Understanding Wealth Transfers

WHEN MIGHT KEEPING UP WITH THE JONES MAKE SENSE??   When they participate in the PFP program to learn how to diminish MONEY TRANSFERS so money can serve the real wealth in their life and not just enhance the lives of those who know the secrets of wealth creation.

Our PFP philosophy revolves around empowering people in their relationship with money and having money serve the real wealth in your life.

You can’t have money serve you if it is serving other people or it is being inefficient in how it is working for you. SO we need to look at TRANSFERRED MONEY.

So what is Transferred money?  Transferred money represents the money you may be transferring away unknowingly and unnecessarily. Obviously, if you knew where the transfers were taking place you would have already solved those problems.

THERE ARE LOTS OF AREAS WHERE PEOPLE HAVE MONEY TRANSFERRED AWAY FROM SERVING THEIR LIFE AND INSTEAD SERVES THOSE IN THE KNOW WHO ARE ABLE TO TAKE ADVANTAGE OF YOUR BLIND SPOTS WHEN IT COMES TO HOW MONEY WORKS

HERE ARE 22 of them1

Major Wealth Transfers

You notice Asset management fees circled in orange.   Let’s examine why this can be a major Wealth Transfer and how being a member of the PFP program will help you eliminate them regarding how you manage your money (or have others help you do this critical task)

This is why we brought in Wealth Net Advisors as part of the PFP program.   It is critical for you to have help with making sure you are doing the right thing for your risk tolerance with your nestegg AND it is also important that you don’t transfer large chuncks of that nestegg away with management fees.

KEEPING UP WITH THE JONES   We have determined with the PFP program that we need to help with a major money transfer.  If you are currently having your nestegg managed by a money manager you are doing so because you want to not transfer money away because of loss to the ups and downs of the market and you realize you don’t have the skill or time to do a good job yourself

So what are the fees typically charged to do this job.   They range but in our example we will use 1%

Keeping everything the same,  here is an example of the huge money transfer that can happen in using traditional money management and paying traditional money management fees.


Is this a major wealth transfer in your life?
FEES alone can make a major difference

jones1

Above shows the impact on DISTRIBUTION but what about the impact on GROWTH?

jones2

This depicts a linier model where annual rate of return is 7% each year.  Annual contribution increases by 3% a year but the fees remain the same on the portfolio.  Keeping up with the Jones has new meaning when it comes to wealth transfers. In this case the difference over 25 years is 826,892.75  This is a good example of wealth transfers.

The question is — WHO ARE YOU TRANSFERRING YOUR WEALTH TO???

We suggest you subscribe now so you can get started


1Courtesy of MoneyTrax Circle of Wealth Program which identifies 21 of these. Our additional 22nd was added after a discussion with Money Trax owner Don Blanton who understood our argument that management fees are another major wealth transfer (see above for original 21) click here to see original 21