This rule of thumb allows investors to answer two questions: How long will it take me to double my money if I earn x% return? And what return must I earn if I want to double my money in x years?
An investor that knows he can earn 12% on his money may ask the question, “How long will it take to double my money at this rate of return?”
Using our handy Rule of 72, this is a snap to calculate! Simply divide the magic number (72) by the investor’s rate of return (12). The answer (6) is the number of years it would take to double the investment.
The Rule of 72 can also be used in reverse. An investor who wanted to double his money in a certain number of years could use the rule to discover the rate of return he would have to earn to achieve his goal.
Imagine, for a moment, a businessman who wanted to double his money in four years. To estimate a rough rate of return required to achieve such a feat, he’d divide 72 by 4. The result (18%) is the after-tax compound annual rate of return he would have to earn to meet his goal on time.
There are a number of things you could do. You could leave it where it is, you could roll it over to your new 401k, or you could roll it to an individual IRA account. Make sure understand the rules and makes sure you analyze both sides of each option.
Diversification is spreading your portfolio around through different asset classes. This can help control your exposure to certain risks and returns. Although there are many different approaches to diversification, you should make sure you are comfortable with the baskets you are choosing.
See the “PLANNING FEES FOR FINANCIAL PLANNING SERVICES” section in the ADV part 2A form.
For Comprehensive Financial Plans and Annual Financial Plan Reviews, Colwyn Investments LC charges a fixed
fee; however, for Separate Financial Planning Consultations, Colwyn Investments LC charges an hourly fee.
Financial Planning Service Fee Type and Amount
- Comprehensive Financial Plan $2,500 fixed fee
- Annual Financial Plan Review $1,000 fixed fee
Separate Financial Planning Consultations $150 hourly fee
The Yale Model, or endowment model, was developed by David Swensen and Dean Takahashi.s described in Swensen’s book Pioneering Portfolio Management. It consists broadly of dividing a portfolio into five or six roughly equal parts and investing each in a different asset class. Central in the Yale Model is broad diversification.
This type of investing, using broad diversification, allocating some to traditional U.S. equities and bonds as well as Alternative Investments, is followed by many larger endowments and foundations and is therefore also known as the “Endowment Model” (of investing).
An additional way to make your assets work for you is a cash management plan. The plan will consider your business capital and see what assets could be earning you a return. Even reserves or monthly cash-flow can be used for some additional returns.
Retirement plan administration can be very complex and expensive. Hidden fees and limited investment choices plague HR professionals across the nation. A thorough review and comparison of your current plan might reveal significant savings and simplification.
MANAGEMENT FEE FOR PORTFOLIO MANAGEMENT SERVICES
Whether Portfolio Management Services are performed on a discretionary or non-discretionary basis,
Colwyn Investments LC charges the same management fee based on a percentage of assets under management. The percentage of assets charged per year (annum) is listed by assets level:
- Under $100,000 2 percent per annum
- $100,001 to $500,000 1.75 percent per annum
- Above $500,001 1.5 percent per annum
A registered investment advisor (RIA) is a professional advisory firm that offers personalized financial advice to its clients, many of whom are affluent.
- Many independent RIAs work with complex portfolios and address unique needs that require a highly customized level of investment management strategy and consultation.
- Many independent RIAs are owned by the individual advisors who run them.
- Many independent RIAs provide advice and services for a fee based on a percentage of the client’s assets.
- RIA firms are registered with the Securities and Exchange Commission or state securities regulators, are subject to the Investment Advisers Act of 1940, and have a fiduciary duty to act in the best interest of their clients.
“RIA” means we are registered with the state of Utah. Registration does not mean a government agency approves an advisor or reviews their qualifications.
5 Key benefits of independent registered investment advisors.
- Get advice based on what’s best for you. Whether it’s your retirement planning, tax situation, estate planning or assets at multiple places, it’s fundamentally important that your advisor truly understand you, your goals and your ituation. Many independent registered investment advisors (RIAs) are in a position to do that and pride themselves on strong personal interaction with their clients and dedication to their needs. They believe that their independence is key to offering investment advice based on what’s best for their clients.
- Understand exactly what you’re paying for. Independent RIAs typically charge a fee based on a percentage of total assets managed. This fee structure may have advantages. It’s simple and easy to understand, helping to avoid surprises. It also gives your advisor an incentive to grow your assets—when you succeed, your advisor succeeds.
- Get advice for your complex needs. Many independent RIAs provide services that address a variety of complex investment needs that often arise when you accumulate significant wealth, such as assisting you with the sale of a business, complicated tax situations, trusts and intergenerational issues. Some advisors are specialists in certain investment strategies. Others can assist you with comprehensive services, such as estate planning or borrowing. Given the rich diversity of specialization throughout the industry, no matter how complex your individual needs, you will likely find an independent RIA who can provide advice that’s right for you.
- Enjoy a different kind of relationship. The goal of an RIA is to help find solutions that are closely aligned with client needs and objectives, and many ndependent RIAs enjoy a deep, personal relationship with their clients. This often takes regular, ongoing interactions. And because many independent RIAs are entrepreneurial business owners, the buck stops with them, so to speak, and they frequently have a strong sense of personal accountability to their clients.
- Know where your money is held. RIAs typically use institutional custodians—generally large brokerage firms or banks—to hold and safeguard their clients’ stocks, mutual funds and other assets. These custodians also provide important infrastructure services such as executing trades and preparing monthly brokerage statements for clients. This helps an RIA focus on understanding your needs and providing the best advice possible.
Visit www.riastandsforyou.com for more information.
RIAs often charge a fee based on assets they manage for you—if they help grow your portfolio, you succeed, and so do they.
Fiduciary comes from the Latin fiducia, meaning “trust,” a person (or a business like a bank or stock brokerage) who has the power and obligation to act for another (often called the beneficiary) under circumstances which require total trust, good faith and honesty.
An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another’s benefit.
A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one person is actually accepted by the other person. Mere respect for another individual’s judgment or general trust in his or her character is ordinarily insufficient for the creation of a fiduciary relationship. The duties of a fiduciary include loyalty and reasonable care of the assets within custody. All of the fiduciary’s actions are performed for the advantage of the beneficiary.
