Millionaire Assignment Essay

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Millionaire Assignment I have a dream about my life, where I want to live, what I want to drive, and what clothes I want to wear. If I have a million dollars, I would use the money wisely to do the followings: 1. Debt * Credit card balance $3,000 With the money I have I will be able to pay of my credit card debts easily. After my credit card account is paid-in-full, I would put the card in my drawer instead of cancelling it, because cancelation of credit card will lower my credit score and cause the interest rate on variable rate and new debt to increase. After that, never use the card again. 2. Investment * 401k retirement plan (bankrate.com) $210,000 401k Retirement Plan | Current 401k balance | $0 | Years to invest (65-23) | 42 | Annual rate of return | 10% | Annual contribution | $5,000 | Employer's 401k match | 13% | Total contribute | $210,000 | Total employer contribute | $27,300 | Total at age 65 | $3,199,838 | Total without employer match | $2,831,698 | By contributing my 401k up to my employer’s match, I’m guarantee 100% return on my investment. The fact that the $5,000 I contribute every year will grow tax-deferred in my 401k for the next 42 years, the opportunity cost can be three million dollars, triple the money I have in hand right now. Since I’m not contributing $210,000 right away, I will first put in a savings account to earn some interest: 401k Savings Account | | 2011 | 2012 | 2013 | 2014 | 2015 | Principals | $205,000.00 | $202,357.50 | $199,684.61 | $196,980.98 | $194,246.27 | Interest Rate | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% | Interest Earn | $2,357.50 | $2,327.11 | $2,296.37 | $2,265.28 | $2,233.83 | 3. Real Estate * Residential home for my family (gift to my parents) 3615 South Xenia Street, Denver CO 80237 3,175 square feet, 4 bedrooms, 3.5 bathrooms

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