Waiting 20 Years Can Cost You Millions Don't Wait Start Today

Many Young people live for Today. They really don't fully understand the power of compound interest. The Difference between investing as little as $20 a week at age 20 or waiting until age 50 can be over $3,000,000 (yes 3 Million). Don't wait start today!

Recently I was in a 7-11 and I watched as a young man Purchased $10 worth of Lottery Tickets. As he was walking away from the counter he started talking to me. He told me he just turned 21 and he was going to buy $10 worth of Lottery Tickets for every Pick six as long as he had a steady Job. In Missouri they have 2 Pick Six Drawings Weekly. I said to him Here is my card give me a call and I will show you a surefire way to become a
Millionaire.

He looked at me and said sure sure. I looked back at him and Said I will meet you tomorrow across the street at the coffee shop and Coffee is on me would morning or afternoon be better. He Replied I get off work at 2pm So I can be here at 3pm. I said 3pm it is.

I went home and plugged some numbers in an Excel Spreadsheet. Remember I did promise to make this 21 Year old kid a Millionaire. I was going to do for him what no one ever did for me.

The Results are very telling. If my young friend were to invest his $20 a Week and receive a 10% Return on his investment

• In 20 Years when he is 41 he will have a little over $66,000
  
  
• In 30 Years when he is 51 he will have a little over $198,000
  
  
• In 40 Years when he is 61 he will have a little over $550,000.
  
  
• In 45 Years when he is 66 He would have a little over 920,000
  
  
• In 50 Years when he is 71 He would have over $1,500,000.
  

If my young friend were to be able to average a 12% return the numbers are even more staggering

• In 20 Years when he is 41 he will have a little over $86,000
  
  
• In 30 Years when he is 51 he will have a little over $307,000
  
  
• In 40 Years when he is 61 he will have a little over $1,000,000.
  
  
• In 50 Years when he is 71 He would have over $3,400,000
  

The Above numbers are very telling. Not only do they show my young friend the power of Compound interest but the Show my Young friend the Power of Waiting. As an Example if my young friend Continues to Buy lottery Tickets for 10 Years until he 31 and then decides to take my advice and invest the $20 instead of having $1,500,000 when he is 71 at 10% he would only have $550,000. Waiting 10 Years cost him almost $1,000,000.

At the 12% Return My Young Friend would loose over $2,400,000 the Difference between $3,400,00 and $1,000,000


Now if my Young Friend were to Play the Lotto for 30 Years and Wait until he is 51 to take my advice he would loose over 3,300,000 at 12% the Difference between $3,400,000 and $86,000.

About the Author

Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuities. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page: http://ewguru.com/finance

Get Mike's Newsletter Here http://ewguru.com/fin-news


Copyright © 2005-2006 Mike Makler

[You have permission to publish this article electronically
or in print, free of charge, as long as the bylines are
included. A courtesy copy of your publication would be
appreciated.]

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A Simple Step by Step Aproach to Fail Your Way to a Million Dollars

Summary
The difference between successful people and unsuccessful people (Financially Successful) is that Successful know how to fail. Unsuccessful people fail to get that 9-5 Job but when they finally succeed they have a 9-5 Job. Successful People fail to buy that Property with a positive cash flow but when they succeed they have bought another property with a positive cash flow.



Body
If You want to be Financially Successful you need to Learn to Fail

At a Robert Allen Seminar he said the difference between successful people and unsuccessful people (Financially Successful) is that Successful know how to fail. He went own to say that in order to be successful you need to learn to fail, Unsuccessful people fail to get that 9-5 Job that pays $25,000 to maybe $90,000 a year and when they finally succeed what do they have a 9-5 Job. Successful People fail to buy that Property with a positive cash flow but when they succeed they have bought another property with a positive cash flow.


When you look around at Some of the World's Wealthiest People. Donald Trump, Lakers Owner Dr Jerry Buss, Clippers Owner Donald Sterling, Robert Allen and the List goes on they all have one thing in common they made their Fortune in Real Estate.


Let's contrast these Financially Successful Americans with the American Dream. The American Dream is to buy a House with a 3.4 Bedrooms and 2.7 Baths with 2.4 Cars in the Garage. Most people are very happy to Buy their "Dream Home". Once they buy that dream home they want to pay off the Mortgage so they can now own their Dream Home Free and Clear.

Perhaps you remember that TV Show All in the Family, from the 70s they still play it late night on cable. They had an episode where Archie and Edith had a Mortgage Burning party after they finally paid off the mortgage. There was another Episode where Archie took a loan against the House to Buy a Bar and was Edith ever angry at him.

