Zizzi Investments, LLC’s Post

Investing in TIPS is a relatively low-risk way to protect your savings from inflation. Learn more about the investment and what you need to know before investing with these helpful tips.

Investing in TIPS is a relatively low-risk way to protect your savings from inflation. Learn more about the investment and what you need to know before investing with these helpful tips.

Before delving into strategies for navigating the complexities of inflation and interest rates, let's discuss some of the basics and how they relate to your investment plan. #inflationplanning https://lnkd.in/edvQKCwH

𝐋𝐞𝐬𝐬𝐨𝐧𝐬 𝐟𝐫𝐨𝐦 2023 - 𝐖𝐡𝐲 𝐢𝐬 𝐢𝐭 𝐬𝐨 𝐢𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐭𝐨 𝐢𝐧𝐯𝐞𝐬𝐭 𝐨𝐮𝐫 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐬𝐚𝐯𝐢𝐧𝐠𝐬? Let's break it down: 1️⃣ If you kept your money in your current account last year, you earned 0%. 😞 $100,000 on 1st January 2023 is worth $100,000 today. 2️⃣ If you kept your money in a high-interest savings account last year, you earned 4%-5%. 😑 $100,000 on 1st January 2023 is worth $104,000 - $105,000 today. 3️⃣ If you had invested your money in an evidence-based globally diversified portfolio of equities, you earned 22% last year. 😁 $100,000 on 1st January 2023 is worth over $120,000 today. 💡 And here's the silent killer, the invisible water line - inflation was 10.47% last year. 📉 So today, you need over $110,000 to buy the same amount of "stuff" that cost you $100,000 on 1st January 2023. 📈 So whose lifestyle and standard of living is improving? And who is going backward? ✅ 𝐓𝐇𝐈𝐒 is why we invest. #investing #financialplanning #bigpicture

Investing Essentials: Safety: Govt. bonds Income: Bonds, stocks Growth: Stocks 💡 Consider: Tax Minimization Liquidity 🚀 Adapt for success! #InvestSmart

Is Savings Irrelevant During Inflation? I started saving for something at the beginning of this year. However, when I wanted to purchase it, I saw that the price had doubled the entire amount I saved for. Really, Inflation can be a huge hindrance to savings. However, I believe that savings has a role which inflation won’t kick out completely. Yea, the value of money reduces during inflation, but savings will still play its role in situations like - Emergencies. - Good financial habit or culture. - Retirement, etc. During inflation, I believe that we can and should save. Here are two ways that can help: * Interest rates: Look for savings accounts with interest rates that outpace inflation. This way, even though prices rise, your money grows at a faster rate. * Investments: Consider investing in assets that tend to perform well during inflation, like stocks or real estate (though these come with their own risks). #finance #financeanalyst #financialadvisor #financialadvisor #savinghabits #saving #investment #fintech

📉 If you were to put all your money into a savings account, you’d find that its longer-term value would be eroded by inflation. This means that as each year passes, your money buys less. 📈 By contrast, investing in its simplest form is when you buy something that you hope will increase in value over the years. For some people, investing is about growing their money for the future, for others it’s about generating an income they can access now. ❓There’s a vast array of choice when it comes to investing. So, deciding at the outset what you want your investments to achieve and over what timescale, is important because it will help in determining where to put your money. Whether you’re new to investment, or consider yourself a seasoned stock market investor, want to put away regular amounts or have a lump sum to invest, we can recommend an appropriate strategy for you. We’ll explain the important features of different types of investments like stocks and shares ISAs, unit trusts, open-ended investment companies and bonds, and the part they can play in a successful investment strategy. Taking the decision to invest money can seem like a major step, but with our help and advice, building up a portfolio of good-quality investments is an achievable ambition. 📞 01745 585474 🖥️ www.ascentfp.co.uk ⌨️ info@ascentfp.co.uk #investing #beatinflation #financialplanning

A balanced portfolio of investments could be key to keeping ahead of inflation. Read how. #sovereign #investments #portfolio https://lnkd.in/er-AuVWD

Generally, the objective of investing is to ensure your money - over the long term - grows more than inflation over the same period of time. Here's a great treatment for explaining why GICs are to be avoided. Let's talk, and I'll listen. https://lnkd.in/gPuhuxuD

𝗧𝗵𝗲 𝗛𝗶𝗱𝗱𝗲𝗻 𝗥𝗶𝘀𝗸𝘀 𝗼𝗳 𝗛𝗼𝗹𝗱𝗶𝗻𝗴 𝗖𝗮𝘀𝗵 𝘃𝘀 𝗘𝗾𝘂𝗶𝘁𝗶𝗲𝘀 💵 In the world of finance, we often hear about the risks associated with investing in equities, and rightly so. But what if I told you that sometimes, holding cash can be riskier than equity investments? Let's dive into this intriguing notion. Inflation Risk 💸📉 Cash is not immune to the eroding effects of inflation. If your savings don't outpace inflation, you're effectively losing purchasing power over time. Opportunity Cost💡🚀 By keeping your wealth in cash, you may miss out on lucrative investment opportunities. Historically, equities have offered higher returns compared to cash equivalents. Currency Depreciation 🌍💱 In a globalized world, currency values fluctuate. If your cash is in a currency that depreciates significantly, your real wealth can decline rapidly. Lack of Diversification 🔄🌐 Cash holdings lack the diversification benefits that a well-balanced equity portfolio can offer. Diversification helps spread risk and can reduce portfolio volatility. Long-Term Goals 🌅🎯 Cash may not generate the returns needed to achieve long-term financial goals like retirement planning. Equities have historically shown the potential for wealth accumulation over longer investment horizons. In today's financial landscape, finding the right balance between liquidity needs and long-term wealth growth is essential. It's about optimizing your financial strategy to achieve your goals. It's not about avoiding cash altogether but understanding its limitations as an asset class. Don't let your money sit idle, let it work for you. 💼💰 Connect with me : Lee Song Yong ChFC® CFP™ B.Bus (First Class Hons) Here to help YOU steward your finances   - Disclaimer https://lnkd.in/gb99cCEk #stewardship #finances #retirement #Investing #CashManagement