CAPITAL NEEDED TO REPLACE EARNING POWER
|
|
Of all the assets we own, our earning power -- our ability to earn an income -- is the most valuable!
How much capital would it take to replace your annual earning power?
This is the amount of capital required to provide that monthly income, assuming your capital earns an annual interest rate of:
| For each year that you need this much monthly income: |
4% |
6% |
8% |
10% |
| $2,000 |
$600,000 |
$400,000 |
$300,000 |
$240,000 |
| $4,000 |
1,200,000 |
800,000 |
600,000 |
480,000 |
| $6,000 |
1,800,000 |
1,200,000 |
900,000 |
720,000 |
| $8,000 |
2,400,000 |
1,600,000 |
1,200,000 |
960,000 |
| $10,000 |
3,000,000 |
2,000,000 |
1,500,000 |
1,200,000 |
For example,
$1.2 million of capital earning 6% annually will produce $72,000 of
income, or enough to replace the income of someone earning $6,000 per
month.
This
example is based on the capital retention method, which uses interest
return only to provide income. Principal is not liquidated and remains
available.
This
is a hypothetical illustration only and is not indicative of any
particular investment or investment performance. It does not reflect
the fees and expenses associated with any particular investment, which
would reduce the performance shown in this hypothetical illustration if
they were included. In addition, rates of return will vary over time,
particularly for long-term investments.
Will you have sufficient capital available to replace your earning power in the event of death, disability or retirement?
|
MESSAGES
from the Masters...
|
CREATING OPPORTUNITY
by Jim Rohn
An
enterprising person is one who comes across a pile of scrap metal and
sees the making of a wonderful sculpture. An enterprising person is one
who drives through an old decrepit part of town and sees a new housing
development. An enterprising person is one who sees opportunity in all
areas of life.
To
be enterprising is to keep your eyes open and your mind active. It's to
be skilled enough, confident enough, creative enough and disciplined
enough to seize opportunities that present themselves...regardless of
the economy.
A
person with an enterprising attitude says, "Find out what you can
before action is taken." Do your homework. Do the research. Be
prepared. Be resourceful. Do all you can in preparation of what's to
come.
Enterprising
people always see the future in the present. Enterprising people always
find a way to take advantage of a situation, not be burdened by it. And
enterprising people aren't lazy. They don't wait for opportunities to
come to them, they go after the opportunities. Enterprise means always
finding a way to keep yourself actively working toward your ambition.
Enterprise
is two things. The first is creativity. You need creativity to see
what's out there and to shape it to your advantage. You need creativity
to look at the world a little differently. You need creativity to take
a different approach, to be different.
What
goes hand-in-hand with the creativity of enterprise is the second
requirement: the courage to be creative. You need courage to see things
differently, courage to go against the crowd, courage to take a
different approach, courage to stand alone if you have to, courage to
choose activity over inactivity.
And
lastly, being enterprising doesn't just relate to the ability to make
money. Being enterprising also means feeling good enough about
yourself, having enough self worth to want to seek advantages and
opportunities that will make a difference in your future. And by doing
so you will increase your confidence, your courage, your creativity and
your self-worth – your enterprising nature.
To Your Success,
Jim Rohn
|
|
Brought to you by:
| Jeffrey N. Schweitzer, EPA, CEP, ATP
|
| Northeast Financial Strategies Inc
|
About our firm:
Offering Financial & Estate Planning, Investments, Insurance, Accounting, Payroll, and Income Tax Preparation for Individuals & Small Business. "Financial Strategies That Fit YOUR Needs!"
|
|
QUOTES
from the Masters...
|
|
On Ideas
|
|
|
"One of the secrets to success is ideas mixed with inspiration."
-– Jim Rohn
"Be willing to abandon your old ideas if someone comes up with something new and better."
-– Brian Tracy
"There is no money crisis, only an idea crisis. We need new ideas on how we can do what we really want to do."
-– Mark Victor Hansen
|
|
On You Are Unique
|
|
|
"There is only one you for all time. Fearlessly be yourself."
-- Anthony Rapp
"You are nature's greatest miracle. There never has been and never will be anyone just like you."
-– Brian Tracy
"You
were born rich with 18 billion bountiful, beautiful, totally available
and in all probability under-used brain cells awaiting your desire,
decision and directional compass to take you onward, upward, goodward
and Godward."
-– Mark Victor Hansen
|
|
