THE
AUTOMATIC
MILLIONAIRE
VISUALS
DAVID BACH
S I M O N & S C H U S T E R
AUDIO
Table of Contents
A Latte a Day Keeps Retirement Away
Use the Power of The Latte Factor
The Time Value of Money
The Latte Factor Challenge
The Latte Factor Math Chart
The Automatic Millionaire Promise
The Power of Pretax Investing
Tax-Deferred Investing
Plan Contribution Limits
Savings Growth of $100 Deposited Monthly
Companies That Can Help You
The Automatic Millionaire Investment Pyramid
Bear Market
The Sleep Well at Night Test
Mortgage Table
Typical Mortgage Payments
Mortgage Types
Web Sites to Help You Find a
Mortgage and Finance a Home
Monthly Payments vs. Biweekly Payments
DOLP- Dead On Last Payment Chart
My Personal DOLP List
The Tithing Commitment
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Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
USE THE POWER OF THE LATTE FACTOR
PART 1
PART 2
PART 3
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
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AUTOMATIC MILLIONAIRE
TAX-DEFERRED INVESTING
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AUTOMATIC MILLIONAIRE
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PLAN CONTRIBUTION LIMITS
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AUTOMATIC MILLIONAIRE
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AUTOMATIC MILLIONAIRE
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Putnam Funds
1-800-225-1581
www.putnamfunds.com
Scudder
1-800-621-1048
www.scudder.com
VanKampen Investments
1-800-341-2911
www.vankampen.com
WWW.MORNINGSTAR.COM
HTTP://FINANCE.YAHOO.COM
WWW.MFEA.COM
WWW.SMARTMONEY.COM
Wells Fargo
1-800-222-8222
www.wellsfargo.com
WWW.NYSE.COM
WWW.NASDAQ.COM
Vanguard
1-877-662-7447
www.vanguard.com
Bank One
1-877-266-5663
www.bankone.com
Dodge and Cox
1-800-621-3979
www.dodgeandcox.com
T. Rowe Price
1-877-804-2315
www.troweprice.com
American Century
1-800-345-2021
www.americancentury.com
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
13
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THE
AUTOMATIC MILLIONAIRE
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BEAR MARKET
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AUTOMATIC MILLIONAIRE
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AUTOMATIC MILLIONAIRE
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MORTGAGE TABLE
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AUTOMATIC MILLIONAIRE
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MORTGAGE TYPES
30-YEAR FIXED RATE
Features
Pro
Con
Vanilla mortgage rate
stays the same for the
30-year life of loan.
Locks in your interest
rate and protects you if
rates rise. Payments
are the same each
month. Easy to track
and monitor.
Whom is this
mortgage right
You are locked into a
rate for 30 years unless for?
you refinance.
If you are conservative
and plan on being in
your home a long time
(at least 7 to 10 years),
this offers the most
benefits and flexibility
15-YEAR FIXED RATE
Features
Pro
Con
Similar to 30-year
mortgage, except the
rate and mortgage are
for 15 years.
The rate on a 15-year is The monthly mortgage
lower than that on a 30- payment is higher than
year. You pay off your
with a 30-year mortgage.
home and become
debt-free in 15 years.
Also easy to track and
monitor.
Whom is this
mortgage right
for?
If you are a really
committed saver and
plan to live in your
home longer than 10
years, this is a great
loan. You can lock in a
rate and be debt-free
in a decade and a half.
SHORT-TERM ADJUSTABLE RATE (5 YEARS OR LESS)
Features
Pro
Con
Interest rates may be
fixed for 6 months to
a year. Some of
these mortgages
have rates that
change monthly.
You get a substantial
break on the interest
rate, so the monthly
payment will be much
less with this mortgage
than with any other
loan.
If interest rates go up
quickly, you can find
yourself having trouble
making the payments.
Whom is this
mortgage right
for?
These loans are typically used by people
who want to keep their
monthly payments as
low as possible. They
make most sense for
those who can handle
risk and dont expect
to live in the house
more than a few years.
A great deal if rates
stay low.
INTERMEDIATE ADJUSTABLE RATE
(OFTEN CALLED A 3/1, 5/1, 7/1, OR 10/1 ARM)
Features
Pro
Con
Interest rate locks in
for a specific period
and then adjusts
annually or every six
months based on the
going rates.
Relatively low rates.
Your rate is locked only
for a limited time. If
rates rise, your monthly
mortgage payment
rises.
Whom is this
mortgage right
for?
Great for a person
looking for low rates
and lower monthly
payments whos not
planning on keeping
the property very long.
The longer you lock in
the rate, the higher the
payments and the
lower the risk.
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
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WEB SITES TO HELP YOU FIND A
MORTGAGE AND FINANCE A HOME
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
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AUTOMATIC MILLIONAIRE
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DOLP-Dead On Last Payment
MY PERSONAL DOLP LIST
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This book is designed to provide accurate and authoritative information
on the subject of personal finances. While all of the stories and
anecdotes described in the book are based on true experiences, most
of the names are pseudonyms, and some situations have been
changed slightly for educational purposes and to protect each individuals
privacy. It is sold with the understanding that neither the Author nor the
Publisher is engaged in rendering legal, accounting, or other professional
services by publishing this book. As each individual situation is unique,
questions relevant to personal finances and specific to the individual
should be addressed to an appropriate professional to ensure that the
situation has been evaluated carefully and appropriately. The Author
and Publisher specifically disclaim any liability, loss, or risk which is
incurred as a consequence, directly or indirectly, of the use and application
of any of the contents of this work.
Excerpted from The Automatic Millionaire (Broadway Books 2004), copyright David Bach 2004, www.finishrich.com
THE
AUTOMATIC MILLIONAIRE
