Understanding the risks in holding cash.
In this solo episode I am talking about the risks in having cash in the bank. With 3 banks going down in the last few months its more important than ever you understand the banking system and risks in holding cash. It’s not the safe option you’re taught to believe it is.
- The History of Money
- Money is printed as debt
- The strength of our currency is a measure of confidence in our government. Our Government is insolvent.
- Inflation erodes the value of cash in the bank.
- If inflation is higher than the interest your getting on your cash, your cash is a liability.
- When you have money in the bank, the bank take your money and invest it. They only have to hold 10% of your money. Banks aren’t the safe option.
- Only £85k of your cash is insured per financial institution.
- No one ever gets rich by leaving money in the bank.
- Balance Risk with return. The banks are now inherently riskier with 3 banks recently going down, but the return hasn’t increased to reflect this.
About Your Host
Alex Robertson is a self-made property investor and businessman. He comes from a financial background, gaining a degree in Accounting and Finance and then going on to qualify as a chartered management accountant. Alex is one of Co-Founders of Real Estate Wealth Development, a group of companies in the property industry, with over 200 buy to let properties, training company, construction company and development business. He is also the co-author of the book Fast Track to Property Millions.
About Real Estate Wealth Development – how we started and grew a 200 property portfolio in 2.5 years.
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