WEBVTT
00:00:00.680 --> 00:00:07.290
This is Byron Braun,
00:00:07.360 --> 00:00:09.690
and I thought I'd take some time today
00:00:09.760 --> 00:00:16.130
to talk about wealth accumulation,
the importance of follow-through.
00:00:16.200 --> 00:00:22.930
In a typical person's financial time life,
there is funding for IRA accounts,
00:00:23.000 --> 00:00:30.490
funding for 401(k), education,
personal savings, et cetera.
00:00:30.560 --> 00:00:34.850
But what most people think about
is the amounts that they're saving.
00:00:34.920 --> 00:00:38.690
They talk about the returns
on their investments
00:00:38.760 --> 00:00:41.370
and their goals and aspirations.
00:00:41.440 --> 00:00:47.850
But what they usually forget about
is what I is called the time basket.
00:00:47.920 --> 00:00:52.450
The time basket simply
can be illustrated by the following.
00:00:52.520 --> 00:00:56.410
If you're 30 years of age,
you have approximately 32 years
00:00:56.480 --> 00:01:01.330
to age 62, which is usually
the target for retirement.
00:01:01.400 --> 00:01:04.050
At age 40, it becomes 22 years.
00:01:04.120 --> 00:01:07.250
At age 50, it becomes 12 years.
00:01:07.320 --> 00:01:13.290
At age 62, time then
becomes a limited commodity.
00:01:13.360 --> 00:01:19.130
Also at age 62, the value basket
will traditionally be utilized
00:01:19.200 --> 00:01:21.970
for income supplements in life.
00:01:22.040 --> 00:01:28.490
The financial basket takes
a second seat to the time basket
00:01:28.560 --> 00:01:30.240
because time becomes limited.
00:01:31.440 --> 00:01:37.720
This is also illustrated by
thinking about investing $1,000,
00:01:37.880 --> 00:01:44.850
earning 6%, and at the end of 16 years,
that thousand has grown to $2,514.
00:01:44.920 --> 00:01:46.600
$40.
00:01:47.280 --> 00:01:50.640
If you consider adding a thousand or about
00:01:50.706 --> 00:01:54.960
$85 per month, approximately, at the end
00:01:55.026 --> 00:02:00.520
of 16 years, at 6%, it is now $28,230.
2,13.
00:02:01.680 --> 00:02:08.520
If you have a longer time horizon,
starting out with that same $1,000 after
00:02:08.586 --> 00:02:14.800
32 years earning 6%, that grows to 6,453.
00:02:15.560 --> 00:02:21.050
If we again decide to add
approximately $85 a month,
00:02:21.120 --> 00:02:26.040
it grows to an amazing 97,343.
00:02:26.920 --> 00:02:30.480
If we then move to the term
follow-through,
00:02:30.600 --> 00:02:37.010
If you are a sports enthusiast
and you watch a golfer teeing off
00:02:37.080 --> 00:02:42.400
of the tee box, as they do that drive,
they have an amazing follow-through.
00:02:42.960 --> 00:02:48.400
If you are a baseball fan, when
the pitcher pitches that ball, he has
00:02:48.466 --> 00:02:51.450
an amazing follow-through on that pitch.
00:02:51.520 --> 00:02:58.040
If we go further and we look at a batter,
as a batter makes that home run,
00:02:58.106 --> 00:03:02.760
it's that amazing follow-through
as it goes into the stands.
00:03:03.320 --> 00:03:08.290
The home run is a function
of the hit and the follow-through.
00:03:08.360 --> 00:03:15.000
We think about all of these examples, and
the older we get, we want time We can't
00:03:15.066 --> 00:03:18.160
get it back, but we can't get it back.
00:03:18.320 --> 00:03:23.240
The financial basket
is very important at the beginning.
00:03:23.360 --> 00:03:30.040
But as you move forward,
the time basket trumps everything.
00:03:30.760 --> 00:03:33.930
Revisiting these charts again.
00:03:34.000 --> 00:03:40.810
32 years with an initial investment
of 1,000 and adding 1,000 per year.
00:03:40.880 --> 00:03:42.130
Think about it.
00:03:42.200 --> 00:03:44.850
That's about $85 a month.
00:03:44.920 --> 00:03:52.640
It goes from 6,453
to an astounding 97,343.
00:03:52.720 --> 00:03:54.370
What account view?
What?
00:03:54.440 --> 00:03:58.520
I'll take the 97,343.
00:03:58.680 --> 00:04:04.410
If we look at this in The other way,
the time basket is your alley
00:04:04.480 --> 00:04:06.280
at the beginning.
00:04:06.640 --> 00:04:11.610
As you get further and further
along your journey, the time basket
00:04:11.680 --> 00:04:17.640
becomes pronounced because
it's limited as each year goes by.
00:04:18.320 --> 00:04:24.320
Another question that I've been
asking clients for all my 46 years
00:04:24.386 --> 00:04:30.440
in this business, would you rather
incur a little inconvenience now for
00:04:31.000 --> 00:04:34.050
less inconvenience later?
00:04:34.120 --> 00:04:39.960
If we go back to that illustration,
the little inconvenience is the $85
00:04:40.026 --> 00:04:43.400
a month, approximately, but it grows to
00:04:43.466 --> 00:04:48.600
over $97,000 and that $97,000 can produce
00:04:48.666 --> 00:04:54.130
income having less inconvenience later.
00:04:54.200 --> 00:04:57.010
This is what this is all about.
00:04:57.080 --> 00:05:04.010
In closing, think about time
and the time basket when you're funding
00:05:04.080 --> 00:05:06.810
for your objectives and aspirations.
00:05:06.880 --> 00:05:11.450
And think about the limitations
of time as you go through life.
00:05:11.520 --> 00:05:16.640
And you'll begin to then
have follow-through, because
00:05:16.706 --> 00:05:21.970
the follow-through can help offset
a time basket over time.
00:05:22.040 --> 00:05:25.850
So in closing, we thank you very much
for your confidence and trust.
00:05:25.920 --> 00:05:29.570
Hope this little short video
has helped you with understanding
00:05:29.640 --> 00:05:32.170
value value baskets and time baskets.
00:05:32.240 --> 00:05:36.840
Should you have any questions about
anything along these lines, feel free
00:05:36.906 --> 00:05:38.930
to call us at problemwithmanagementgroup.
00:05:39.000 --> 00:05:41.850
We'll be happy to answer
the questions you may have.
00:05:41.920 --> 00:05:46.210
We thank you very much for allowing us
to help serve your investment needs
00:05:46.280 --> 00:05:46.600
in the longer time.