When I ask people this question, I always get people looking at me with a crooked face. What do you mean? How could I be losing money in my SAVINGS account? But let me explain. Something that people do not often think about is the cost every year of inflation on their money siting in their savings account, CD’s or stocks.. According to Stat Bureau, In the USA the year over year inflation rate is at 2.28% (https://www.statbureau.org/en/united-states/inflation). Therefore, if you are making less than 2.28% in any of those investment areas, you are essentially losing money.
The bank in my town will give you .05% every year. So, if you put $100 into your savings account at this bank, after a year you will have gained 5 cents in your account.
Your balance went from $100 to $100.05 after one year. It looks like you now have a nickel more than when you started, but that is not actually true. During the same year that your savings account went from $100 to $100.05, something that cost $100 last year, now costs $102.28. Yes, you gained a nickel, but you actually lost $2.23 in this example. This is inflation, and it is the silent killer of savings accounts, retirement accounts, 401ks, stocks, you name it.
The rich often say things like “savers are losers” and what they mean by that is quite literally if you save money in a bank account, you are losing money because the money in the bank is growing much slower than the rising cost of the things you buy.
As I talked to more and more people, I’ve found that a lot of people were in this exact situation. I knew that wasn’t right and that people deserved to make more than the inflation rate! And that’s when Realx Capital was born. Aaron (my partner) and I decided to put together actual investment solutions to solve this problem. Not only are the investments backed by a hard asset (real estate) unlike (stocks, savings accounts, and CD’s), we are able to pay higher interest rates on your money because we have mastered buying real estate at such deep discounts we are able to pay our capital partners more in interest! We are outpacing inflation for our investors by a big margin!
If you aren’t making more than 2.28% on your money, reach out to us today and let us help you start getting real returns on your money!