Get Rich Slowly
Is it hard to get rich? If you're young, not really.Its fun to play with financial calculators and see what might happen.If you have just graduated from college and are about 22 years old and if you put $100 a month in an IRA that grows at 10% a year, you will have around $865,000 at age 65. 10% a year is about what you should expect if the money was placed in a no-load S&P 500 Index Fund.So for about $23 a week or $3.30 a day you will be close to being a millionaire.If you contribute the full $4000 a year allowed right now (rising to $5000 in 2008), you would have$2,600,000. For about $11.00 a day, you would have a small fortune.If you didn't want to take a chance with the stock market (after all, it goes down sometimes), you would still have over $600,000 if you could get a 5% return.If your grandmother leaves you $10,000 in her will and you invest it for the same 43 years at 10% without adding another cent, you'd still have over $600,000 if you placed it in a tax sheltered account.Time and the power of compound interest are on your side. So if you're in you twenties, do whatever you have to scrape together that IRA contribution. Every day you procrastinate is another day your money is not working for you.However, most people in their twenties need the money for more important things, like new cars and HDTV's.
You also have school loans to pay, children to raise and the new mortgage to pay off. But if you prioritize your life and stick to a budget, $11.00 a day is doable, although you might have to scrimp here and there.Consider that most people are spending their livings paying the freight for borrowing 'other people's money". If you save and invest, other people are paying you to use your money. It's a lot more fun to see your money working than having to work yourself.It gets harder to amass wealth as you get older. If you wait until you're 32 and put away $4000 at 10%, you would have about $975,000, still a respectable amount.
At 42, you'd only be able to accumulate approximately $350,000. If you're 50 and can start putting $5000 (those over 50 are allowed "catch up contributions") away today, you'll have around $175,000 at age 65.Everyone knows that Social Security is not going to allow for a comfortable retirement. Even if the plan can continue to pay out forever, which is questionable right now, the money you receive will be far from generous and is subject to taxation. You might have a good pension plan at work now, but will you be able to hold your current job to retirement?If you have a Roth IRA, you can withdraw the money tax free after age 59 ?. Imagine having a million tax free dollars you can play with.
It will well make up for the small sacrifices you have to make to get there.No matter what your age, start saving what you can now - today. Even if you only amass $100,000, you'll be better off than most people entering retirement..
Chris Cooper is a retired attorney who has spent several periods of his life deep in debt. At http://www.credit-yourself.com he tries to pass on some of the knowledge he picked up in his journey to become debt free.Venture Capital Investing
When investing in venture capital, always keep one thing in perspective. All investments have equal risk, and the average cost of capital for the firm can be used for evaluating investment proposals. Investment proposals differ in risk. An investment proposal to manufacture a new product, for example, is likely to be more risky than one involving replacement of an existing plant. In view of such differences, variations in risk need to be considered in venture capital investment appraisal.
In many cases, the revenues expected from a project are conservatively estimated to ensure that the viability of the proposed project is not easily threatened by unfavorable circumstances.
The capital budgeting systems often have built-in devices for conservative estimation.
A margin of safety in venture capital investing is generally included in estimating cost figures. This varies between 10 and 30 per cent of what is deemed as normal cost. The size of the margin...
Tax help > Venture Capital Investing
Get Rich Slowly
Is it hard to get rich? If you're young, not really.Its fun to play with financial calculators and see what might happen.If you have just graduated from college and are about 22 years old and if you put $100 a month in an IRA that grows at 10% a year, you will have around $865,000 at age 65. 10% a year is about what you should expect if the money was placed in a no-load S&P 500 Index Fund.So for about $23 a week or $3.30 a day you will be close to being a millionaire.If you contribute the full $4000 a year allowed right now (rising to $5000 in 2008), you would have$2,600,000. For about $11.00 a day, you would have a small fortune.If you didn't want to take a chance with the stock market (after all, it goes down sometimes), you would still have over $600,000 if you could get a 5% return.If your grandmother leaves you $10,000 in her will and you invest it for the same 43 years at 10% without adding another cent, you'd still have over $600,000 if you placed it in a tax sheltered account.Time...
Get Rich Slowly
Tax help > Get Rich Slowly
Explanation of Charges on Your Telephone Bill
BackgroundMany consumers do not understand the various charges and items on their monthly phone bills. Here's a quick reference that describes some of these charges:911 ? This charge is imposed by local governments to help pay for emergency services such as fire and rescue.Federal Excise Tax ? This is a three percent tax mandated by the federal government (not the Federal Communications Commission (FCC). It is imposed on all telecommunications services, including local, long distance and wireless bills.(Federal) Subscriber Line Charge ? This was instituted after the break-up of AT&T in 1984 to cover the costs of the local phone network. This charge may appear as "FCC Charge for Network Access," "Federal Line Cost Charge," "Interstate Access Charge," "Federal Access Charge," "Interstate Single Line Charge," "Customer Line Charge" or "FCC-Approved Customer Line Charge." The FCC caps the maximum price that a company may charge for this. This is not a government...
Explanation of Charges on Your Telephone Bill
Tax help > Explanation of Charges on Your Telephone Bill
Tax Relief Company Opens Second Office to Meet Growth in IRS Tax Problems
Citizens Tax Relief (CTR), a New Canaan, Connecticut tax relief firm, announced they have opened an office in Los Angeles, California to serve the growing need for IRS tax debt settlement. The firm, led by specialized tax attorneys and financial experts, settles IRS tax debt for qualified individuals and businesses.????
"With the increase in inquiries for tax relief information on the West Coast, we felt it was important to have a presence there," said Terry O'Rourke, CTR President.
There are a number of tax relief programs offered by the IRS today that can help a taxpayer get a fresh start.
However, most taxpayers are not aware...
Tax help > Tax Relief Company Opens Second Office to Meet Growth in IRS Tax Problems
Your mid-year checkup: Get savvy about lowering your taxes
Are you still owing the IRS in taxes every year?Not a great situation to be in, is it? But there is still hope for this year. You have almost six months, in some cases a little longer, to make certain you owe less tax, and possibly no tax, next year.Here's a blueprint that outlines the keys to lowering your taxes and remaining audit proof. Follow these keys and you're guaranteed to lower your taxes by hundreds, if not thousands, of dollars!Key #1: Consider a Home Office Deduction Many taxpayers have avoided the home office deduction because it has been regarded as a red flag for an audit. If you legitimately qualify for the deduction, however, there should be no problem.You are entitled to write off expenses - such as rent, utilities, insurance, and housekeeping - associated with the portion of your home where you exclusively conduct business. A middle-class taxpayer who uses a home office and pays $1,200 a month for a two-bedroom apartment could easily save $1,200 in taxes a year. ...
Your mid-year checkup: Get savvy about lowering your taxes
Tax help > Your mid-year checkup: Get savvy about lowering your taxes
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