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The Great Wall Street Deception

In a shocking interview with PBS, billionaire mutual fund icon Jack Bogle, revealed that Wall Street is “unapologetically stealing from millions of hard-working Americans.” And Bogle should know. With over 40 years on the inside: “the entirely “corrupt fee structure” on Wall Street. He knows how American retirees are being “fleeced by hidden fees that most investors never see.”

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The Great Wall Street Deception

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  1. The Great Deception The American “Train Wreck” For Agent Training Only- Not to be used with the public

  2. Bryan Daly CEO VP bryan@bryandaly.com Welcome

  3. Wealth Killers 1. Risk 2. Fees 3. Taxes For Agent Training Only- Not to be used with the public

  4. "Money ..Master the Game“ "You Master Money or it Masters YOU!“ For Agent Training Only- Not to be used with the public

  5. "Money ..Master the Game“ Page 6: The secret to wealth is simple. Find a way to do more for others than anyone else. Become more valuable. Do more. Give more. Serve more. And you will have the opportunity to earn more. For Agent Training Only- Not to be used with the public

  6. "Money ..Master the Game“ Page9: Success Leaves Clues. People who succeed at the highest level are not lucky; they're doing something differently than everyone else does. For Agent Training Only- Not to be used with the public

  7. "Money ..Master the Game“ 77% of Americans-three of every four people- say they have financial worries but only 40% have any kind of saving plan. One in three baby boomers have less than $1,000 saved! For Agent Training Only- Not to be used with the public

  8. John Bogle: The “Train Wreck” Awaiting American Retirement John Bogle founder of The Vanguard Group and a longtime champion of investing in index funds. Edited transcript of an interview conducted on Nov. 5, 2012 PBS FRONTLINE. For Agent Training Only- Not to be used with the public

  9. The Wall Street Deception …And Bogle should know. With over 40 years on the inside: “the entirely “corrupt fee structure” on Wall Street. He knows how American retirees are being “fleeced by hidden fees that most investors never see.” For Agent Training Only- Not to be used with the public

  10. John Bogle: The “Train Wreck” Awaiting American Retirement “But this (Wall Street) is not serving,….consumers.” “It is not serving consumers for the very simple reason, I call it “the relentless rules of humble arithmetic”... For Agent Training Only- Not to be used with the public

  11. The Wall Street Deception In a shocking interview with PBS, billionaire mutual fund icon Jack Bogle, revealed that Wall Street is “unapologetically stealing from millions of hard-working Americans.” For Agent Training Only- Not to be used with the public

  12. The Wall Street Deception • Bogle shows how “70% of your market returns” go straight to the pockets of Wall Street, and only 30% actually goes to you, the investor. For Agent Training Only- Not to be used with the public

  13. And a lot of people say, “So what?” … Say I have $100, and I’m paying 2.5 percent in fees. How is it possible I’m only taking home 30 percent of what I would have taken home if I hadn’t been charged those fees? For Agent Training Only- Not to be used with the public

  14. And a lot of people say, “So what?” If you get a 7 percent return in the market. and it costs 2.5% percent — to gain that return. Then investors who grossed 7 % will net 4.5% For Agent Training Only- Not to be used with the public

  15. Most people don't do the math, and the fees are hidden. Page 85: a onetime sum of $10,000 at age 20, and, assuming 7% annual growth rate, grows to $574,464 by age 80. But, if you paid 2.5% in fees, your account would be only $140,274 over the same period. “They take 77% of your returns ... for what exactly?” For Agent Training Only- Not to be used with the public

  16. John Bogle: The “Train Wreck” Awaiting American Retirement Fees, expenses, portfolio turnover inside of the fund, sales loads, advisory fees, operating expenses — take them all out, and the net return divided up by investors is what’s left. So costs are a crucial part of the equation. For Agent Training Only- Not to be used with the public

  17. "Money ..Master the Game“ The average cost of owning a mutual fund is 3.17% per year Steve Forbes Forbes magazine For Agent Training Only- Not to be used with the public

  18. The magic of compound interest. How does this happen? “ magic of compound returns is overwhelmed by the tyranny of compounding cost.” “It’s a mathematical fact.” “There’s no getting around it.” For Agent Training Only- Not to be used with the public

  19. The Wall Street Deception Steve Forbes echoed this same shocking info. Forbes pointed out that these fees are compounding, and over time are devastating to your nest egg. For Agent Training Only- Not to be used with the public

  20. The Wall Street Deception The Wall Street 2.5% management fee, compounded… will “cut your returns in half or more. • If you would normally have $100,000, you could end up with, say, $30,000 or $40,000 because of what fees eat up.” For Agent Training Only- Not to be used with the public

  21. Fees…EXCESSIVE and HIDDEN by WALL STREET! Pay Fee’s in BOTH up & down markets, on the whole account High is 5%, the average fee is 3% One time sum of $1,000 at 10% year no fee’s after 30yrs is $19,000 The same account just a 2% fee is $7,500

  22. "Money ..Master the Game“ Page 88: "The house has the edge" -Steve Wynn ..nearly all mutual fund companies have a stacked deck. “They are the ultimate casino.” “They have captured you, you're going nowhere, and they are guaranteed revenue whether you win or not.” For Agent Training Only- Not to be used with the public

