- Owning an investment portfolio that provides an income for life.
- Achieving the five goals by managing the seven areas of money.
How are you doing?
Measure your progress with The Bluestone Hierarchy.
Stock market volatility can tempt some investors to give up and just park their money in a “safe” bank account. Let’s think about this option. “The Lessons of History”, by Pulitzer Prize-winning historians Will and Ariel Durant, is a classic. Written in 1968 this slim 100-page volume is not an easy read, but it’s worth the effort. According to this husband and wife team the history lesson for investors is, “history is inflationary…money is the last thing a wise man will hoard.” Most of the time money is losing purchasing power as inflation pushes the price of goods and services up. A person who puts their money in the bank, earning a rate of return less than the rate of inflation, is not safeguarding their money; they are suffering financial loss. For the past three decades inflation has been below historic norm, making it appear to be a thing of the past. But we know our history, it will return. Inflation must be a part of our financial thinking, our financial plans, and our investment strategy. The wise person invests in an optimal balance between growth of capital, to outpace inflation, and safety of capital, to avoid investment loss.
This memo was prepared solely by Terry and Patty Rempel who are registered representatives of FundEX (a member of the Mutual Funds Dealers Association of Canada and the MFDA Investor Protection Corporation). The views and opinions, including any recommendations, expressed in this memo are those of Terry and Patty Rempel. Bluestone Financial is a personal trade name of Terry and Patty Rempel.