


$5,000
Income Per Month Without Working! 

After
a period of time, say 10 years, we want to have a $5,000 monthly income,
after taxes, every year.
Suppose
you had $2 million dollars in a savings account or CD that was paying
4% interest.
 $2,000,000
x .04 = $80,000 gross yearly income
 Assume
you pay $20,000 / year income tax
 $80,000
 $20,000 = $60,000 / year net income
 $60,000
/ 12 months = $5,000 per month income after taxes are paid
This
income is a mathematical fact.


Now
Consider A Sad Mathematical Fact 
Suppose you have $100,000 in your IRA or 401K account right now. It
is probably invested in cash or the stock market or mutual funds which
is still the stock market. If you don't lose money in your account due
to bad stocks, suppose you got a 5% return, which is generous by today's
activity.

$100,000
x .05 = $5,000 yearly gross appreciation

$5,000
x 12 years = $60,000  Account value would be $160,000

$160,000
x .04 interest = $6,400 yearly gross income

$6,400
/ 12 months = $533 per month gross income  less $78 income tax

$455 per month net income
Can
you live on $455 per month? Suppose you withdrew $60,000 per year instead
of collecting the interest? This $160,000 would last about 2 years.
Why 2 years? Because you have to pay income tax when you withdraw it.
This is what most will do and then try to live on Social Security after
the 2 years.


Can
you see why your current IRA will not support
you when you need it most?
Those at Enron had tons of money in their 401K accounts and have zero
now.
Most people will retire with little money to live on  don't be one
of them.

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