Page 95 - Charles Calhoun Book Rich As You Want To Be

percent on the gain each year, the 18 percent

would be an effective return of “only” 11.7 percent.

And the value of the account would be “only”
$661,000 and would pay an income of about

$53,000 per year or about $4,400 per month.

The question you want to ask yourself is
“Would you rather have $6 million dollars or would

you rather have $661,000 dollars?” (For the very

same investment.) I know which one I would rather
have. And would you rather have a monthly

income of $41,000 per month or would you rather

have an income of $4,400 per month? Well, that’s
a pretty easy and obvious question to answer.

But most people don’t do that. Most people

don’t put away a sum and never add another
penny to it over time. Let’s suppose that a person

put away $10,000 and then put in another $333
per month, which is about $4,000 per year, over

that time span. This is slightly less than a person

can put into an IRA at this time ($ 6,000 per year).
This would grow to be $20,191,565. Wow, that is

incredible! This would produce an income of

$1,600,000 per year or about $134,000 per month.
After taxes, that would come out to be about

$87,000 per month to live and enjoy your life. That
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