Having your clients set aside money on a regular basis, and doing it as early as possible, can have a tremendous impact on their accumulation value. The chart above shows how as little as $100 a month can grow, given enough time. It also demonstrates the high cost of waiting.
Many of your clients will spend unlimited time trying to save a quarter percent on their 30 year mortgage. While they understand how big of a difference that makes over 30 years on their mortgage, they don't always apply that when trying to accumulate wealth. The Rule of 72 says if you divide 72 by your rate of return, that tells you approximately how long it will take your money to double. If you average an 8% return on your accumulation, your money will double every 9 years.
The chart above illustrates why your clients need to strive for the best return possible.
Nothing disrupts consistency or rate of return, like a 30 - 40% loss on your client's accumulation value. Equally important, your client needs to understand the return necessary, just to get back to where they were. If they suffer a 50% loss, they need 100% gain, just to get back to even. The chart above shows the true impact of losses on an accumulation account.
Until recently, many managers have required $100,000 - $250,000 to open accounts. Now, through Registered Investment Advisors (RIA's) and their Investment Advisor Representatives (IAR's), they've been able to bring Wall Street to Main Street.
While we are non captive, and you are free to associate with the Broker Dealer or RIA of your choosing, we highly suggest looking at First Advisors National, LLC (FanAdvisors). At FanAdvisors you have:
Contact us for more information about the NMP/FAN partnership.
Investment Advisory Services Offered Through First Advisors National Investment Advisors, LLC (FANAdvisors). Noble Marketing Partners, LLC and First Advisors National Investment Advisors, LLC are separate entities which do not offer legal or tax advice.