circle of wealth presentation

8/6/2019 Circle of Wealth Presentation

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Keys to Creating, Maintaining, and Transferring


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Wealth

AccumulatedWealth

Transferred Wealth

LifestyleWealth

Life Style Wealth:Food

EntertainmentVacationsUtilitiesMaintenance

Accumulated Wealth:

Savings

InvestmentsStocksReal Estate401(k)/IRAAnnuitiesCash Value L.I.

Transferred Wealth:DebtInterestTaxesOpportunity Costs

Transferred Wealth is.

Money eitherunknowinglyorunnecessarily leaving

yourcircle of wealth.

Opportunity Cost is..

The lost opportunity toearn a rate of return on those

funds, forever, used to paycash for a purchase.


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AccumulatedWealth

Transferred Wealth

LifestyleWealth

What area do most advisors spend the majority of time in their planning?


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Accumulated

Wealth

Accumulated Wealth:

In order for any planner to enticeyou to move yourmoney to themwhat will they most likely concentrate on?


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Most investors are hesitant to change theirlifestyle too drastically and soLifestyle Wealth is not typically discussed in great detail.

Lifestyle

Wealth


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Transferred Wealth

Did youknow

Transferred Wealth is by far the principal reason whypeople fail to create and maintain wealth?

The cost of Debt, Interest, Taxes, and Opportunity Cost, in the

average family, far outweigh the growth of their accumulated assetsrate of return.

In other words the rate of return required to keep up with what is being

lost or transferred is nearly impossible to achieve. In addition theaccumulated assets would have to be invested at greater..


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Bringing transferred wealth back to yourcircle of wealth has amuch greater affect on your net worth than rate of return.

a ing a ortion if not all of the thousands and thousands of dollarsbeing lost or transferred eitherunknowingly orunnecessarily will ha ea much greater impact on your wealth.

ets look at a reallife e ample

Transferred Wealth


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Would you agree that there are really only two ways to purchase a car..

Well assume that leasing is worse than financing


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Lets purchase a $30,000 car

Lets assume that the car will be worth $15,000 in 5 years

So what happens to our NET WORTH when we pay cash?

$30,000 car

5 years

Car Value: $15,000

A justment to our Net Worth:

-$15,000

What happens to our NET WORTH when we finance?

$30,000 carFinancing @ 8%Payments = $608

Total Cost: $36,500

5 years

Car Value: $15,000A justment to our Net Worth:

-$21,500


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What if there were another way?

What if I could show you a way to recoupthe totalcost of the car purchasedand the interest too?


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Net Worth:

-$15,000

Net Worth:

-$21,500

Cash: Finance:

This time YOUARE the bank:You want to charge yourself at least theGoing rate.preferably more.You will pay yourself just like the bank.

Total Payments = $36,500 (same as financing)

Plus the Car Value = $15,000

Net Worth:

$51,500

You have a choice

Lose -$15,000 Lose -$21,500 Have $51,500

Option 1 Option 2

Option 3


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Purchase 11 cars from age 21 65

Purchase Price: $15,000No InflationNo Trade-InInterest Rate (for financing): 8%Savings Rate: 5%


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Pay Cash

Total Loss: -$165,000

We are NOT calculatingOpportunity Cost on thismoney..whichwould equate to a large amount

ofmoney lost!

Financing (8%)

Total Loss: -$193,350

Payments are $36648 Months

11 cars

15,000 each


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1. Lose -$165,000 by paying cash (without calculating opportunity cost)

2. Lose -$193,350 by financing

3. Have over$700,000 tax free!

All by doing exactly what she most likely will be doing anyway..buying cars the rest of herlife!


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On a scale from 1-10

If I could show you how to recoup the costof every purchase

Pay yourself the interest normally paid tothe banks

Increase your net worth dramatically overthe years

All on a tax advantaged basis

Where would you rankmy services?


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Our next meeting.

We will discuss the data your input on thedata gathering Ill give you or email you.

Talk further about ourconcepts, answerquestions

Give you an educational assignment

Plan a time for our next meeting

circle of wealth presentation

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