Download - $30k – Choose your Destiny
$30k – Choose your Destiny• 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.
Career Starter Loan Brief
Hank BrownMajor USMC
You can always spend more than you make….
• PT Barnum• Buffalo Bill• Nell Carter• Gary Coleman• Larry King• Cyndi Lauper• Abraham Lincoln• Willie Nelson• Mark Twain
• Walt Disney• Zsa Zsa Gabor• Charles Goodyear• U.S. Grant• Merle Haggard• Dorothy Hamill• MC Hammer• LaToya Jackson• Oscar Wilde
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.
Loan Strategy
• Borrow the money only – if it is absolute need– if it has a future benefit greater than the loan.
• Do not use the loan for – Gifts– Trips– Beer– Music– Unnecessary car!
Depreciation
• 2002 Cost:– MSRP $23,965– Dealer Prep: $2000– Premium: $2585– Tax: $1427– Title/Tags: $130– Total: $30,107
• 2007 Values:– Excellent $9,100 – Good $8,430 – Fair $7,305
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) $30,000
Rate (R) 8.0%
Years (N*12) 38Monthly Contribution
(PMT) $416
Future Value (FV) $1,858,048
Midn 2/c Brown 930834
Principle (PV) $11,000
Rate (R) 8.0%
Years (N*12) 16Monthly Contribution
(PMT) $416
Future Value (FV) $201,548
LtCol Brown USMC (ret)
Principle (PV) $201,548
Rate (R) 8.0%
Years (N*12) 22Monthly Contribution
(PMT) $416
Future Value (FV) $1,464,835
What did that Mustang “Cost”?
Principle (PV) $30,107
Rate (R) 8.0%
Years (N*12) 38Monthly Contribution
(PMT) $0
Future Value (FV) $623,076
“I’ll start later…”
Principle (PV) $0
Rate (R) 8.0%
Years (N*12) 23Monthly Contribution
(PMT) $832
Future Value (FV) $660,559
Financial Freedom
• LT/ Capt at 5 Years: $75,000• LCDR/ Maj at 15 Years: $244,119• CDR/ LtCol at 20 Years: $432,425• 55 year Old Civilian: $1,226,488• 65 year old Retiree: $2,798,975
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– Same Vehicles
• Money Market• Mutual Funds• C.D.s• Bonds• Individual Stocks
Do I need a Financial Planner?
• You are All Capable• Matter of:
– Time– Trust– Interest
• Buffet:– Trade = Lose– Low Cost Index
• Careful of Frauds– 10 Years – 0 Return– Get what you pay for
• Incentives Matter– What’s in it for
them?• Many are free
Sources
• www.fool.com• http://
beginnersinvest.com• www.wikipedia.org• www.google.com• www.bloomberg.com• www.hankbrown.org
• Money Magazine• Forbes• Kiplingers• Smart Money• Worth• NFCU/ USAA
Bottom Line
Borrow for a dire need or for a future benefit
Minimize your “Car Standard”
Easy Money – A Chance of a Lifetime!
Learn to Invest within Your Personality