Loralie SA

Savings Vs inflation: who wins?

Is your money melting down…
on your bank account?

>>> Pay attention
to the TRUE interest rate!

Dear business owner

You work hard to make money…

You secure it in your bank account…

and guess what… you lose money!

Scary, isn’t it?

This is due to very low interest rates

Think about inflation. Month after month, it’s eating part of your wealth.

But… You can avoid it!

Among my dearest clients, a couple used to put money into their savings account year after year. One year ago, they sold the real estate of one of their offices in the USA for $ 640,000 USD.

They believed the money was safe in their bank account. But they did not realise that due to inflation, money depreciates. Quickly!

The price of products is ramping up year by year, so you can’t buy the same amount of products with a given amount of money. 

This couple has lost TENS OF THOUSANDS $USD, until they decided to invest as advised by their professional asset manager.

Let’s see what happened for their USD 640,000 $ savings on their bank account given the inflation rate (12 months, ending September 2021 – USInflationCalculator):

  • 0.06% interest rate on savings brings only… $ 384 USD .

  • 5.4% inflation rate means they have “lost” $ 34,560 USD.

So it’s a REAL loss of $ 34,176 USD. For 1 single year.

To generate sufficient income to keep the true “value” of the initial capital invested, the interest rate must be higher than the inflation rate.

Over the years, without good investment advice… this couple would have lost a lot of money. 

This may also happen to you!

Pay attention, especially NOW. Inflation is skyrocketing in many countries since the Covid19 crisis. 

It’s been accelerating due to the giant quantitative easing programs launched by many central banks. They are “printing” helicopter money, so the inner value of money is quickly melting down.

Like ice cream in direct sunlight…

Look at the latest statistics on inflation rate (12 months, ending September 2021): 

 

Click here or on the image below
to get the inflation rate of YOUR country
.

(186 countries listed)

Then check with your bank if they can make a decent proposal. Or ask a renowned professional asset manager (this is not my area of expertise). 

I can see the results of wealth optimization while reviewing the accounting of my customers. Be sure there are plenty of solutions to get enough return on your cash while limiting investment risks.

Magali MALVAREZ
– Corporate Structure Architect –
+41 21 643 10 20