How To Save A Million Dollars - Tips From An Expert
Published: October 11, 2008
Let me begin by borrowing from George S. Clason’s Book, The Richest Man in Babylon, first copyrighted in 1926, Which states “Lo, money is plentiful for those who understand the simple rules of its acquisiton. 1. Start thy purse to fattening, 2. Control thy expenditures, 3. Make thy gold multiply, 4. Guard thy treasures from loss, 5. Make of thy dwelling a profitable investment, 6. Ensure a future income, and 7. Increase thy ability to earn.”
Due to the nature of the music industry, your ability to remain creative and continue to produce revenue can be limited. If youare a professional artist/songwriter/producer, often you are not the master of your own destiny. Success and your success rate may well depend on others who are responsibe for marketing and promoting you or your product. Therefore, when you are “blessed with success”, having the ability to have prudence in anticipation of the lean days can be a lifesaver. Unfortunately, many of today’s Gospel artists who I have spoken to do not have life insurance, medical and/or dental plans, an active savings account, stock portfolio, not to mention a retivement fund of any kind. This revelation has promoted me to seek the advie of Mr. Lawrence R. Roberson, a Certified Financial Planner, and ask that he share with you, “How to save a million dollars” on just a few dollars a month.
Mr. Roberson’s advice is as follows: First, it may be easier than you realize to accumulate $1 million for retirement. There are four factors to consider: 1. Number of years to invest, 2. Amount of periodic (monthly, quarterly, etc.) investment contributions, 3. Average annual return, and 4. Accumulations on a tax deferred basis.
For example, if you invest only $1/day (365/year) at 10% for 60 years, on a tax deferred basis, it could grow to $1.1 million. However, most of us don’t have 60 years of time to accumulate money for retirement. A more realistic time is about 30 years. So, for the amout it cost to lease a full-sized family car, about $500/month, for 30 years, at 10%, growing tax deffered, you could accumulate $1 million. And $500 a month is not a lot of money. Now, let us see how importent the time factor is in this equation. If you now have only 20 years to accumulate, it will require about $1,455/month to obtain $1 million. This is about three times the amount required if you had 30 years. The message here is to get started soon; the earlier teh better. (Go to www.wealth-mg.com for more alternatives.) Do not continue to PRO-CRASTINATE.
Lastly, one may ask, “How do I get involved in investments on a tax deferred basis?” There are two categories: 1. Tax qualified plans that can be set up in a corporation, such as a 401k plan, SEP, Simple IRA, or 2. Non-Qualified plans for individuals,(no corporate structure required) such as a variable annuity, or VUL (Variable Universal Life) plan. These programs can be confusing. Therfore it is recommended that you work with a financial advisor to get started soon. Don’t be like many in the music and sports industries that make big fortunes early in life, then upon retirement, they are only living off of Social Security!! Plan NOW with a financial advisor to have your million or millions waiting for YOU upon retirement.
It’s really all up to you. Keep in mind, a lean day may be just around the corner. So use prudence.
Remember, knoweledge is power. SO know your business!
Copyright © 2012 you129 & B.A. Spears. All rights reserved.
WilliamFarthowe
January 04, 2012
that’s a lot of money. my tips is to donate it to the poor people like me and more…....
maybe half of it… just like the worker in Essay Examples online company won a lotto and he donate the half money to church, people who do not have anything.. hope you will do they same.