If your Wealthy Uncle gave you $10,00 today, what would you do with the money?

If your Wealthy Uncle gave you $10,00 today, what would you do with the money?

“The Richest Man in Babylon”

“A part of all I earn is mine to keep”“Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you.”“Wealth grows in magic ways”

A One Time Investment today will yield $500,000 in the FutureFor example, suppose you are 20 years old and would like $500,000 when you retire in 45 years.

If you invested $6,860 today (assuming a 10% return in the market), you will have $500,000 upon retirement.

Investment Rate## 8.0% 9.0% 10.0% 11.0% 12.0% 13.0%10 231,597 211,205 192,772 176,092 160,987 147,294 15 157,621 137,269 119,696 104,502 91,348 79,945 20 107,274 89,215 74,322 62,017 51,833 43,391 25 73,009 57,984 46,148 36,804 29,412 23,551 30 49,689 37,686 28,654 21,841 16,689 12,783 35 33,817 24,493 17,792 12,962 9,470 6,938 40 23,015 15,919 11,047 7,692 5,373 3,766 45 15,664 10,346 6,860 4,565 3,049 2,044 50 10,661 6,724 4,259 2,709 1,730 1,109 55 7,255 4,370 2,645 1,608 982 602 60 4,938 2,840 1,642 954 557 327 65 3,361 1,846 1,020 566 316 177

* Note: These projections assume that the money is placed into an IRA and that taxes occur at retirement w hen the $ is w ithdraw n.

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What is the Power of Compounding Interest?

AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

Time Total

Investment Interest 0 10,000 12345678


Time Total

Investment Interest 0 10,000 1 1,000 2345678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2345678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 1,100 345678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 345678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 3 13,310 1,210 45678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 3 13,310 1,210 4 14,641 1,331 5678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 3 13,310 1,210 4 14,641 1,331 5 16,105 1,464 678


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 3 13,310 1,210 4 14,641 1,331 5 16,105 1,464 6 17,716 1,611 78


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 3 13,310 1,210 4 14,641 1,331 5 16,105 1,464 6 17,716 1,611 7 19,487 1,772 8


Time Total

Investment Interest 0 10,000 1 11,000 1,000 2 12,100 1,100 3 13,310 1,210 4 14,641 1,331 5 16,105 1,464 6 17,716 1,611 7 19,487 1,772 8 21,436 1,949

Does Interest work FOR you or AGAINST you?

$4,000 in Credit Card Debt: Is it worth it?*10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

Annual Interest 400.00 480.00 560.00 640.00 720.00 800.00 Monthly Interest 33.33 40.00 46.67 53.33 60.00 66.67

* Approximate interest that would be paid in one year if you simply paid the interest on the credit card

but made no additional payment towards paying down the $4,000 credit that you owe. By-the-way,

credit card companies require that you make the monthly interest payment on the card plus a small

payment to reduce the $4,000 debt. However, they don't want you paying off the $4,000 too fast

because they want to collect more interest from you.

Monthly Mortgage & Insurance Payment Total Interest and Insurance Paid OVER and ABOVE the Loan Amount*

Mortgage Rate Mortgage Rate$2,337.64 6.0% 7.0% 8.0% 9.0% 10.0%

100,000 665 730 799 870 943 150,000 997 1,095 1,198 1,304 1,414 200,000 1,359 1,491 1,628 1,769 1,915 250,000 1,699 1,863 2,034 2,212 2,394 300,000 2,039 2,236 2,441 2,654 2,873 350,000 2,378 2,609 2,848 3,096 3,352 400,000 2,718 2,981 3,255 3,538 3,830

5,000,000 33,978 37,265 40,688 44,231 47,879

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Total Interest and Insurance Paid OVER and ABOVE the Loan Amount*

Mortgage Rate492,592 6.0% 7.0% 8.0% 9.0% 10.0%100,000 122,858 147,374 172,800 199,089 226,131 150,000 185,750 222,523 260,663 300,194 340,659 200,000 252,476 301,898 353,110 406,208 460,492 250,000 316,395 378,172 442,188 508,560 576,414 300,000 380,395 454,527 531,346 610,752 692,417 350,000 444,354 530,841 620,463 713,104 808,380 400,000 508,153 606,996 709,421 815,617 924,183

5,000,000 6,387,909 7,623,445 8,903,762 10,227,207 11,584,288

* Total Interest and Insurance is calculated over the life of the loan

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Monthly Mortgage & Insurance Payment Total Interest and Insurance Paid OVER and ABOVE the Loan Amount*

Mortgage Rate Mortgage Rate$2,337.64 6.0% 7.0% 8.0% 9.0% 10.0%

100,000 665 730 799 870 943 150,000 997 1,095 1,198 1,304 1,414 200,000 1,359 1,491 1,628 1,769 1,915 250,000 1,699 1,863 2,034 2,212 2,394 300,000 2,039 2,236 2,441 2,654 2,873 350,000 2,378 2,609 2,848 3,096 3,352 400,000 2,718 2,981 3,255 3,538 3,830

5,000,000 33,978 37,265 40,688 44,231 47,879

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Total Interest and Insurance Paid OVER and ABOVE the Loan Amount*

Mortgage Rate492,592 6.0% 7.0% 8.0% 9.0% 10.0%100,000 122,858 147,374 172,800 199,089 226,131 150,000 185,750 222,523 260,663 300,194 340,659 200,000 252,476 301,898 353,110 406,208 460,492 250,000 316,395 378,172 442,188 508,560 576,414 300,000 380,395 454,527 531,346 610,752 692,417 350,000 444,354 530,841 620,463 713,104 808,380 400,000 508,153 606,996 709,421 815,617 924,183

5,000,000 6,387,909 7,623,445 8,903,762 10,227,207 11,584,288

* Total Interest and Insurance is calculated over the life of the loan

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Advice from Church Leaders

First, gain an adequate education. Second, live strictly within your income and save something for a rainy day.

