congratulations! you are taking a step toward financial independence! you must do 3 things to become...
TRANSCRIPT
Congratulations! You are taking a step toward Financial Independence!
You must do 3 things to become a millionaire:
1. Pay all credit cards off monthly - do not carry credit card debt.
2. Make and Keep a reasonable budget - this takes discipline and self denial.
3. Maximize your ROTH IRA every year. *Use a reputable known company with diversified mutual funds.
Money will not bring you happiness and it will not define who you are.
It is not sacred; it is just a tool.
Use this tool to be a positive influence in your family and community.
• If you have questions or suggestions, please contact Hank Brown at 8314028993 or [email protected].
• This workbook & other tools can be found at www.hankbrown.org.
Ensign/ 2ndLt Budget
Hank Brown
Major USMC
Actions not Words• freedom to choose my
work or leisure.-OR-
• obligated to a job that will hopefully cover my expenses.
• dream about the legacy I leave my grandchildren.
-OR-• worry whether my money
will last until I die.
Prepared for the Golden Years?
• 20% families prepared for retirement.
• Avg American saves -.7%!!
• The average family has $3800 in savings.
• Most people pending retirement have less than $40k -$50k saved.
• Social Security is Welfare.
• You are likely to live past 90 or 100 years.
Returns on Investment
• Since 1925, the stock market (S&P 500) has averaged 12% annual return on investment
• Adjusted for inflation this equates to over 8% return.
• In the 1990s the average return was over 17%.
Can you do it?
Principle (PV) $32,500
Rate (R) 8.0%
Years (N*12) 38
Monthly Contribution (PMT) $416
Future Value (FV) $1,909,787
Midshipman Brown ‘93
Principle (PV) $11,000
Rate (R) 8.0%
Years (N*12) 14
Monthly Contribution (PMT) $832
Future Value (FV) $291,572
It Works!
Principle (PV) $300,000
Rate (R) 8.0%
Years (N*12) 23
Monthly Contribution (PMT) $832
Future Value (FV) $2,538,061
Investing
• Individual Account– Taxable– Vehicles
• Money Market• Mutual Funds• C.D.s• Bonds• Individual Stocks
• ROTH IRA– Maximize This
• ’07: $4000• ’08: $5000• ’09: +$500/ year
– Tax Free Growth
Sources
• www.fool.com• http://beginnersinvest.com• www.wikipedia.org• www.google.com• www.bloomberg.com• http://www.hankbrown.org
• Money Magazine
• Forbes• Kiplingers• Smart Money• Worth
