My Bank Doesn’t Charge Me Interest!

Negative interest rates… It’s an entirely new concept even stretching back millennia of monetary history by comparison. Bank rates are and have been so low for the past several years that it’s nearly impossible, with even a good bank balance in your interest bearing checking or savings, to out strip the fees that are now commonly charged to banking clients. If you do have a balance on which 2% can clear twelve to fifteen dollars in account fees ($600-1000), the real rate of inflation will certainly chew up whatever gain is left.

Yes, I’m hinting that the government estimations on current rates of inflation are complete bunk, along with just about every other statistic government publishes that reflects on the quality of the job that they do on our behalf with our tax dollars. I love my country, and its people, but for the amount of money we pay in taxes, I believe we should be getting much, much more for our money! Otherwise, government should leave the money in the hands of those who could actually put it to better use. I’m certain you could think of a few things to which you could apply more of the money you earn.

ShadowStats Inflation Chart
The red line reflects reported government inflation numbers. The blue line reflects inflation as calculated in 1980.

With real inflation rates calculated the same way that they were back in 1980, current inflation is running nearly 11%[1] . Add a 1.5% or 2% service fee onto that and it isn’t difficult to see why the average working person is losing the swim upstream against the current.

So, ‘what can a poor boy do’ when ‘playin’ in a rock-n-roll band’ isn’t likely to help? First, consider that the problems causing market volatility that showed up in popping market bubbles of 2001 -3 and again in 2008, are the same unaddressed problems continuing today only bigger. Nothing has been ‘fixed’. Rather, like an old house on the market with a new coat of paint, many people are hopeful that a businessman in the White House will stand a better chance of leading us out of the current mess. However, the property he’s now in control over still has plumbing problems, termites in the woodwork, and a crumbling foundation. A new face on the office, a new coat of paint on the rickety old shack, isn’t going to help! I believe the problem will eventually correct itself despite any course of actions anyone or any organization can from this point undertake. The problem just seems too far gone. The market driven correction is likely to be severe and financially unsettling from governments and markets worldwide, right down to work-a-day wage earners.

As with the popping dot-com and housing bubbles of the last decade, if you’re one of the people with their wealth in tact when the dust settles, you could do very well finding opportunities at a discount or ‘on sale’.

The best thing to do is to head for safety, pull your boat into port in this environment, preserving the lion’s share of your current wealth, and protecting a portion of the wealth you will add to it as we progress toward what seems to be inevitable. The question is, where do you find safety if in fact there’s a coming storm? The accounts that I can offer through guaranteed insurance contracts provide protection against a market crash while yielding a potential double-digit return as well as some very client friendly terms. In addition, you can set up accounts with named beneficiaries where assets at leverage can pass your wealth with a multiplication factor to your heirs, both tax-free, and completely side-stepping probate proceedings.

The consultation and the education are free. Contact me and we’ll find a time to discuss your qualifications.

[1] http://www.shadowstats.com/alternate_data/inflation-charts

Would you like to know more?

Negative interest and falling purchasing power as inflation rises are real issues.  If you’d like to learn how to protect yourself from the influences of market stability and inflation, contact me and we’ll discuss how I can help.

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