For many people, the idea that 'cash is king' underpins their reluctance to invest and create pools of wealth. While
For many people, the idea that 'cash is king' underpins their reluctance to invest and create pools of wealth. While cash does have a place in one's investment portfolio, there are limitations. Adding to this, cash investors often restrict their financial investments to savings accounts and or term deposits without knowing, or understanding, the power of compounding interest.
Your task is to prepare 'appendix items' for an investment plan by articulating:
1. The Limitations of Cash [and Cash-Like Investments] Over the Long Term
2. Timing and the Power of Compounding Returns
3. Greater Peace of Mind and Wise Investing
The expectations are that you will:
- Draw from a range of credible references (i.e. this would exclude Investopedia) to develop your own explanations and cite using the Harvard Refencing format.
- Ensure your Explanations are clear and effectively support a client's ability to make informed investment planning decisions.