John Kim, Co-Chair of Syncis, built his fortune from nothing by applying his understanding of finances. For ten years, he worked with large financial institutions and was doing well for himself. Though that would be enough for many, it wasn’t enough for him, so he broke off on his own and co-founded Syncis. The reason for Mr. Kim’s dissatisfaction was because he felt that large financial institutions often ignore or mistreat their middle-income clients.
When clients speak with Syncis associates, they’re educated in a friendly, comfortable manner about financial basics, and how they can protect their futures. If you’re not up-to-date on financial concepts like those below, meeting with such an associate could greatly benefit your life and those in it.
- Cash on Cash Return – A cash on cash return refers to the amount you are making on a particular investment in comparison to the money that you have put into that asset. Comparing the cash on cash return of your investments allows you to decide where your money is working for you and where it is not. This tells you when you need to move certain assets elsewhere. For example, if one of your investments has a ten-percent cash on cash return, meaning you earn ten percent of what you put in each year, and another has a two-percent return, the money in your two percent asset could likely earn more through another source.
- Debt Snowballing – Snowballing debt might sound bad, but it’s actually an effective method to repay your debt. You snowball your debt by first ordering all of your debts according to interest rate, with the highest ones first. The first on your list should be the one with the highest rate, and you’d work on it before the rest. You would drop all payments on other debts to the minimum, but pay as much as you can on the first listed. When it is paid off, you take what you were paying on it and put it toward paying off the second on your list, and so on, until you are out of debt. This can also be done in reverse, paying off the debts with the lowest rates first.
- Effective Tax Rate – If you understand your effective tax rate, you know what to expect each year when tax season rolls around. It refers to how much you pay on your income taxes each year between both state and federal. Begin by calculating the percentage of your wages that you pay on your federal return, and then do the same for your state. When you add the two numbers, you will receive your effective tax rate.
Generous professionals like Syncis’ John Kim Syncis are slowly making financial information widely available to families of all income levels. If you’re in need of such assistance, reach out to a professional today.