Financial Future “friend or foe”
There are memorable moments in one’s life but one of the most memorable in my opinion is the day I became a parent. It was a day of overwhelming feeling of joy and happiness in my life but also a huge responsibility on my shoulders to care for my children.
If you have recently had your first child don’t despair you have a good part of two decades in which to secure a prosperous financial future for your little bundle of joy. Now is the time to start investing and saving for you Childs future financial needs.
Every parent as far as I am concerned starts out with only the best intentions for their child and wants to provide them with the best possible start in life.
As part of a well balanced upbringing with love and affection there is the cold hard fact that money is an essential ingredient to a top class education, vehicle, and wedding costs, deposit on a flat the list goes on and you as parent are the first port of call for this.
Investment! What is it?
Investing is a way to make your money grow and appreciate as part of a long term goal. It is a financial gain over a period of time to be used in the future.
Saving is taking a part of your income and setting it aside over a short period with the aim of accomplishing short term goals. It is a plan you put in action whereby you take from you various forms of income and redirect the income to one account to achieve your financial goal.
Investing is however a long term activity and the basic idea behind this principle: let your money work for you over a period of time. And the saying” you need money to make money” is true in this regard.
“A good investment is one that beats inflation”
In my opinion the top three reasons to invest are as follows:
1) Beating inflation
2) Financial goals
And as every parent I am sure feels the same way to have the means to provide a top class education for our children is a financial goal we all want to meet.
Let’s look at Physical Gold and rare/collectable coins as an investment vehicle
Gold and rare coins
Gold coins are indestructible - don't rust, melt or devalue and are easily transportable - they can be handed over to your children and grandchildren without any paperwork and can be used to settle debts, dowries and education fees!
They can be traded internationally at the drop of a hat and the market is so vast today that with the market trading 51/2 days a week, 24 hours a day you can determine a price instantaneously and trade accordingly. You don't have to be guided by investment analysts and asset managers and you don't need auditor's reports or company directors talking up their merits. Gold coins have retained their value long after everything falls apart.
Because gold and gold bullion coins are quoted in dollars and foreign currency they effectively become the ultimately currency/Rand hedge especially if your currency has been depreciating over time.
Gold has been man's trusted store of value for thousands of years - a hard asset with an intrinsic value that is recognized worldwide.
Investment time line
One of the secrets to long term investment is the sooner you start the greater your returns will be over time. And these returns translate to money and having more of it.
Let’s take a look at how a R10, 000.00 investment in Gold bullion in the 1970’s would be worth now and how hard your money would have worked for you over that period.
Over this period your R10 000 investment would have been approximately R3 million today.
The sooner you begin to invest the better off you and your children will be in the future, so get started today and let your money work for you.
For more information please contact Jason Swart
These are the opinions of the author and you should always seek the advice of an accredited financial advisor in respects to your financial needs.