Emergency Fund The First Step to Wealth

http://otiscollier.myecon.net/opportunity-presentation.php Emergency Fund The First Step to Wealth Hello, this is June Collier your Corporate Network Marketer and today I would like to chat with you about saving up for a emergency fund. This is actually the first step to creating wealth. I have studied many experts on the subject of personal finances to include my two favorites, the late Larry Burkett and Dave Ramsey. They all advise that the first step to financial freedom is to start an emergency fund. Dave Ramsey recommends $1000 unless you earn less than $20,000 a year at which he recommends $500. My mentor, Mr. Ivey Stokes, advises that you really should have $5000 set aside as an emergency fund in today’s economy. Mr. Stokes is the founder of a personal financial literacy company called myEcon. Most people place their emergency fund in a bank savings account which is a cash equivalent type of investment. Cash equivalents are low risk low return investments that have high liquidity. This simply means your chances of losing your money is very slim, yet you will also not earn much in return as a investment. The liquidity simply means you can easily convert your investment into cash and do so quickly. Before we go into any further details about where to place your emergency fund, I want to take a quick moment to talk about the purchasing power of the dollar. The US dollar has historically dropped in value over time due to inflation. Inflation has averaged 3% for many years. As you will see in this diagram, a $1.00 in 1913 would have the purchasing power of a nickle in 2013. A better way of understanding is this, what costs a dollar today, would have cost 5 cents in 1913. So in order to maintain it’s value, that 1913 dollar would have had to grow to $20 to maintain the same purchasing power. Now what does this have to do with your emergency fund or any amount of money that you are saving and hoping to grow for the future? You should understand that inflation is working against you and if you are not at least earning the amount of inflation on your money, then you are losing money! Don’t be tricked into thinking that because you put $1000 in the bank and 12 months later you have $1001.20 cents that you made money. At 3% inflation, you would need $1030 to have the same purchasing power as you did the year prior! So if we go back to the savings rate of .01%, that means your $1000 sitting in that savings account will have earned $1.20 while inflation would have risen by $30. You are $28.80 short. Call/Text: 678-837-5863 Email: june@junecollier.com Join/Learn More: http://otiscollier.myecon.net/opportunity-presentation.php June Collier Corporate Network Marketer 678-837-JUNE (5863) Call me... I answer! http://www.junecollier.com/resources

Comments

1. as an "emergency fund" would you be able to, at any time, withdraw money for said "emergencies" and without penalties?
2. wow so much knowledge thanks for sharing
3. Funny how he avoids the expense ratio @0.53%
4. I m not near the knowledge you have, I have began to learn day trading stocks and options and learn whatever I can learn I thought of one stock I bought MCIG $,05, but not $5,000 but lets say I did that much which would of been a great investment that stock has gone over $,30 and at .05 would of acquire 100,000 shares  which had plenty of time to unload with smaller amount at a time and that $5,000 would grow to a nice $30,000 less than a year now I'm upset lol I was patient I made a profit on 25,000 but sold much less
5. History shows that the great depression shows that you should never trust the banks to all your fortune!!
6. great information! Thank you for sharing Mr. June. knowledge helps us make better decisions. Never learned any of this in school :(
7. I watched the 1st 1 minute of your tutorial and just HAD TO subscribe. I've learned more abt $ than anyone in my family told me.
8. ?4U, how liquid is this type of bond? I was told its best to have 3-9 mtns of expenses in an E-fund account; would it be prudent to park 1 or 2 months expenses in an online 1%+ savings account and the rest into this type of bond to improve liquidity?
9. For me personally it's more important to generate more income (preferably from multiple sources.) That will allow me to capitalize on investments that have a high enough rate of return (min 7%) That way l don't have to worry about keeping up with a lousy 3%
10. How quickly can one access their emergency fund if it's in the type of account mentioned?
11. how about a pension, i'm 52 and retiring now, should i take my pension in a lump sum. i really don't want to wait 10 years til i'm 62 to collect $1600 monthly. what do you suggest?
12. Bro.Collier I need some Help!!!!
13. Wow i like your videos Thank you for share!
14. can I open this kind of account with only $100? I do not have $5k to open one. I see for this particular account, it was $2.5k, but are there accounts with similar earnings rates for less money to open the account?
15. Keep up the good work
16. I dont have any impressive credentials, so i'd just like to point that out. Your advice is great and in the right place. I agree that municipal bonds are a great investment tool due to the tax breaks, although it would deoend greatly on the performance and efficiency of the municipality. Even having a great municipality wont provide the best tool. I believe in the power of Index Universal Life Insurance with the appropriate riders, premium andjustments and by staying in compliance with IRC 7702. This will provide flexible premiums, growth of over 4% compound interest, loans at 5% simple apr, annuity conversion, liquidity, and more. The closest thing to this concept is the Infinite Banking System; the main difference is the use of a Whole Life vs an IUL.
17. There is a .53% expense ratio for this fund as well, that can eat into returns.
18. Does the tax bracket have an impact on any tax free bond?
19. Great video.
20. this video was very very helpful and informative thank you very much!!!