How to Become a Millionaire

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How to Become a Millionaire. Retirement Accounts. To Retire. Save $20,000 for 47 years with 8% interest Worth $744,640 10% interest, Worth $1,763,949 Every Million saved = $50,000 in retirement With 8% annual interest rate Calculate what you want to make in retirement - PowerPoint PPT Presentation


<p>How to Become a Millionare</p> <p>Retirement AccountsHow to Become a Millionaire Save $20,000 for 47 years with 8% interestWorth $744,64010% interest, Worth $1,763,949Every Million saved = $50,000 in retirementWith 8% annual interest rateCalculate what you want to make in retirementConsider Social Security payoutsConsider retirement account payoutsTo RetireAnswer I think and I want on page 32Watch Dave Chapter 3, Part 1Do you have all page 33 to 35 answers?IRS (Internal Revenue Service) codesRetirement account = tax savingsAll names based on tax codeJust a name of account - have all types of investments in the accountDressed up in a coat</p> <p>What you think and want to know</p> <p>RothPay taxes now &amp; Never againMoney grows tax freeTax Deferred AccountsMake more now than retirementPay taxes latter = pay less in taxesIf take $ early = penalty</p> <p>Roth</p> <p>SEPPSelf-employed person may deduct up to 15%How a pension work now daysTax, employer and (minimum) employee fundedGet to retire without saving much / anyWho gets them?Politicians, Police, Fire, Teachers Public ServantsPension PlanCompanies really do not have pensionsMost are now self-funded and matching plans401(k) = company 403(b) = non-profit organization2010 median match = 3% of payMeaning, earn $40,000 you put at least 3% or $1,200 in 401(k) and employer will put in 3% or $1,200 free money into your accountLaw forces you to enroll or opt outCan usually put up to 15% into 401(k) up to $17,000401(k), 403(b)</p> <p>Deferred compensationFor government employeesDo not use a Guaranteed Investment Contract</p> <p>Difference between 457 &amp; 401/403No 10% penalty for withdrawal before the age of 59Independent contractors can participate457You should be funding your plan whether your company matches or not.You should always rollover retirement plans to an IRA when you leave the companyOr, if allowed roll to your new 401(k)Or, you will be charged more feesUse a direct transfer or may get charged taxes and penaltiesAnswers:Pay the taxes separately and you understand all taxes will become dueMore on RetirementNever BORROW on your retirement planWill become a habitFund 401(k) or other plan up to the MatchAbove the match, fund Roth IRAsComplete 15% of income by going back to your 401(k) or other plans</p> <p>Baby Step 4Date of birth: 6/15/1988Current earnings: $40,000.00Benefit in year-2010 dollarsRetirement month: 6/2049Social SecurityEstimated monthly benefit Start at age 62 and 1 month in 2050$1,061.00For your estimate, we assumed no future increases in prices or earningsWorksheet Watch Dave and answer questionsWill go overSocial Security</p>