Asset management during variable inflation
Inflation is not just charts in the news; it's a real loss in your wallet every day. At Profit Embassy, we see how savings earned through years of hard work lose purchasing power, which is why we focus on specific asset security.
Why cash in the bank is a risk today
Many people in Bydgoszcz still keep financial surpluses in regular current accounts or deposits with 1-2% interest. With inflation that has jumped above 10% in recent years, the real loss on every 100,000 PLN was as much as 8,400 PLN per year. It's like throwing 700 PLN into the bin every month, which could have been used to fuel a car or pay part of the utilities in the company. Money likes silence, but it doesn't like idleness, especially when its value melts before your eyes.
At Profit Embassy, we analyzed the portfolios of 43 of our local clients in the second quarter of 2024. It turned out that those who kept more than 30% of their assets in cash were most exposed to market fluctuations. Volatility in energy and fuel prices directly hits the purchasing power of the zloty. Without fluff: keeping a large amount of cash without a plan is the easiest way to become poorer, even if nominal figures in the account don't change. We count facts, not promises, which is why the first step is always an audit of what you are actually losing every month.
Keeping cash without a plan is the simplest way to impoverishment, even if the numbers in the account stand still.
Fixed assets as a protective shield
Effective asset protection is based on things that cannot be printed more of. We are talking here about precious metals, land real estate, or production machinery. In October 2023, we helped the owner of a small production plant near Nakło secure 240,000 PLN through the purchase of physical investment gold. These were not paper certificates, but specific bullion coins that the client can hold in his hand. Such a solution protects against the collapse of the banking system and a sudden devaluation of the currency.
Agricultural real estate in the Kuyavian-Pomeranian province is another topic worth considering. The average price per hectare near Solec Kujawski in mid-2024 oscillated around 63,200 PLN. Land is a limited resource. Unlike stocks on the exchange, a field will not disappear overnight. We operate within the law, using exemptions and opportunities provided by the Polish tax system in land trading. It is a solid foundation that allows you to sleep more soundly when the media scares you with the next financial crisis.
Investment in fixed assets in your own company is often the best way to escape inflation. Instead of paying tax on profit that inflation is eating anyway, it is better to modernize the machine park. One of our clients, running a carpentry workshop, bought a new cutting line for 156,000 PLN. Thanks to this, he not only escaped with cash into a durable item but also reduced production costs by about 12% due to less waste. These are hard data that show how to wisely manage assets in difficult times.
Family foundation — a way for generations
New regulations on family foundations have opened a path for Polish entrepreneurs that was previously reserved for the richest. A foundation allows personal assets to be separated from the risk of running a business. If you run a trading company and suddenly fail, the assets gathered in the foundation — for example, a house, rental apartments, or savings — are safe from creditors' claims. This is a key element of asset protection that is rarely spoken of directly.
Last year, we helped register 11 such foundations for families from Bydgoszcz and Toruń. This process usually takes 3 to 6 months and requires precise preparation of the statute. Operational costs are not small, but compared to the potential loss of the achievement of a lifetime, they are fully justified. For example, the cost of professional implementation of a foundation with assets of around 2 million PLN is a fraction of that amount, and the tax benefits for payouts to beneficiaries are very specific. Money likes silence, and a foundation guarantees such silence.
It is worth remembering that a family foundation is not just about taxes; it is primarily about succession. Thanks to it, you avoid the fragmentation of assets if disputes arise in the family. The assets stay in one hand, and children or grandchildren receive only benefits. This solution has been proven in Western Europe for decades and is now available here. At Profit Embassy, we do not promise miracles, but we show how these mechanisms work in practice on the example of specific families we have already helped.
Currency diversification without speculation
Keeping everything in zlotys is betting on one card. Historically, our currency can be fickle. For security, it is worth dividing savings into at least 3 different currencies. We most often suggest a basket consisting of PLN, EUR, and CHF. The Swiss franc has served as a safe haven for years. In March 2024, when the markets were uneasy, the portfolio of one of our clients based 30% in francs lost only 1.2% in value, while pure zloty portfolios lost much more.
We do not encourage playing the currency exchange. That is not our game. We suggest simple solutions: currency accounts in proven banks or keeping part of the funds in physical currency in a safe place. It is important not to buy currencies when they are most expensive under the influence of emotions from news services. Planned purchases every month, e.g., 1,500 or 2,500 units, allow for averaging the price and reducing risk. This is a pragmatic approach that we have applied since 2017.
Remember that asset protection is a process, not a one-time action. Once a quarter, we meet our clients in the office at Gdańska 27 to check whether the asset structure still corresponds to the current world situation. If inflation falls, we change strategy. If it grows — we look for further security. Without fluff, we rely on what the numbers in Excel sheets say, not on what experts on TV think.
Diversification is not speculation. It's simply not putting all your eggs in one basket.
First steps in securing assets
If you feel that your money is slipping through your fingers, start with a simple summary. List all your assets: home, cars, cash, machines. Then check what of this actually earns and what only generates costs. It often turns out that selling an unprofitable property and buying a smaller but better-located one changes the profitability of the entire estate by a few percent annually. These are simple moves that give fast effects.
At Profit Embassy, we do not have ready-made templates because every situation is different. One entrepreneur is 47 years old and wants to slowly retire; another is 32 years old and is aggressively scaling a business. The approach to inflation must be different in both cases. We invite you for a short, 20-minute consultation at our office in Bydgoszcz. We will review your numbers and tell you honestly whether we can improve something or if your finances are already well arranged. We count facts, not promises.
Finally, it is worth adding that fear is the worst advisor. Most money is lost when decisions are made in a hurry. Calm analysis, checking regulations, and consulting someone who has seen dozens of such cases is the best investment. At Profit Embassy, we watch over your money as if it were our own. We operate within the law and always focus on transparency. See you at Gdańska.
