We’re currently enjoying a week staying with some friends in Jersey.
If you’ve never visited or live outside of Europe then you may not know very much about this Channel Island.
Essentially it’s a financial centre and attracts clients and institutions due to its favourable tax situation (including a maximum 20% income tax rates for its inhabitants).
Outside of that there are the usual industries set up for tourists and locals such as shops, bars, restaurants etc, but in terms of other industries supporting the economy they seem to be fairly thin on the ground (although there’s always localised construction on the go).
So is relying on financial services a long term risk to the islanders?
If the majority of accounting, law, and data type jobs will be automated in the near future, what will the local people do in order to keep up with what I’m sure must be hefty monthly mortgage payments (the average house price is in excess of £500,000, our friends tell us that might not even get you three bedrooms) and to pay to put their kids through nursery and school (as most of them do).
I have a feeling the local government will realise there would be massive knock on effects of implementing automation (leading to mass redundancy) so they may resist this quite a lot.
But they will be reliant on shareholders doing the same.
In reality, most younger people will probably be ok in the long run – mainly due to the inheritance they will receive from the prosperous times their parents and grandparents have enjoyed.
But not necessarily, more on that tomorrow.
Regardless of where you live and what industry you work in, there are some clear risk mitigants contained within the Guerrilla Investors subscribers only monthly guides.
Multiple income streams = less impact on your family from job automation or a redundancy.
It’s as simple as that.
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All the best,
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