$30k – Choose your Destiny

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$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.

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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. $30k – Choose your Destiny. Career Starter Loan Brief. Hank Brown Major USMC. - PowerPoint PPT Presentation

Transcript of $30k – Choose your Destiny

Page 1: $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.

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Career Starter Loan Brief

Hank BrownMajor USMC

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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

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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.

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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!

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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

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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%.

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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

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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

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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

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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

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“I’ll start later…”

Principle (PV) $0

Rate (R) 8.0%

Years (N*12) 23Monthly Contribution

(PMT) $832

   

Future Value (FV) $660,559

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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

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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

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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

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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

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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

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Questions?

Major Hank [email protected]

[email protected]