Term Deposits

by Lorraine Serra
Financial planners wisely recommend that you plan a wealth building strategy to retire in style, or at least at a level of comfort similar to what you now enjoy, by initiating a savings plan as early as possible. Pay yourself first, (generally 10%) is the starting point. Advocates of term life insurance will tell you, pay less and invest the rest. In other words, save or invest the difference between a high priced Universal Whole Life Plan and a simpler term policy. Careful planning and long term investment strategies should ultimately yield enough cash for the future. With compounding interest and stock market gains over several years you should have built a nice nest egg for retirement, or at least a substantial amount for further investing in various areas of your portfolio.

Wealth Building like this requires at least two things to work: self-discipline, and a growing economy. At least one of these has made investing for retirement difficult at best. Bank failures and wall street fiascos, unemployment and a sluggish stock market have taken the wind out of the sails of most folks whose 401k's have taken quite a hit over the past two years. So how can you recover what has been lost, and quickly increase yields to accommodate a lifestyle you can live with? Most folks are looking at a future which includes still working part-time in order to supplement the retirement savings they will have available.

The fact is, nobody knows how high the rate of inflation might rise 10 or 20 years down the road. But assuming a 5% rate, in 15 years we will need twice the income we have today to sustain the same purchasing power. If you are still standing, you might able to agree that is shocking!

Many are investigating the internet to turn things around. Sadly, schemes abound that can take the inexperienced net surfer for an even wilder ride than the stock market has.

However, there is hope on the horizon where anyone, even novices, can invest in themselves with a small monthly deposit of as little as $20.00, and join knowledgeable, and caring professionals who mentor and help launch their own online wealth building strategy. Please note: this is not about selling products. It is an investment in one's own income growth position. And over a period of 24 - 36 months, it is possible to turn that $20 monthly wealth building strategy into a 6 figure annual income. Sound impossible? What kind of investment vehicle can produce such a high return? Certainly not a traditional savings account. Current yields hover around l.5 % if you are lucky. Fixed rate CD's require a lump sum deposit, and Money Market Accounts would need much more than an annual $240 contribution.

How difficult is it in the current economy to save 10 - 20% of your earnings right off the top? Experts say this is the requirement to even come close to the nest egg necessary to live well in 15 years, let alone retire in style. Smart investors are always on the lookout for an investment with extraordinary returns, low risk and stability. Where can that be found today?