How To Avoid Losing Money On The Weak Us Dollar
The U.S. economy is on the rise with businesses merging for billions of dollars and the stock market growing stronger. But how much will our money be worth ten years down the line? While the economy gets better each day, our nation’s debt still inches closer and closer to nine trillion dollars (not including the interest on that debt), and the dollar continues to decrease in value. Over the last 50 years it has dropped 95% to 97% of its purchasing power. In comparison with the euro, the dollar lost 9% in this year alone and 35% in the last five years.
I was talking to a friend of mine last week who has been living in Europe for the last year or so and still holds American bank accounts. He said that every time he transferred money from his American account to his European one, aside from fees, the number of dollars in euros kept falling. Last august $1,260 was worth about 1000€ before fees. Now it is worth only 920€. That is an 80€ difference or $110 in today’s dollars not including the cost of transfer and money exchange fees.
Even if the dollar does rise in value, yearly inflation of 2%-3% will keep the money in your savings account shrinking in purchasing power. So if you were planning on saving your money or at least keeping it at the same value throughout the years, you might want to look into other substantial methods.
By getting involved in real estate investments, your money should increase at a rate higher than inflation. The 30-year national average for property appreciation has been a steady 6.1%. That is more than double the rate of inflation. Think of it as if your investment property was like a bank. If you need cash to pay bills, improve your property or make additional investments, you can borrow against your appreciating property. Furthermore you do not have to worry about debt because your property consistently increases in value, giving you more money by the time you sell. It is that simple.
To learn more about how Real Estate Investments can help secure your family’s financial future, go to Dr. Alan Rosenthal’s website at http://www.FinancialHealthRealEstate.com where you can find more great investment information. And while you’re there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting http://www.FinancialHealthRealEstate.com/UpComingEvents.html For additional information listen to one of Dr. Alan Rosenthal’s investment talks at http://www.FinancialHealthRealEstate.com/InvestmentTalks.html
Tags: financial health, Investing, Real Estate, weak u.s. dollar
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