Why POSFI?
Point of sale fractional investing (POSFI) provides an easy and affordable way for everyone to invest. POSFI eliminates barriers to equity investing and, in doing so, achieves a myriad of positive and desirable social and public policy objectives.
Equal investment opportunities
Equity markets have historically provided higher returns than other kinds of investments. The opportunity to realize higher returns should be available to all Americans, regardless of social or economic status.
POSFI provides that opportunity by offering equity investing affordably and conveniently to everyone. Imagine being able to participate in the stock market for just $1.00. POSFI truly democratizes the stock market.
Stock market participation rates amongst minorities
Minority, low education and low income groups experience lower stock market participation rates. Equity investing should be encouraged and made easily available for all Americans.
POSFI encourages participation by members of groups historically underrepresented in equity market ownership by providing an easy, convenient, and affordable way to invest.
Savings
Americans are saving less in recent years. Consumerism and impulse purchasing compete with the need to save. The opportunity to save should be on the same level playing field as impulse purchasing.
POSFI provides that opportunity by offering equity investing directly at point of sale retail terminals, the same place in which impulse purchasing decisions are made.
IRAs: unfulfilled potential
Less than 10% of those eligible contribute to Individual Retirement Accounts (IRAs). More Americans should be encouraged to participate in IRAs and other qualified plans such as Health Savings Plans (HSA).
POSFI can be invested directly into qualified retirement or HSA plans.
Barriers to equity investing
Prohibitive requirements of financial institutions, such as unit price or minimum required investment amounts, serve as barriers to equity investing for many individuals.
Fear of downside risk associated with equity investing is also a barrier.
These barriers must be removed if equity investment participation rates are to increase amongst the demographic groups mentioned above.
POSFI eliminates the prohibitive requirements of financial institutions by providing a $1.00 investment that is both the unit price and the minimum amount required to open up a POSFI account.
POSFI eliminates the fear of downside risk by offering the Equity Indexed Annuity (EIA). An EIA, which will be the initial investment offered through POSFI, cannot lose principal regardless of market performance.
Impulse purchase
An entire industry has emerged to promote the impulse purchase: the propensity of shoppers to shell out money when in the proximity of point of sale retail terminals. Indeed, marketers study consumer behavior patterns in order to maximize what will be spent. at point of sale terminals. Impulse purchasing is mostly limited to soda pop, candy bars, lottery tickets, and the latest issue of The National Enquirer.
Not anymore.
With POSFI, consumers will have the opportunity to divert their hard-earned dollars from the negativity of empty calories, gossip magazines and lottery tickets to the positivity of equity ownership.
POSFI is an equity market impulse purchase.
POSFI: a piggy bank for the new age
Yesterday's piggy bank was a depository for the day's spare change. Something saved for a rainy day.
Today, Americans don't save as they once did. Participation in retirement and health savings accounts aren't as high as warrented by both the tax savings and the benefits these accounts will accrue for a retiree in his senior years. Frivolous consumerism and impulse purchasing is winning the war for America's disposable and discretionary income.
POSFI changes all that.
Imagine having the opportunity each time you shop to place your spare change into a stock, mutual fund, EIA or IRA.
Imagine having a positive choice as an impulse purchase, one that diverts your attention and money away from negative alternatives.
Truly, a piggy bank for the new age.
POSFI: an idea whose time has come.