In our online communication, I often suggest asking a question about personal finance that worries you and guarantee that you will receive an answer.
This article answers the questions of those who use every opportunity to understand financial issues and improve their financial well-being.
A must-read for those who want to achieve success not only in finance, but also in other areas of their lives. After all, not a single sphere of life changes the rest as much as the financial one!
Do not keep all your assets in dollars.
If you only believe in real estate and do not recognize other investment instruments, do not buy only the dollar, because it will always depreciate.
Let me give you an example.
The other day I met with a client who bought a luxury apartment until 2014. At that time, in dollar terms, she gave 1,000,000 for it.
Now she has decided to sell this apartment.
How much do you think it costs now?
In dollars, an apartment costs 500 thousand dollars . That is, the person lost half a million dollars in the apartment .
And if this apartment was for rent. How much income would you receive as a result?
Therefore, if someone has an apartment, calculate how much you have lost. Consider that you not only receive rent, but also pay taxes on it, keep it in working order.
I assure you, if you just kept this money in dollars, you would be in a bigger plus than renting this apartment.
However, simply keeping money in dollars is also not effective, because they depreciate at the inflation rate . But that would definitely be better.
And it doesn’t matter how much you have – 30 million, one million, 500 thousand. You don’t have to keep all your money. All the more so if you want to save up for retirement. It’s definitely at least a dollar. Because it is in dollars that there is a huge selection of instruments.
There are much less of them in euros. There are even fewer of them in pounds. This does not mean that these tools do not exist. Just more instruments in dollars. And for this very reason, I often recommend the dollar. Even if the person lives in Europe.
But if a person is convinced that he needs to invest in euros, then he can also invest in euros. Some brokers and some financial institutions also open euro accounts.
Don’t put all your eggs in one basket .
Once upon a time, clients came to me who invested 10 million dollars in shares of oil and gas companies.
What do you think is happening with their portfolio now?
They lost half of their capital . Just out of stupidity. The manager simply said that these companies will grow. And he put in his portfolio only companies in the oil and gas sector.
In other words, they made a long-term investment and no one followed this portfolio for 10 years. They themselves did not follow, the broker’s manager did not need this either, he was not paid for support. And as a result, after 10 years they got a negative result, lost half of the accumulated capital.