That may not apply to you
Right now after several years of global recession it seems as if we are starting to discover the good life again! That at least is how it seems to some. But this may not apply to you. Older people who have seen this all happening before tend to be less enthusiastic. In particular, people who have spent most of their working lives saving for their old age pensions are not delighted to see interest rates diving to historic lows which we haven’t been seen since the great depression!
The chart above shows the basic interest paid by banks set against the rate of inflation in the Eurozone. Notice the change in 2008, following the global recession triggered by the bankruptcy of Leyman Brothers! Euribor/Libor interest rates – the basis on which consumer loans and savings accounts are based – take a dive to well under the inflation rate. In other words you are rapidly losing money on your savings account! The big gap between inflation and what you earn on your savings seems to have been fairly constant during the past seven years. And based on the interest rates offered for long term deposits this situation seems likely to endure for at least the next 5 to 10 years…..
Lending to pilots is a better option!
Get more from your money! Pilots are currently paying relatively high rates of interest to their banks for financing the high cost of their training. Those pilots who have successfully been selected by major airlines have become a safe bet. In Europe, their incomes still rank in the top 1% of their age group and their loan repayments are covered by loss of license insurance.
But despite their success, the banks are still requiring them to pay rates of interest similar to what they had to pay as school leavers aspiring to become a professional pilot, without any guarantee that they would ultimately be successful in achieving their goal.
They are happy to pay you for refinancing their training loans at a rate of 3% or more, depending on the terms to be agreed with you. Loans will be repaid by the borrower on the basis of an annuity.
Use this calculator to see how much you can earn per month by lending to pilots.