How to Become an American Millionaire! A simple plan!
By Grant Davis 

The support material for all facts aserted in this article
Are in the Members Library

1. $30,000 for the down payment and just put it in a bank that pays 5% interest compounded annually.
2. In 30 years you will have $129,658
3. That money assumes you pay your income tax each year on the interest as you earn it.  So that is a before tax amount
4. If you are in a 30% tax bracket for state and federal tax you will have paid $29,905 in income tax

300,000 (the value of your home) Increases an average of 5% each year for 30 years (historical average for homes)

1. In 30 years you will have $1,296,583
2. You will have paid no income taxes.  (If you sell you will owe some capital gains taxes) If you don’t plan well it could be as much as 20% of the gain less exemptions.
3. To save $1,000,000 in a bank at 5% interest in 30 years you would have to set aside $1,202 each month.  This adds up to $432,720 in total contributions.  Plus you would have to pay $170,400 in income tax at 30% which is another $473 each month.
4. Total monthly $1,675 to save $1,000,000 in 30 years. 

1. Interest paid in the first year is $16,110.  A schedule A deduction (the government helps you make your house payment, let’s us 15% net deduction = $2,416 a year or a savings of $201 each month. 
2. Net payment after government assistance = $1,418 

1. Property Tax and insurance
   1. 1% = $250 per month
   2. Insurance =  $40 per month
   3. Total extra expenses = $290 per month
      

1. Current rent?

I have to assume (= guess) that you have to live somewhere?  And you have to pay to live there?   $1,500 a month for rent?  $1,000 a month for rent?  Let’s use the $1,000 a month.

So here are your choices to build $1,000,000 or net worth in 30 years!

1. Pay rent $1,000 a month, Save $1,202 a month in an account earning 5%, pay income taxes each year $473 a month average.  = $2,675 a month.
2. Buy your dream home for $300,000.  $1,418 net payment, $290 for taxes and insurance =  $1,708

Now tell me again why today isn’t the best day ever to buy your new home?  

        Grant W Davis 
                    President GDI Insurance Inc 
                       888-991-2929
                   Gdavis@gdiinsurance.com
               www.thehabitualsalesman.com