Illustrate the amount of money that will go through ones hands over the course of their lifetime as well as the total wealth potential those dollars represent had those dollars been invested. |
Over the course of your lifetime a great deal of money will pass through your hands. Your income potential represents the actual money you will earn. Your wealth potential is what you would be worth if you were able to invest everything you made. Obviously you cannot do that. If I can help you recapture say 10 percent of your total wealth potential it can have a dramatic impact on your wealth. |
Study the worksheet that appears when the documentation button is clicked to gain an understanding of the math on this screen. The worksheet is calculated as follows: Assume: starting salary: $25,000 salary growth 4% wealth growth 8% The salary for the first year will be $25,000; for the second year it will be 1.04 X $25,000= $26,000; for the third year 1.04 X $26,000 = $27,040, etc. The interest earnings on the wealth of the first year will be.08 X $25,000 = $2,000. For the second year the wealth will be $25,000 + $2,000 + $26,000 = $53,000. The interest earnings on the second year will be .08 X $53,000 = $4,240; etc. These calculations are repeated for each row. |