HOW MONEY WORKS™ Want to save $1 million by age 67? You'd better get started soon. The longer you wait, the more you'll have to put away each month to reach your retirement goals. 27 years old? You have to put away $214 a month to reach $1 million. Start at age 37, and you're putting away $541 a month to reach your goal. Begin at age 47, and you'd have to put away $1,491 a month. Wait until age 57, and you're putting away a hefty $5,168 a month. Wait until the last minute (age 62) and you'd have to stash $13,258 a month to reach $1 million by age 67. So, the sooner you start saving, the fewer dollars you'll have to put away each month to reach your retirement goals. Don't pay the high cost of waiting! This example is hypothetical and does not represent an actual investment. This uses a nominal 9% rate of return, compounded monthly. It uses a constant rate of return, unlike actual investments, which will fluctuate in value. It does not include fees and taxes, which will lower results.

HOW MONEY WORKS™ The Power of Compound Interest shows how you can really put your money to work and watch it grow. When you earn interest on savings, that interest then earns interest on itself and this amount is compounded monthly. The higher the interest, the more your money grows! If you saved $200 each month, after 35 years, your money would have only grown to $148,680 at a three percent interest rate. At a six percent interest rate, it would have grown to $286,370. If you received a 12 percent interest rate on your savings, your money would have grown to $1.3 million! The sooner you start to save, the greater the benefit of compound interest. Rates of return are constant nominal rates, compounded monthly. Actual investments will fluctuate in value. Contributions are assumed to be made at the beginning of the month. The chart above is hypothetical and is not intended to represent any particular investment or savings vehicle. It does not take into consideration taxes or other applicable deductions, which will lower returns.

HOW MONEY WORKS™ Do you know the Rule of 72? It's an easy way to calculate just how long it's going to take for your money to double. Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double. As you can see, a one-time contribution of $10,000 doubles six more times at 12 percent than at 3 percent. Years 3% 6% 12% 0 $10,000 $10,000 $10,000 6 $20,000 12 $20,000 $40,000 18 $80,000 24 $20,000 $40,000 $160,000 30 $320,000 36 $80,000 $640,000 42 $1,280,000 48 $40,000 $160,000 $2,560,000 How many doubling periods do you have in your life? This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or greater on a consistent basis.

HOW MONEY WORKS™ By taking into account the interest rate and amount of debt, debt stacking identifies a way for you to pay off your debts. You begin by making consistent payments on all of your debts. The debt that debt stacking suggests that you pay off first is called your target account. When you pay off the target account, you roll the amount you were paying toward your next target account. As each debt is paid off, you continue this process. Debt stacking allows you to make the same total monthly payment each month toward all of your debt and works best when you do not accrue any new debts. You continue this process until you have paid off all of your debts. When you finish paying off your debts, you can apply the amount you were paying towards your debt toward creating wealth and financial independence!

HOW MONEY WORKS™ Think you don't make enough money to save some of it? Think again! If you earn $25,000 a year for 40 years, you will have earned $1 million! Earn $35,000 for 40 years, and you've earned $1.4 million. And if you earn $45,000 for 40 years, you'd have made $1.8 million! Pay yourself first and you can get ahead in the savings game. Here's what can happen when you save just $100 a month for 40 years: At three percent interest, you would have about $93,000. At five percent interest, you'd have about $153,240. If you received a nine percent interest, you'd have about $472,000. That's the power of paying yourself first! And remember, it's not what you earn - it's what you keep! The hypothetical percentage rates and values are for illustrative purposes only and do not represent any actual investment. Rates of return are consistent nominal rates, unlike actual investments, which will fluctuate in value. Subject to applicable taxes. If fees and taxes were included, results would be lower.

HOW MONEY WORKS™ According to the Theory of Decreasing Responsibility, your need for life insurance peaks along with your family responsibilities. When you're young, you may have children to support, a new mortgage payment and many other obligations. Yet, you haven't had the time to accumulate much money. This is the time when the death of a breadwinner or caretaker could be devastating and when you need coverage the most. When you're older, you usually have fewer dependents and fewer financial responsibilities. Plus, you've had years to accumulate wealth through savings and investments. At this point, your need for insurance has reduced dramatically, and you have your own funds to see you through your retirement years.