Universal Model
for
Personal Financial Success
The information presented is for illustration and discussion purposes only.
Before investing, you should discuss your specific situation with a professional
investment advisor.
 Spiritual
 Theoretical
 Practical
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Spiritual Foundation
1) Placing God First (Mathew 6:33)
“But Seek First his Kingdom and his
Righteousness, and all these things will be
given to you as well.”
2) Trusting God’s Provision
Be faithful, do not complain, and be
certain that God will provide for your
financial need.
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Spiritual Foundation
3) God’s Desire to Bless (Psalm 37:4)
“Delight Yourself in the Lord and He Will
Give you the Desires of your heart.”
4) Be Financially Responsive (Deut 8:18-20)
Acknowledge God, Follow his Commands
and Remember that he alone gives you
the ability to earn a living.
….For Where Your Treasure is, There Your
Heart Will Be Also…….Mathew 6:19-21
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Spiritual Foundation
5) Be Diligent (Proverbs 6:6-11,10:4-5)
Deligent hands, like the ant, avoid scarcity
6) Be Prudent (Proverbs 24:27 NLT)
“Develop your business first before
building your house.”
“The wise have wealth and luxury, but
fools spend whatever they get.”
Prov 21:20 NLT
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Universal Model for Personal Financial Success
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Practical Rules of Money
Albert Einstein Called Compound Interest
the most powerful force in the Universe
He Said, “Those who understand it will earn
it, and those who don’t will pay it”
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Practical Rules of Money
The Rule of 72 is the first rule of Money.....
This rule provides an estimate of the number
of years it will take for your investment or
cost to double based on an assumed rate
of return or interest.
72 / interest rate = est yrs to double invstmnt
For a 10% Rate of Return, you can expect to
double your investment in 72/10=7.2 yrs
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Practical Rules of Money
You Are Walking Down the Street and Find
$10,000. You Want to Use This Money to
Help Kickoff Your Retirement Fund.
What would You Do?
Type of
Investment
Rate of
Return
Amt
of Time
Investment
Value
New Car
$0
Savings/CD
1.3%
7 yrs
10,952
Annuity
5%
7 yrs
$14,180
Investment
Portfolio
10%
7 yrs
$20,079
$0
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Practical Rules of Money
Over the long term, the impact is much more
significant!!
Type of
Investment
Rate of
Return
Amt
of Time
Investment
Value
New Car
$0
Savings/CD
1.3%
55 yrs
$20,347
Annuity
5%
55yrs
$146,356
Investment
Portfolio
10%
55yrs
$1,890,591
$0
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Practical Rules of Money
Time and Consistency are the fuels that
drive Compounded Interest.
Start Investing @ Age 35
Invest $2000 per year til age 65 (30 yrs)
@ 10% rate of return
Accumulated Value = $328,988.04
You Put in $2000 x 30 = $60,000 But Your
Account is worth $328,988.04!!!!!
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Practical Rules of Money
What Happens if You Had Started 10 yrs
Sooner @ Age 25?
Start Investing @ Age 25
Invest $2000 per year til age 65 (40 yrs)
@ 10% rate of return
Accumulated Value = $885,185.11
Wow, start 10 yrs earlier, You Put in $2000 x
10 = $20,000 more money But Your Account
is worth $556,197.07 more!!!!!
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Practical Rules of Money
Motto: Invest Early and Invest Often
Don’t Delay, Start Now!!!
It pays to Start Early
If You Start Investing @ Age 25
Invest $2000 per year til age 34 then Stop
@ 10% rate of return
Accumulated Value @ 65 = $521,298.26
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The Value of Starting Now!!
Investing $2000/yr @ 10% ROR
Strategy
Start
Age
Stop
Age
Total
Invested
Acct Value @Age 65
Base
Case
35
65
$60,000
$328,988.04
Start
Early and
Stop
25
34
$18,000
$521,298.26
Start
Early and
Keep
Going
25
65
$80,000
$885,185.11
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The Value of 1%
Investing $2000/yr over 40 yrs
Rate of
Return
Acct Value @Age 65
Good
9%
$675,764.89
Better
10%
$885,185.11
Best
12%
$1,534,182.84
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Which would You Choose?
Bank A
• $300,000 Home
• 4% Interest
• $1432.25 per month
• Owe Nothing after
30 yrs
Bank B
• $300,000 Home
• 4% Interest
• $1000 per month
• Owe $300k after 30 yrs
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What You Do With The Savings
Makes All Difference!!
Choice
Rate of
Return
Acct Value over 30 yrs
New Car
0%
$0
Saving/Bank CD
1.3%
$190,190.94
Annuity
5%
$359,743.79
Investment Portfolio
10%
$977,095.90
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Life Insurance
A Key Wealth Protector
Bank A – Bundled Policy
Bank B – Unbundled Policy
 Insurance w Savings or
 Pure Insurance Only
Investment Wrapped In
 Cash Value Build Up
 100% Loss Yr1
 Cost to Borrow Savings
$500K Face Amount
$50
Per
month
$500K Face Amount
$100
per
month
$150
Per
month
Investment
Savings
Time
Time
For Illustration Only
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Reference Material
All The Financial Scriptures in the Bible by Rich Brott
The Intelligent Investor by Benjamin Graham
The 100 Absolutely Unbreakable Laws of Business Success
by Brian Tracy
Investopedia.com
The Motley Fool (Fool.com)
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The Future is Now!!
Presenter: Joe Sylve
Email: Joe.Sylve@Comcast.net
Phone: 404-579-4542
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