Dear FutureMoneyTrends.com Member,
Saving money is a discipline and a chosen lifestyle. Automatically saving is a virtue I completely subscribe to. My wife is actually a vicious saver. In 2012, she and I socked away 90% of our income. If it could have been done, she would have gladly done more!
When you can save autonomically, I suggest you do it; otherwise, have a number in your head — somewhere between 10 and 30% — and as soon as income comes in, redirect it to your savings plan. For this Weekly Wealth Digest, I want to be clear that we are only discussing long-term savings. Short-term savings and emergency accounts are best left in cash. No yield, but for your near-term expenses and emergency pad, you want it 100% liquid.
Where We Suggest You Save
- Physical Precious Metals
- Specialized Whole Life Insurance
- Safe Dividend Paying Stocks
- Single Family Houses
- Corporate Bonds
Currently, I am saving money in 1 through 4. With yields on the lower side for corporate bonds, I don’t own any. However, I do want to point these out as a safe way to save money, lending money to companies like Johnson & Johnson, Apple and Microsoft. Despite the day-to-day fluctuations of a bond, it is important to remember that if you hold a bond to term, you will have received all of your principal back, plus your annual yield. These returns are contractually guaranteed and you are a legal creditor for these businesses.
With low interest rates, though, I can’t commit cash for 10 years in order to receive a 2 to 3% annual return. After taxes and inflation, this strategy would end up being a wealth stealer.
Let’s Cover the 4 Strategies We Are Using
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1. Physical Precious Metals:
Here is the one investment that you can truly keep a secret and you never have to worry about it becoming worthless. You can make delivery purchases or contact a storage company like SilverSaver, where you can store your precious metals and have them delivered to you any time you want. Or sell them easily when you need to.[su_spacer size=”10″]This savings strategy is very conservative and pays zero interest, so you don’t want to put all your eggs in this basket, however we believe precious metals should be at the core of our savings.[su_spacer size=”10″]
2. Specialized Whole Life Insurance:
Less than 1,000 agents in the country know how to set these up correctly, because this isn’t about the life insurance; this is about an accelerated plan to build up your cash value. Money that you have access to anytime you want, is contractually guaranteed, and continues to grow – even when you take out a policy loan.[su_spacer size=”10″]Do not try and set one of these up with a normal agent. These agents have to be certified in a very specific strategy. In fact, only a handful of insurance companies even qualify to help you since you only want to do business with private mutual insurance companies. To set one of those accounts up, I suggest you sign up for our free True Hedge report when you subscribe to our Premium Membership.[su_spacer size=”10″]
3. Safe Dividend Paying Stock:
Businesses that have a consistency of raising and paying out a dividend deserve your attention. Remember, volatility doesn’t equal risk, especially for the long-term saver. One of my favorite businesses to save in is York Water (YORW), a business that has paid out a dividend every year since 1816! Even during the civil war, when this small water utility company was occupied by the South, management still made sure a dividend check got to shareholders.[su_spacer size=”10″]Today, YORW is priced too high, but finding safe, boring, stable businesses that reward shareholders with a dividend check is a great way to save and compound your wealth.[su_spacer size=”10″]
4. Single Family Houses:
Buying a rental property with a P/E of 7 or less is a sure way to safely store some money for 10 years or more. Single family homes tend to appreciate in value and deliver better tenants, which means a more consistent cash flow. And they aren’t easy to sell, which makes them a great way to force yourself to continue to save.[su_spacer size=”10″]You want it to hurt when you dip into your long-term savings, and the entire process of selling a house is just enough to help you leave your savings alone.
A Commitment to Save
Saving is an act of protection, preventing you from future financial pain. It also helps you build more wealth, giving you both the peace of mind and opportunity money for great investments that will present themselves in your lifetime.
If you already save, save more. And if you have any influence on someone younger than yourself, encourage them to save, too. Right now, our 18 to 35-year-olds in this country have a negative 2% savings rate, meaning they save nothing and spend more than they make.
Committed savers, after a few years, become an unstoppable force. From my own personal experience, saving becomes fun after a while, especially when you start to see the fruits of your labor from previous years.
Editor’s Note: Get extra income ideas and investment ideas that are completely outside of the banking sector in our premium membership letter. You can also find our Forever Stock portfolio. These are the best businesses in the world; ones that can help you create a dividend cash flow machine!
Weekly Wealth Digest Video Episode 48
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