Alternative Investments

Alternative Asset Growth

Should alternative assets be part of your financial portfolio? Most people are familiar with traditional growth vehicles like:

  • The stock market
  • CDs
  • 401ks
  • Annuities, etc.

Alternativve InvestmentsHowever, were you aware that there are alternative ways that offer a host of benefits that traditional investment vehicles do not, such as:

  • Not subject to market volatility
  • Fixed interest rates, not variable
  • Minimized risk of loss
  • Double-digit ROI
  • Easy to fund
  • Collateralized

If you happen to have money just sitting in a bank account, if you have recently received an inheritance or settlement, or if you have a 401k/IRA, you could be in a position to turn that money into more money!

The Rule of 72 

Have you ever wondered how long it will take to double your money? This should be one of the first things you think about when strategizing the growth and structure of your nest egg.

Being able to project one’s financial growth is very important. The interest rate you receive can often be a final deciding factor on whether or not to place your money in that particular vehicle.

There’s a very easy calculation called “The Rule of 72” that tells you exactly how to project this. You take the number 72 and divide it by the interest rate you are getting. The resulting number will tell you how many years it will take for the principal of the instrument to double due to compound interest earnings.

Rule of 72EXAMPLE: If you have $10,000 in a savings account earning 1%, it will take 72 years for that $10,000 to become $20,000. (72 ÷ 1 = 72)

Whereas, if you had that $10,000 in an instrument that earns 10%, it would only take 7.2 years to become $20,000. (72 ÷ 10 = 7.2)

The lesson that we learn is that if you want to grow your wealth, looking for financial vehicles with higher interest rates can assist you in reaching that goal. Letting your money sit in the bank is the SLOWEST way to grow money! IF you can even call that growth! (inflation eats away at stagnant savings accounts by reducing the buying power of the money by 1-2% each year)

The Banking Deception

Leaving money in a checking or savings account is not the healthy way to grow wealth and that certainly is not the way the wealthy grow their wealth! Of course, that is probably something you already knew. But give some thought to your savings. Where do you have it? In a bank? Do you have your money there because you feel it’s safe and secure? The supposed security of a bank is a marketing trick and always has been. Vaults, big foyers and high ceilings festooned with chandeliers flanked by marble floors and columns are all very impressive. But what does that do for your money?

Banking secrets“Well, my money in the bank is secured by the FDIC!” you say. True, that is a layer of security. If your branch goes insolvent, as well as the whole franchise, the government has said: “we will make sure you get paid your money back up to $250,000.” But what if you had more in the bank than that? Many do. Perhaps you’re one of them. And another thing to think about, if a large bank goes down in such a way that the FDIC is triggered, that likely means the economy is doing the exact same tanking—hurting all market investments from stocks to mutual funds. Is there a guarantee for your money that is invested there? No. You assume the risk.

The other illusion of financial institution security is that they always “have your money.” They don’t. Banks are allowed by the government (and they are the only ones allowed to do this) to lend out money they DON’T have. Fractional reserve banking allows for FDIC insured institutions to lend up to 10X what they actually have in the vault collected from depositors such as you and me. This puts the risk on your deposits.

Your money is being used as collateral for the bank to lend out more money. Did you give willing permission for this? Where’s your cut of the deal?

For all that risk you aren’t even aware you are taking with the bank and its borrowing practices, they sure don’t compensate or reward you for it. You get maybe 1% for your savings account; maybe 2% for a CD, and when you want to borrow money from them, they add insult to injury by requiring you to get a credit check and pay a much higher interest rate than they will pay you for lending them your money!

“But banks need to make money!” you may say. Of course. We are a capitalist country after all and enterprises need to charge more than they spend. That goes without saying, in fact. However, here is the unfortunate naked truth: Banks are ripping you off. Bigtime!

Do you know what banks do with the money they have on their books? They grow it. “In what types of vehicles?” you’re asking. The money banks borrow from others is used to lend to you and me. But the money that is deposited with them (your money) is diversely sequestered into stocks, bonds, life insurance, debt, real estate and more. Banks don’t keep “their” money in their own bank. What should that tell you? 

