The world of finance is a complex area in which many people are primarily concerned with making money. However, experienced investors know that it is also important to protect their capital. Contrary to what many people believe, investing is about more than just accumulating wealth. It can also serve as a tactical defense against the effects of inflation and economic instability. Let us take a closer look at the aspect of investing that is often overlooked – its unmatched ability to preserve wealth for a secure financial future.
Inflation erodes the purchasing power of capital and poses a challenge to wealth preservation. By choosing assets that have historically outperformed inflation, such as equities, real estate and commodities, investors can protect their portfolios from rising prices. This not only counteracts the eroding effects of inflation, but also ensures that the purchasing power of capital remains stable over time.
Fixed income instruments such as bonds and government securities offer stability and a reliable income stream, making them a cornerstone for investors looking to protect their wealth. With predictable interest payments and a fixed time frame, these instruments offer a sense of security, especially during market fluctuations.
In times of increased volatility, the attractiveness of dividend aristocrats becomes even clearer. These are companies that pay regular dividends and increase them every year. To qualify for this group, a company should be a part of S&P 500 index list and have increased its dividends in the last 25 years. Fortunately, there is a wide range of companies to choose from, including global giants such as Chevron Corp, IBM, Exxon Mobil, The Coca-Cola Co, Walmart, AT&T, Caterpillar, etc. So the attraction of these companies lies not only in their financial gains, but also in their reputation as reliable custodians of capital in difficult times.
In summary, investing, when done right, is an effective way to preserve capital. ISEC WM understands the delicate balance between risk and reward and offers a resilient strategy to investors seeking to protect their wealth during challenging periods.
Risk Warning: The information in this article is presented for general information and shall be treated as a marketing communication only. This analysis is not a recommendation to sell or buy any instrument. Investing in financial instruments involves a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both an increase and a decrease in capital. Please refer to our Risk Disclosure available on our web site for further information.
Now I understand more about inflation and that some assets help protect my money from it
That makes a lot of sense. Making money is very good, but if there is anything that we have learned so far, since the pandemic and inflation hitting the roof across the globe, it is that capital protection is very vital. Money is quickly losing value, so it is key to combat and protect yourself from the effects.
Why should I use an investing method for increasing capital instead of banks?
ISEC WM delivers something amazing here because keeping capital safe is not something you find with every financial platform☺️
actually guarding against inflationary erosion is one of they key ISEC WM advantages…when pros that work at the company, manage the asssets on your behalf, a more secure and confident I can be in my future.
Cant agree more on the idea translated in this articles….it is visible how this company takes the business seriously. Look, the mechanism outlayed is just golden rule, legends like W.Buffet, R.Dalio and J.Robertson did say and stress the concept of strong diversification and historically well-perfoming assets so mcuh , it is like a rule of thumb in the investment business now.
The point of being included in the SP500 actually means a lot. Coz if a company is listed there, it means it is solid and expected to grow even more.
The approach the company chooses is indeed an intricate balance between risk and rewards.📈 It is ISEC WM’ advantage
Also, need to say that despite of the common idea (some ppl say) that values assets that shield against inflation cant grow much is misleading…actually the FED announced QE session, the all assets perform really welll…especially those that are of blue chip mark liek the ones mentioned in the artciles : Chevron, AT&T, Walmart….the reason they rise coz investors buy them more as they are solid…
That is how pro investment is executed and the ppl from the company are for sure experts in the fields. Great writing on the topic…
This is one ISEC WM advantages. They dont consider about short-term gains focusing on steady, not sharp, but still growth of your money. Depends on risk tolerance ofc. I’d prefer stability over gains