Financial Message to My Children (and maybe you and yours)

Career wise, work at jobs you enjoy and seek education in the things that interest you. Strive to learn more about earning a living through activities that are fun for you, and do not be bound by familiarity nor location. Most importantly, your financial goal should be obtaining financial freedom (not having to work your whole life), and to teach your children the same.

By the time you are 25 you should be able to put $250 every two weeks ($3.125/work hour) into a retirement account ($6,500/yr) and invest it with American Funds (https://www.americanfunds.com/custom-home.htm) assets as follows: 50% AHITX, 25% AMHIX, 25% CWGIX. Each fund has a minimum investment of $250, so the best method is to invest in one of the funds each month).

You can do any type of work you like when you have a clear-cut financial plan (such as above) to become a millionaire at age 55. Take my word for it, fifty-five is very young, and no matter what career choice you make, financial independence is your goal.

My father called this "Pay Yourself First", which I didn't understand until I was 35. I am fifty at the time of this writing; however, I have another 15 years to go, which is why I am not yet traveling the world. Hopefully, you are a sharper tack.

Along the way:

1. Never let anyone discourage you from this investment.
2. Re-Balance your account at least twice a year. Add risk (buy stocks/sell bonds) when all the market news is bad, and remove risk (sell stocks/buy bonds) when all the market news is good (Buy LOW Sell HIGH).
3. NEVER let anyone talk you out of THIS money for any reason . . . no matter how pitiful or dire the situation, or how great the opportunity seems.

In 10 years, the above will accumulate $103,593. Remember, the gains are not yet taxed.

After 30 years, you will have $1,069,211 and can start drawing $7,000/month from it (the withdrawals are taxed and that’s OK).

If you start when you are 25, that is all you need to do to become a millionaire by age 55, and that million dollars would generate $84,000/year in gross income for the rest of your life. Someday, it can be passed on to your children to boost their financial goal even higher. See chart below:

Year    Age    Keep investing    Stop adding at 10 yrs
1         26             $6,500              $6,500
2         27           $13,650            $13,650
3         28           $21,515            $21,515
4         29           $30,167            $30,167
5         30           $39,683            $39,683
6         31           $50,151            $50,151
7         32           $61,667            $61,667
8         33           $74,333            $74,333
9         34           $88,267            $88,267
10       35         $103,593           $103,593
11       36         $120,453           $113,953
12       37         $138,998           $125,348
13       38         $159,398           $137,883
14       39         $181,837           $151,671
15       40         $206,521           $166,838
16       41         $233,673           $183,522
17       42         $263,541           $201,874
18       43         $296,395           $222,061
19       44         $332,534           $244,267
20       45         $372,287           $268,694
21       46         $416,016           $295,564
22       47         $464,118           $325,120
23       48         $517,030           $357,632
24       49         $575,233           $393,395
25       50         $639,256           $432,735
26       51         $709,681           $476,008
27       52         $787,150           $523,609
28       53         $872,365           $575,970
29       54         $966,101           $633,567
30       55       $1,069,211           $696,924

Hope you find this information useful and that you are getting it in plenty of time.