buy an index foundation many times cheaper.

Separately, I would emphasize the possibility of creating a dividend cash flow, which allows (as in the case of real estate and its rental flow) to smooth out the possible problems of the investor with liquidity on some life stages, or will allow the investor to live due to the generated cash flow, reducing fixed capital.

All these advantages led to the fact that the shares became a favorite tool for long-term investments from the overwhelming majority of the «Golden Billion».

This, by the way, largely determines the phenomenon of sustainable growth in the stock market. Just earlier — a hundred years ago — the stock market was one way to make money. And now, with the abolition of the Golden Standard and hanging over the world of an avalanche of inflation — the shares of steel for many simply way to keep money in the long term. As Lewis Carol wrote, «sometimes you need to run from all your feet to just stay in place.» So people now have to invest not to earn, but even to preserve earned.

Summing up can be said that although it is personally to the author that the shares are most promising among long-term investment tools, but any kind of long-term investments — gold, real estate shares are a great way to make you and your family richer in a long interval.

The most terrible error in investing is not to invest. And if you started to invest — whatever way you choose — gold, stocks or real estate (or all at once) — Let’s hope that it will lead you to an excellent result and sooner or later you will become