Here Come the Profits
Time Warner has turned in profits up nearly 60 percent for a total of $1.46 billion. It is said the profits came from Time Warner’s book sale and the recent gain in TV. Investor were not happy that AOL continues to slug down the company.
Turn the radio up as good news comes in for Clear Channel who has reported first quarter profits more then doubled to $96.8 million. Clear Channel had Howard Stern on their radio stations until he switched to Sirius a satellite radio company who is reporting a big loss for the quarter. It seems so far in this battle that radio is getting the upper hand.
BMW’s profit shot up 81 percent for a total of $1.2 billion beating out expectations.
I was reading a interesting article on MSN.com about becoming a millionaire at retirement age and it had a interesting concept. Here is how it works…
You are 16 still in high school and looking to keep yourself busy during the summer, so you get a job. During your summer job you earn about $2,000. Now if you stuck that money in a Roth IRA (a tax free individual retirement account) and watch it grow. By the time you hit the tax free age of 59 and a half it will have grown beyond your dreams.
Investing in common stock and averaging a compound annual rate of 10.7% you will have about $9,378 at the age of twenty if you continue the $2,000 per summer investing.
- $25,917 by the time you are 30
- $71,625 by the time you are 40
- $197,943 by the time you are 50
- $547,037 by the time you are 60
- And $1,114,423 by the time you are 67
The best part is that you are done investing at the age of 20. That is all you have to do is put in $2,000 per year.
Now throughout several years of investing the $2,000 per year and it becomes a habit you will gain a great amount of wealth, but that is not it because many companies offer to match what their employees contribute to their IRA. You are working a good job at the age of 22 and your employer will match what you put in your IRA. That is $4,000 per year that is put into your IRA.