For generations, productive Americans have taught their children to save a portion of what they earn, put it in a savings account, and let compound interest grow its value over time. It was great advice for its time, but its time is past. Interest payments on bank savings are so small they can’t even overcome inflation and fees – which means that saved funds will shrink over time rather than grow. When you couple that fact with major bank failures in recent years, the inadequacy of the FDIC to adequately insure more than pennies on the dollar of all deposits at risk today, and the groundwork that has been laid for “bail-ins” (using depositors’ money to meet banks’ need for emergency funds), savings accounts can no longer be considered safe.
It’s no wonder savers feel like they can’t win. Both living and investing in America today is like going up the down escalator. Rest for a moment, and you might not be able to gain back the position you’ve lost. Stocks are in the riskiest territory they’ve ever been in (including 1929, 1987, 2001, and 2008), and with yield in the cellar and the world moving away from the dollar, bonds are also at extreme risk.
What’s a saver to do?
Well, what if there was a way to save without risk of loss caused by government or financial emergency, but which also offered the opportunity for gain?