If He Can Do it..So Can you.

May 12, 2008 | By admin In How To Get RiCh |

John Retirement Plan - If He Can Do it..So Can you.

Name: John
Age:23
Occupation:Taxi Driver
Income:$29,000 a year
Retires weathy: Age 43

At age 23, John was broke.
At age 43, John stoped driving his cab…and retired wealthy!
What happened?
Did John win lottery? did a rich aunt leave a large inheritance? Did he find buried treasure? No.

Becoming weathy and retired wasn’t luck. John had plan.
Just a small, simple change in John’s work habits turned him from a cab driver into a full-time, wealthy retiree-a full 22 years before the normal retirement age of 65!

John will be playing a lot of golf.
We’ve all heard that knowledge is power. Well, John learned that saving just a small amount of money each day would change his ife. The money he saved woud grow through the magic of compound interest.

John has read that if you could save 10% of your salary and invest it wisely, you would accumulate wealth through the magic of compound interest.

Only one problem.

John couldn’t save 10% of his salary. Between him and his family, they used 100% of his taxi driving earnings of $29,000 a year.

There wans’t a penny left over for savings.

So John did the next best thing.

He dicided to earn more money so he could build his savings nest egg. From now on he would make sure to work a bit longer each day until he had earned an extra $20 in fares. Some days he would get $20 fare by working just 30 minutes longer. Other days he would have to work an extra hour or two.

But everyday, five days a week, John earned his extra $20 to put into his savings.

As his savings grew, John invested in mutual funds. The average yearly return from his fund was about 10%.

This is what happened.

At $20 a day, five days a week, John accumulated $100 a week in savings. That’s $5,200 extra per year. can you get rich saving $5,200 a year ? Lets see what happen when you invest that money at 10% return.

Year        Amount Saved      Total Savings & Interest
1            -       $5,200             -           $ 5,200.00
2            -       $5,200             -         $ 10,920.00
3            -       $5,200             -         $ 17,212.00
4           -        $5,200             -         $ 24,133.20
5           -        $5,200             -         $ 31,746.52
6           -        $5,200             -         $ 40,121.17
7           -        $5,200             -         $ 49,333.29
8           -        $5,200             -         $ 59,466.62
9           -        $5,200             -         $ 70,613.28
10         -        $5,200             -         $ 82,874.61
11         -        $5,200             -         $ 96,362.07
12         -        $5,200             -       $ 111,198.28
13         -        $5,200             -       $ 127,518.10
14         -        $5,200             -       $ 145,469.91
15         -        $5,200             -       $ 165,216.90
16         -        $5,200             -       $ 186,938.60
17         -        $5,200             -       $ 210,832.45
18         -        $5,200             -       $ 237,115.70
19         -        $5,200             -       $ 266,027.27
20         -        $5,200             -       $ 297,830.00

At the end of just 20 years, John’s $100 a week contributions have grown to $297,830!

At 10% interest, that’s $29,783 a year for John and his family — slightly more than John’s original yearly earnings. Now with his new $29,783 income from his investments, John never has to work again if he chooses. He just joined the ranks of rich and retired.

What about the future?

John says, In another 22 years i’ll be eligible for Social Security retirement benefits. Thats will be just like a pay raise.

Meanwhile, I plan to enjoy life 24 hours a day, seven days a week!

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