Magic triangle of investing

The magic triangle describes the 3 basic properties of every investment – and why you can't have all of them at once.

The 3 corners:

1. Return: how much do you earn? (0.1% savings book to 10%+ shares)

2. Safety: how safe is your money? (Overnight money: very safe. Shares: fluctuations. Crypto: high risk)

3. Liquidity: how quickly can you get at the money? (Current account: immediately. Fixed-term deposit: tied up. Property: months)

You can only ever maximise 2 out of 3:

• Return + liquidity: shares/ETFs (high return, can be sold at any time – but unsafe/fluctuating)
• Safety + liquidity: overnight money (safe, available immediately – but low return)
• Return + safety: fixed-term deposits/federal bonds (safe return – but money tied up)
❌ All 3 at once: DOES NOT EXIST. If someone promises you "10% return, safe, available at any time" → SCAM.

For your financial plan: emergency fund (safety + liquidity) + ETF savings plan (return + liquidity) = the optimal mix.