Many people look at American Dream as Sacred. People are so blinded with the notion you buy a that dream house and pay it off that they fail to see the Big Picture. They Fail to See the possibilities that would open up to them if they would just unlock the potential in their homes. Many People are sitting on $50,000 to $500,000 in equity and are just letting it go to waste.

Let me ask you a Question. If you own a $400,000 house Free and Clear and it appreciates 10% a Year how much will it be worth a Year from now? If you have a $300,000 Mortgage on that $400,000 home how much will it be worth a year from Now? In both cases the answer is the same $440,000. The value or appreciation of your house doesn't change based on the size of the loan you have against it. The only thing that does change is the amount of Equity you have.


A Typical Homeowner has a $150,00 Mortgage on a property that is worth $300,000. Many lenders will give you a loan for up to 90% of your homes Value. If you were to borrow $270,000 you would be able to put 120,000 cash in your pocket. In St Louis MO you could Buy a 3 Bedroom Home in a nice neighborhood for between $70,000 and $90,000.


Now take that $120,000 cash and Buy 6 Rental Properties for $480,000 ($80,000 each). You take the $120,000 and use it as a down payment and borrow the other $360,000. Now rent Each of these Properties for $700 a Month and you have a monthly income of $4200. Your total loans are $730,000 and at a 2% interest rate your monthly payment would be about $2700 a Month. You would have a Net Profit of about $1500 even after the rental income pays mortgage the on your dream Homee.


Before

• $ Value of Real Estate Controlled $300,000
  
• $ Value of Equity in Real Estate $150,000
  
• Positive Cash Flow after Paying Mortgage $0
  
• 1 Year Gain at 5% = 15,000
  
• 5 Year Gain at 5% = $83,000
  
• 10 Year Gain at 5% = $189,000
  
• 20 Year Gain at 5% = $396,000
  

After

• $ Value of Real Estate Controlled $780,000
  
• $ Value of Equity in Real Estate $150,000
  
• Positive Cash Flow after Paying Mortgage $1500 (Monthly)
  
• 1 Year Gain at 5% = 39,000
  
• 5 Year Gain at 5% = $215,000
  
• 10 Year Gain at 5% = $490,000
  
• 20 Year Gain at 5% = $1,289,000
  

Looking at the Before and After in the Above Chart Some Numbers Stand out. You still have the Same $150,000 Equity but now you control $480,000 more Property. Instead of paying your Mortgage monthly on your Dream house your tenets are making your mortgage payments on all 7 properties and you have a $1500 monthly positive Cash flow. Using a conservative appreciation of only 5% a Year you would earn an extra $24,000 the first year alone in appreciation.

If you do nothing more for 30 the next Years but collect your rents and pay off your 7 Mortgages at a 5% appreciation rate your 7 Properties would be worth over 3.3 Million Dollars even at an Ultra Conservative 3% your Net worth would be over 1.8 Million Dollars. Wow You just Failed your way to over 1 Million Dollars (This does not count the $1500 a month in positive cash flow or any Rent Increases.)


You can get a Loan with fixed payments fixed for 5 years based on a 1.95% interest rate Their are loans available with interests rates as low as 1.25%, through national lenders many of whom will approve you online



What would you do with an extra $1500 a month? A couple of car payments, a Dream home, that boat at the lake.? What would you do with an extra $24,000 a year in appreciation.?



About the Author

Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuites. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page: http://ewguru.com/finance

Get Mike's Newsletter Here http://ewguru.com/fin-news


Copyright © 2005-2006 Mike Makler

What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market?

Seniors on fixed incomes face a unique problem. Where do they invest their savings to get maximum return on investment with limited risk? Some of the traditional places like CDs and Treasury Notes are extremely safe, however the yields tend to be very low. Stocks and Mutual Funds while offering a potential for a higher yield have a risk factor that most seniors find unacceptable.

What if you knew you absolutely positively could not loose, Would you invest in the stock market? Imagine if their was a way that you could enjoy the upside potential of the stock market with absolutely no downside Risk, would you be Interested?

Equity Indexed Annuities may be the Solution you are looking for. Many insurance companies are now offering Equity Indexed Annuities. These annuities allow you to mirror the gains of popular stock market indices like the S&P 500 or the Dow Jones Industrial Average while not loosing any of your investment capital.

In simple terms if the stock market goes up your Annuity also goes up but if the stock market goes down your Annuity does not loose any value. An Equity Indexed Annuity is not an Investment in stocks or Mutual funds instead it is a way the Insurance allow your Investments to mirror the gains of the stock market with no downside risk.

