The Danger of 'DEPOSIT' Complacency

During GML Seminars the merits of Treasury Bills as the safest form of investment have been highlighted.  Certain Bank 'Deposits' are also mentioned, but only those Banks without today's customary debt problems.  This means there are few Banks to choose from.

It is stressed that the vital ingredient is 'knowledge', not confined to the circumstances prevailing on the day, but knowledge which will serve you well in the future.  We stress that this knowledge must be personal, which is, the reason for GML giving a service that is heavily weighted in favour of principles which will last a lifetime.

"Give a man a fish and you feed him for a day.  Teach a man to fish and you feed him for a life"

We are often confronted by delegates who, having heard that they should place their money into Deposits, assume all they have to do is nothing more than put their money into the Bank and all their troubles are over.  It seems an easy costless way out but as always the easy answer is always the dangerous course of action.

Under my breath I say, 'what a fool you are, haven't you heard a thing I have been talking about?'  I make no apology for this because the concept of something for nothing is always the precursor to failure, or at least mediocrity.

'Deposit Complacency' associated with ignorance is one of investment's major catastrophes.

WHY?

Because without knowing when to transfer from Deposits into Assets will seriously damage your financial position.

THE REASON?

Firstly, when markets are in major 'buy' situations, without knowledge the opportunities will not be taken.  Also the chances are that you will be in with the rest of the ignorant public at the top of the markets in the future. 

Every top always sucks in suckers and spits them out considerably poorer.  And so the cycle goes on with investors making provision for the future without a sound knowledge of the markets.

Further it must never be assumed that Banks, Building Societies and other institutions are 'safe houses', for at times they are not and at all times the returns you will get are well below what is possible with knowledge.

There is however an even more treacherous evil with 'Deposit Complacency' which will devastate your capital base without you realising it is happening. 

Insidious inflation subtly eroding your wealth in the so called, 'safe' Deposit or Building Society Account. 

What do you do about it?  There are very few answers but knowledge could have even saved Argentinians where inflation is several thousand percent per annum.  Also Bank 'Deposits' have effectively been stolen and replaced by worthless Government Bonds which lose their value at the rate of 50% in a few weeks.  When under pressure Governments are ruthless in their ability to steal in the 'public good.'  Run like hell when you hear these fatal words from politicians.

This is the 'Deposit Complacency'.  So if you think you are safe with your money on Deposit forget it.  Very shortly the odds are indicating that your money will be losing its true value and you must prepare now in order that you can take advantage of the situation and not suffer from a false sense of security.

Increase your knowledge now!  Ask yourself how will you deal with hyper inflation.  If you have no answer, you know where to go .. GML.

GML knowledge can help.  Deposit complacency could eventually ensure that dreams of security are replaced by nightmares of worthless paper money. Not a pleasant thought but it is avoidable provided you don't expect others to save you!  You must save yourself.

It is a curse only solved by knowledge.  The sort of knowledge subscribers learn
at GML.

Fred Stafford




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