The Safe Tank
As an analogy to the liquid nature of the flow of money, we use the terms Safe Tank and Risk Tank to specify places where accounts may reside into which we might place money.
Your Private Reserve Account
The funds in your Safe Tank are, with a very high probability, never going to be lost. Your Private Reserve Account is in a Safe Tank with a lid on it. Your money will not have a chance to evaporate out of this tank as it would if placed in more risky tanks.
Access to Capital is Key
How comfortable do you feel taking money out of the market? Is there ever really a good time? When a market is up, you’d like to leave money in, when it’s down, you might feel you want to leave money in to make up the losses. Wouldn’t you prefer never again worrying about it being up or down, knowing that you have an accessible reserve acting as a failsafe, growing in value no matter what happens in the market? Not having access to capital causes strain on an organization’s entire financial model.
Uninterrupted Compound Interest
An extremely important quality of your Private Reserve Account is having the money working for you with uninterrupted compound interest. Look at each word:
Uninterrupted: Even when you’re using money in the Private Reserve Account, the entire amount of funds in the account is growing without interruption.
Compound: The longer the timeframe allowed for growth in the account, the more the interest you’ve already received compounds – it takes time for compounding to happen.
Interest: We want the account to be working for you, receive interest, and be compounding that interest back into the account in a tax-advantaged manner.
There are many additional benefits a Private Reserve Account should provide, and you want as many as possible because your Private Reserve Account should be the hub of your entire financial model.
Let’s talk more about your Private Reserve!
Begin Journey – 931-526-4234