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FACT SHEET: U.S. Treasury Department Office of Public Affairs releases Examples of How the Economic Growth Act of 2008 will Benefit Americans
See how the stimulus package will impact you...
From the Desk of Tom Carmody
Chairman of AHAA
“Housing Hits Trifecta of Bad News”
I certainly am aware that we are the midst of the worst housing situation in America since the early ‘90s, and one that may be the worst since the depression era. USA Today highlighted the problems on the front page of its Money section: high foreclosure rates, falling prices and vacant homes. Miami leads the way in falling prices, Nevada in foreclosures and vacant homes for sale across the nation are 800,000 than would be the case in a normal market. Most every market has suffered, and will continue to do so it seems.
News
How Money Works
For most homeowners, their greatest asset is their home. AHAA aims to help its members increase their individual wealth and prosperity. We believe that the first step is through knowledge of how money works.
Rule of 72
The Power of Compound Interest
When $21,000 Exceeds $102.000
The High Cost of Waiting
Time is Money
How long it will take for your money to double is easy to calculate using the Rule of 72. Simply divide 72 by the percentage of interest you earn on your savings. If you're not pleased with the answer, start investigating other options that pay a higher rate of return.
How Long Will It Take for Your Savings to Double?
What a Difference a Percentage Makes!
When you earn interest, your account balance continues to grow. In time, you actually earn interest on your interest! Even one percentage point can make a huge difference in the long run. Look at this chart to see what happens to a $1,000 investment over 40 years...
The hypothetical illustration is intended to demonstrate compounding at various rates and is not intended to illustrate the performance of any actual program. The hypothetical illustration shows constant rates of return, whereas, actual rates of return may fluctuate. Account values were obtained by using a nominal rate compounded monthly. Contributions are made at the beginning of the period.
How's That Work?
If you think putting off saving for your retirement for a few years won't make much of a difference, take another look. By starting early and giving your money the opportunity to grow over time in a tax-deferred account, you'll put yourself at a huge advantage in securing the kind of future you deserve.
The hypothetical 10% rate of return and tax-deferred accumulation shown are not guaranteed or intended to demonstrate the performance of any actual investment. Unlike actual investments, the accounts show a constant rate of return without any fees or charges. Tax-deferred growth and any tax-deductible contributions are taxed upon withdrawal. Withdrawals prior to age 59 1/2 may be subject to a 10% penalty tax. Assumes payments are made at the beginning of each year with a 10% nominal rate of return compounded monthly.
Don't Make This Mistake!
The biggest mistake you can make is assuming you don't have any money to save. If you earn an income, it's simply a matter of how you're spending it. You can put some money aside each month - if you make saving for your future a priority. The longer you wait the more money you will need to save each month to make up for lost time.
The hypothetical illustrations are intended to demonstrate compounding at various rates and are not intended to illustrate the performance of any actual program. The hypothetical illustrations show a constant rate of return, whereas actual rates of return may fluctuate. Account values were obtained by using a nominal rate of return compounded monthly. Contributions are made at the beginning of the period.
If you begin saving for your retirement early in your life, you'll have to put aside much less money each month. If you wait until you're nearing retirement, the amount you'll need to save each month could be near impossible. The illustration at right shows you how time really is money.
The hypothetical illustrations are intended to demonstrate compounding at various rates and are not intended to illustrate the performance of any actual program. The hypothetical illustrations show a constant 10% rate of return, whereas, actual investment performance will fluctuate. Account values were obtained by using a nominal rate of return compounded monthly. Contributions are made at the beginning of the period.
*Source: Primerica.com