Real v Nominal

Nominal means 'existing in name only'. Interest is the salary paid to the owner's of money for letting someone else use it. A rate is when the salary is time-based. 

The 'Nominal Interest Rate' is how much money your money will be paid if you 'save' it. 

Those savings don't sit rotting (think inflation) - they get shifted to other businesses or people who rather than saving, invest. The hope is that the money gets paid more than inflation. If it doesn't, the number might get bigger even though the money is worth less. The difference between investing and saving is the reduction in smoke and mirrors. Investing isn't 'in name only'.

A 'Real Asset' is something physical or tangible. Fundamental Investment is when your money is exchanged for a slice of ownership of a real, underlying, thing. That thing makes money by making something, or offering a service. That extra money is then either returned to you, or reinvested to make the investment bigger.

You can think of your money as a "Mini-Me". A little version of your earning ability that can also earn money. The more you let it grow, the larger its salary. It is possible, with time and feeding, that Mini-Me can earn more than Me. That is a proud moment. It is also the point where your money can start looking after you.

Ideally you want your Mini-Me to get a "Real Job". This means that your Mini-Me should be doing something of real value for real people. The great thing is your Mini-Me can get quite a few jobs. It can work in a Fund... which is like a job pool where the jobs change based on where the Managers think the work is. It can get jobs directly. 

My Mini-Me does a bit of both. I have money at two Job Pools (two of the company's I used to work for), and I have got my money jobs at twenty companies directly.

This means my money doesn't get paid a "Nominal Interest Rate". It all depends on how well, or badly, the underlying companies perform. It all depends on Real Assets, and who they work for.

Who does your money work for?