Many Popular Equity Indexed Annuities are set up using a monthly tracking Method. Once a Month the insurance company will look at the stock market index to determine the gain or loss. If the index goes up 2% then they put a plus 2 on your scorecard. If the index goes down 4% then they put a -4 on your score card. At the end of the year the Insurance company totals your scorecard for the year if it is positive (say 8%) they would then add 8% to your annuity value however if it is negative your annuity value would stay the same. If you started the year with an annuity value of $10,000 your annuity would still be worth $10,000. It doesn't matter if your score card has a Negative 1%, 10% or 99% you will not loose one cent of your $10,000 starting value.

Every year your Annuity Value is reset, Using the above example if you Annuity started the year with a $10,000 Value and your score card shows a plus 8% for the year your Annuity would know be Reset to $10,800 and the process starts again. To sweeten the Pot even further many insurance companies are offering Bonus Equity Indexed Annuities, these vehicles work exactly the same as Equity Indexed Annuities but the insurance companies will add a Bonus of up to 10% to your Annuity. If you place $10,000 to start in your annuity with a 10% Bonus Annuity the insurance account would now add $1,000 making your Bonus Equity Indexed Annuity now worth $11,000. In addition you could receive this 10% bonus for any funds you add in the first 5 years.

With Equity Indexed Annuities from popular insurance companies You can have it all. A way to earn some huge Gains from the Stock market while being totally insulated from any downside risk and a Bonus of up to 10% of all money added in the first 5 Years.

Mike Makler is a Licensed Life Insurance Agent Based out of St Louis Missouri. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page http://ewguru.com/insurance

Copyright © 2005-2006 Mike Makler

You have permission to publish this article electronically or in print, free of charge, as long as the bylines areincluded. A courtesy copy of your publication would be appreciated reprint at Ewguru . com.]

Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

With Nursing home Cost's running $4,000 to $6,000 a month and outpacing inflation, it is a small wonder that most seniors cannot afford the Long term Care insurance premiums. Their are low cost Alternatives available for seniors who just can't afford the rising cost of these Premiums.

Many Seniors even question if they need Long Term Care Insurance. Take a look at the Stats and decide for yourself.

Long Term Care by the Numbers

* In the year 2010 about 12 million older Americans may need long term care

* A Study by the U.S. Department of Health and human Services predicts that 40% of all Americans over the age of 65 will need Nursing home care

* 22% of all Americans over the Age of 85 are in a nursing Home

* According to the US Government 40% of the People Currently receiving Long Term Care Services are between 18 and 64.

Many older People are under the belief that Medicare and Medicaid will cover the cost of Long Term Care. Every State has their own rules about what income and net worth requirements will qualify you for Long Term Care assistance. Here are some qualification rules in use by the State of Missouri as published in the Consumer Guide for seniors from the official Web page for the State (http://insurance.mo.gov/consumer/senior/ltcguide.pdf) (For other States check the State.gov web page and then search on insurance and long term care)

In the State of Missouri Medicare Pays Long Term Care as follows

* First 20 Days Medicare will pay all

* For the Next 80 Medicare and the Senior Split the Cost based on some Formulas

* Beginning on the 101st Day you are responsible for all Long Term care Costs.

What About Medicaid? Here are some Rules in place in the State of Missouri.

* A Single person has to spend down their assets to under $1,000 before Medicaid will pay.

* A Married couple would have to spend down 1/2 of their assets or more. According to the following rules A Spouse may keep between $13,740 and 68,700. So if a Couple only has $13,740 the Spouse gets to keep it all and Medicaid will pay the long Term Care Costs. But if a couple has $500,000 in Assets the Spouse only gets to keep $68,700 before Medicaid will Pay.

* Certain Assets are Exempt from the Spend Day requirement and it is strongly advised if you have significant assets that you contact a Financial Advisor or attorney, who specializes in asset protection for seniors in your State.

Now that you have the Facts the Question is how do you protect yourself at a reasonable cost. Many Insurance companies offer Annuities and Equity Indexed Annuities with a Nursing Home Benefit. These Annuities would allow you to take your Annuity over a Span of 5 Years to help pay for your long term Care Expenses. In Addition to the long term care benefit these annuities offer Tax Growth, Up to 10% Bonuses for the first 5 years and many other Benefits.

If you are a Senior concerned about the High Cost of Long term Care but really cannot afford the High cost of Long term Care Insurance Premiums then Annuities with a Long Term Care Rider may just be the solution you seek.

Mike Makler is a Licensed Life Insurance Agent Based out of St Louis Missouri. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page http://ewguru.com/insurance

Copyright © 2005-2006 Mike Makler

[You have permission to publish this article electronically or in print, free of charge, as long as the bylines areincluded. A courtesy copy of your publication would be appreciated reprint at Ewguru . com.]