Disclosure. Regulators demand it right? Well why don’t we take a look at how well it is working for the average client. We’ll walk through eleven secrets Wall Street is doing a great job of keeping from investors. Now, if you use this information correctly, how are prospects going to look at you for pulling the curtain back on the evil wizard?
I’ve used these secrets to do just that on my way to making $1 million a year. Now you’ll be able to use them as well!
- We prefer you not know about any of the fees… but especially about the hidden fees—According to a study done by Wake Forest University and the University of Florida… the 30 largest mutual funds would have to increase their published expenses by 43% if they included the hidden fees, like turnover costs.
- Half the time stocks don’t keep up with inflation—Did stocks keep up with inflation from 2000-2010? Nope.
But here’s something most people don’t know… for the 17-year period from 1965 to 1982, the value of the dollar dropped significantly. What $100 bought in 1965 would have cost $311 by 1982 and yet $100 invested in the Dow in 1965 would have been worth only $97 by 1982. That means the market lagged inflation by a full 67%.
From 1965 to 2015—over that past 50 years
- 17 years (1965 to 1982)
- 10 years (2000 to 2010)
In 27 of the past 50 years… stocks did NOT keep up with inflation.
- Average rate of return is a big lie if you have to take income from your investments. If you are pulling income from your investments, it all comes down to the sequence of the returns you receive to make up your average rate of return. Big returns early on… fantastic! Low returns early on… disaster!
- If you stay in the stock market for the long-term, you’ll be OK. Wrong.
If this were really the case, the brokerage houses could Double their profits.
They presently make say 1% per year on expense charges. How many of your clients would want a guaranteed 6% annual rate of return for the next ten years? A lot of them!
So why don’t the brokerage houses come out with a product Guaranteeing the client 6%? If they know that over the next ten years that the market will be 8% per year…they could make 2% vs. 1% on all the investments.
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