What is the best investment solution?
Holding a small amount of cash can appear to be okay, however, it still can drag your returns down because of compounding.
Smart investors go for the right after-tax returns, once they make sure that the level of the risk is fine for their aimed goals. They control the portion of cash in their portfolio, invest tax-efficiently and makes sure that their portfolio is maintaining the required level of risk to achieve their goals.
However, if you are to hold any cash due to any reason then you need to make sure that you invest it as soon as you can especially when the trading is free and buying a fractional increment of the shares is within your domain.
If the trading cost is $7 per trade and you do not want your returns to reduce by more than 1%, in such case you should have $700 in cash. Cash which exceeds $700 is too much cash to hold and can bring down your returns.
Where to invest for best investment rates?
If you are a smart and empowered investor then you should know where exactly you stand with your investment. However, if you have no idea about presence of idle cash in your portfolio then there isn’t anything that you can do about it. However, if you trust us and let us build your portfolio for you then you do not have to worry about the presence of the idle cash in your portfolio.
SAMT AG never lets idle cash take any place in your portfolio because we make sure that all the cash is invested right away. We understand how idle cash can bring your return down which is why we use available cash and fractional cash to make a new investment as soon as possible.
To grab attention of our investors, we highlight idle cash right away and let them know through simple projection that how much their returns can be dragged due to holding cash for a long period of time.
Being a smart investor, you should sync your investment accounts with us. We will inform you every time there is idle cash sitting in your portfolio. By syncing all your outside investment along with debts accounts which includes taxable accounts, IRAs, mortgages and loans, you will be able to control your wealth. Furthermore, doing so will also help us to give you better advice regarding your current and future investments.
Diversification of your savings:
If you want to earn maximum return from the investment made by your idle cash then you need diversification. We at SAMT AG understand importance of diversification which is why we invest your money in different investment vehicles. However, while focusing on the diversification we always keep the factor of risk in mind. The risk is kept appropriate and is perfect for achieving the desired goals.