On page one we are asked the question “would you like to have 2 million dollars when you retire”? I can think of few people who would say no. He then goes on to explain that you don’t have to be rich to become rich. This I found an intriguing, although bizarre concept. In my mind you can only become rich by, inheritance, or by producing some inane ‘dot com’ idea and Google or Yahoo buys you out before the venture capital runs out! Erland has a different approach, he introduces us to the wonderful world of ‘compound interest’. I am sure that many readers have vague recollections of having to deal with this bizarre mathematical issue in high school, and promptly forgot it after the exams were over. Compound Interest is a wonderful tool when used correctly.

As he explains, if you start to put $2,000 a year into an IRA at age 20, and keep doing that every year until age 65, you will have $2,000,000. Compound interest, even at reasonably low rates works great. Your investment will more than triple when you need it. And this is playing in the very conservative corner of investment. Using more aggressive tools this number could be a lot higher.

I am not usually a fan of ‘financial’ books, I am the guy that can’t even balance my check book, actually I don’t think I even have one to balance. I live in the online and ATM world. If it can’t be done that way, I just don’t do it!

My first reaction to this book was ‘well yes, I was stupid, and 30 years ago I should have started putting $2,000 a year away’. But I did not, so this book has no value. I was wrong, he shows strategies, and well explained strategies that can work for any age group (even the old ones like me!). Using some real life examples he demonstrates how anyone, and everyone can improve their situation without making huge sacrifices.

Rich By Choice shows how anyone that has the desire can ensure a comfortable retirement. The average age that people live to in the US is now 87, that means that you are going to spend over 20 years after you retire. What are you going to do? Live day to day waiting for the next Social Security check, or are you going to be able to vacation for 6 months of the year?

When put in those terms the answer is obvious! We all want the $2 million. Hind sight is 20/20, I certainly wished I had read and understood this book when I was 20 years old.

A lot of people think that having money in their savings account is the way to go, and indeed it is a great way to ensure a financial cushion in case of trouble. But there are other possibilities that offer liquidity, and much greater returns on your money, without substantially increasing the risk factor.

Rich By Choice is available from Amazon.

Simon Barrett




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