Danielle Robison and Flip walk through liquidity fund investment classes with real numbers. A $100,000 investment at 5% over 90 days returns $5,000; a $500,000 investment at 8% over three years compounds to $630,000. Pick a term, set compounding, and let it work.
Questions this video answers
5% → $101,250 (gain $1,250 over 90 days).
6% → $106,000 (gain $6,000 in one year).
8% → $124,000 (gain $24,000 over three years).
$105,094.53 (extra $94.53 vs simple annual 5%).
$106,136.36 (extra $136.36 vs simple annual 6%).
Wanted to give you an example of how easy it is to invest that money and get a pretty remarkable return. So what I wanted to do was give you some examples. For those of you who are got your money sitting in your bank account or you have a stuffed in your mattress or wherever else you might have it, I wanted to give you an example of how easy it is to invest that money and get a pretty remark return.
I just want to jump in real quick. When you say there's a 90 day class.
Yeah.
You're calling them classes now. These are not actually classes for the investors to take. You can actually think of it as if these are classes for your money to take.
Yes.
You're sending your money off to a 90 day class. So let's hope it learns and brings back other friends.
I love that. And I love that you define that. Because a class is. So this is a fund, it's a liquidity fund. And a class is like the, the share the class that you're investing in. So there's, you can invest for 90 days, you can invest for a year, you can invest for three years. And so Flip's example of your money's gonna go to school or to class for 90 days, one year or three years, and it's gonna come back with a bunch of friends and you're gonna be so, you're both gonna be so happy. I love that. It's a playoff of Kevin o' Leary's Shark Tank thing, right? Shark Tank, Yep.
He sends his children off to work.
Okay, all right, so wealth building made simple. So we're going to start off with $100,000 is what you're investing. And so for those, for the production team that is helping us with these videos, we have done math examples like this before and we have had investors write back going, I love it when you do math examples. But can you put it on the screen for those of us who are watching the YouTube videos so we can actually see it? So if you're able to do that, please do so. And if you're not, email us. If you're listening to this and you're not watching, just email us and we'll get you a copy of what we're talking about here. So we started off with $100,000. If you have $100,000 and you don't have to have $100,000, by the way, the minimum.
Well, in order to invest $100,000, you do need $100,000. But what you're saying is that I.
Get what you're saying, yes, you can invest as little as $25,000 in this fund. But for the sake of our math example, we used $100,000 because that is easy math. Okay? So if you're going to invest for 90 days, you're going to get a 5% return. Okay, so 5% for 90 days means that your $100,000 now turned to $101,250. 101,250.
So they made $1,250.
That's right. In 90 days for doing nothing. Okay, so that means that if you kept that money in for.
They actually made $5,000.
$5,000, which is 5% interest. All right? Now, if you use that $100,000, and you said, I don't need it in the 90 days, I actually am okay with increasing my interest rate to be able to make more money, and I'll keep it in there for a year. Now you're getting 6% interest. So in one year, what does that $100,000 turn into? Flip.
It's going to turn into $106,000, which they made $6,000.
That's right.
For doing absolutely nothing.
Yeah. Except for reviewing the ppm, asking questions, and then putting your money in there, which I think we did an episode. It was like a total of four hours. Right. And you do it one time, and then your money is earning money. Yep. Now we're gonna go to the third example. $100,000 for 8%. Because you're going to invest for three years. How much are they gonna make, Flip?
More than they invested.
The answer is one. At the end of three years, you will have made $124,000. Actually, you have made $24,000. You will get back your $100,000 if you wanted it back after the three years. So that means you made $24,000, which was $8,000 per year. So in this very simple example, for those of you who are driving or just listening to this, if you take that $100,000 and you put it at 5% interest, you're making 5,000 a year. 6% interest, you're making 6,000 a year. 8% interest, you're making $8,000 a year. And that is for doing nothing. So except for reviewing all the docs, so a maximum of four hours invested allows you to put money in and keep it liquid. 90 days, one year, three years. That's nothing. So some people are like, yeah, I might spend my money on this, but I don't know if it's going to happen or not. Those are the type of people that we're serving because they keep on saying, where can we put our money for a short amount of time that we feel like we can get it out if we want to get it out. So now there is another video that we recorded that said all you have to do is check a box.
Yes.
And that is going to allow you to start compounding your money.
Yes.
What do they say about compounding? It is the.
It's awesome.
It's the eighth wonder of the world. Compound interest. So this is a amazing. When you do the math of it on how much this increases your return. So if you choose to compound quarterly, this is what it's going to look like 5% in one year. Instead of it being $105,000 a year. If you compounded quarterly, it turns into $105,094.53. That means in a year you've made an extra $94.53. Simply. I'd like to compound right now. Let me tell you a little secret. We didn't do the math on this, but our 90 day fund allows you to compound monthly, not quarterly. That means you actually make more than the example that we're giving you right now. But we are trying to keep things simple today.
Wow.
Okay, so now let's just say that you decided you were putting that $100,000 in the one year class and that was 6% return and you were going to choose to compound it quarter. Now that $106,000 that you would normally have gotten has turned into $106,136.36. So you made an extra $136.36 simply because you checked the box for. I'd like to compound. All right. Now the 8% example where you're actually going to put the investment in for three years now instead of earning 100 or instead of having $124,000 at the end of the three years, you, you now have $126,824.18. That means you made an extra $2,824.18 simply because check the box for compounding quarterly. And I don't really know that there's a box to check. There could be, but we're using that as an example because you are notifying us in some way, shape or form that you would like to compound this money. And what is really cool is when you start earning money on your money, you start earning interest on your interest. So for Those of you who say, I don't need the distributions, you don't have to pay me quarterly. Just reinvest it and let it compound now that whatever money that you would have gotten, it's earning interest. So that's when things get crazy. So are you ready for this? We did one last example, $500,000. And let's just say you put it in the fund that is earning 8 or the class that is earning 8%. And so 10 years later, let's just say at the end of years, you're like, I don't need it back. Go ahead and keep it. Just keep it. At the end of 10 years, then normally you would have had $900,000, so $500,000 at 8% return in 10 years without compounding, you would have earned an extra $400,000. You would have nearly doubled your money. $900,000 is what you would have at the very end if now you compound that quarterly, you have $1,104,019.83. So for doing nothing, except for checking that box, you have earned an extra $204,019.83 extra.
That's crazy.
Just letting it sit there and continue to compound. Continue to compound like you make some real cheddar.
Yeah, that's right. That's some serious cheddar.
Yes. So it is amazing. And I would say the amount of investors who come into our investment investments and choose to compound, like, it's over 75% now, because people are really getting it. They're like, oh, wow, I don't need this, the disbursements. I actually am still living off active income. I don't need my passive income giving me this cash flow. Like, I'm just going to go ahead and choose to compound, and then I'll wait to start receiving disbursements on this money because it's growing so fast. I'll choose, like, in three years maybe. Now I say I want disbursements, right. I change it at that point in time. So a lot of people are really starting to understand this, and I think it's super powerful. So I thought it would be great to talk about.
