Today I'd like to share some news with you, provide an updated overview of The Branch, refresh your memory of some facts and remind you of changes to be implemented down the road.
First, I want you to know that as of 3rd August we have passed a monumental milestone. It may surprise many to learn that this branch of the investment club (The Branch) has paid out in excess of $1,000,000. Yes - that's a million bucks!
Some members have earned over $50,000 ($50K).
I am repeating some details which have been announced in previous newsletters, but which bear repetition here.
A vital and fundamental matter to be understood by current and prospective Branch members/investors is that our most important aim is long term sustainability.
We want to ensure that members are paid for years.
In order to achieve this goal, we have had to limit the amount that can be withdrawn by members month after month.
When a member has made withdrawals totalling more than all external deposits, he/she is then in profit and these accounts have been moved to BranchPro, which earn at a much lower, sustainable and possibly variable rate.
Consider that even when this has been as "little" as 2%, that is more than usually attainable in an investment easily accessible to almost anyone and which pays reliably month after month. One CAN earn that kind of investment return on property, but then we're often talking a minimum of several tens of thousands of dollars or much more, and it generally takes years. How many of us in The Branch can manage that?
As has previously been announced, The Branch will be closing its doors to broad new membership at the end of 31st August 2015. This is to keep things manageable and to help ensure stable payouts for the long term.
Any additional new members after that date will need to apply to and be approved by me and meet minimum starting investment requirements. These will be $180 for Branch1 and $720 for Branch2.
Minimum redeposits and incremental top ups, however, will remain $30 for Branch1 and $180 for Branch2 thereafter.
Those now in BranchPro who would again like the opportunity to earn and compound at Branch1 and 2 rates (16.66 and 19.44% respectively), can do so by making fresh investments.
I must add this so there is no misunderstanding about it.
If a member makes a new deposit by applying some of his/her earnings, instead of externally funding it, the very first W/D would see that investment placed into BranchPro.
As has always been the case for existing Branch1 and 2 members, by reinvesting earnings (and topping up with additional amounts if desired and feasible), you can very significantly increase your principal and thus earnings.
In the next several months, a cap (limitation) will be placed on the maximum principal for an investment. It will probably be between $75,000 and $100,000, with $100K very possible and it is likely to be sometime before Christmas 2015. I will inform members about a month in advance.
Following that, sometime next year, BranchPro will be implemented amongst all members.
Before then, a fixed BranchPro rate will have been determined and will be announced.
I expect it may be 7 or 8%, but it is currently too soon to state with certainty what it will be.
BranchPro membership fees will continue to apply each month then as now. To be fairer, we have decided to reduce the fees to just $10 per month for BranchPro Members who have less than $5,000 invested. Above that amount $25 per month applies.
A BranchPro member can add to his/her investment at any time even after the day when everyone is in BranchPro, by adding ANY amount from $1, and BranchPro will NOT be capped.
In about a year from now, when BranchPro has been established and implemented for all, members will no longer be able to create new Branch1 or Branch2 investments.
If current BranchPro, Branch1 or Branch2 members wish to fund new Branch1 or Branch2 investments, then it would be good practice to open a new account in another name like some have done already (for example, Bill Bach (Son), bearing in mind that we can only have 100 in each Branch EXCEPT FOR BRANCH PRO. But again, be aware that is only available until 31st August.
I would advise as many as are able, to build their principal as high as they can, that is, as close as possible to the upcoming cap, by continuing to reinvest (and top up if possible) to achieve that aim before BranchPro is implemented. That should allow about another year or so as I think it will be over 12 months before everyone is migrated to Branch Pro.
If any of this is not clear, first re-read all of it a time or two to be sure you've got it and if you then need clarification or have further questions, write me.
Bill, with the kind help of Michael Kaufman
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