What Is Money

Category: Finance.

Introduction.

These conditions raise questions as to what to do with investment money. Currently, bond yields are low, bank savings and CD rates are extremely low, and the stock market is swinging violently! Most people would rather have$ 1, 000 now rather than getting it in a year. Whenever the federal government places new bills in circulation, which costs it very little, it makes a tremendous profit. This is due to the time value of money. It is this result that tends to keeps this practice ongoing. Inflation in turn reduces return on investment for investors.

Printing more money causes inflation because more dollars are chasing the same amount of goods and services. Current inflation rates are higher than reported by the CPI. With high inflation combined with low interest rates, investing can result in loss of buying power rather than an increase. CPI has been redefined in recent years and no longer accurately represents the true inflation rate. At this point you may ask: What should I do with my money? Money is simply a tool for a job and a tool of exchange, which can t exist unless there are goods and services produced and men able to produce them.

What Is Money? Most people don t spend much time wondering what money is, their major concern is how much they have, and how to get more. Money In The Bank? Money can be set aside and do nothing for the economy, or it can be put to work to accomplish something and to earn a return for the investor. For me real investing is putting your money to work, not handing it over to a bank to earn them profits in return for locking it away from you. When your money is in a bank account or CD, it is not being used effectively and probably netting you a loss due to inflation.

Many savers could be missing out on higher interest payments because they have no idea what their money is earning or how their account compares with others. The best way to maximize the power of your money is to place it where it can do a lot of good work and return a high interest rate. Well, if the Bank is not such a good place for your money, what about Bonds? As we discussed above, investing money is putting it to work for you instead of you having to work. Should you put your money in bonds? After inflation a 5% bond return is actually losing money in terms of buying power. Currently bond rates are only around 5% .

So, if you tie your money up in bonds for a time and then get it and the interest payment back the total amount has less buying power than before you invested. Can the Stock Market do it? You need to have your money where it earns more than the real inflation rate in order for you to be ahead. Should you put your investment money in the Stock Market? Recent market fluctuations have been up 300 one day and down 360 the next day. Current stock market violent ups and downs could drive you crazy.

Such volatility means higher risk. Some other investment methods are less volatile therefore reducing your need to worry about returns and to watch every day. Active traders are forced to stay glued to their computer screens, experiencing higher than normal stress, and feeling like they are being controlled. What s a good way to put your money to work? People of means don t want to continue working so they learn to put their money to work for them. How can you effectively put your money to work?

Having your money work for you can earn you a profit every month without any personal work by you- so consider putting your money to work effectively. Give your money respect. If you put your money to work expect it to earn a good wage, not just bank, a good return rates. Put your money to work in the most effective way, by applying it in high- interest accounts. Factors for putting money to work at higher yields are currently lining up. By now you are probably asking where these accounts are! You no doubt are aware of the turmoil in the mortgage business.

With Banks tightening up their lending, developers are willing to pay higher rates for private money. Where there is turmoil there is opportunity. For example, if an investor s money is being used by a real estate developer it is creating valuable real estate or increasing the value of existing real estate. So, to conclude: You need to partner with a company that treats your money and your return with importance. The developer makes a good profit and shares some of that profit with the investor providing a great return for his money s work. The developer, as a responsible user of his investor/ partner s money, will be constructive with it while improving his community.

In our company, we do community, for example development in Baltimore city and we make sure our investors get an extremely good monthly return. The developer administers the funds and allows investors to participate in community development for a defined period of time. Our investors know that we need them to make our business better and they know we are going to treat them right. Our projects usually take from one to three months but our investors typically ask us to roll their money over from one project to another thereby yielding a continuous return by re- using their funds for as long as they wish. Our investors may place their money in our projects fund for extended periods if they wish so that they can plan on a high return for that entire period. We usually have ten to fifteen re- habilitation projects going at once resulting in great new places for people to live, and yielding a, improving the neighborhood high return for our partner investors.

We offer a free prospectus so you can see what we do.

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