A recent article on Yahoo Finance showed that 27% of Americans had less than $50,000 saved for retirement. Shockingly, 16% of the population had nothing saved at all.
High inflation has made matters worse. Before the pandemic 93% of Americas were actively saving for retirement. Today, just 63% of the non-retired population are saving for retirement.
Luckily, it’s never too late to take action. But with inflation threatening to decimate people’s savings, what’s the best way to ensure you have a nest egg waiting for you in retirement?
We believe that an investment in truffle producing trees can provide and outside-the-box solution to the retirement dilemmas that many Americans are facing.
Here are some of reasons that black truffles can save your retirement.
Inflation is the hidden tax, and it hits savers hardest of all. Folks who were smart enough to put money aside for retirement are now watching nervously as the value of their hard-earned dollars falls each week.
While the economists at the Fed are scratching their heads trying to figure out how to get to grips with inflation, the answer for regular folk is far simpler.
Make inflation proof investments.
Sounds easy, right?
It is, the problem is finding them. Much like hunting for truffles, most people simply don’t know where to look.
Most investments are either linked to the economy or offer fixed rates of return. Unfortunately, neither are able to keep pace with inflation.
Black truffles on the other hand are sold annually at current market price. If inflation causes the prices to rise 10%, truffles will rise accordingly.
Savers and folks locked into fixed rate investments are looking for inflation proof investments such as truffle producing trees to ensure they are covered against this eventuality.
Diversify Your Portfolio
The stock market remains the most popular place for investors to put their hard-earned cash and it’s easy to see why.
The past few years have seen unprecedented growth and record highs across the board. It seems that no matter what happens in the wider world, the stock market continues its relentless grind upwards.
However, many experts, including Warren Buffet believe the bubble is about to burst. Berkshire Hathaway are sitting on the sidelines with billions in cash waiting for the market to fall and an opportunity to buy the dip.
They realize that that market has been propped up with billions of unbacked dollars which were printed out of thin air.
To understand why, we need to go back to the last financial crisis.
In 2008 there was a very real chance that the global economy could crash. It was serious enough that a number of national banks including those in the U.S., U.K and Japan were forced to print hundreds of billions of dollars to buy up bad debt.
If they hadn’t there would have been a monstrous global financial crisis.
The Modern Monetary Theory was born from this printing, with the idea that governments could simply print money forever to smooth over the financial crisis and ensure economic growth in future.
Fast forward to 2022 and tens of trillions of dollars have been printed and introduced to the economy. This is money that should never have existed.
Assuming we want to reach a real economic equilibrium, this money will need to be destroyed. When that happens, it will take down the stock market, housing market, and plenty more besides.
Black truffles provide a hedge against this.
For better or worse, the richest in society are never hit hard by market crashes. As a result, the market for luxury goods and foods (including truffles) always remains strong.
If all your money is in real estate and stocks, you’re not as diversified as you think. Investing in truffle producing trees provides a reliable income stream which can be even more important when other parts of your portfolio are struggling.
Thanks to their green and sustainable nature, governments across Europe have given Truffle Farms Europe a guarantee that our truffle investors will not be taxed on their profits.
An investment in truffle producing trees is also tax-deductible in the United States.
We conservatively forecast that our investors will see annual returns of 15% once their trees reach maturity. In most cases the tax man won’t take a penny of it.
Stocks, on the other hand, carry a significant tax burden. If you’re one of the lucky few who makes 15% per year profits on your stock investments, you’ll lose a decent chunk of that to the IRS through capital gains tax.
An Affordable Way To Save For Retirement
In terms of potential, a single truffle tree can produce 10kg of black truffle in a year. This is a strong yield, and it’s the target we aim for.
With a single tree providing 10kg of truffle per year at $2,800 the profits mount. Over a 50-year period that’s a $1.4 million.
We take a management fee, for maintenance, and a commission for selling the truffles which leaves the investor with a little over $1 million ($1,046,000). A terrific return. Money might not grow on trees, but it certainly grows under them.
Let’s put this into context by comparing the returns on a truffle producing tree to a standard NPV.
As many of you will know, returns of 6% per year from a standard NPV is considered good. Most investors will take these returns every time.
But these returns pale in comparison to truffle producing trees.
A standard NPV at 6% would need an investment of $54,883 to reach $1,046,000 over a 50-year period.
To reach these returns with us, you would need to invest just $500, the cost of a single tree.
Truffle Producing Trees Are A Green Investment
Having money in your retirement is important. You can’t enjoy the lifestyle you want without it. Having a healthy planet to live on is vital.
Climate change seems to be happening faster than ever and if something doesn’t change then your dream house by the beach could be 10 ft underwater by the time you’re ready to retire there.
At Truffle Farms Europe we’re doing our bit by continuing to plant new trees each year. These are native trees meaning they don’t require excessive water and aren’t a drain on the surrounding area.
Actually, the opposite is true. The Mediterranean Oak, which we use to grow truffles, has been in decline throughout Southern Europe. We’re doing our bit to reestablish them helping and the local flora and fauna at the same time.
To find out more about how truffle producing trees can help your retirment contact us today.