Section I - Lesson 6
Financial Plan - Summary And Review
The following is a summary of the major points presented in this section about your financial plan for building wealth.
1) Wealth usually comes about as a result of a long term master plan, and not as a result of a single event..2) The financial calculator can show you just how quickly wealth can grow, once you develop this plan.
3) You first must take pro-active control of your affairs and commit to automatically saving 12% of all you earn.
4) You direct half (6%) of this income stream to a tax- advantaged account for retirement needs.
5) You direct half (6%) of this income stream to a regular money investment account for immediate needs.
6) You use an S&P 500 Index fund as your ideal investment vehicle.
7) You use dollar cost averaging as your ideal market timing strategy.
8) You reinvest all dividends and capital gains back into your accounts to maximize the benefits of compounding.
Once you complete these basic steps, your wealth accumulation program goes on autopilot. You need only step aside and let it do its thing..
Recommended Reading
For more complete guidance and advice about developing your overall master plan for building wealth, you should check out our classic textbook, Financial Independence 101, A Simple Strategy For Building Wealth, on which this course is based.
The book is now being offered in hardcover at the special price of $19.95 with free shipping (you save $9). It is also available for immediate download in PDF format at only $9.95. Check it out!
Do you know others who would enjoy and benefit from this course? Pass the word along. It's free. And we will never violate your privacy!
A Publication of About Your 401k.com
The book that inspired the birth of this website. Now available in either PDF or hardcover. Check it out!
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