Page 86 - Charles Calhoun Book Rich As You Want To Be

have that amount of monthly income. I know I would be.

Again, this account would continue to grow because
the 18 percent growth is greater than the 8 percent
withdrawn. This account will eventually be worth millions

and tens of millions in the future. In 20 years (after that 36-
year period) despite taking out $34,000 per month, that
account would be worth $103 million!! With that amount of
wealth, you would have lots and lots of options.

24 Percent Return
Now the final rate of return I will write about is 24
percent. Is that actually doable? And the answer is yes. Peter
Lynch who ran Magellan fund had a rate of return in excess
of 30 percent as did his predecessor. It’s been done. There

was actually an ordinary woman, who was an auditor for the
IRS, who saw that people who invested in stock sometimes
had very large portfolios and tended to be wealthy so she
became a stock investor and over a certain number of years

she had a rate of return of 23 or 24 percent. It’s a very famous
story and I’ll tell you a bit more about it later in this chapter.
Warren Buffet is famous for achieving a rate of return on
the order of 24% per year. People who have invested with him
have huge net worths and are quite happy. He is one of the
richest men in America with a net worth approaching or

exceeding $60 Billion dollars!
Twenty-four divided into seventy-two goes three times.
This means that your investment would double every three
years. It would double twelve times in thirty-six years. Let’s

pick it up where it is after doubling nine times and double it
85