September 13, 2020 - By: Brandon Jenkins
The interest rate on an investment or financial product is important, but it’s not the only thing that matters. It’s one principle of financial strategy among many that should be considered before committing to a financial course of action.
There is more to financial strategy than searching for the highest rate of return on a given investment.
Always searching for that extra 1-2% on your investments? Maybe your time and energy would be better served if you would take a more holistic approach to your finances.
The principle of control in the context of financial strategy refers to the level of influence you have over the performance and/or the use of your money; whether it be the growth of your dollars inside a financial product, or just the ability to determine how those dollars are utilized throughout your life.
When deciding where to store your money, or where to invest, you need to consider how important the principle of control is to you.
Am I going to have any control over how this investment performs?
When will I have access to my money?
Am I penalized for pulling my money out of this investment or product?
What types of assets can I purchase once my money is inside of the product or investment?
Who gets to decide what I do with my money once inside the product?
The level of control you have over your assets directly impacts the options you have when other investments and opportunities arise, or when an emergency hits.
Control = options.
How much control are you willing to give up in order to chase a higher rate of return?
What % of your portfolio is tied up in things that limit your options?
A sound financial strategy starts with a solid foundation of tier one assets. Building tier one assets is the first step to fortifying and protecting your wealth.
Tier one assets offer control over the use of your money and provide a certain level of guaranteed, uninterrupted growth with access throughout your lifetime.
As always, contact us with any specific questions or ideas concerning the use of your policy, or if you are interested in learning more about adding to your tier one assets.
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