Hein Financial Group - Financial Concepts

Time is the Magical Component in Investing

The following chart shows how much is needed to invest each month at different ages and with different rates of return in order to have $1,000,000 by the age of 65.

Age	8%	10%	12%
20	$ 208	$ 111	$ 58
25	$ 310	$ 180	$ 103
30	$ 467	$ 294	$ 183
35	$ 710	$ 485	$ 328
40	$ 1,100	$ 811	$ 593
45	$ 1,757	$ 1,392	$ 1,097
50	$ 2,962	$ 2,510	$ 2,121

Consider that at age 45 one needs to save $1,097 per month (at 12% rate of return) to have $1,000,000 at age 65. But, if one started five years earlier at age 40, with the same annual rate of return, it would only take $593 per month. And if started at age 20, only $58 per month. Time is magical.

Contact us and we'll show you, (or your children), how to get started on the first $1,000,000. Put time on your (their) side.

Importance of an Early Start

To illustrate the importance of an early start to financial planning, consider two individuals Allen and Bruce. Both are 25 years old and planning for normal retirement at age 65.

Allen saves $2,000.00 a year at %10 interest for a total of 8 years or until he is 33 years old then stops. Bruce waits for 8 years or until he is 33 years old and then saves $2,000.00 a year at 10% for 32 years until he is 65 years old.

Who has saved the most?

Who has accumulated the most by age 65?

Allen has at age 65 ? $531,202
Bruce has at age 65 ? $442,503

Allen will end up with $88,699 more and have contributed $50,000 less.

Is $1,000,000 of Life Insurance Enough??

The chart below indicates the length of time you could expect various insurance amounts to last at various levels to your beneficiaries*.
.

	$ 250,000	$ 500,000	$ 1,000,000
$ 25,000	11 years	24 years	57 years
$ 35,000	8 years	16 years	36 years
$ 50,000	6 years	11 years	24 years
$ 75,000	4 years	7 years	15 years

*(Assumes 45% tax rate, 8% interest & 3% inflation)

What is the Easiest Way to Accumulate Wealth?

Over the years I have been asked to respond to this question more than any other question. The answer? Simple! Consistent monthly deposits into a property structured investment plan based on your goals and objectives. It's not a "get rich quick" scheme. It's a "get wealthy, be happy, reach your goals, one step at a time" plan. You don't have to be a sophisticated investor, or have large amounts of money to get started. Any one, of any age can do it, and the results over time can be amazing! The chart below illustrates what you could expect from a $200 per month deposit at various rates of return.

Year	8%	10%	12%
10	$ 32,368	$ 35,850	$ 30,716
15	$ 64,766	$ 73,854	$ 87,072
20	$ 107,428	$ 135,060	$ 170,526
25	$ 173,054	$ 233,632	$ 317,602
30	$ 269,480	$ 392,386	$ 576,798
35	$ 411,160	$ 648,058	$ 1,039,592
40	$ 671,474	$ 1,168,444	$ 1,061,942

This chart doesn't represent any specific investment, but it could represent your retirement fund (RRSP), your child or grandchild's education fund, or any number of worthwhile goals you may have for yourself or your family. The key is, none of this will happen until you start it in motion. Procrastination is the greatest enemy in wealth accumulation. (If you've started, great! Tell someone you know about this site.)

By starting a monthly investment program you realize many, many benefits. Such as: *Paying yourself first - which is the first "rule" of proper financial planning. *You will take advantage of the investment technique of Dollar Cost Averaging. *If your investment is registered, you will be able to use it as a tax deduction, and the accumulation will be tax-free. *And most importantly, you will have the piece of mind in knowing you are working towards a worthwhile financial goal.

Don't procrastinate, Contact us and let's get you started on a Wealth Accumulation Plan as soon as possible!