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How To Make A Million Dollars

Surprisingly, the US Government is going to help many Americans make a million dollars, if they want to. Do you want to?

The new economic stimulus package being worked out in our government will mean that most American citizens will be getting free money from the government this spring to the tune of 1800 dollars or more for a married couple with 2 kids. I say free money because instead of a tax rebate, it seems it won’t even matter whether the citizen actually paid any taxes. Many poor people pay no taxes. It also seems that the very people who pay most of the taxes in this country won’t get a penny. That’s the so-called rich people.

A new report by the Congressional Budget Office shows that the facts are, the “super-rich,” the top 1 percent of households, are now paying a record 27.6 percent of federal taxes and a record 38.8 percent of income taxes. By contrast, the bottom 80 percent of households—representing 90 million households—pay 31.1 percent of federal taxes and just 13.7 percent of income taxes. Keep in mind the “super-rich” are defined as a four person household making at least 134,000 dollars. Hardly super rich in my book!

Okay, so how can we all make a million dollars? I’ll show you and it’s not that hard.

Let’s assume we get a check from the Uncle Sam for 1800 dollars. I will also assume we are 25 years old. Your situation will vary.

All you have to do is invest the 1800.00 in a large cap mutual fund using a Roth IRA.

The Stock Market has returned about 12% per annum over the last 70 years, so we will assume we can do that on average. Since it is a Roth IRA, we won’t have to pay any taxes on the earnings.

In 60 years, this account will be worth $2,420,027.20.

Yes, it took a long time to make this money, and we would be 85, if we even live that long. My point is, investing when you are young pays huge dividends. Roth IRAs are the best way to change your life and the life of your kids. Take advantage of them. I am starting a series soon on Roth IRAs and why they are so good.!

What do think about the free money? Should we spend it or invest it? Leave me a comment!

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4 comments to How To Make A Million Dollars

  • [...] say it’s only worth half.  2.2 million dollars looks good to me!  See my post on how to make a million dollars for more about compounding [...]

  • [...] My purpose in writing this is simple.  You will be hearing an awful lot in the coming days and months about “investing in gold”. It happens every time the economy has a slight downturn. (We are in a slight downturn or correction, not a recession).  All the gold believers come out and say you should invest in gold and get out of the stock market.  You should be aware that it simply is not the best you can do.  Sure single stocks are wildly risky in my book, and I would advocate to get out of them.  But not to go to gold.  Gold looks really good but I would rather invest in a company that makes things and sells things and makes a profit, than I would a chunk of metal.  Be sure to check out my article on how to make a million dollars. [...]

  • [...] Get a game plan! If you are in your 30’s, you have plenty of time, if you start now. Read How to Make a Million Dollars. If you are older, you may have to work longer than you wanted to, or adjust what you actually [...]

  • RITA JOHNSON

    Sir, is there a way the average person can really earn a million dollars in the year 2008 with very little to no money to invest with the high cost of living, food, gas etc?

    Reply from Changecounts.com:
    Maybe if you are starting with 800,000 or something. Really, if I could make 1 million dollars in 2008 and invest nothing, I think I would do that.
    I am not aware of any “get rich quick” schemes that work, and are legal, and ethical.
    So, I guess the answer is no. Long term investing is the way to make 1 million dollars from a starting point of 1,000.
    Thanks for the comment!

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