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The power of the Four Essential Strategies for Long-Term Wealth Creation combined are simply amazing! These strategies combined will drive explosive growth in your returns. This is the “magic” that enables you to reach your goals many years earlier.
Five Examples using different types of accounts, size of portfolio and fee structures will illustrate the power of Compounding Your Compounding:
Example 1: Mutual fund with embedded trailer commissions of 2.5% vs. a 1% Fee in a
non-registered account.
1 million dollars:
Savings from advisor fee difference: $395,291
Savings from fee difference and deductibility: $565,266
Savings from passive vs. active management: $790,582
Savings from better decisions based on plan: $395,291
Total Impact of Savings: $ 2,146,430
Core Portfolio Value: Your initial 1 million dollars invested at 6% over 30 years equals
$5,743,491 times 5% annual payout equals
$287,175 in annual income each year to you. BUT WAIT! THERE IS MORE!!
By using the strategies in this book you will have saved an EXTRA $2,146,430 times a 5% annual payout means an EXTRA $107,322 in annual income each year for you to spend EVERY YEAR for the rest of your life!
Example 2: Fee-based account at 2.0% vs. 1% Fee in a
non-registered account.
3 million dollars:
Savings from fee difference: $1,185,873
Savings from deductibility: $675,948
Savings from passive vs. active management: $1,185,873
Savings from better decisions based on plan: $1,185,873
Total Impact of Savings: $4,233,567
Example 3: Fee-based account at 2.0% vs. 1% Fee in a
registered account.
3 million dollars:
Total Impact of Savings would be $3,557,619
The only difference between Example 2 and Example 3 is that in a registered account, there is no deductibility for fees.
Example 4: Fee-based 2% vs. a Flat Fee of $28,000 for
Truly Comprehensive Financial Services. Non-registered account.
5 million dollars:
Savings from fees: $1,739,280
Savings from deductibility: $991,390
Saving from passive vs. active: $1,976,455
Savings from better decisions based on plan: $ 1,976,455
Total Impact from Savings: $6,683,580
Example 5: Fee-based account at 2% vs. a Flat Fee of $28,000 for
Truly Comprehensive Financial Services. Registered account.
5 million dollars:
Savings from fees: $1,739,280
Savings from deductibility: $ 2,691,141
Saving from passive vs. active: $1,976,455
Savings from better decisions based on plan: $ 1,976,455
Total Impact from Savings: $8,383,331
IMPORTANT NOTE:
Notice that the $6.6 million saved in Example 4 and the $8.3 million saved in Example 5 are GREATER than the original 5-million-dollar portfolio! This happens because of the increasingly greater benefit of paying a flat fee as your portfolio size grows. The greater the size of your portfolio, the greater the impact of the low flat fee in creating exceptional wealth for you.
What does all this compounding of your compounding mean for your CASH INCOME from your portfolio? It means an
EXTRA $100k, $210k or $420k per year in spendable income without touching your principle! This is income on top of the income you would be receiving from your core portfolio. (Numbers came from Example 1, Example 2 and Example 5).
The Power of Compounding Your Compounding Means:
Several EXTRA Vacations per Year!
How about a NEW CAR every year?
Remember, you have already covered all of your financial goals and all your living expenses with your core holdings. This money is EXTRA INCOME from using all four strategies!
What if you got tired of going on vacations or buying cars? What would you do with the EXTRA INCOME? Would you give it to your church or a charity? Would you give it to your kids or grandkids? Isn’t this a REALLY FUN PROBLEM?
WHY IT IS IMPORTANT TO PAY ATTENTION RIGHT NOW:
You have to pay attention to the fees because they can be worth $395,291 over 30 years.
You have to pay attention to deductibility because it can be worth $ 565,266 over 30 years. You have to pay attention to passive investing because it can be worth $ 790,582 over 30 years.
You have to pay attention to the rest of your financial decisions because they can be worth $395,291 over 30 years.
So, what seem like tiny decisions are actually MILLION DOLLAR decisions!
Years Earlier
Throughout this book we’ve been telling you that your financial independence (Financial Freedom Day or whatever term you choose to use) can come years earlier if you use the strategies in this book. The following illustrations show the dramatic differences in the time it takes to achieve your goals using the strategies we’ve outlined.
Using the numbers in Scenario 1, it would take you 55.4 years to grow 1 million dollars into 10
million dollars using mutual funds (assuming an annual contribution of $20,000). By dropping the fees to 1% you would achieve the same 10-million-dollar goal in just 36.7 years. That is an 18.7 year difference! Nearly TWO decades sooner!
On a 3-million-dollar portfolio, the difference is 11 years! Do you really want to work an extra
decade? Or would you rather have the choice to keep working or do something different with your skills and time?
You might be asking yourself, “Where do I find the right Financial Consultant near me who charges a flat fee and will treat me fairly?” “Where can I find an advisor who can create an Integrated Aligned Overarching Strategy?” or “Where can I find an advisor who will only invest my money in proven passive investments? We suggest that you interview several. You’ll quickly learn that there are very few who are fiduciaries, believe in passive investing and have a process to create an Integrated Aligned Overarching Strategy. When you do find the right advisor, you’ll be able to relax in the knowledge that you are in the right hands and that your financial future is secure. Feel free to reach out to me with your questions. I’m committed to investor education.
Dean Kendall is a Financial Organizer in Calgary, handling all of the financial affairs for a select group of clients who value unbiased quality advice for one simple flat fee.
His book - Stop Paying Hidden Investment Fees! Click here for more information https://www.ideallifeexperience.com/Stop-Paying-Hidden-Investment-Fees
Newest book - Becoming The Champion of Your Dreams: How to Set and Achieve Your Most Important Goals Click here for more information. https://www.ideallifeexperience.com/Becoming-the-Champion-of-Your-Dreams
In addition, Dean is a 3X Canadian National # 1 Amateur, a 5X Canadian National #1 Professional BMX rider, downhill mountain biker and an avid snowboarder. He is an expert at winning. Let him show you how to win the money game. You can reach Dean at dean@ideal-life-experience.ca or Phone 403-543 -7226
©Copyright 2008 – 2022 by Dean Kendall. All rights reserved. 403-543-7226
dean@ideal-life-experience.ca