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Scarcity Mindset Makes Banks Rich, CD Investors Poor

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HolisticSurvival.comBanks love to play up the “safety” angle when it comes to investing in certificates of deposit (CD) and, bless their avaristic souls, they are right about that – CD’s are about as safe an investment as you’ll find anywhere. Unfortunately, that doesn’t mean they’re a good investment. In fact, there has rarely been a CD sold that keeps up with the annual rate of inflation, which means, in terms of purchasing power, you’re actually getting back less money than you gave them, even after factoring in the interest you were paid.

The root of the problem is that too many people proceed from a scarcity mindset rather than an abundance mindset. You might think this sounds a load of New Age hocus pocus but it is absolutely true. Do you think Donald Trump or Warren Buffet approach their investments playing not to lose? Ridiculous! They play to win. See the difference?

Here are the mechanics of the CD “scam.” You walk in the front door of your favorite bank and ask to open a certificate of deposit with $100,000. In return, they’ll pay you about 2% and return your money at the end of the year. The reality of this transaction is that you have given your banker one hundred grand in operating capital, which he will plow into real investments or loan out to other customers, making far more on that lump sum than the pittance he pays you. At the end of the year, you might take your money back or you might re-enlist for another year’s worth of CD returns. Now take this scenario and multiply it by thousands of other people operating under the scarcity mindset. It is obvious why bankers drive such nice cars.

The reported annual inflation rate runs around 4%, which is a completely illegitimate number that has been massaged into existence by the government. We believe the number is closer to 10%, but even if you go with the reported number, you’re actually losing money by “investing” in a certificate of deposit. It’s time to change out that that scarcity mindset for an abundance mindset. With only a little bit of education in the proper techniques for income property investing, you could be earning 20% or more on that lump sum and protecting your assets from the ravaging effects of inflation at the same time. At Jason.Hartman.com, one of Holistic Survival’s affiliates, they’ve been teaching modern survivalists how to create the kind of wealth that will see you through almost any lean time and they do it for free.

The Holistic Survival Team


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