What Is Deferred Compensation?

These days it can be hard to save up money, so one way to do it is through a method that forces you to save even before you get paid. This type sabings is called deferred compensation. Deferred comp comes in several types, but basically it is an agreement between a company and an employee where part of their pay is deferred and will be paid out at a future date.

Common Types Of Deferred Compensation

One of the most common types of is a retirement plan. This is usually part of an employee’s benefits in their job that keeps adding up and is a form of investment or IRA in some cases. It would go to the employee when they either retire from the positon, or it usually can be transferred to a new job if it is an IRA. The value of a retirement plan type depends on how much money is held back from the person’s pay and what is done with it afterwards.

Investor Personalities & Retirement Planning

What kind of investor are you? Some members want to read all the information and make their own decisions. Others want to leave the choices to people who are more experienced like a real estate appraiser or broker.

No matter what your investment style is, when planning for retirement, it’s important to know that if you do invest, you will face many different kinds of risk. Market risk, currency risk, risk with the investment itself, timing risk, etc. It’s always there and, because of it, it’s possible to lose what you invest when you're doing it on your own. But there are ways to reduce your risk and ensure a minimum return of 15%.

That’s why you may want to understand the concepts of asset allocation, insurance and diversification, and then decide how to apply these investment strategies when planning for retirement. And, remember this: We can help. Just let us know how involvement you’d like us to be in your investment strategy and execution.

Want to own your own business? Yes, I mean a real business in your name where you build equity for yourself and your family. Our corporation pays 1/3 of the company's profit to Club Managers. What does that mean? Imagine receiving 4-8% per year on all funds under management for your club. Stock brokers only make 1% per year. No, you don't need a securities license to operate an investment club. There are a bunch of laws you need to follow like keeping your club under 100 members and 25M, but it's not that hard because we handle most of the difficult stuff like the taxes, appraisals, and the actual investing in many different things to keep returns high even in years when real estate is not doing well.

Financial Freedom:

Our everyday lives are dominated by the quest to be happy and not suffer. We strive every day to fulfill our needs through knowledge and trial and error often forgetting that wisdom is the real solution. Sometime we wonder is it even possible to achieve freedom? To many of us, financial independence might look like an impossible dream or something that only the very wealthy can achieve. Let me break it to you, you can be financially free! Financial independence exists everywhere in different industries, different locations, and with different kinds of people. There is no set rule that you have to think or act a certain way except that most people had to work hard for it. Sometimes that means dusting yourself off and learning from your mistakes, or getting an education either by working for someone more successful or going back to get a master's degree. 

When we talk about qualified dividends, what comes to many minds is some form of payment from a bank for a checking or savings account. The question is; what is a dividend? Well, simply put, a dividend is a form of payment by which a corporation pays their shareholders or stockholders. In most cases, dividends are given out whenever there is a surplus profit apart from the corporation’s reinvestment activities. Depending on the type of dividend which is usually defined by being qualified or unqualified, dividends can be accessed by an individual, partnerships, cooperatives, investors or companies. Other types of dividends include cash dividends, stock dividends, property dividend, scrip dividend and liquidating dividend.

A loan payoff calculator is a great tool for visualizing how long it will take to become debt free. We have many different types of loan calculators to help you accomplish your goals, but first things first. Not all loan payoff calculators are created equal. For example, there is a debt snowball calculator that focuses on paying off your smallest debts first assuming they are also your highest interest debts. This is not always correct, so what you really need is a calculator that does the same thing using the highest interest rate. In addition to finding the right calculator you may also consider the benefit of being in a group of people with similar goals to keep you on track. This is what investment clubs are all about.

The Debt Snowball Calculator is a wonderful tool for helping people become debt free. Each one of us is likely to incur debt at some point in our life. It is even probable that circumstances compel us to get indebted a great deal.The scenario becomes even worse when that debt is accompanied with an exorbitant  interest rate. In such situations worrying until your hair is gray is not much help. The most effective strategy we know of is the debt snowball. There are actually two methods of using the debt snowball calculator: focusing on the smallest debt or the highest interest rate. In a side by side comparision, people succeeded more often by paying off the smallest debt because they stayed motivated. However, paying off the highest interest debt using the same concept actually paid off the debt faster.

Deferred Compensation is defined as an agreement between an employer and an employee to withhold payments of wages, invest them on the employee's behalf, and pay them later to the employee in the form of retirement benefits. Deferred compensation eliminates the tax the employee would normally pay on their wages and can take the form of a pension, retirement plan, or employee stock option plan.

Every month, an employee expects to earn some income in the form of wages. While some take all of it home, others choose to keep a portion of it with the company's retirement savings plan. In most mid-sized companies, employers purchase an annuity, offer stock options, or some form of pension. These retirement plans are normally designed to replace 60% of your working income after 30 years with the same employer. Just like one would wish to save for the future, deferred compensation is a retirement plan that allows people to avoid the taxes associated with receiving their income right away. Most companies or employers in the USA encourage employees to subscribe to retirement plans. 

Private Placement Memorandum Example

Name of Offeree                                            Copy Number
First and Last Name                                      1

CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM

BIC Real Estate Development Corporation
Up to 100,000,000 Shares of Common Stock at $10.00 per share
Maximum Offering - 49,000,000 Shares
Minimum Offering – 10,000 Shares
Minimum Purchase Per Investor – 1 Shares

First and Last Name

This Confidential Private Placement Memorandum (the "Memorandum") has been prepared in connection with an offering (the "Offering") of up to 100,000,000 shares of Common Stock, $10.00 par value (the "Shares") of BIC Real Estate Development Corporation (the "Company"). The minimum offering amount is 10,000 ("Minimum Offering Amount"), and the maximum offering amount is 49,000,000 ("Maximum Offering Amount"). The minimum purchase per investor is 1 shares, or $10.00. Officers and directors of the Company will make offers and sales of the Shares; however, the Company retains the right to utilize any broker-dealers registered with the National Association of Securities Dealers, Inc. ("NASD") and applicable
state securities authorities to sell all or any portion of the Shares. If the Company so elects, it may pay such broker-dealers a commission in the amount of up to 10% and a non-accountable expense allowance of up to 3% of the proceeds they have sold. Offers and sales of the Shares will be made only to "Accredited Investors" as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the "Act"), which includes the Company's officers, directors and affiliates.

A value investors club is a group of people who buy stocks when the market value is less than the book value. Basically, they buy stocks at a discount with the hope that their porfolio will go up in value in the future. One of the most well known value investors is Warren Buffett. The most common strategy for value investing is actionable news. In other words, people wake up super early in the morning, read the financial news like the WSJ and take action.