Page 77 - Charles Calhoun Book Rich As You Want To Be

income for you. Once you have built a large enough

amount of investments, it will not be necessary to

work to produce income. Some people might need
$1 million. Another might need just $500,000 or a

third person may want $3 million. It depends on

how much you spend each month, the costs of
your wants and needs, and factors such as other

sources of income. Your choice is; you can work to

produce income, or your investments can produce
that income for you. The choice is yours.

A Fine Gift

Here is another cool example. Suppose your

parents gave you a $5,000 graduation gift, wedding
gift, or Bar Mitzvah gift, and you put that into an

IRA or, better yet, a Roth IRA. You leave it there for

forty years and never add to it. But you do manage
it well and earn 18 percent per year. Granted an

18% return is uncommon but possible. What
would it be worth? It would be worth $6,348,000

and would pay an income of $476,000 per year (if

you take 7.5 percent each year), which is just
under $40,000 per month. If in a Roth IRA that

would be $40,000 tax-free! Very cool!

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