Wednesday, August 03, 2005

The 35 Cent a Day Billionaire



The 35 Cent a day Billionaire

Really, who wants to stack in the bank one stick and nine donuts?

The reality is very few people consider getting near a chair and a desk to plan it, we are talking about one stick and six donuts, so the normal person will consider nine donuts, but the normal person will gamble ten times the amounts during its life and in return receive nothing. It is possible to accomplish this incredible feat with the value of time in the side of your kin and a generational goal.
People do not walk away from the consideration of wealth because it is not possible, most of us we walk away from the planning because we do not even consider worth it of thought.
Take those $35 cents spent by the average person in donuts every day. It needs a little sacrifice for your kin, put aside those thirty-five cents for a long while and build a billion dollars account. No kidding!
Do not let ego ruin the plan, teach your kin of the importance of the goal for generations to come.
This might sound weird, it is not, this weird concept is how generations over generations of the old and powerful keep their wealth over more a thousand of years. We can travel many countries around the planet and encounter this people, living quiet lives in quiet social environment and billionaire accounts if far remote places.
Now, some people like Warren Buffet, Bill Gates, George Soros and hundreds of others in the billionaires club, accumulate large sums of currency by adopting a different approach, the use of risk and power, this also deserves study, and is all over the place to be learnt.
In the case of Bill Gates or many others is matter of been very rich to become the richest, call it the asymmetric access to influence capital in your favor.
Back to our obscure subject: the non-donut eater billionaire.
Who will get to benefit if you decided to get involved in this goal, well, like everything in live there is a caveat, for most of us, in our life times, we will see the amount to grow at miniscule rate. What if I tell you, that if your great-great-parents would have planned for your grandkids to be billionaires, your grandkids will be billionaires and a quarter of a billion over. That is what it entitles.
It is a matter of setting the goal on time. We all read a lot about vision, but most of what we call vision is tunnel vision it is not peripheral vision nor focused.
Accepting the reality that you might not be able to do it for yourself but you might be able to do it for you generations to come and used it as a family idiosyncratic element is worth of consideration.
You can do the math yourself use any calculator that allows you to have compound interest and use the average return of a bond that is 7% in a tax sheltered account. They are many choices, each one should do their own DD.
I used the retirement calculator by http://www.bloomberg.com/analysis/calculators/retire.html
The data I entered was 35 cents a day in constant value or $10 dollars a month with a starting capital of $10 dollars, that is, an annual contribution of $120.
The time-frame used is the average live expectancy of a working person. I consider 50 years of contributions to the account per generational kin. I did not account for better results but the time-frame can be reduced substantially if the contribution is $1 a day.
The total amount after a five kin generation planning at 35 cents is $1.2 BILLION
If we raise the contribution to one dollar the generational kin is four and the amount $4,08 BILLION

WHO WANTS TO BE A BILLIONAIRE!!!!

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