4 Tips to Grow Your Wealth

4 INVESTMENT STRATEGIES TO Grow Wealth- BROUGHT TO YOU BY There's no better time than now to start saving for the future. Retirement is becoming longer and more expensive, with many of the costs likely to come out of your own pocket. Here are four strategies to get you on the right path. motif INVESTING SMALL AMOUNTS MAKE A DIFFERENCE You don't have to wait to start investing. Are you drinking a latte a day? Invest that $4 instead. Coffee $4 $1460 Large Latte per day per year What could you afford if you invested that coffee money and earned an annualized return of 8% ? 10 40 years years 277 square feet 4,698 square feet Just from investing your coffee $25,994 money. $440,198 2 START SAVING EARLY Investments compound, so starting 16 years earlier could result in $397,521 more in retirement! AGE 24 40 INCOME $34,000 $64,000 EXPECTED YEARLY INCREASE 3% 3% ANNUAL CONTRIBUTION 10% of yearly salary 10% of yearly salary ANNUAL RETURN 6% 6% By 65 $880,515 $482,994 Which of these people will be able to retire on time? DIVERSIFICATION IS YOUR FRIEND Don't put all your money in one basket. A diverse portfolio is designed to capture gains while protecting from catastrophic loss. INVESTING $100K from 1999 to 2013 GLOBAL ALL CASH ALL STOCK • DIVERSIFIED ENDING VALUE 46,756 $217,565 $273,791 ANNUAL RETURN 2.7% 7.0% 7.9% RISK 0.6% 15.9% 11.0% Roughly 90% of your risk comes from asset allocation rather than day-to-day decisions on when to buy or sell. Consider protecting yourself by investing in a mixture of stocks and bonds. etical value of $100,000 held in an all cash portfolio; a diversified portfolio of 16.6% U.S. stocks, 16.6% international stocks, 16.6% U.S. bonds, 16.6% international bonds, 16.6% real estate, and 16.6% commodities; and an all-stock portfolio. Stocks are represented by Russell 3o000 index and Nationwide International Equity Fund, bonds are represented by Barclays US Aggregate Bond Index and T. Rowe Price International Bond Fund, REITS are represented by FISE Nareit All Reits Index, commodities by the SaP GSCI Commodities Index and cash by 90 Day Certificate of Deposit Rates. Risk is defined by the annual volatility of the portfolio. 4 MINIMIZE INVESTMENT EXPENSES Not all investments are created equal. Some have commissions and fees that could eat into your profits. A $10,000 investment with an 8% return can bring in $100,627 in 30 years, but your take depends on the expense ratio. $100,000 $10,000 Difference: invested for 30 years at 8% $80,000 $30,188 $60,000 $40,000 $20,000 .05% Expense Ratio 1.05% Expense Ratio 10 15 25 30 years ONE PERCENTAGE POINT CAN MAKE A DIFFERENCE OF $30,188 IN YOUR POCKET. Know how much you are paying in fees and consider lower cost funds intended to TIP help reduce expenses. Note the average mutual fund charges a management fee of 1.163%', and ETFS, while cheaper, still average .636%² in fees. CONCLUSION: "What are you waiting for?" Start early , stay invested , minimize risk and lower expenses , and you can give yourself an edge toward meeting your goals. ABOUT MOTIF INVESTING Motif Investing is a next-generation online broker that is pioneering concept-driven investing for individuals. The company allows investors to trade "motifs"-intelligently-weighted basket of up to 30 stocks and ETFS built around trends, investing styles or asset models – for a total commission of $9.95. motif INVESTING CONNECT WITH US: f facebook.com/motifinvesting y @motifinvesting SOURCES: 1. 2013 Lipper's Quick Guide to OE Expenses. 1.163% is the average expense ratio for managed open-ended funds. 2. 2013 Lipper's Quick Guide to OE Expenses. 0.636% is the average total expense ratio for ETFS. http://www.census.gov/construction/chars/xls/soldpricesqft_cust.xls http://www.calculator.net/401k-calculator.html http://www.cfapubs.org/doi/pdf/10.2469/faj.v51.n1.1869 http://research.stlouisfed.org/fred2/series/IR3TCD01USM156N © 2015 Motif Investing, Inc. All rights reserved. Member: FINRA I SIPC DISCLOSURE: Investing in securities involves risk, including the possible loss of principal; individual investments or a collection of individual stocks such as motifs which are concentrated in an idea or theme may face increased risk of price fluctuation over more diversified holdings due to adverse developments within a particular industry or sector. Illustrations and examples are intended for informational purposes only and do not represent actual results you should expect to achieve. Mentions of performance are calculated as hypothetical examples and do not consider elements that can impact the performance of an actual investment, such as actual fees, commissions, and expenses, market volatility, or returns that you can rely on with your investments. None of the information is contained herein is intended to appear as a recommended investment or investment strategy that you should pursue. Motif Investing makes no representation regarding the suitability of an investment or investment strategy for any particular investor. You are responsible for understanding the risks involved with all investment decisions you make. Standard pricing; $9.95 total commission per motif transaction or pay $4.95 per stock for individual transactions within a motif. Other fees may apply. For details on fees and commissions go to www.motifinvesting.com