welcome!!welcome!! welcome central hs! become a millionaire? most people don’t take this question...
TRANSCRIPT
Welcome!!Welcome!!Welcome!!Welcome!!Welcome Central HS!Welcome Central HS!
Become a Millionaire?Most people don’t take this question serious because they know the
chances of it happening are slim to none.
Of course everybody would like to be a millionaire.
Assuming you were __ years old, how much
money would you need to save each day to have a $1,000,000 at age __?
Become a Millionaire?
Assuming you were 17 years old, how much
money would you need to save each day to have a $1,000,000 at age 65?
Most people learn to do it the hard way.
$1,000,000/48 years/365 days = $57/day
Most people agree that $57 per day is a LOT of money, even when you are making $50/hr…or $300/hr.
Ironically, in almost every audience, there is one person who thinks they could start saving $57 today…they are usually the
future business owner in the group.
Depends on your education.
The problem is that middle America kids are taught finances by their parents, and who were taught by their
parents.
“Rich Dad, Poor Dad” addresses a fundamental
challenge.
Simple Math Doesn’t Work
From athletes to doctors to hairstylist to…ANY thing
you plan to do for a living…you need to know this…
today…and you may never hear it again.
No matter what your plan is…
“How Money Works”
What are the rules?
$2,000
$4,000
$8,000
$2,000
$4,000
$8,000
$16,000
$32,000
$2,000$4,000$8,000$16,000$32,000$64,000$128,000$256,000$512,000
72 ÷ 3%72 ÷ 6%72 ÷ 12%
Rule of 7224 Years
12 Years
6 Years
182430364248546066
Age 3% 6% 12%
Compound Interest
$500,000$500,000
19,623 Avg. # of meals in retirement
x2 including a spouse
~40,000 Approximately
x$10 avg. cost of a meal in 20-30 years
$400,000 Just to EAT!!
Putting things in Perspective
And we all know what happens when you don’t have enough $$ to eat.
Loaner vs. Owner
Banks
3-6%
18-21% Credit Cards
Mutual FundsA BA. Loaner: Loses money
to inflation.
B. Owner: Benefits from inflation.
Invest American Economy12-25%
What is Safety?
1940
2013
……a 90% a 90% LOSS!LOSS!
But, stocks can be risky
$2 Billion
Benefits of Mutual Fund• Pooling of Assets: Hires a Professional Manager
Individuals$25-1000+/mo.
Banks$1-5 Mil.
Institutions$100-500k/mo.
Insurance Co.$1 Mil.
$2 Billion$2 Billion
Diversification
EnergyEnergy
TechnologyTechnology
FinanceFinance RetailRetail
Diversification
CBSFordAT&TDupontCompaqChevronCitigroupMotorolaBest Buy
CBSFordAT&TDupontCompaqChevronCitigroupMotorolaBest Buy
Outback SteakhouseInternational PaperSouthwest Airlines
General ElectricGeneral MotorsColumbia/HCACampbell SoupNationsBankWalt Disney
Outback SteakhouseInternational PaperSouthwest Airlines
General ElectricGeneral MotorsColumbia/HCACampbell SoupNationsBankWalt Disney
IBMMCI
MobilReebokDillards
WalmartMicrosoftCoca Cola
McDonalds
IBMMCI
MobilReebokDillards
WalmartMicrosoftCoca Cola
McDonalds
Assuming you were 17 years old, how much
money would you need to invest each day to
have a $1,000,000 at age 65?
Become a Millionaire?
If you know the rules...
$1.28
per
DAY!
Coke $.50 = $170
Movie $7 = $2,082CD $15 = $4,625
What is the REAL Cost?
Stereo $279 =$86,043
Shirt $50 = $15,418
What is the REAL Cost?
Cost of Smoking: I recently calculated the cost to smoke from age 15-55...40 years, 1 pack/day*. So, a pack/day is 30 cartons for a year. This is $1,200** a year in ciggies. If a person were to invest the same $1,200 a year, they could have almost $1,000,000 by the time they were 55. So, this is just a little greater than the $48,000 out of pocket expense when you consider the FTV of money when saved in a quality equity investment.
* Ok, so a young person may not actually smoke a pack a day now, but they will soon...and eventually they will smoke more than a pack a day, so the average is 1 pack/day.
** Assuming a person actually buys their cigarettes a carton at a time...but since coming up with $40 for an entire carton might be tough, this might actually cost even more
= ?+
17 $776,179
Cost to Wait
5 years $426,112 $350,067 $1,500
1 year $688,535 $87,644 $300
1 Month $25 = $7,709
$25 / Month @ 12% to age 65
The HIGH Cost of Waiting
It Pays to Start Early!
At a 10%Rate of Return
Know the Rules!
I. Know how money works
Know the Rules!
Know the Rules!
Know the Rules!
Know the Rules!
I. Know how money works
V. Make good choices
IV. Work hard
III. Have a Written Plan
II. Dream BIG…set GOALS
The Right Choices
The decisions you make today will determine your opportunities of
tomorrow.
Trained to be an Employee
• It’s the way of the world…you work for an hour and you get paid.
• Unfortunately, this is a system that leads to frustration and disappointment.
• What if there was another way?
• First…a couple of video clips – (time permitting)
Secret To Financial Independence
EMPLOYEEHAS A JOB
INCOME BASED ON POSITIONNOT THE PERSON
BUSINESSOWNS A SYSTEM
HAS OTHERS WORKING FOR THEMUNLIMITED INCOME POTENTIAL
MANUFACTURING, MARKETING, ETC.
SELF EMPLOYEDOWNS A JOB
DENTIST, DOCTOR, LAWYER,HAIR STYLIST
REAL ESTATE AGENT, SALESPEOPLE
INVESTORHAS MONEY WORKING FOR THEM
ENJOYS COMPLETE FREEDOM,LIVES THE DREAM
25-30 Years
25-30 Years
5-15 Years5-15 Years
The Right Vehicle!
The “vehicle” you choose will
determine where you go in life.
Contact InformationIf you have any questions, please feel free to call:
Michael Overstreet
(409) 860-9200