Buy Debt, a Way to Save

Buy Debt - Complete Controller

Around 84% of people highly prioritize and believe in saving money as a benefit.  Therefore, 3,000 adults report through an online survey that 51% of American families wish to pay all their debts as soon as possible, and 53% strive to save maximum money. When it comes to saving, the goal is to earn as much as possible in the fastest way, but we must not forget that every investment carries a risk.

Deposit the money in the bank, invest it in public debt, and pay commissions to a broker to design our portfolio or buy shares directly from large companies? When it comes to our savings fund, we always want to get the highest return as soon as possible. Still, the faithful companion of the benefit is none other than the risk. Take into account the option to buy shares of large companies, but do not forget to contemplate the risks. Check out America's Best Bookkeepers

Is buying the debt of some of the world’s largest companies or ‘ blue chips ‘ a “more profitable” option than saving money in a traditional bank? The answer depends, as the leading interest rate and the performance offered by the company will determine which option is worth the most.

Benefits for emerging

Low interest rates in developed countries mean an opportunity to receive investment in emerging countries, where interest rates are higher. However, financial authorities in countries such as Turkey or Mexico tend to be cautious of this opportunity to attract foreign investment. The Central Bank of Turkey recently reduced rates and increased banking capital requirements to avoid a speculative flow of foreign capital in its market. In Mexico, despite the ‘ dovish ‘ comments of the officials of the Bank of the US, which foresee controlled inflation and rule out a significant increase in prices, the rate has remained at 4.5%. Check out America's Best Bookkeepers


Because the other side of the investments are the ‘swallow capitals’ that enter a market with high rates to win in the difference concerning their home market, but, once their objective has been achieved or, when another market offers rates even higher, they leave the country quickly, which imbalances the accounts of the local financial system. The most significant risk for markets with high rates is trusting that there is enough money and appreciating your currency or selling international reserves.

That is, not all countries that offer higher rates than the United States or the EU are a free destination for foreign investors, which has led to other ways of saving, such as the direct purchase of blue chips, have experienced a significant increase since 2008.

The advantages of ‘ blue chips’

While some savings accounts in bank accounts require account holders to leave their money in the bank for weeks and even months before withdrawing, blue chips can be purchased directly from the issuing company and sold at any time, which gives greater liquidity to the investor. Check out America's Best Bookkeepers

It is a strategy that has given outstanding results to companies such as American Duke Energy, which increased the placement of shares by 59% in a single quarter of 2011 through the direct sale of securities to investors. In the case of GE, which has been selling securities since 1992, the company experienced an increase in revenue through this route, especially since the 2008 crisis, when investors were looking for shelters to invest in.

Disadvantages of buying unique titles

When investing a lot of money in a single title, the return will depend on the excellent progress of that company, which avoids the diversification of the risk that is obtained with a broader portfolio.

The investment only makes sense for investors who have deposits subject to meager interest rates in savings accounts of countries like the United States or the EU.

The investor can know the financial statements of the company he buys, but not necessarily his amortization periods, the fiscal strategy, or the due dates of other financial obligations, which puts his investment at risk in the short term.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers