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MILLENNIAL
INVESTING
FACTS, MYTHS, AND A WAYTO KEEP MONEYACCESSIBLE
INVESTING 101
PROPHET'S
EDGEPROPHET'S ADVANTAGEIS YOUR ADVANTAGE
MAKE A HOUSE
YOUR HOMEFINANCING YOUR HOME WITHA ROTH IRA
THE UPSIDE
OF A CRASHBE ON THE SIDETHAT IS SHORTINGTHE MARKET
This information is not intended as tax advice. Tax information is based on
federal income tax law. State and local income tax laws may differ. Please
consult your tax advisor about your particular situation. Savior LLC
representatives are not tax advisors. This does not constitute a
recommendation of any investment strategy or product for a particular
investor. Investors should consult a financial professional before making any
investment decisions
Savior LLC Presents:
INVESTING101
Millennials need to investdifferentlyCollegenounFour years that prepare you for the realworld by crushing your next decadefinancially. Ah, college. What a beautiful time.Unfortunately that time ends abruptly andyou are thrown into the real world oftenwithout one crucial piece of information:how to manage your money and invest foryour future. Let this guide be your classon investing. We will spare you the tuitioncost! Lesson #1: Know the Rules
Imagine this: You come out of collegewithout being taught anything related tomoney management or investing and youdon't have a cell phone or a computer toaccess. Welcome to our parents'generation! No wonder we have seen twoof the worst market crashes in historywithin the last decade or so. For thisreason, any advice you have heard, youmay want to take with a grain of salt. Forinstance, Roth IRAs. How much do youknow about them? They are a great butsometimes misrepresented way to saveand invest. Let's look at the facts!
FICTIONFACTS
I can't access the moneyI contribute
You can take all of yourcontributions out at any
time, tax-free!
I need to contribute themaximum each year
I have to wait 5 yearsbefore being able to
access my funds
Anything you contributeis accessible at any time.
Gains can also bewithdrawn at a 10% taxpenalty (only charged
on the gainsthemselves)
You can contributeanything from $0 to
$6,000 each year
V E R S U S
MILLENNIAL ROTH IRA EDITION
I can't open up a RothIRA without speaking
with a financial advisor
You can open one easilyfor free within 15
minutes atwww.prophetedge.com
PRESENTED BY PROPHET EDGE
FICTION FACT
All rules related to the establishment or maintenance of a Roth IRA plan are not included in this
summary. Additional rules may also apply if an investor maintains multiple IRA plans. Please
consult your tax advisor for detailed information. Savior LLC representatives do not provide
investment or tax advice.A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a
traditional IRA. Contributions to a Roth IRA are not tax deductible. If you satisfy the requirements,
qualified distributions are tax-free. You can make contributions to your Roth IRA after you reach
age 70 ½. You can leave amounts in your Roth IRA as long as you live. The account or annuity
must be designated as a Roth IRA when it is set up. The same combined contribution limit applies
to all of your Roth and traditional IRAs. (IRS)
ROTH IRABELIEFS
Old: Retirement ProgramNew: Investment SavingsAccountThe biggest myth believed by a vast majority ofpeople is that the money you invest in a Roth IRA isnot accessible without a large penalty. Ask anyoneyou know and there is a great chance they willbelieve this. The fact is that this could not be furtherfrom the truth! Depending on the Internal RevenueCode rules, and on qualifications, every dollar youput in a Roth IRA may generally be wired back to youwithin a week of request, tax and penalty free! Thisis because the money you put into the account hasalready been taxed. What would be taxed andpenalized is if you went above and beyond yourdeposits and withdrew your gains on your deposits;this would be taxed at your normal income level plusten percent. However, there are ways around this aswell. You are able to access up to $10,000 of gainsat any time, tax and penalty free, in a few differentscenarios: to pay for ongoing student expenses (notloans), medical expenses that are above 10% of youryearly income, or for a first time home purchase.Think about that for a minute. Get those wheelsturning, and go to the page to see why this matters!
Investors under 59½ years of age, contributions can be withdrawn tax free. Withdrawals from your Roth IRA will only be classified as
qualified distributions if it has been at least five years since you first opened and contributed to your Roth IRA, regardless of your age
when you opened it. For investors aged 59½ to 70½ years of age contributions can be withdrawn tax free. Investment earnings can also be
withdrawn tax free as long as the account has been open for at least five years from the Jan. 1 of the tax year for which a contribution
was first made. For investors over 70½ years of age Contributions can be withdrawn tax free. Investment earnings can be withdrawn tax
free as long as the account has been open for at least five years from the Jan. 1 of the tax year for which a contribution was first made.
FOOTNOTE: The IRS treats a Roth IRA withdrawal made more than five years after the first tax year in which you made a contribution
(including earnings) as a “qualified distribution.” This means it is not taxable or subject to a penalty as long as you satisfy one of these
qualifying conditions: You’re at least 59½, you become disabled or pass away, or you use the withdrawal (up to a $10,000 lifetime
maximum) to pay for a first-time home purchase.
Source: IRS Publication 590-B (2018)
MAKE AHOUSE YOUR
HOMEThe secret power of theRoth IRALet's look at that last part again: youcan use that $10,000 tax and penalty-free gains for your first house. Anycontributions, meaning anything youput in the Roth IRA account, may beaccessible to you at any time, givenIRS rules and guidelines. The RothIRA can essentially be a split betweena savings account and a retirementaccount, as opposed to strictlysomething you cannot touch withoutpenalty. This little known advantagemay be useful to you. Why have morethan a few thousand in the bankearning a fraction of one percent whenyou could have it invested in themarket which has returned an averageof 10%*? You may ask yourself, "why not justopen up a regular brokerage account? The reason the Roth IRA is best foryour first $6,000 per year is that thegains grow tax-free.
Instead of paying the governmentanywhere from 10-30% or so of yourgains each year, you are letting thatamount continuously compound untilyou decide to withdraw the money. Let the math work in your favor.When it comes to buying a home,$10,000 for a deposit won't get youmuch (actually it could get you a$350,000 home with a 3.5% FHA firsttime home-buyers loan, more on howto use that to your advantage at a laterdate) Every dollar you put in yourinvestment account is tax and penaltyfree and can be accessed within aweek of request. By using the RothIRA more as a savings account, youare already saving for your futurewithout being locked into anything!
*Not inflation adjusted
Source: Nerdwallet, https://www.nerdwallet.com/blog/investing/average-stock-market-return/
Graduation!Time to WorkYear 0
Year 3
Have saved$18k
Land YourDream Job
Year 6
Year 9
Buying YourFirst House
0 1 2 3 4 5 6 7 8 9
$80,000
$60,000
$40,000
$20,000
$0
Open RothRIA Account
Buying a House After 9 Years
Using Tax and Penalty-Free Money
Roth IRA ValueTotal invested $54,000
TWOOPTIONS
Hypothetical Scenarios if youstart your Roth IRA at 22
Starting a Roth when you are young gives youa jumpstart on savings. Whether you end upusing this money to finance your house orsave it til retirement, you may be puttingyourself in a position for success. Let's lookat two hypothetical scenarios.
You have spent 9 years investing in a RothIRA. Your partner you met in your latetwenties loves how thoughtful you are aboutthe long term, as he or she also has his/herlife together. You two are looking to buy yourfirst house. Let's take a look:This graph is based on:
A 10% appreciation in investments eachyearContributing $6,000 each year in your RothIRATaking $10,000 of gains tax and penaltyfree for houseTaking your principle out plus the $10,000in tax and penalty-free gains
HYPOTHETICAL TIMELINE 1:BUYING A HOUSE AFTER 9
YEARS OF INVESTING
Amount Left in Account$25,624.75
Amount for House*:$64,000
*Amount for House equationPrinciple + 10k tax/penalty free
This is a hypothetical mathematical equation and not correlated directly to market action. Themath used, as labeled above, is 10% increase in value of investments each year, $6,000 at thebeginning of each year being invested in Roth IRA, and a withdrawal after 9 years of yourprinciple $54,000 plus your $10,000 available from tax free gains, per IRS Guidelines
Graduation!Time to Work
Year 0
Land YourDream Job
Year 6
Year 9
Married!
First Child!
Year 10
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
$3,000,000
$2,000,000
$1,000,000
$0
Year 37
Turn 59 1/2,can withdraw
fundswithout tax
penalty
Retire!
Year 40
Roth IRA Value Total invested: $240,000Value at retirement: $2,921,110.87
Easy Way to Make
$3 Million
HYPOTHETICAL TIMELINE 2:KEEPING YOUR MONEY IN
YOUR ROTH IRA
Maybe you decide you want to keepyour money parked in your Roth IRA,and instead find other means to buyyour first house. This graph is basedon:
A 10% appreciation in investmentseach yearYou invest $6,000 each year in yourRoth IRAYou do not touch the money in yourRoth IRA until you retire
In this scenario, you decide to retire at62 years old. You have invested$6,000 of your income each year intoyour Roth IRA, and finally get to sitback and enjoy. Your Roth IRAaccount is now worth nearly $3 Milliondollars, even though you have only putin about 8% of that over your lifetime,and is accessible penalty-free and tax-free. Maybe the reason you are able toretire a success at 62 is because youbegan investing when you were 22. Ifyou are older, don't fret! you may makeup for time lost by opening up both aRoth and Traditional IRA.
Year 13
Twins!
This is a hypothetical mathematical equation and not correlated directly to market action. Themath used, as labeled above, is 10% increase in value of investments each year, $6,000 at thebeginning of each year being invested in Roth IRA
NO LOCKS ONYOUR MONEYWe'll give you the keys tostaying liquid while investing
Sometimes, there are many variables toconsider when investing in your twentiesand thirties. A scenario that may havestopped some from investing is the abilityto access their money quickly. It is ouropinion that this, along with not knowingoptions, may be why millennials are suchlate starters when it comes to investing. itdidn't help that some also saw theirparents lose their shirts during theFinancial Crisis of '09. Fortunately we areproposing a solution to these problems:Savior Wealth, through our platformProphet Edge, gives you access to yourcontributions in a Roth IRA at any time, perIRS rules and guidelines. We manageyour money with the same care andattention we give to our multi-million dollarclient accounts. We are a fiduciary,meaning every decision we make must bewith your best interests at heart. Let's look at your upcoming expenses tosee why you should start saving with usnow!
Source: IRS Publication 590-B (2018)
I F Y O U W A N T T O H A V EA B E T T E R
P E R F O R M A N C E T H A NT H E C R O W D , Y O UM U S T D O T H I N G S
D I F F E R E N T L Y F R O MT H E C R O W D
- S I R J O H NT E M P L E T O N
P R O P H E T E D G EO u r A d v a n t a g e i s Y o u r A d v a n t a g e
At this point, you may have a clear
picture of how Prophet Edge
operates. You will not get the same
portfolio as the hundreds of other
automated advisors out there. You
will not be put in a standard
diversified portfolio where you ride the
waves of the market. If this is what
you want, you may not need to invest
with any advisor.
You could buy the S&P 500 ETF* and
avoid advisory fees. However,
Prophet Edge does not believe this is
near to optimal. The goal is always to
beat the competition. Prophet Edge's
strategy aims to create an
environment with increased upside
and decreased downside. We provide
you with a way to invest like the
billionaires without paying the high
price of advice!
*E.g., The iShares Core S&P 500 ETF seeks to track the investment results of an index composed of
large-capitalization U.S. equities.
TIMING THEMARKET
Rethinking the flawed "Youcan't time the market"argument
"You can't time the market." It's been saidthousands of times by investors,institutions, advisors, and the like. It'soften muttered when an opportunity ismissed or money recently invested issubject to a market crash. But wait, let'stake a step back and actually evaluate thisphrase. If this was true, it would mean thatwhether you buy today, buy in a month, orbuy in a year from now, you would havethe same probability of success or failurein your investment, and for this reason youshould invest today to give yourinvestment the longest time to grow. If youtake all factors out of an investment, bythis I mean the underlying asset, thepolitical landscape, the current economictrends, the Fed, the history, the humannature, and virtually everything else, thenset a standard, nonfluctuating increase onthis investment that only trends flat in apositive direction, then yes, you can't timethe market. However, I suppose in thisexample you could actually time themarket, and that would be to put yourmoney in the first moment you are able to!
Here is a great example of how
timing the market actually works
using technical analysis. Two of
the widely accepted indicators are
the Golden Cross and the Death
Cross. Both have to do with moving
averages; typically the 200 day and
50 day moving averages are used.
When the shorter of the averages
crosses downward past the larger
timeframe, it is a bearish signal.
When the shorter moving average
crosses to the upside, it is
considered a bullish signal. As you
can see, you perhaps may have
been able to use such analysis to
discern timing as it relates to the
Financial Crisis of 2008-2009
almost completely. These, along
with many others, are the types of
indicators that Prophet Edge uses
when considering a trade.
Pictured: S&P 500 2007-2010, Source: Yahoo Finance
S&P 500: Signaled the Crash
Purple: 50 Day Exponential Moving AverageBlue: S&P 500
Green: 200 Day Exponential Moving Average
Death Cross
Sell Positions
Golden Cross
Buy
The golden cross is a pattern that is a bullish signal in which a relatively short-term moving average crosses
above a long-term moving average.
The death cross is a technical chart pattern indicating the potential for a major selloff. The death cross
appears on a chart when a stock’s short-term moving average crosses below its long-term moving average.
Up until now, our professional
investment management was
available only for the select few
who had a significant amount of
liquid assets. Now, with our
automated investment platform
Prophet Edge, we can help
millions of people reach their
financial goals!
In a matter of 15 minutes, you
can set up a Roth IRA or any of
the other account types listed on
our platform and deposit funds.
We require a much lower barrier
to entry with this platform; the
initial investment necessary is
only $5,000. For this amount,
you will get what is termed
"white glove" treatment. On the
next page we will explore this
term and how this plan may be
great for you!
MAKING THEBEST
ACCESSIBLEHigh Net Worth Investing forEveryone
THE WHITEGLOVE
TREATMENTHow our automatedplatform works for youFirst, let's talk about what "whiteglove" means. In this instance, theterm is used to describe a situationwhere the user is connected to anautomated platform, but in the backend a human is making thedecisions. Most investingautomated and robo platforms donot have a human element; youcomplete a series of questions, arisk profile is determined, and youare automatically placed intoinvestments that typically mirror theS&P 500. With our white glovetreatment, you have our topinvestment management controllingyour investments. Humans have abetter understanding of currentevents and the economy as awhole. Think about it, you wouldn'tlet an automated car get you fromyour house to your work. Or anautomated pilot fly you across thecountry to your destination.
Let us be your pilot, and you be ourco-pilot. Savior Wealth, themanaging company of ProphetEdge, is a Fiduciary. Investopediadefines a Fiduciary as "the highestlegal duty of one party to another,being a fiduciary requires beingbound ethically to act in the other'sbest interests." Everything we dowill be with your best interests inmind. You can rest assured that wealways put you first. With this inmind, we will detail our investmentstyle on the next page to give you aclear picture of why Prophet Edge isdifferent than others.
Let's begin with a background of
investment philosophy. There
are two major fields of analysis:
Fundamental Analysis and
Technical Analysis.
Fundamental Analysis,
according to Investopedia,
attempts to measure a security's
intrinsic value by examining
related economic and financial
factors. Technical Analysis is a
trading discipline employed to
evaluate investments
and identify trading opportunities
by analyzing statistical trends
gathered from trading activity,
such as price movement and
volume. Both seem useful right?
Amazingly, most places rely very
heavily on fundamental analysis
and barely use technical
analysis, if at all.
PROPHETEQUALSPROFIT
Prophet Edge's InvestmentSystem
MAJORDIFFERENTIATORS
The use of technical analysisin many of our investingdecisions is a strongdifferentiator. We seek toestablish probablemovements in the short termand the long term of aninvestment based ondifferent oscillators andindicators which gives us acompetitive edge.
Technical Analysis Think about this: iffundamental analysis wasoptimal by itself, why do stockprices fluctuate rathersignificantly on a day to daybasis? Is there newinformation on the company? Did they just come out with anew product? The answer is no. This is whywe believe using statistics,calculus, and trigonometry toanalyze stock movements isnecessary.
S&P 500 since 1990
Notice the bounces off the200 period Simple Moving
Average
MAJORDIFFERENTIATORS
Diversify, diversify, diversify. This what you will hear fromnearly every investment advisor. Based on your investmentprofile and risk tolerance, deriskyour investments by spreadingthem out over different assetclasses, even though some maybe projected to perform betterthan others. Prophet Edgebelieves there is a better way. We start by only investing inExchange Traded Funds, whichare similar to mutual funds, buttrade like stocks.
Diversify Differently Think about this: if purediversification is best, why notbuy an S&P 500 ETF* and call ita day? The answer is because itmay not be the best optionbased on your risk tolerance;based on your risk tolerance,you may seek to be weighted inETFs that are projecting a betterrisk/reward ratio. For instance,in Monopoly, would you ratherhave a diversified portfolio ofone of each color, or a fewmonopolies in the mosttrafficked spots?
"Diversification is protection against ignorance. Itmakes little sense if you know what you are doing"
-Warren Buffett
*E.g., The iShares Core S&P 500 ETF seeks to track the investment results of an index composed
of large-capitalization U.S. equities.
Red: S&P 500*Blue: ProShares UltraShort S&P 500 (SDS)
October 2007 - April 2009Source: Yahoo Finance
THE UPSIDE OF A CRASHBE ON THE SIDE THAT ISSHORTING THE MARKET
If you have read anything about
investing in the market over the last
decade, you may have heard about
the benefits of investing in ETFs.
There are stock ETFs, bond ETFs,
industry specific ETFs, high growth
ETFs... I think you get the picture.
What gives Prophet Edge another
large advantage is that we are able to
use inverse ETFs and leveraged
ETFs.
Inverse ETFs are in essence a way to
short entire industries or markets. If
we enter a bear market, you can rest
assured that we will help manage risk
on the downside. Historically this
product has been advantageous for
investors. This ability to invest in
whichever way the market is trending
is a huge advantage.
As explained previously, Inverse
ETFs essentially allow us to short
the market or particular industries
at a given time. In the next bear
market, this will be an essential
element to our strategy. Our
strategy takes the fear out of
market drops.
Inverse ETFs
It is our belief that Leveraged ETFs
are an underutilized investment
type. Don't let the name fool you;
we are not taking leverage out.
Rather, the ETF trades at a
variance of typically about 2X the
base ETF. For instance, a 2X S&P
500 ETF* will nearly replicate the
S&P 500 but for 2X the price
movements. Leveraged ETFs are
a crucial differentiator for Prophet
Edge, as most investment
companies are not allowed to use
them.
Leveraged ETFs
*The iShares Core S&P 500 ETF seeks to track the investment results of an index composed of large-
capitalization U.S. equities.
Prophet Edge'sTools to Hedge
GET YOUR EDGEYOUTYPICAL LARGE
INSTITUTIONTYPICAL ROBO
ADVISORPROPHET EDGE
FIDUCIARY
LOW FEES
HUMAN ELEMENT
PROFESSIONALFUNDAMENTAL
ANALYSIS
PROFESSIONALTECHNICALANALYSIS
ABILITY TO USELEVERAGED ETFS
ABILITY TO USEINVERSE ETFS
OUR ACCOUNTTYPES
ADVISORYRATE
Roth IRATraditional IRAIndividual BrokerageJoint BrokerageCustodialRevocable Living TrustSEP-IRASIMPLE IRA
Dollars Invested Rate
1%
0.9%
0.8%
0.7%
<$25K
$25 - 100K
$100K - 500K
$500K - 1MIL
Figures not indexed for inflation
This brochure is not intended to be legal or tax advice or to offer a comprehensive resource for tax-qualified retirement
plans. Always consult your own legal or tax professional for information concerning your individual situation. All
material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This
is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor
in an investment making decision. As with all investments, there are associated inherent risks. Please obtain and review
all financial material carefully before investing. Savior LLC investment representatives are not tax advisors. All data
provided by Savior Wealth unless otherwise noted. All data as of 6/4/2019 unless otherwise noted.
$1MIL+ 0.6%
Legal Information and Disclosure
This communication expresses the views and opinions of Savior LLC as of the date it was written or
indicated, and such views are subject to change without notice. Savior LLC (“Savior”) (CRD # 299178)
has no duty or obligation to update the information contained herein. This communication may include
forward looking statements that are based on then-current beliefs of the participants. Such forward
looking statements may involve assumptions and known or unknown risks and uncertainties that are
subject to change and may differ from actual results, performance or events that occur in the future.
Further, Savior makes no representation, and it should not be assumed, that past investment performance
is an indication of future results. Moreover, wherever there is the potential for profit there is also the
possibility of loss.
This memorandum is being made available for educational purposes only and should not be used for any
other purpose. The information contained herein does not constitute and should not be construed as an
offering of advisory services or an offer to sell or solicitation to buy any securities or related financial
instruments in any jurisdiction. Certain information contained herein concerning economic trends and
performance is based on or derived from information provided by independent third-party sources. Savior
believes that the sources from which such information has been obtained are reliable; however, it cannot
guarantee the accuracy of such information and has not independently verified the accuracy or
completeness of such information or the assumptions on which such information is based.
Risk Disclosure:
Exchange Traded Funds (ETFs) are subject to market risk, including the possible loss of principal. The
value of the portfolio will fluctuate with the value of the underlying securities. ETFs trade like a stock,
and there will be brokerage commissions associated with buying and selling exchange traded funds unless
trading occurs in a fee-based account. ETFs may trade for less than their net asset value.
Investors should consider an ETF's investment objective, risks, charges, and expenses carefully before
investing. The prospectus, which contains this and other important information, is available from your
Financial Advisor at Savior LLC and should be read carefully before investing.
Diversification does not ensure a profit and may not protect against loss in declining markets. Investors
should refer to the individual ETF prospectus for a more detailed discussion of the specific risks and
considerations for an individual ETF.
ETFs may have underlying investment strategy risks similar to investing in commodities, bonds, real
estate, international markets or currencies, emerging growth companies, or specific sectors. When
investing in bonds, it is important to note that as interest rates rise, bond prices will fall. Due to their
narrow focus, sector-based investments typically exhibit greater volatility. There are special
considerations associated with international investing, including the risk of currency fluctuations and
political and economic events. Investing in emerging markets may involve greater risk and volatility than
investing in more developed countries. When investing in real estate companies, property values can fall
due to environmental, economic, or other reasons, and changes in interest rates can negatively impact the
performance. The risk of loss in trading commodities and futures can be substantial. The high degree of
leverage that is often obtainable in commodity trading can work against you as well as for you. You
should therefore carefully consider whether such trading in ETFs is suitable for you in light of your
financial condition.
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