My Bankers Laughed at Me When I Asked About High-Yield Liquid
So, my three bankers invited my business partner and I to lunch at the local BBQ restaurant because we were considered "High Value," with more than $1 Million in their bank. One of my businesses is a family-owned property management business for properties that have been in the family for 20+ years.
Our property administrator collects rent checks, leases space to new tenants and is in charge of coordinating maintenance and tenant improvements prior to their taking occupancy. She also keeps track of all the money.
After the pleasantries of lunch, I began to question.
What was the highest yield vehicle for our $1 Million? ... Safe and very liquid was our criteria. If a tenant moved in and we negotiated to pay for several hundred thousand in improvements, we needed the money available immediately.
...That's When They Laughed at Me
Well, to be honest, only two of the three snickered with that embarrassing laugh that usually precedes a shameful answer. The third one actually attempted a response.
"Well we do have a new 5-year CD with a 1.23% high-growth yield," he proffered.
Not sure what part he didn't hear, "High Yield" or "Liquid."
Our property administrator collects rent checks, leases space to new tenants and is in charge of coordinating maintenance and tenant improvements prior to their taking occupancy. She also keeps track of all the money.
After the pleasantries of lunch, I began to question.
What was the highest yield vehicle for our $1 Million? ... Safe and very liquid was our criteria. If a tenant moved in and we negotiated to pay for several hundred thousand in improvements, we needed the money available immediately.
...That's When They Laughed at Me
Well, to be honest, only two of the three snickered with that embarrassing laugh that usually precedes a shameful answer. The third one actually attempted a response.
"Well we do have a new 5-year CD with a 1.23% high-growth yield," he proffered.
Not sure what part he didn't hear, "High Yield" or "Liquid."
The 10-Year Old Mistake That Cost Me $1.69 Million Dollars
These are my actual projections.
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Compared to the S&P... which doesn't even show where our money actually sat at the bank.
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I wish I would have know about this program 10 Years Ago!
After meeting and engaging my current financial partners, I realized my million-dollar mistake. Yes, I believe ignorance is a mistake... and I didn't know about this program until a few years ago.
My financial partner sat me down and gave me the bad news.
Had I put $1 Million into this program in 2001, I would have made $1.69 Million Dollars for our 32 investors in the property... all the while keeping it very liquid.
Even through the aftershock of 9/11 and through the storm of 2008, this money still would have averaged a staggering 10.06% average annual compounding return.
After meeting and engaging my current financial partners, I realized my million-dollar mistake. Yes, I believe ignorance is a mistake... and I didn't know about this program until a few years ago.
My financial partner sat me down and gave me the bad news.
Had I put $1 Million into this program in 2001, I would have made $1.69 Million Dollars for our 32 investors in the property... all the while keeping it very liquid.
Even through the aftershock of 9/11 and through the storm of 2008, this money still would have averaged a staggering 10.06% average annual compounding return.
Reactions and Results
As a consultant, you can bet I take my own medicine. I am my own client, and I am evangelical about my partners in success.
Bottom line... We placed $500,000 into the program I affectionately refer to as the LAMP, or Liquid Asset Management Program... and yes, the symbolism of me "Seeing the Light" had everything to do with the name.
The sad thing was only 3 and a half months later, we got a new anchor tenant, and had to pull every bit of the money out...
But not before we made more than $17,000 in interest... which is more money in a few months than we'd made over the last 10 years total with it sitting in a bank.
Bottom line... We placed $500,000 into the program I affectionately refer to as the LAMP, or Liquid Asset Management Program... and yes, the symbolism of me "Seeing the Light" had everything to do with the name.
The sad thing was only 3 and a half months later, we got a new anchor tenant, and had to pull every bit of the money out...
But not before we made more than $17,000 in interest... which is more money in a few months than we'd made over the last 10 years total with it sitting in a bank.
Not Just for the High-Net Worth Anymore
Honestly, this program has historically only been offered to the wealthy 1%, or those who have $1-2 million liquid cash to place in the program. Then this team of experts with more than 20 years managing this program, go to work every day protecting principal and maximizing market movements. They review more than 32 indicators every day to ensure the money is working to its fullest potential.
In the movies, when you hear "I've got People who look after my interests," these ARE the People.
My partners beat on this company for 7 years before they would consider lowering their minimum investment amount. After they finally consented, we are now responsible for about 80% of their new business.
The minimums have been reduced dramatically, so even a small family with a modest savings account can place it into the LAMP program and grow at light speed compared to a bank, CD or money market account.
Don't make the same mistake I did, that could translate into millions of dollars in lost revenue. Schedule a Review today and let's explore the possibilities.
In the movies, when you hear "I've got People who look after my interests," these ARE the People.
My partners beat on this company for 7 years before they would consider lowering their minimum investment amount. After they finally consented, we are now responsible for about 80% of their new business.
The minimums have been reduced dramatically, so even a small family with a modest savings account can place it into the LAMP program and grow at light speed compared to a bank, CD or money market account.
Don't make the same mistake I did, that could translate into millions of dollars in lost revenue. Schedule a Review today and let's explore the possibilities.