I am obsessed with end caps and infomercials.
Normal everyday items which offer just a little something more than the usual that have been enhanced in some way.
In fact, this why I named our firm “Enhance Wealth” as I’ve always been on the lookout for the “end cap” of investing strategies.
Malcolm Gladwell authored a national best seller entitled “The Tipping Point: How Little Things Can Make a Big Difference” explaining how a persons success or a company’s edge can result from just one small factor that makes a major impact over time.
But often these small differences are not noticeable until after it is too late to implement.
We are a nation looking for instant results.
Our determination if something works or not is often based on it’s short term results. If it displays a big difference quickly we feel good about it and will continue until it stops providing better results. If it doesn’t show obvious benefits immediately we often abandon it.
Ask the person trying to lose weight who constantly switches from one diet to another claiming each one doesn’t work.
Or the injured person who quits physical therapy too soon because they don’t make full recovery in the time they desire.
The reality is the smallest of factors that can go unnoticed are often the ones with the most influential impact on the end result, both good or bad.
A friend of mine is an airline pilot and recently told me that if he missed his flight plan by just one degree on take-off he would ultimately miss his final destination by hundreds of miles.
The smallest factors can make the biggest difference.
When it comes to finances there are 2 WAYS to put more money in your pocket:
1. Make More
2. Spend Less
This applies to all areas whether building a business, planning a budget, or investing for your future.
Let’s look at an example of this with our friend Bob.
Bob is investing $500,000 for his future.
Right now he’s in a plan that’s producing an after-expense growth rate of 4% per year. He estimates that based on this, his lump sum will become $1,621,699 in 30 years assuming no additional contributions.
But what if he was able to increase his return by just 1% a year while reducing his expenses another 1% for a net return of 6% annually.
This may not seem like much of a difference now but after the same 30 year period his money would grow to $2,871,746.
That is an extra $1,250,047 difference over the same time period for Bob to use for himself or pass down to his loved ones.
If you are looking for a “Tipping Point” to enhance your investment strategy and provide the potential for a dramatic impact to your future success feel free to give us a ring.
We would be happy to show you an new option, and help you … Stop the Insanity!
Disclaimer: This newsletter is a publication dedicated to the education of individual investors for informational service only. The information provided herein is not to be construed as an offer to buy, sell or hold a stock of any kind. All economic and performance data is historical and not indicative of future results.
There are many factors that affect investment performance including, but not limited to, general economic and market conditions including market volatility. There can be no assurance that these factors will affect future investment performance in the same manner as historical performance. All investments involve risk of loss. There can be no assurance that a portfolio will achieve its investment objective.
Advisory services offered through Enhance Wealth, a member of Advisory Services Network, LLC, 6600 Peachtree Dunwoody Road, Embassy Row 600, Suite 575, Atlanta, GA 30328. 770-352-0449 Insurance products and services offered through Enhanced Capital, LLC. Advisory Services Network, LLC and Enhanced Capital, LLC are not affiliated.
The opinions expressed herein are solely those of the author and do not reflect the opinions of Advisory Services Network, LLC or any of its other advisory representatives.