bran987 said:
Well, Starbuck's doesn't franchise... they only have company owned stores... McDonald's is of course the most famous Franchisor..
Yes you're off on the bank spreads, but that doesn't really matter. Yes they do profit, they take in deposits at one interest rate and loan it out at a marginally higher rate. That's how banks exist.
You're definitely a salesman lol, you can feel it even in your posts
I'd imagine you're pretty good in person.
How is looking at things annually vs. monthly complicating things? Isn't it just a matter of multiplying or dividing by 12? I mean I've taken dozens of finance and accounting classes... we always look at things either quarterly or annually... I understand you can look at something monthly... weekly... you can even compound interest daily (or continuously!) but the time interval you're analyzing is independent of your DTI... that's a constant.
I'll hit you up on AIM to talk more. Hell, can't hurt.
You have the mind of a damn engineer! LOL.. you're so damn stubborn.. haha.. I can assure you that I am not off with the bank making 12% return off YOUR money.. That is a modest estimate, at best. lol..
Why look monthly?? Welllllllllllllll.. aren't most installment loans and bills paid on a monthly basis? ah haaaaaaaa.. I see.. haha, bro, why multiply by 12 when you don't have to? Why look quarterly just b/c companies do quarterly reports.. Well, you're not a big company yet, you don't have that luxury, you need to look monthly, b/c essentially your expenses are based on a monthly time frame. You get down to the dirt and take away all your expenses and whatever you have left at the end of the month is your surplus. First, you must have proper protection, proper insurance. yeah, you'll buy car insurance for your car b/c you have to have it to get your tags, and yeah you'll buy homeowners insurance because you HAVE to have it, and hell you'll even buy a damn warranty on a friggin tv but you won't insure YOUR LIFE?!?!? Where's the logic? HOW COULD THIS BE? THis literally kills me, it puts me in tears man...
Anyhow, after you have a surplus (and properly insured based on 10 times your annual income) you then maximize your tax benefits, IE, dump more money in life insurance. After you maximize your tax benefits you sustain your emergency funds (which should be 3 times your monthly expenses) THEN you worry about investing. haha, people try to invest these days WITHOUT insurance, WITHOUT emergency funds, and WITHOUT taking in consideration tax benefits.
Look, the gov't looks at life insurance like this. Ok, this person is responsible enough to buy life insurance so that means I won't have to support his ass when he gets old. I"ll give him a tax break on any money he spends towards life insurance. Welllllllll, if you're smart you'll open up the maximum 4 policies per person per company. The fact is is that you can own 4 policies per SOCIAL SECURITY NUMBER per company.. hehe.. that's right, I can buy a life insurance policy on you as long as i have your social and you sign the agreement. Of course if it's under $99k in coverage you won't even have to take a health exam with the main company I use since you are so young.
If the gov't gives you an inch you take a damn mile damnit. THAT is how you build an estate.
And if you're worried about what that money is doing in your life insurance policy well we have a couple options. 1st, our flagship product called an Equity Index Universal Life (EIUL for short). An EIUL is a universial life insurance policy and it guarantees your principle plus 1% in writing. The only down fall is that you are capped at 12.5% ror. The EIUL is based on the S&P 500. The S&P 500 has averaged 12% over the life of the index. The S&P 500 isn't going down anytime soon and if it does, you're still guaranteed 1%..
or
Our Variable Universal Life policy is awesome. There is no guarantee in writing for your principle but the subaccount for our VUL is the Clarion REITS Real Estate Mutual Fund. Which is secured by trusts. I just looked at my statement the other day, I have been averaging 40% ror over the past 7 months, not bad for tax free money.
How does it work out being tax free? here's how..
You overfund your policy. For example, my cost of insurance right now is only $22.50 on one of my policies. My target premium is $140/month. The $22.50 goes directly to the insurance company the remaining money is then put in a subaccount. The subaccount undergoes beautiful compound interest and the money grows nicely. Yes, you will pay a penalty if you want to access the money within the first few years. However, later down the road after the first 7 years, you may 'borrow' money from your policy. Legally this 'borrowing' is actually a loan. Here is how the loan works. You contact the insurance company and let them know that you need to 'borrow' some money. The insurance company then takes whatever amount of money you need out the cash value in your subaccount and places it in another account. They 'lend' you the specific amount you requested. They then charge your subaccount 1% interest for the loan but then then credit the other sub account that same 1% thus making it an even transaction. This makes it a legal loan according to the IRS. Brilliant isn't it?
Oh, and by the way Starbucks is a franchise. They don't franchise out to Uncle joe and Aunt Susie, but they are franchised out to different trusts. They are owned by different entities
T-Matt
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