10-percent return on investment – guaranteed!

By ARTHUR VIDRO
Back in the late 1970s and early 1980s, it was fairly routine to bring your money to the bank and get a certificate of deposit that would pay you more than 10 percent in interest per year. The high rates of return peaked in 1981 when, for instance, a six-month CD could fetch you a 15-percent return. However, that was when inflation was running wild, and expected to continue to run wild, so the 10 to 15 percent return didn’t do too much more than keep pace with inflation plus provide you a modest profit.

Nowadays, finding a bank that will pay you even 1 percent is difficult, unless you’re willing to trust your money to a bank that operates solely online. Even then, your return won’t approach 10 percent.

But there is a way nowadays to get a 10 percent return on your investment. And that 10 percent isn’t for a one-year or six-month period, but for an investment of mere weeks; trust me.

By now I hope you’ve learned to be suspicious of such claims.

But in this case, the 10-percent return is guaranteed and legitimate, although there are restrictions. For instance, your investment won’t be liquid, which means you won’t be able to withdraw your profit in the form of cash. Instead you’ll have to spend your profit to realize the gain.

Rather than tease you any longer, let’s come out and say it: Invest in postage stamps!

If you’re a frequent user of postage stamps, you now have a window of opportunity to invest with a solid return.

Between now and Jan. 27, 2019, first-class postage stamps will continue to be sold for fifty cents apiece. But come Jan. 27, the price on first-class postage stamps will go up to 55 cents each. That’s a 10-percent price increase.

The bulk of postage stamps sold have a “Forever” designation on them. This means that all Forever first-class stamps you have stockpiled will, come Jan. 27, be counted as being worth 55 cents each. Even if you paid only 50 cents or less for them.

Stockpiling stamps means, of course, that the “profit” you gain can only be applied toward future postage. But if, like me, you still use plenty of stamps, it’s a nice savings.

Buy your stamps now at 50 cents apiece. In a matter of weeks, they’ll have gained 10 percent in value, to 55 cents each. So if you buy $100 worth of first-class stamps, they’ll quickly increase in value to $110. All you have to do is keep them in a safe place.

And down the road, when (as eventually will happen) there are yet more price increases, the stamps will gain in value again.

Now, I’m not telling you to go hog-wild and buy up every stamp the post office offers. Stick to the first-class stamps.

The post office also sells Additional Ounce stamps in the Forever format. Right now they sell for 21 cents apiece. Come Jan. 27, those stamps will be sold instead for 15 cents each. So any stockpile of Additional Ounce stamps will plummet in value by 28 percent. That’s not a good investment.

I suppose the logic behind the post office’s actions is to keep at roughly 71 cents the current rate for regular mail that exceeds one ounce but does not exceed 2 ounces. Right now it’s 50cents for that first ounce, and twenty-one cents more for the extra partial ounce.

Or maybe they’re just trying to reduce the number of pennies they must give in change.

Whatever the reason, come Jan. 27, it will be 55 cents for that first ounce, and 15 cents for that extra partial ounce.

So don’t stockpile any Additional Ounce stamps. In fact, you should use them up while they’re still worth 21 cents apiece.

If you knew a stock you owned was going to go down in value by 28 percent, would you choose to sell before that devaluation occurs? If so, then use up those Additional Ounce stamps, at their full 21-cent value. You can always buy equivalent replacements, come Jan. 27, for the cheaper price of 15 cents.

Don’t fret about postcards. Their rate will not change. It still will cost 35 cents to mail one.

International first-class postage won’t change either. It still will be $1.15 to mail that birthday card to Europe, Asia, Africa, or even Australia.

Here’s a tip to the post office: If you need more revenue, before raising your rates consider selling additional products. I have relatives who grew up in Europe where they would buy stationery and chocolate bars at the local post office.

So there’s some food (or at least candy) for thought.

If you have consumerism questions, send them to Arthur Vidro care of the Eagle Times, which publishes his column every weekend.