BECOMING A MILLIONAIRE

Date: March 24, 2012

INTRODUCTION
It may surprise you how quickly you can accumulate a million dollars. Use this calculator to determine the annual amount you would have to set aside each year to reach a million dollars and reach your goal to be a millionaire.

ANALYSIS
Based on your existing savings of $30,000 it appears that you will need to save $5,025 indexed at 10% annually in order to become a millionaire by age 55 . However, a million today will not be worth the same in 25 years. One million adjusted for inflation of 3% will be $2,032,794 in 25 years. You will need to save $10,982 annually (indexed at 10%) to reach that goal by age 55.

Age 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

Beginning Balance $30,000 37,126 45,213 54,371 64,722 76,404 89,567 104,377 121,019 139,698 160,639 184,093 210,335 239,672 272,440 309,013 349,804 395,267 445,905 502,274

Savings @ 10.0% $5,025 5,527 6,080 6,688 7,357 8,093 8,902 9,792 10,771 11,848 13,033 14,337 15,770 17,347 19,082 20,990 23,089 25,398 27,938 30,732

Earnings $2,802 3,412 4,103 4,885 5,766 6,760 7,877 9,134 10,543 12,124 13,894 15,874 18,088 20,562 23,322 26,400 29,831 33,653 37,907 42,640

Taxes @ 25.0% $700 853 1,026 1,221 1,442 1,690 1,969 2,283 2,636 3,031 3,473 3,969 4,522 5,140 5,830 6,600 7,458 8,413 9,477 10,660

Ending Balance $37,126 45,213 54,371 64,722 76,404 89,567 104,377 121,019 139,698 160,639 184,093 210,335 239,672 272,440 309,013 349,804 395,267 445,905 502,274 564,986

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

50 51 52 53 54

564,986 634,718 712,218 798,309 $893,902

33,805 37,186 40,904 44,995 $49,494

47,903 53,752 60,250 67,464 $75,472

11,976 13,438 15,062 16,866 $18,868

634,718 712,218 798,309 893,902 $1,000,000

SUMMARY OF INPUT
Current age Age to become millionaire Initial balance or deposit Annual increase on new savings: (%) Before-tax return on savings: (%) Marginal tax bracket: (%) Anticipated inflation rate: (%) 30 55 $30,000 10.00% 8.00% 25.00% 3.00%

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.