Who says you can’t earn big returns in a recession? Even if U.S. Government Bonds pay nothing, the stock market and housing both lost 40% last year, you can earn huge risk free investment returns. That’s right, you can earn 9%, 13%, 21%, maybe even 28%, risk free investment returns. How? Pay off your credit card debt.
In a recession, when other investments yield either low or negative returns, it makes much more sense to invest in paying off your credit card debt. Every dollar that you invest in lowering your credit card balances, is the equivalent of earning the interest rate on your credit card, in some other investment.
Instead of chasing around looking for investments that will produce big returns, wasting time reading financial magazines and watching CNBC, you can find huge investment returns by simply putting your hand in your pocket and pulling out your wallet. The plastic inside is an investment gold mine. High returns, 9%, 13%, 21% and 28% returns, are literally at your finger tips.
And best of all it is a completely risk free investment. The worst thing that can happen, by paying off your credit card debt, is that the credit card company notices and offers to lower your rate. You don’t have to worry about picking the right investments, hoping that they will do well, and trying to figure when to get in and get out. You are guaranteed the same high rate of return every month you invest in paying off your credit card debt.
In any case, if you are planning to retire, you should not retire in debt. Some will argue that stocks are cheap and now is a good time to buy stocks. That may be, now may be a good time to buy stocks, and then again now maybe a bad time to buy stocks. No one know for sure. But one thing is for sure, it is always a good time, to pay off your credit card debt.
Of course, this being the Green Retirement Blog, I am obligated to tell you about one other risk free investment. For an $89 risk free investment you can get Green Retirement Planning and Software, that will enable you to retire with hundreds of thousands less dollars in savings, and many years earlier than is possible with traditional retirement planning. Check out our Affordable and Accurate Retirement Planning and Software and try our Free Retirement Calculator - a risk free investment of your time!
1 response so far ↓
1 thomas adair // Jun 5, 2009 at 1:16 pm
The Holy Grail to Investing.
Developed multiple arbitrages for the financial markets. Arbitrages that produce just a few percent a year, to arbitrages that produce over 30 percent a year.
In 2001 i started developing, as of now, a dozen arbitrages. I lock in an X percentage, and Y time later, i close out the arbitrage. Over 30%/yr.
Risk-Free Investing is not only possible, but in abundance. Just that people are told and taught that it is impossible. No risk has been in front of all, but not seen.
The market is unlimited.
Thomas
thomasadair@hotmail.com
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