1. Do 3 things - be a millionaire Pay credit cards off monthly - do not carry credit card debt. Make and Keep a reasonable budget - this takes discipline. Pay yourself 1 st : Maximize your ROTH IRA every year. Money will not bring you happiness and it will not define who you are It is not sacred; it is a tool Use this tool to be a positive influence in your family and community If you have questions or suggestions, please contact Hank Brown at 8314028993 or henrydbrown@aol.com or henry.d.brown@usmc.mil henrydbrown@aol.comhenry.d.brown@usmc.mil This presentation & other tools can be found at www.hankbrown.orgwww.hankbrown.org

2. Choice $ Hank Brown LtCol USMC

3. Choose Freedom to choose my work or leisure -OR- Obligation to a job to cover my expenses Dream about the legacy I leave -OR- Worry whether my money will last

4. What do you need for how long? Life Expectancy is Increasing exponentially 16% confident they are prepared for retirement Americans save about 4 cents on the dollar Why isn’t everyone else saving? –27% have less than $1,000 –43% have less than $10,000 –54% have less than $25,000* Social Security is Welfare (40% of income) *http://www.cbsnews.com/8301-503983_162-20000180-503983.html

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

6. Depreciation 2002 Cost: –MSRP $23,965 –Dealer Prep: $2000 –Premium: $2585 –Tax: $1427 –Title/Tags: $130 –Total: $30,107 –Payments: $570/mo 2007 Values: –Excellent $9,100 –Good $8,430 –Fair $7,305 Total Loss: $21,677 Depreciation: 72% $570/mo @ 10%: $44,570

7. Bankrupt

8. Returns on Investment Since 1925, the stock market (S&P 500) has averaged 11% annual return on investment Adjusted for inflation this equates to 8% In the 1990s the average return was over 17%. In the 1 st Decade of the new millennium: 0%

20. 1926 – 2006

21. Can you do it? Principle (PV)$10,000 Rate (R)8.0% Years (N*12)38 Monthly Contribution (PMT)$416 Future Value (FV)$1,444,140

22. 2 nd Lt Brown Principle (PV)$11,000 Rate (R)8.0% Years (N*12)16 Monthly Contribution (PMT)$416 Future Value (FV)$201,548

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

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

25. Investing Individual Account –Taxable –Vehicles Money Market Mutual Funds C.D.s Bonds Individual Stocks ROTH IRA –Maximize This $5000/ year $416/ month $13.70/ day –Tax Free Growth

26. Sources www.fool.com http://beginnersinvest.com www.wikipedia.org www.google.com www.bloomberg.com www.hankbrown.org MCCS Money Magazine Forbes Kiplinger's Smart Money

27. 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

30. Can you still have fun?

31. Questions/ Comments LtCol Hank Brown henrydbrown@aol.com henry.d.brown@usmc.mil www.hankbrown.org