After success in the lower categories, Lauda bought his way into Formula One in 1971, against the wishes of his well-heeled family, by way of a bank loan secured against his life insurance policy, and started his career with March. This is just one example of how having access to capital might just change your life, if and when the the right opportunity presents itself. (Read the full article)
Having access to capital is a key point to the philosophy of the Private Reserve Strategy – what is the “private reserve strategy”?
Let me first explain that the Private Reserve is a strategy not a product. There is little chance that any one product will make you successful financially. How you manage the money that will go through your hands will have a greater impact on your success than where you put it.
The Private Reserve Strategy is a strategy designed to help develop or improve one’s financial position by helping them avoid or minimize unnecessary wealth transfers where possible, and accumulate an increasing pool of capital that provides accessibility, control and uninterrupted compounding.
In addition to minimizing wealth transfers, there are three key points to the strategy:
- You save or accumulate an increasing pool of capital over your lifetime. You must save money.
- The money you save has to be accessible. Many people have large sums of money; however, it is often in accounts or investments where they can’t get to it. No access to capital puts stress on your financial position.
- The money being saved needs to be in an account that offers uninterrupted compounding interest. Compound interest works best over time, uninterrupted. There are many accounts where one’s money could increase but few that actually grow from compounding.
The Circle of Wealth® has several presentation tools that can help you explain the private reserve strategy and why your prospects and clients will want to make sure that they have these three key points working for them as well. Watch our client-ready marketing video: The Private Reserve Strategy
About the Circle of Wealth®
The Circle of Wealth® focuses heavily on communication strategies; and we know if you can communicate with your clients so they truly understand your solutions they will, in turn, be better able to trust your advice.