In
a nutshell, you will have future needs and obligations
to meet, such as your children's education and your retirement.
If the past is any guide to the future, taxes and inflation
will eat up the value of your savings and the purchasing
power of your money can decrease quite considerably with
time.
The
best solution to protect your capital from the ravages
of taxes and inflation is to allocate some of your assets
to
property
and some to good quality shares that have the potential
to earn returns which are more than what taxes and inflation
will take away. What types of investments should you put
your money in depends very much on your ability to take
risk and your personal financial goals. We will cover
more of this in future lessons.
