SERIOUSLY PEOPLE! It’s Just Math
When it comes to saving money, banks have conditioned us to believe that an account that accrues interest over time is a solid method for growing wealth. These “savings” accounts can earn you money by simply leaving your funds untouched on their watch. But are these banks to be trusted with your hard-earned money? These are the same banks that required a bailout in 2008, so why should you trust them to appropriately manage your funds?
After digging into the numbers, I’ve found some troubling information. Not only are savings accounts a terrible method for increasing wealth, but they also offer some of the worst returns in all of investing. With many banks offering a paltry .01% APY (Annual Percentage Yield), it could take decades and millions of dollars to earn a significant return on your investment.
Let’s say that you would like to retire at the age of 65 and earn $60,000 a year in passive income that doesn’t cut into your nest egg. In order to earn that much money in a savings account, it would take an investment of hundreds of millions of dollars. Fortunately, an investment in one industry can provide a return of 15% on your investment and allow you to live comfortably without working.
Banks vs. Real Estate
Looking at the top 17 banks in the country, investors can expect to receive an average APY of .03% from savings accounts. This means that in order to make $60,000 a year in one of these accounts, it would take an investment of $200,000,000. That’s a pretty large investment to be earning such a miniscule return.
Compare that with an investment in the real estate industry. I can offer investors a return of up to 15% APY, which is 500 times the amount offered in an average savings account. In order to make $60,000 a year in returns in real estate, it only takes an investment of $400,000. Much easier to attain, right?
In addition to much higher returns, real estate offers the most secure investment that you can make. Real estate offers something substantial, a piece of physical property that you own. Unlike stocks or currency, the real estate industry provides a concrete structure to grow your wealth with steady, reliable returns.
If you must, be the smartest idiot
If you can’t see the difference between earning .03% APY vs. 15% APY, I’m not sure what to tell you. But if you insist on putting your money into a savings account, at least choose one that can earn you upwards of 1.00% APY. Of the 17 banks researched, only 3 offered returns of at least 1.00% APY, with the highest providing 2.15% APY. By selecting this bank, you can earn more than 71 times what you’d earn in an average saving account offering .03% APY. If you’re going to be an idiot and invest your money in a bank instead of in real estate, at least be the smartest idiot of the bunch and choose a bank with a high APY.
I’m happy to teach you about the power of investing in real estate and how you can grow your wealth in a $217 trillion industry. To learn more about investing in the real estate industry, give me a call today for a free consultation.
Source articles:
This information is not a suggestion or recommendation for any financial services and is not meant to sell products or assistance.
If you are considering an investment, seek professional help. Investing in any industry can be dangerous and this correspondence is not to be held responsible for any loss of money, property or principal invested.