the automatic millionaire - audible

THE

AUTOMATICMILLIONAIRE

DAVID BACH

S I M O N & S C H U S T E R

AUDIO

VISUALS

THE AUTOMATIC MILLIONAIRE

Table of Contents

A Latte a Day Keeps Retirement Away 3Use the Power of The Latte Factor® 4The Time Value of Money 5The Latte Factor Challenge™ 6The Latte Factor Math Chart 7The Automatic Millionaire Promise 8The Power of Pretax Investing 9Tax-Deferred Investing 10Plan Contribution Limits 11Savings Growth of $100 Deposited Monthly 12Companies That Can Help You 13The Automatic Millionaire Investment Pyramid 14Bear Market 15The “Sleep Well at Night” Test 16Mortgage Table 17Typical Mortgage Payments 17Mortgage Types 18Web Sites to Help You Find a Mortgage and Finance a Home 19Monthly Payments vs. Biweekly Payments 20DOLP™- Dead On Last Payment Chart 21My Personal DOLP List 21The Tithing Commitment 22

THE AUTOMATIC MILLIONAIRE 3

Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com



USE THE POWER OF THE LATTE FACTOR®

PART 1

PART 2

PART 3



®



TAX-DEFERRED INVESTING



PLAN CONTRIBUTION LIMITS



Vanguard1-877-662-7447www.vanguard.com

Dodge and Cox1-800-621-3979www.dodgeandcox.com

T. Rowe Price1-877-804-2315www.troweprice.com

American Century1-800-345-2021www.americancentury.com

Putnam Funds1-800-225-1581www.putnamfunds.com

Scudder1-800-621-1048www.scudder.com

VanKampen Investments1-800-341-2911www.vankampen.com

Wells Fargo1-800-222-8222www.wellsfargo.com

Bank One1-877-266-5663www.bankone.com

WWW.MORNINGSTAR.COM

HTTP://FINANCE.YAHOO.COM

WWW.MFEA.COM

WWW.SMARTMONEY.COM

WWW.NYSE.COM

WWW.NASDAQ.COM



BEAR MARKET



MORTGAGE TABLE



MORTGAGE TYPES

Features

“Vanilla” mortgage ratestays the same for the30-year life of loan.

Pro

Locks in your interestrate and protects you ifrates rise. Paymentsare the same eachmonth. Easy to trackand monitor.

Con

You are locked into arate for 30 years unlessyou refinance.

Whom is thismortgage rightfor?

If you are conservativeand plan on being inyour home a long time(at least 7 to 10 years),this offers the mostbenefits and flexibility

30-YEAR FIXED RATE

15-YEAR FIXED RATE

Features

Similar to 30-yearmortgage, except therate and mortgage arefor 15 years.

Pro

The rate on a 15-year islower than that on a 30-year. You pay off yourhome and becomedebt-free in 15 years.Also easy to track andmonitor.

Con

The monthly mortgagepayment is higher thanwith a 30-year mortgage.


If you are a reallycommitted saver andplan to live in yourhome longer than 10years, this is a greatloan. You can lock in arate and be debt-freein a decade and a half.

Features

Interest rates may befixed for 6 months toa year. Some ofthese mortgageshave rates thatchange monthly.

Pro

You get a substantialbreak on the interestrate, so the monthlypayment will be muchless with this mortgagethan with any otherloan.

Con

If interest rates go upquickly, you can findyourself having troublemaking the payments.


These loans are typi-cally used by peoplewho want to keep theirmonthly payments aslow as possible. Theymake most sense forthose who can handlerisk and don’t expectto live in the housemore than a few years.A great deal if ratesstay low.

Features

Interest rate locks infor a specific periodand then adjustsannually or every sixmonths based on thegoing rates.

Pro

Relatively low rates.

Con

Your rate is locked onlyfor a limited time. Ifrates rise, your monthlymortgage paymentrises.


Great for a personlooking for low ratesand lower monthlypayments who’s notplanning on keepingthe property very long.The longer you lock inthe rate, the higher thepayments and thelower the risk.

SHORT-TERM ADJUSTABLE RATE (5 YEARS OR LESS)

INTERMEDIATE ADJUSTABLE RATE (OFTEN CALLED A 3/1, 5/1, 7/1, OR 10/1 ARM)



WEB SITES TO HELP YOU FIND AMORTGAGE AND FINANCE A HOME



DOLP-Dead On Last Payment

MY PERSONAL DOLP LIST

THE AUTOMATIC MILLIONAIRE


This book is designed to provide accurate and authoritative informationon the subject of personal finances. While all of the stories andanecdotes described in the book are based on true experiences, mostof the names are pseudonyms, and some situations have beenchanged slightly for educational purposes and to protect each individual’sprivacy. It is sold with the understanding that neither the Author nor thePublisher is engaged in rendering legal, accounting, or other professionalservices by publishing this book. As each individual situation is unique,questions relevant to personal finances and specific to the individualshould be addressed to an appropriate professional to ensure that thesituation has been evaluated carefully and appropriately. The Authorand Publisher specifically disclaim any liability, loss, or risk which isincurred as a consequence, directly or indirectly, of the use and applicationof any of the contents of this work.

the automatic millionaire - audible

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