tag:blogger.com,1999:blog-9139191744337994512.post6757585866909427490..comments2023-10-09T02:36:16.771-07:00Comments on The Financial Advisor Netzone: Correction to TJ Walker Webinar And The Rule of 2.5TDhttp://www.blogger.com/profile/03368416068466754070noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-9139191744337994512.post-9442981309774716532008-03-07T11:57:00.000-08:002008-03-07T11:57:00.000-08:00TD,I'm not sure whether you can ever have enough, ...TD,<BR/><BR/>I'm not sure whether you can ever have enough, but I tend to look at this problem a bit differently... <BR/><BR/>The way I present this to clients and prospects is "if you don't earn it, someone else will"...<BR/><BR/>Whether it is settling for a 1% savings rate at the bank, getting a 3% fixed annuity rate, or a 3% tax-free muni... I always look for where people can earn "just a little bit more" so that, if the bad thing happens, they have enough resources to take care of themselves...<BR/><BR/>What if they don't need any extra?? Well, I still say that they should NEVER settle for less than they could earn while taking comparable risk... For example, if the savings account is paying 1%, why not purchase a Money Market Mutual fund (like VMMXX with a current yield of 3.56%) instead??<BR/><BR/>The fact is, if the client isn't earning the "easy money", all they are doing is giving the money that they didn't earn to the bank, insurance company, etc because I can tell you this for certain... The bank IS earning the highest rate THEY can get...<BR/><BR/>Here's another anecdotal "factoid"... As a guy that charges advisory fees to manage portfolios, I often find that the majority of my "fee" can often be funded by simply earning the extra bit as I've described above... That way, the client isn't worried about how much they pay me because I can show them the math that proves that they are doing better with me than without me...<BR/><BR/>Try it, you'll like it ;-)Anonymousnoreply@blogger.com