How to create a 'Nest Egg' of at least a Million Dollars during your lifetime?
1) Pay yourself first! Make saving a priority. Establish a habit of saving money.
2) Invest regularly and automatically. Building long-term wealth doesn’t just happen.
a) If you fund your IUL by contributing $400 a month, it will take you about forty years to become a millionaire. Little is much when you have time on your side.
b) If you fund your IUL by contributing $584 a month, it will take you about thirty-five years to become a millionaire. Time is your most valuable possession. Invest it wisely.
c) If you fund your IUL by contributing $1917 a month, it will take you about twenty years to become a millionaire. Time, you will never have it again. Don’t let it slip away.
d) If you fund your IUL by contributing $2500 a month, it will take you about eighteen years to become a millionaire. My input would be to focus on Roth 401(k) s if possible and only fund to the employers matching contribution amount. Then the excess contribution should be in your own (IUL) Index Universal Life policy for TAX FREE income and to protect family from premature loss of life. The problem with traditional IRAs and 401(k) s is your partner the Federal Government is the general partner in your plan and you are the limited partner. They get to take their cut first and you get whatever is left over
3) Save at least 15% of your income (try to increase to 20% as soon as possible).
4) Invest in appreciating assets – you don’t get wealthy by putting your money into depreciating assets. Cars, boats, RVs, expensive clothes, shoes, phones and computers all go down in value daily.
5) Create a budget and track your expenses. It’s not what you earn, it’s what you save is wise. ‘Take care of the pennies and the dollars will take care of themselves’ Andrew Carnegie, American Steel Industry.
6) Spend less than what you earn – simplify your life. You don’t want to keep up with the Joneses because the Joneses are stressing about how they’re going to pay for everything.
a) Not having a plan. People don’t plan to fail. They fail to plan.
b) Having too much debt. Most people are spending more than they earn. That is a recipe for financial disaster and those people will never become wealthy.
c) No or insufficient emergency fund. Most people don’t have an emergency fund for unplanned expenses. Establish an emergency fund. Have six to twelve months income minimum set aside.
7) Pay off your credit cards; use cash for purchases. This will save you money and reduce financial stress that can accompany carrying debt.
8) Find ways to earn more money. Take classes, read self-help books that edify you, seek other employment opportunities or relocate to market areas that offer more income opportunities.
9) Protect yourself and your family with insurance products.
a) When it comes to protecting wealth, annuities, life insurance, Long Term Care insurance works best, but managed money, mutual funds, stocks or bonds will not.
b) When it comes to distributing wealth, managed money isn’t going to distribute wealth efficiently – that’s what annuities do. Life insurance provides tax free income. It is of vital importance that you save for retirement TAX FREE. With high U.S. debt, taxes will go up.
10) Work with a Financial & Insurance Professional. Absolutely YES! Why? There are thousands of products out there. You need someone to help you find the exact right product for you!
The Secret of Getting Ahead is Getting Started – American Writer Mark Twain. THEREFORE GET STARTED!