Walk the client step-by-step through the Private Reserve funding strategy concept. |
So let me introduce you to the Private Reserve Strategy. It's quite simple. You have money in your private reserve, in an account you have access to that you can collateralize. You need to make a major purchase or have an investment opportunity. You go to a financial institution. They give you an amortizing loan. They take a collateral position against the money you have and loan you the money. You have structured principal and interest payments back to the financial institution. Notice, your money is still in your tank, still earning compound interest even on the amount of money you have collateralized. You do that over and over and that gives you use and control of your money to do whatever it is you need to do, whenever you need to do it. [Click on the word Collateral to have the lien disappear.] Not all purchases will require that you give up collateral capacity. Being able to make major capital purchases without giving up collateral capacity is preferred when available. The goal of this strategy is that you continue to earn compound interest on collateralized funds. |
No math presented on this screen. |