when your money is unemployed putting lazy money back to work
TRANSCRIPT
When Your Money Is Unemployed
Putting Lazy MoneyBack to Work
It’s Time For Your Money
To Get A Job!
Questions & ConcernsWe’ll Answer
• How does your money work?
• What happens when it gets lazy?
• Why do you put up with it?
• What’s your money doing now?
• How can you put it back to work?
Get Your Lazy Money Back to Work
• Market volatility is scary
• Money under your mattress earns nothing
• Money in the bank today earns very low yields
• Our goal ... put your money back to work in ways the bank can’t
• People don’t realize all the options they have
Money Worksin Two Ways
• It can earn interest
• Simple Interest
• Compound Interest
• It can purchase goods & services
• Make purchases
• Pay for services
Earning Interest
Money can be lent to someone or something, like a financial instruction. In return the lender earns interest for the use of the money. Interest can be earned as:
1.Simple Interest
2.Compound Interest
Simple Interest
Source: Investopedia.com
The interest is always
based solely on the
original principal
amount, therefore
interest on interest is
not included.
Compound Interest
Source: Investopedia.com
Interest that accrues on the
initial principal and the
accumulated interest.
Compounding of interest
allows a principal amount
to grow at a faster rate
than simple interest.
Rule Of 72
Divide 72 by Your Interest Rate. How Many Years To Double Your Money?
@ 0.50% = 144 yrs
@ 1% = 72 yrs
@ 2% = 36 yrs
@ 3% = 24 yrs
So It Does Make a
Difference!
Buying Stuff
• Money can be spent to purchases tangible and intangible property
• Money can pay for services that are needed
Money can be exchanged as trade for goods and Money can be exchanged as trade for goods and services:services:
Buying Stuff
It can purchase Goods & Services
GoodsGoods
• FuelFuel
• FoodFood
• ShelterShelter
• AutomobilesAutomobiles
• Etc.Etc.
• What About What About Investments?Investments?
ServicesServices
•Health CareHealth Care
•Home RepairHome Repair
•FreightFreight
•Auto RepairAuto Repair
•Lawn ServiceLawn Service
•Etc.Etc.
Why Does It Gets Lazy?
• Money gets lazy when:
• Interest Rates Are Historically Low
• CDs and Money Market
• It’s Not Used To Buy Stuff
• Sitting Idle Waiting For Implementation
Today’s Economy Promotes Lazy Money
• Historically Low Interest Rates
• CDs
• Money Market
• Inflation erodes purchasing power
CD Rates Will Go Up ... Eventually ... and Slowly
Even Though CD Rates Are Historically Low They Must Be Going Back Up Soon, Right?
Why It Gets Lazy
INFLATION:
When Money Is Not Earning Enough Interest To Keep Up With The Rising Cost Of Goods & Services It:
• Can’t Purchase as many goods
• Can’t pay for as much service
What’s Your Money Doing Right Now?
• Earning Interest?
• Savings, CD, Money Market
• Buying Stuff?
• New Car, Vacation Home, Invested
• Waiting For A Job Offer?
• Mooching off of you
Why Do People Accept Lazy Money?
•They want to:
• Keep it Safe
• Have Access to it
• Leave it to loved ones
They don’t know aBETTER alternative exists
Case StudyCindy D. Holder
• Financial Goals:
• Transfer to Heirs
• Guaranteed Interest
• Access if needed
• $100,000 — 1-year CD
• Earns 0.82% (National Avg.)
• Does NOT put her moneyin the bank
How Long To Double Your Money?
@ 4% = 18 years
@ 3% = 24 years
@ 2% = 36 years
@ 1% = 72 years
@ 0.50% = 144 years
Cindy’s CD?
72/0.82 = 87.8 years to double her money. She’ll be 152 Years Young!
Case StudyCindy D. Holder
Puts Her Lazy Money Back to Work!
$112,000 Initial Contract Value
$229,135 Tax-free death benefit
$3,145 Monthly Chronic Illness
$5,243 Monthly Nursing Home
$100,000 Immediate SurrenderValue
It’s Time For Your Money To Get A Job
Earning Interest
• Earn Bonus Interest Today!
• Earn safe & guaranteed interest
• Earn potential additional interest
Buys Stuff You Need
• A tax-free legacy
• Chronic illness protection
• Cover Long-Term Care costsMoney Back guarantee if you are not completely Satisfied!
Understanding theWealthy Family’s Secrets
Putting Lazy MoneyBack to Work