February 21, 2022
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3:13Now PlayingThree places to put your money so it doesn't lose value sitting in the bank. Check out the video to learn what to look for!
Welcome back to Bold TV with Philip Michael. Be sure to like, comment, and subscribe to Bold TV for other crypto news, and all things Bold.
Now you are probably aware and have heard that inflation is at a record rate like you can’t go to Mcdonald's to get your $1 coffee. But how do you actually grow your money in spite of that? So it doesn't lose value sitting in the bank.
Stock prices rise in lockstep with the price of everything else. Everything is connected, and everything rises. It's comparable to how rent increases in an inflationary economy. So, if you put it there, your money will increase in lockstep with the economy. So the notion is that because it's linked to inflation, you won't lose money because it'll compound over time. For the past 100 years, these funds have averaged a 10% annual growth rate. So that's one method to keep it where it's regarded as a cash equivalent, and you can always cash it out if you need it, but it'll keep growing if you don't.
Number two.
Simply invest in real estate investment trusts, or REITs. This means you own a piece of property or a stake in a firm with a large property portfolio. Let's imagine you own a multi-family REIT, and your rents are increasing. As a result, your net operating income is increasing, and your equity is increasing as well. Another benefit is that there is a rule that requires companies to give out 90% of their profits in dividends.
Now the third and final one is innovative and it's new but it's also kind of risky because we're still in the early innings of this particular game: stablecoins.
Stablecoins are cryptocurrencies that are backed by the US dollar, which means they don't have the same volatility as Bitcoin, which is why they're called stablecoins. There are several providers and venues where you may put your money into stable currencies and get rewarded for not withdrawing it. As a result, they provide you with a reasonably high yield. You can get anywhere from 7 to 10%, which is comparable to equity vs saving it in your bank account. From that aspect, it's connected to tax calculation in a similar way, so you just throw it in there.
Do you have any tips or strategies of your own? Let us know in the comments.
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