Page 65 - Charles Calhoun Book Rich As You Want To Be

American dies still owing $61,000 as debt.

1 Percent Saved

If they saved just 1 percent, that would be

just $400 per year. Most people would say, “What’s

$400? Why even bother?” Well, $400 per year forty
years later is $396,000. That would pay you an

income of about $32,000 per year, which is $2,600

per month. This illustration assumes a withdrawal
of 7.5 percent per year. That should be sustainable

forever if the person is averaging 12 percent return.
$2,600 per month is a fair amount of money. You

would rather have such an income than not have

it. In combination with other income, it could
provide for a comfortable way of life. It is certainly

far better than the zero percent example above,

thus illustrating the value of saving.

And let’s imagine you did that between the ages

of 18 and 58. Let’s say that that person begins

taking out $2,600 per month. But the account
continues to increase as it earns 12% per year.

What would it be worth 20 years later at age 78? It

would then be worth $1.715 million so even the
person saving just 1% for 40 years would

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