1. $30k – Choose your Destiny freedom to choose my work or leisure. -OR- obligated to a job that will hopefully cover my expenses. dream about the legacy I leave my grandchildren. -OR- worry whether my money will last until I die.

2. Career Starter Loan Brief Hank Brown Major USMC

3. Bankrupt http://www.nndb.com/event/146/000048999/

4. You can always spend more than you make…. PT Barnum Buffalo Bill Nell Carter Gary Coleman Larry King Cyndi Lauper Abraham Lincoln Willie Nelson Mark Twain Walt Disney Zsa Zsa Gabor Charles Goodyear U.S. Grant Merle Haggard Dorothy Hamill MC Hammer LaToya Jackson Oscar Wilde

5. Prepared for the Golden Years? 20% families prepared for retirement. Avg American saves -.7%!! The average family has $3800 in savings. Most people pending retirement have less than $40k -$50k saved. Social Security is Welfare.

6. Loan Strategy Borrow the money only –if it is absolute need –if it has a future benefit greater than the loan. Do not use the loan for –Gifts –Trips –Beer –Music –Unnecessary car!

7. Depreciation 2002 Cost: –MSRP $23,965 –Dealer Prep: $2000 –Premium: $2585 –Tax: $1427 –Title/Tags: $130 –Total: $30,107 2007 Values: –Excellent $9,100 –Good $8,430 –Fair $7,305

8. Returns on Investment Since 1925, the stock market (S&P 500) has averaged 12% annual return on investment Adjusted for inflation this equates to over 8% return. In the 1990s the average return was over 17%.

9. 1926 – 2006

10. Can you do it? Principle (PV)$30,000 Rate (R)8.0% Years (N*12)38 Monthly Contribution (PMT)$416 Future Value (FV)$1,858,048

11. Midn 2/c Brown 930834 Principle (PV)$11,000 Rate (R)8.0% Years (N*12)16 Monthly Contribution (PMT)$416 Future Value (FV)$201,548

12. LtCol Brown USMC (ret) Principle (PV)$201,548 Rate (R)8.0% Years (N*12)22 Monthly Contribution (PMT)$416 Future Value (FV)$1,464,835

13. What did that Mustang “Cost”? Principle (PV)$30,107 Rate (R)8.0% Years (N*12)38 Monthly Contribution (PMT)$0 Future Value (FV)$623,076

14. “I’ll start later…” Principle (PV)$0 Rate (R)8.0% Years (N*12)23 Monthly Contribution (PMT)$832 Future Value (FV)$660,559

15. Financial Freedom LT/ Capt at 5 Years: $75,000 LCDR/ Maj at 15 Years: $244,119 CDR/ LtCol at 20 Years: $432,425 55 year Old Civilian: $1,226,488 65 year old Retiree: $2,798,975

16. Investing Individual Account –Taxable –Vehicles Money Market Mutual Funds C.D.s Bonds Individual Stocks ROTH IRA –Maximize This ’07: $4000 ’08: $5000 ’09: +$500/ year –Tax Free Growth –Same Vehicles Money Market Mutual Funds C.D.s Bonds Individual Stocks

17. Do I need a Financial Planner? You are All Capable Matter of: –Time –Trust –Interest Buffet: –Trade = Lose –Low Cost Index Careful of Frauds –10 Years – 0 Return –Get what you pay for Incentives Matter –What’s in it for them? Many are free

18. Sources www.fool.com http://beginnersinvest. comhttp://beginnersinvest. com www.wikipedia.org www.google.com www.bloomberg.com www.hankbrown.org Money Magazine Forbes Kiplingers Smart Money Worth NFCU/ USAA

22. Bottom Line Borrow for a dire need or for a future benefit Minimize your “Car Standard” Easy Money – A Chance of a Lifetime! Learn to Invest within Your Personality

23. Questions? Major Hank Brown henrydbrown@aol.com hbrown@usna.edu