10 Advantages Savings Plans Have That The Forex Does Not
1. Safety. In general an investment paying 12% interest is not as safe as one paying 6%, but it is doubtful if the 12% investment involves twice the risk.
If the income offsets the additional risk or provides a reserve against which to write off losses when they eventually come, then high yield investments justify themselves, and they do when they are chosen with intelligence, with information at hand on the investment and when they are administered carefully, as we will see.
Along with this general theory that there is a good deal of merit to investing in high yield opportunities, safety should be stressed. This leads us to the second characteristic of the investments we are going to examine.
2. Collateral or guarantees. A home owner may show you his bank account and also prove that he owns his home free and clear, so that you conclude that he is a good risk whose signature on a note is as good as gold but it is far wiser for you to take a mortgage on his home. Or if he has securities it is better to have him assign the securities to you than just to take his promise to pay.
If a dealer...