I met with a client and was able to take their rate of return from 3% up to a fixed 12% interest rate on their investments. I want to tell you how to do this, because I help you create wealth. Creating wealth allows you to stop trading your life away for money and do the things that matter. That’s really as simple as it gets. Making your money multiply at a higher rate will help you get there faster. I’ve helped countless clients do exactly this. I want to share the story with you.
The first meeting I sat down with this person and reviewed their investments. This family had about $500,000 in an old 401k. They knew that the money was not going to last the rest of their lives, let alone help them achieve their goals and dreams. After talking with them I learned that they had some health challenges in the family that were creating some pressure and limiting the amount of time they’d have to really enjoy their time together. It was a sad situation indeed and on top of that, their investments weren’t really helping. We talked goals first. What would you like life to look like ideally? Why? What does that mean to you? Those are the types of questions I asked. We didn’t talk about investments, asset allocation, market performance, or anything like that really. I got to the point that I understood their goals.
What do you have now? They had half a million in a 401k and no idea what to do with it. They could roll it over and had already talked to a financial advisor about doing that, but they knew he couldn’t solve their problem. I looked at it and found out they were going to pay hundreds of thousands in fees over the next several years. Next I calculated the annualized rate of return on their current investments, minus fees. It was not great and it was going to run out within just a few years of retiring. Crazy right? $500k would run out in a matter of years! The last thing I checked was the dividend yield produced by the account and it was less than 1% after fees. This would pay them a few hundred dollars per month in dividends. So they basically had two options: 1. Sell off for income and run out of money. 2. Don’t sell and don’t run out of money, but live off a few hundred dollars per month in dividend income. This is what I call lose-lose. Well technically someone wins (Wall Street).
How I increased their rate of return. The first thing we did was we rolled the money into an SDSK (Self-directed Solo 401k). This literally got rid of the hundreds of thousands they’d pay in fees and lowered it to $300 per year flat. This also allowed them to invest their 401k into real estate. I shopped a few private lending opportunities for them and found a mobile home park that was fully secured and paying a 12% fixed annual interest rate on a 10 year term. We reviewed the documents, the deal, and numbers and decided this one was the right fit. It costed them $0 to lend their money to an investor (as should ALWAYS be the case, even if the investor is Wall Street). Their return went from 3% after fees up to 12%. We then took the income payments and invested them into a Whole Life Insurance policy inside the 401k. This strategy allows the income payments to be leveraged, lock in the buying power of the dollar (inflation proofing the money), guarantee growth, and allow us to use the money in 4 places at once. Next, we borrowed against the cash value inside the 401k at a 5% interest rate to do another private lending deal at 7.5% on a 9 month term. The income from the deal would pay the account back with interest, supercharging the growth.
We took $500k earning a 3% rate of return and got a 12% rate of return with no fees and then took the income payments and earned another 13%. How? The life insurance pays a 6-8% dividend, the inflation adjusting is worth about 4%, and the real estate deal pays 7.5, minus their interest of 5% (which increases their life insurance dividend anyways).
I’d like to show you how to do exactly this. I am an expert at what I do and nobody does it the way I do it. If you have $50,000 I can do this for you. If you don’t have $50,000 to invest, I have programs that will teach you to make enough money to save $50,000 and I even have programs for you to save with!
First, I want to show you where you’re at financially with my Wealth Potential Analysis. This is a 37 point assessment that will help you measure your wealth potential and help us determine the exact steps that need to be taken to help you build wealth faster. Click here and you will be led to my contact page. Submit a contact request and my team will reach out to you and deliver your Wealth Potential Analysis for free over the phone.
Own Your Potential,
Jerry Fetta
Grant Cardone Certified Coach
Jerry Fetta helps his clients make money, keep it, and multiply it.
He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf.
His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.
To get started, go to www.WealthDynamX.com/potential
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