There’s a tremendous amount of concern out there about the future of the dollar. I know this because you tell me in my conversations with you. And that’s why we talk. I want to know your concerns. And believe me, I know today’s concerns are different than yesterday’s. Welcome to current times.
“Survival Guy, what’s your take on the U.S. dollar?” you ask, and I understand why. I get the same “the world is ending” emails you do. But as far as the dollar is concerned, it’s the nicest house in a bad neighborhood. The world’s a scary place today. You can’t even watch the news. And the hucksters are trying to freak you out. It’s all you can do to keep from curling up and staying in bed all day. I get it.
But here’s the deal. One truism about investing with a long-term plan in place (not to be confused with doing nothing and ignoring the opportunities that arise when others are fearful) is, it’s not easy. If it were, everyone would be rich.
When everyone’s emotions run high, that’s when a plan or a map can help. Because we’re seeing yields we haven’t seen in a generation. And for starters, the Fidelity Treasury Money Market is paying five percent while you do nothing, and if you study the yield curve, you can lock in solid rates for years to come.
But here’s the kicker. Investing is math. It’s not wishful thinking. It’s not hoping for the “market” to go up (even though that’s what most do). That’s dreaming. Math is understanding what interest on interest can do for you. You don’t even need to go to school to witness the miracle of compounding money.
Action Line: Einstein is said to have referred to compounding as the eighth wonder of the world. Run your finger down the table below and understand you can sink your teeth into some juicy rates today. When you’re ready to build a plan based on compounding, let’s talk.
