The tables below offer a before-and-after comparison of an example $1MM investment portfolio:
 

Characteristics:

1. Dependent on bubble economy
2. Invests in securities of large corporations and governments that, as a system, have a negative total economic return and are financially dependent on a low/falling Popsicle Index
3. Absence of knowledge and understanding of who and what their investments are supporting
4. No risk assessment or strategy for worst-case scenarios
5. No diversification—entirely dependent on U.S. federal credit and centralized systems
6. Equity drained by falling dollar and yield trap; current yield in dollars is resulting in a negative total investor return on an inflation indexed basis
7. Multiple exposures to housing bubble burst in mortgage and municipal portfolios

Home Base and Financial Profile:
$500,000 Home in suburbs/$350,000 fixed-rate mortgage, 30-year mortgage with 25 years to go
$350,000 Shore condo/$300,000 variable-rate mortgage, $50,000 2nd mortgage from seller, balloon in 5 years

Net Home Equity:
$150,000

Annual Income of Spouses:
$125,000 Full-time consulting w/ health care
$ 50,000 Part-time freelancing

Note: Both work for large companies dependent on government credit, contracts, and purchases

Annual Expenses:
$160,000

Annual Savings:
$15,000 plus reinvestment of portfolio yield

View Portfolio A Details

 

Characteristics:

1. Shift to real economy
2. Use a positive total economic return and Popsicle Index to find investment opportunities and avoid risk
3. Decrease dependency on U.S. federal credit and centralized systems
4. Builds living and financial equity rather than yield
5. Protected against a falling dollar manages volatility of multiple currencies and commodities
6. More diversification and preparation for worst case
7. Prepared to take advantage of positive opportunities in long-term primary trends

Home Base and Financial Profile:
See supplemental document: "Criteria for Choosing Your Home Base"
$190,000 / No Debt: Moved to 30-acre farm in rural farming community
$110,000 / No Debt: Improvements to farm (view details)
Doing short-term leases with local farmers on 25 acres
Significantly greater natural beauty of home and surroundings; greatly reduced
carrying/maintenance costs; less need for weekend/vacation home because home base is close to parks & outdoor recreation

Net Home Equity:
$300,000 / No Debt

Annual Income of Spouses:
$100,000 Full-time consulting w/health care
$25,000 Part-time freelancing

Note: Both work for clients who are less dependent on government contracts and programs

Annual Expenses:
$90,000

Could cut back quickly to $60,000 if needed, thanks to investments in home base to increase self-sufficiency; having the time and resources to learn new skills as both income earners are working fewer hours outside the home. Insurance is more expensive and took time and expertise to determine and access reliable packages; switch to private schools has increased educational expense, but may be temporary if switched to home schooling.

Annual Savings:
$35,000
Now saving $35,000 a year rather than $15,000; plus reinvestment of portfolio yield

View Portfolio B Details

 
 

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Disclaimer: Nothing in this Solari Audio Seminar should be taken as individual investment advice. Anyone seeking investment advice for his or her personal financial situation is advised to seek out a qualified advisor and provide as much information as possible to the advisor in order that such advisor can take into account all relevant circumstances, objectives, and risks before rendering an opinion as to the appropriate investment strategy.