Third, avoid excessive debt. Necessary debt should be incurred only after careful, thoughtful prayer and after obtaining the best possible advice. We need the discipline to stay well within our ability to pay. Wisely we have been counseled to avoid debt as we would avoid the plague.

“Interest never sleeps nor sickens nor dies. … Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you” (in Conference Report, Apr. 1938, p. 103).

Source: L. Tom Perry, “If Ye Are Prepared Ye Shall Not Fear,” Ensign, Nov. 1995, 35

What have others said about debt?

“Do not accustom yourself to consider debt only as an inconvenience; you will find it a calamity.” (Samuel Johnson.)

“The debt-habit is the twin brother of poverty.” (Theodore Thornton Munger.)

“Poverty is hard, but debt is horrible.” (Charles Haddon Spurgeon.)

“I have discovered the philosopher’s stone, that turns everything into gold: it is, ‘Pay as you go.’ ” (John Randolph.)

“Think what you do when you run in debt; you give to another power over your liberty.” (Benjamin Franklin.)

Source: Ezra Taft Benson, “Pay Thy Debt, and Live,” Ensign, June 1987, 3

How much money will you have in the future if you invest $1,000 today?For example, suppose you are 20 years old and would like to invest $1,000 today for 45 years.You will have $72,890 in 45 years if you could get a 10% return on your investment

By-the-way, if you invested $1,000 for your child that was born this morning and could get a 10% return,your child would have $490,371 at retirment.*

Investment Rate## 8.0% 9.0% 10.0% 11.0% 12.0% 13.0%10 2,159 2,367 2,594 2,839 3,106 3,395 15 3,172 3,642 4,177 4,785 5,474 6,254 20 4,661 5,604 6,727 8,062 9,646 11,523 25 6,848 8,623 10,835 13,585 17,000 21,231 30 10,063 13,268 17,449 22,892 29,960 39,116 35 14,785 20,414 28,102 38,575 52,800 72,069 40 21,725 31,409 45,259 65,001 93,051 132,782 45 31,920 48,327 72,890 109,530 163,988 244,641 50 46,902 74,358 117,391 184,565 289,002 450,736 55 68,914 114,408 189,059 311,002 509,321 830,452 60 101,257 176,031 304,482 524,057 897,597 1,530,053 65 148,780 270,846 490,371 883,067 1,581,872 2,819,024

* Note: These projections assume that the money is placed into an IRA and that taxes occur at retirement when the $ is withdrawn.

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There is “a time” to many things in life. . .

1 To every thing there is a a season, and a time to every purpose under the heaven:

2 A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;

3 A time to kill, and a time to heal; a time to break down, and a time to build up;

4 A time to weep, and a time to laugh; a time to mourn, and a time to dance;*

* ECCLESIASTES CHAPTER 3

What can you do to Prepare for the Future?

InvestingStocksBondsMutual FundsReal EstateStart a BusinessEtc.

Protection401KIRALife InsuranceCar InsuranceWills & TrustsEducation Fund for Children

What are Stocks?

Stocks are pieces of the corporate pie. When you buy stocks, or shares, you own a slice of the company.

How do you make money Owning Stock?

DividendsIncreases in Stock Price

What are Bonds?

What are Mutual Funds?

Over 9,500 fundsOver 400 fund families

Funds make Money by

1. Dividends (stock)2. Interest (bonds)3. Selling stocks or bonds at an

increased price.

What is Net Asset Value?

Shares in a fund are purchased at the NAV

There are Mutual Funds

that focus on . . .

StocksBondsBalance (Stocks & Bonds)SectorIndexGreen and other conscience fundsPrecious MetalsGold FundInternational Funds

Fees or Sales Charges

Front-end Load: Pay a fee when you purchase funds. If 5% front-end load, have $100, invest 95Back-end Load: (also called Contingent deferred sales charge) Get charged when you sell sharesLevel Load: No front-end or back-end charge - but imposes annual fees.Redemption charge: type of back-end load to discourage frequent in-and out trading.12b-1 fees: Marketing and advertising fees.

Three basic ways you can Participate in the Market

TraderSpeculatorInvestor

www.Moringstar.com

Why do you want Life Insurance?

Pay off a home mortgage or other debts.Provide income for a spouse.Provide a lump-sum payment to children when they reach a specified age.Provide education for children.Provide retirement income.Accumulate savings.Establish a regular income for survivors.

How much Life Insurance do you Need?

Consider the following:What sources of money would your survivors have today if you died?How much money do your survivors need?What investments do you currently have?What are your current debt obligations?What big events will be coming up in your survivors life (mission, school, marriage)?

Books that I would Recommend…

The Richest Man in Babylon

The Wall Street Journal Guide to Understanding Money & Investing

The Wall Street Journal Guide to Planning Your Financial Future: The Easy-To-Read Guide to Planning for Retirement

What can you do to Prepare for the Future?

InvestingStocksBondsMutual FundsReal EstateStart a BusinessEtc.

Protection401KIRALife InsuranceCar InsuranceWills & TrustsEducation Fund for Children

Documents

If your Wealthy Uncle gave you $10,00 today, what would you do with the money?