"If It Has Money Invested In CDT's... Possibly It Is
Losing Silver"
What the banks do not want that you know...
For: Camilo Pinto
Publisher
Hello,
It is a fact that still the percentage of persons who invest his money in CDT's keeps on being very high.
Approximately 15 years ago probably were an investment option, or he should say rather of saving for those persons that they were looking for conservative and relatively stable alternatives. The CDT's turned into one of the forms of investment that many persons preferred basically because the offer of a little more sophisticated products in Colombia did not exist yet. Namely out of the CDT's, of the ordinary joint funds of the trustees, of the certificates of capitalization and of other similar products of investment and in many cases obsolete... there was no where more to invest the silver of conservative form!
The problem is that nowadays the things are very different!
Unfortunately many persons remain grasped at present to his CDT - suddenly more by the custom or by the safety that gives to have done something for the long time or by not knowing much more suitable investment alternatives - that because really they obtain the results for that they wait at the time of investing his money!
What I try to demonstrate to him is why for the majority of the persons the fact of having money in CDT's not only is not a good decision but it can be a decision much more risky than you believe due to the current conjuncture of the economy!
Do you know that with his CDT it is probable that it is losing money? |
Many persons nowadays in a given up way acquire a CDT with thoughts like:
"At least the silver rents and produces some interests..."
"It is better that to have it in a savings account..."
"Since the dollar goes, I prefer the CDT's that at least are stabler and I do not lose silver..."
"The good thing is that I know to this bank for years..."
"At least the conversation is sure..."
Etc, etc, etc....
Do not feel bad if he is thinking this way because it happened to almost all one day. The important thing is to understand the following thing:
When he invests HIS money in a CDT you obtain a title value that represents a profitability valuation for the laid-down capital. These interests are the compensation that gives you the bank for allowing him to this one to use his silver. So far all in agreement...
Well, all right the average that you will receive from interests has to do with an indicator that is called the DTF. (The DTF is not another thing than the average of the market of the valuations of reception to 90 days). this means that the interest that they are going to give him for his silver will always be about this value.... a little more... a little less...
Now then, in the date in which I wrote these words (October 31 of 2005), the DTF was in 6.46 % EA. This means that for every 1,000,000 weight that you "invested" the average of the CDT's in Colombia they would pay to you $ 64,600 weight a year. And that without deducting still the retention in the source of 7 % that for law will apply him on the generated yields, what will give him a clear one of $ 60,078 of interests.
To know if his silver really is growing or is generating wealth it is important to introduce a concept that is that of real profitability. What the real profitability thinks about how to know is what so much yield generated his capital after deducting the inflation, which for effect of this example was in 5.02 %
We all know that $ 1,000,000 of today they are not them same that $ 1,000,000 in 1 year and much less in 5 years... as the time happens the silver loses his purchasing power and costs less. That's why the same, being sure is vital that his capital increases and not that it remained equal or that it diminished.
To do this you reduce the interest of his investment less the inflation for this period of time. In case of the average of the CDT's in this example, it would reduce 6.46 % less 5.02 %, what would give him real profitability of 1.44 % EA.
This means that his silver only valued 1.44 % in one year!
A little different 6.46 % that 1.44 % true? And do you imagine who would spend if the inflation overcomes the DTF or what is the same in this case 6.46 %?
Exactly, that you would be losing literally silver in real terms! Many persons have never thought this! And also there have been great the persons who believe that his money is "growing" when in fact what happens is that his capital is fading away little by little without they realizing!
Another question that I rise to him,
Does it know the big risks of investing in CDT's? |
Another myth exists in the common one of the persons and it is that the CDT's are a zero risk. That does not exist at all surer that to invest in CDT's... allow me to say to him that I disagree with this idea and am going to explain to him because:
When you acquire a CDT, his money begins to be a part of the patrimony of the entity that the CDT expressed. What happens if something happens to this entity? What happens if it is taken control by the Super Bank Commissariat? What happens if it fails?
If he does not believe that that can happen, there is alone thing that does little memory and remembers what happened some years ago with the Andean Bank or the Bank of the Pacific Ocean. And to speak of what it him has happened to many persons with some cooperatives! With such a changeable current world many companies (and banks) will stay to favor of the changes!
Allow to wonder him... If you will find investments of less risk that the CDT's, conservative and sure, administered for completely solid companies and with the best risk qualifications you would not be worth while finding out at least any more and probably trying with anything of his capital to realize the results so positive that it can obtain?
I believe that the answer would be YES. Do that his silver works for you!
Well, there exist options of investment that are covered much better against the risk of failure of an entity. Namely that if the entity that he administers and invests his resources failure or something happens to him, nothing will spend with his money...
Yes he read well... Nothing happens to his money!
Saying in other words his money is safe. These investment options often are mounted on called legal structures "autonomous patrimonies".
The big advantage that the autonomous patrimonies have is that the entity that administers the resources only does that - they are administered - but she is never going to be "a proprietor" of these resources. In other words, you together with other persons who invested in these investment briefcase they are the proprietors of the "autonomous patrimony" and not the company that it collected and him who administers his money.
Does realize the big advantage that there have you and the great thing that diminishes the risk with regard to an investment in CDT's?
Has this happened to him for his mind and does it have money "invested" in CDT's? If it is like that do not worry, rather deal in giving him a solution to this situation. We can help him across consultants specializing in personal financial planning, which are provided with the whole training to advise it in finding the best available investment vehicles at present!
And the best thing of everything is that we will give him the best advice for his investments COMPLETELY FREE!
For his financial success,
Camilo Pinto
Publisher
Tel.: (571) - 6914692
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