McColly Real Estate is the hub to one of the hardest-working brokers in the Region, helping sellers market their homes and guiding buyers into homeownership in communities across the area. On Thursday, January 30, McColly celebrated its brokers' hard work at its annual Performance Plus Breakfast, where the company distributed bonus checks totaling $1,256,285 to the real estate associates who took part in the Performance Plus Program 5 years ago.
Tracy Parus, President of McColly stated, “Today, those who participated five years ago in our Performance Plus are reaping the rewards that investing can bring. It is especially nice that we have a program like this to offer and that the company matches a portion of that money that the agent defers.”
The Performance Plus Program is McColly’s wealth-building and investment opportunity for its brokers, giving them a structured way to invest a portion of their income (partially matched by McColly). The initial investment goes into either Berkshire Hathaway tracking stock, an S&P 500 tracking fund, or a 10-year Treasury Note fund. Five years later, those matched investments are returned to the brokers at the Performance Plus Breakfast.
“If you deferred $3,000 in 2019, and we matched it at the maximum $1,500 and we invested that in Berkshire Hathaway, it would’ve resulted in a $9,006 check today,” Matt Radencic, Director of Finance at McColly, said. “That’s just amazing. It's a 200.2% five-year total return. It’s automatic savings, it’s nice and easy.”
This year's total payout of $1,256,285 is the highest in the program’s history, surpassing last year’s record of $999,019.
“It’s a totally frictionless investment return,” Radencic said. “McColly takes nothing from the investment return and charges no fees for administering the plan. It all goes right back to you.”
Nine out of 10 McColly associates chose to invest in Berkshire Hathaway, a multinational conglomerate holdings company led by famed investor Warren Buffett. Heather McColly, director of Career Development and New Homes Division at McColly, highlighted the vast range of brands under Berkshire Hathaway’s umbrella and the opportunity it presents for McColly broker associates.
“They invest in or own Brooks Running Shoes, Kraft Heinz, Dairy Queen, Coca-Cola, Apple, Duracell, American Express, Fruit of the Loom, and much more,” she said. “Each of you, who participates in the McColly Performance Plus program and select Berkshire Hathaway, are indirect owners of all of those brands.”
Ron McColly, the company’s founder, has long admired Buffett’s investment philosophy, which continues to shape the company’s approach to financial growth. At the Performance Plus Breakfast, Ron McColly shared insights on wealth-building, real estate market trends, and key lessons from Buffett and his late business partner, Charlie Munger.
“One thing that I learned from Warren is that each day there are only two acts that we do,” Ron McColly said. "There are acts of commission, the things we do, and acts of omission, the things we don’t do. Everything falls into those two categories.”
Putting money to work in a program such as Performance Plus is one of the smartest acts of commission a McColly associate can make. McColly encourages brokers to continue building their financial future by reinvesting their return into a Roth IRA rather than cashing out immediately.
“Time and compounding will make you wealthier than anything else,” Ron McColly said. “Once you get into the habit of investing, you get what I call happy days like today.”
To learn more about McColly Real Estate, its brokers, and exclusive listings, visit mccolly.com.