Banks make profit off of your money while you sleep. And then they have the audacity to charge you to use some of theirs.

So the real trick is to find a financial instrument with a high interest rate so you can double your money sooner—just as the banks are doing—but also, an investment that is safe, de-risked and does not risk you losing money.

Not to worry! The purpose of this blog is to tell you exactly how you can get double-digit ROIs in one of the safest ways possible! Alternative asset growth vehicles can fit that bill.

The Questions In Your Head Right Now…

There are two commonly asked questions we hear when presenting a client with education on a financial strategy that may be new to them. 

Question 1: Is my money safe?

Question 2: What will my money be used for?

Is my money safe?

Short answer, yes! 

Are alternative investments safeAlternative growth vehicles include private equity, precious metals, commodities, collectibles, cryptocurrency, etc. Direct Lending is one of the legs of the private equity market. Direct lending, in North America alone, is a $70 billion industry. 

Historically, this side of investing has been reserved for large wealth management firms and the ultra-wealthy. Do you think it possible that they know something about monetary growth possibilities that the rest of us don’t? You bet they do! The ultra-wealthy are just as concerned with safety as you and me. So let’s take a further look at why this can be a safe, sought-after tool.

How is your money kept safe in alternative assets?

    1. Alternative assets are not a “stock market” vehicle, so there is not the same kind of risk of loss associated with the market. When you invest in the stock market, you assume all the risk. With an alternative asset, the risk can be substantially mitigated.
    2. Your returns are mostly based on income-generating assets (non-speculative) which is how you can earn a FIXED, not variable, ROI. This takes the question of “How much will I make?” out of the equation. This is growth you can calculate!
    3. They are secured by additional layers of protection, multiple levels of oversight and/or collateral.
What will my money be used for?

Return on InvestmentThat’s a natural question. In this type of vehicle, funds provided by the lender (you) are used by the borrower to facilitate higher returns in a number of ways. They could be used:

    • To physically improve the assets in the portfolio granting the ability to generate higher income on assets that charge rent or other usage fees
    • The acquiring of new assets to increase the value of the borrower’s portfolio
    • Funds could be further used in other traditional or alternative vehicles. As we’ve learned, money sitting in a bank account is one of the least productive things anyone can do financially. The banks themselves don’t even do that.

So how is it possible to have a fixed-rate ROI that’s safe and also double-digits? Isn’t that breaking some financial law of thermodynamics or something?

Let’s put it this way. Imagine you could buy goods from the manufacturers themselves instead of from stores. Likely, whatever you are buying would be cheaper as you have “cut out the middleman.” The same principle applies here. In the private lending market, financial middlemen—like the banks—are cut out, saving on costs and thus people like you and me benefit from the much higher ROIs.

Banks use these types of things all the time and skim most of the profit off. Ever wonder how no matter what the economy is doing the top-level bankers always get huge bonuses? That’s how. This is the secret that the wealthy already know and is now being passed on to you!

Your Financial Success Is Right Around the Corner!

Now that we have explored those two questions, would you like to know how your financial strategy could benefit by adding this type of vehicle into your portfolio? 

The proprietary alternative assets we provide education on may feature:

  • alternative investmentsFixed interest rates (or a hybrid of fixed + variable)
  • Double digit interest returns
  • Ability to use cash or qualified funds
  • Choice in term length (product dependent)
  • Monthly cash flow plus a bold annual bonus (product dependent)
  • Quarterly cash flow plus fund profit sharing (product dependent)
  • Conversion to stock option (product dependent)
  • Tax-deduction (product dependent)

Could you benefit from an additional monthly cash flow?

Would you like to receive “stock-market returns” without the variables associated with the stock market?

Does a fixed interest rate with growth you can calculate appeal to you over a fluctuating, variable rate?

Contact us for more details on these alternative assets. You will be amazed at the opportunities out there to help you generate your wealth. Live your dream life. Start right now. Click here to set up a FREE consultation!

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