  23. "Money ..Master the Game“ Page 93: An incredible 96% of actively managed mutual funds fail to beat the market over any sustained period of time. -Morningstar For Agent Training Only- Not to be used with the public

  24. Chasing Performance Page 96: Just how badly does chasing performance hurt us? Over the 20 yr period 12/31/1993 – 12/31/2013 The S&P average annual return was 9.28%. For Agent Training Only- Not to be used with the public

  25. "Money ..Master the Game“ But the average investor made just over 2.54%, ( according to Dalbar, one of the leading industry research firms). OUCH! A nearly 80% difference! For Agent Training Only- Not to be used with the public

  26. Wait a minute! I don’t believe that I saw it in black and white…..A 25% Average Return! How can it be??… Question is it possible to get a 25% average return and make no money? For Agent Training Only- Not to be used with the public

  27. For Agent Training Only- Not to be used with the public

  28. "Money ..Master the Game“ Page 95: In his famous letter to his shareholders, he explained that when he passes, his money be placed in trust for his wife and be invested only in indexes so that she minimizes her cost and maximizes her upside. (Warren Buffett) For Agent Training Only- Not to be used with the public

  29. "Money ..Master the Game“ Page 109: Robert Hiltonsmith, PHD economics in his report: “The Retirement Savings Drain The Hidden & Excessive Costs of 401(k)s” For Agent Training Only- Not to be used with the public

  30. "Money ..Master the Game“ Page 109: Robert Hiltonsmith, PHD economics The average worker will lose $154,794 in 401(k) fees over a lifetime (based on an annual income of $30,000 per year and saving 5% of his income each year) A higher income worker, making approximately $90,OOO per year will lose upward of $277,000 in 401k fees in a lifetime For Agent Training Only- Not to be used with the public

  31. Page 111: 401(k) fees The average plan administrator charges 1.3%- 1.5% year (according to the Government Accountability Office) That's $1,300 for every $100,000 just to participate in the 401(k). Add 1.3% for plan administration a mutual fund cost of 3.17% That’s a whopping 4.47 to 4.67% per year For Agent Training Only- Not to be used with the public

  32. A small one time loss Can NEVER be recovered! Michelle Bill $100,000 7.2% 10yrs $100,000 7.2% 9yrs w/5% Loss 1yr 10yrs - $165,700 20yrs - $331,400 30yrs - $662,800 10yrs - $200,000 20yrs - $400,000 30yrs - $800,000 Bill will always have 20.1% less than Michelle because of a 1 time 5% loss.

  33. What’s this got to do with me. But generally, when Wall Street’s going about its business and buying and selling with each other, trading derivatives and all sorts of fancy things that are hard to understand, why does that affect me? For Agent Training Only- Not to be used with the public

  34. What’s this got to do with me. That’s a really good question, and I can only answer it this way: If you don’t participate in that crazy game, in that busy casino, it affects you zero. … But most people are part of that system. For Agent Training Only- Not to be used with the public

  35. What’s this got to do with me. In other words, your manager is doing that maybe unbeknownst to you. So get out of that system and you’ll be fine … For Agent Training Only- Not to be used with the public

  36. "Money ..Master the Game“ Page 105: The mutual fund industry is now the world's largest skimming operation, a $7 Trillion trough from which managers, brokers and other insiders are steadily siphoning off an excessive slice of the nation's household, college and retirement savings." ( Senator Peter Fitzgerald, cosponsor of the Mutual Fund Reform Act of 2004..which was killed by the Senate Banking Committee) For Agent Training Only- Not to be used with the public

  37. The Wall Street Deception “The real concern,” Hill added, “is that more than 96 million people own mutual funds. They have no idea they’re being fleeced and will be the hardest hit when they need the money the most For Agent Training Only- Not to be used with the public

  38. The Wall Street Deception Page 417: " Americans should convert at least half of their retirement Savings into an annuity" ... U.S. Treasury Department For Agent Training Only- Not to be used with the public

  39. The Wall Street Deception pages 442-443: Secrets of the ULTRAWEALTHY (That you can use too) they do buy astronomical amounts of life insurance, but it's not just the Billionaires who buy the most. Who are the biggest buyers?.... For Agent Training Only- Not to be used with the public

  40. The Wall Street Deception The biggest buyers?.... Banks and Large Corps, from WalMart to Wells Fargo. Wells Fargo's balance sheet shows $18.7 billion of its tier 1 capital deposited in life insurance cash values (as of May 27.2014) For Agent Training Only- Not to be used with the public

  41. "Money ..Master the Game“ pages 442-443 The ultra wealthy are not looking to benefit from anyone's death. What they really want is a place to park their cash in an IRS-sanctioned vehicle that allows them to grow their investments tax free For Agent Training Only- Not to be used with the public

  42. "Money ..Master the Game“ pages 442-443 …What are the wealthy and ultra successful have been doing for years The some astounding benefits to all: 1. Unlimited deposit amounts (with no income limitations) 2. No tax on the growth of the Investments 3. No tax when accessed (when structured correctly) and 4. Any money left for your heirs cannot be taxed By taking taxes out of the equation, the time it takes to reach your critical mass and financial independence will be massively accelerated For Agent Training Only- Not to be used with the public

  43. http://www.slideshare.net/bryandaly Bryan Daly CEO VP Freedom Equity Group Bryan@bryandaly.com http://www.linkedin.com/in/bryandaly For Agent Training Only- Not to be used with the public

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