Sound Investment Strategies - Most Approaches Miss the Major Point
Sound Investment Strategies are few and far between. The reason is that most financial strategistsare merely brokers of financial products. Thus, their "investment strategy" is limited to "rate of return relative to risk." Almost universally, "return on investment" is the sole goal of product-oriented financial planners.
However, sound investment strategies must focus on more thanthe investment-side of the personal financial statement. Even more important than "return on investment" are the "outflows" and "erosions" on the expense-side. Often unnoticed, ongoing "costs of investment" (taxes, inflation, commissions, fees, interest, opportunity cost, etc.) have a greater effect on overall financial success than the annual return on the investment portfolio.
Sound Investment Strategies - Sounds Too Good to be True
Sound investment strategies must revolve around a service-oriented, holistic approach to understanding and accomplishing your financial dreams. Sound investment advisors incorporate financial systems that address both investments and costs in an effort to build your wealth faster with no additional risk or out-of-pocket expense.
At Personal Equity Institute, we believe sound investment strategies should begin with an analysis of your overall financial statement (income and expenses)in order to properly start the process of lowering your costs relative to your investments. You will learn our “Be the Bank”™ Process, which will show you how to leverage your own money like a bank and safely borrow funds for major life purchases. You may borrow at one rate and put the money to work at an effectively higher rate. You can manage your home mortgage and equity to create liquidity and make your mortgage interest truly work for you. You can structure a series of whole life insurance policies to act as a self-financing network, which utilizes your money and the interest you spend on major life expenditures in a safe and proven way that builds personal wealth, tax-free!
These are just a few examples of sound investment strategies in today's marketplace. We encourage you to dig in and investigate these powerful financial concepts for yourself.