Page 333 - Keys To Community College Success

KEY 11.8 Use an IRA to grow your retirement investment.

Initial investment Investment growth, based on 10% return, after . . .
and contributions 10 years 25 years 40 years

$5,000 one-time $12,969 $54,174 $226,296
investment

$2,000 investment $37,062 $218,364 $975,704
plus $2,000 annual
contribution

revisit RISK AND REWARD

What happened to Torian? Torian came to see that year by including interest payments
juggling community college and his job as a turning point. in their analysis. How can you
“I knew if I didn’t buckle down and put some structure emulate Torian’s financial
into my life, I wouldn’t reach my goals.” The risks he took restraint? Name one action
to refocus earned him the reward of a 3.7 grade-point you are willing to take in
average that year. He transferred to Benedictine University, each area—sticking to a
which would meet his athletic and academic needs with- budget, avoiding impulse pur-
out putting him in loan debt. After earning his bachelor’s chases, and keeping debt low—to work toward
in business administration, Torian embarked on a fast-ris- the reward of financial stability.
ing career in finance, sales, and growth strategies for
publishing industry leaders Houghton Mifflin and Pearson What risk may bring reward beyond your world? Torian’s
Education, working most recently as business solutions career has taken him to Africa, the Middle East, and Asia.
director for Pearson’s Africa division. His latest risk involves Working in villages where food, water, and electricity are
working toward his master’s in public administration and scarce, he has learned firsthand about the contrast
learning to speak Mandarin at Tsinghua University in Bei- between the opportunities that people have in the United
jing, China, while maintaining his investment company, States and the lack of opportunities elsewhere. You too can
Torianite, Inc. fight poverty, and in ways that won’t jeopardize a college
student’s budget. Check out http://youthink.worldbank.org
What does this mean for you? “I’ve done quite well over and click on the Get Involved tab; then explore the
the past 10 years, but I’ve made it a point to keep budget- Resource Center. The site lists dozens of volunteer, intern-
ing,” says Torian. “I haven’t changed the way I live.” ship, and activism opportunities. Find a cause that has
Torian advises students to stick to a budget, avoid impulse appeals to you, then brainstorm cost-effective ways for
purchases, keep debt low, and evaluate high-cost items you to make a difference.

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