A recent NASA report shows that astronauts who spend 6 months in space grow by 3% – or about 2-inches. The reason? Gravity does not restrict the body’s natural inclination to grow.
So what would happen if our money wasn’t subject to the gravitational pull of taxes, fees and commission, and risk? We may not all want to be 8-feet tall – but we do want our money to grow up to its maximum potential.
So here’s a new term – The Growth Capacity of Money.
Let’s say a 30 year old is saving $500/month, and growing that money at 10% until age 65. The Growth Capacity of their money is $1,788,761. The Growth Capacity would be lower if it grew at a lesser rate – and higher if retirement was delayed to age 70. You get the idea.
Whatever the Growth Capacity of Money – the thing we really need to know is the impact of gravitational pull in the three forms most of us subject our money to – taxes, investing fees/commissions, and market risk? If we assume:
· The growth of our money will be taxed at 25%,
· We’ll have two bad years that break the 10% earning streak, and
· We pay the various brokers, advisors, mutual fund managers, custodians, etc. 1.5% of our account balance each year…
Our $1,788,761 turns into $588,643.
That’s an astonishing number – but it’s also mathematical fact. Gravitational pull saps the Growth Capacity of our Money by a full 2/3 in this example.
Whether or not you take issue with my assumptions – the point is the same; we have to seek ways to build Zero Gravity Wealth. That means eliminating the exposure of our money to the gravitational pull of taxes, fees/commission, and market risk.
Can that be accomplished without compromising the Growth Capacity of our money – or sending it to space? Absolutely – and I can show you how.
