So, you wanna earn a million dollars, super-duper easy? How would you like federal government to give you a big, huge tax break? Wouldn’t it feel deliciously good to earn a Million Dollars of income, completely tax free? How would you like to earn a million dollars of income passively, quietly, without lifting a finger? Well, put your seatbelts on, folks, because in a brief nutshell, I’m going to introduce you to financial vehicle that you’ve been looking for! Welcome to wonderful world of investing through a ROTH IRA in 5 simple steps:

1. What is a ROTH IRA?

2. Which way should I go…ROTH IRA or Traditional IRA?

3. When Should I start Investing in a ROTH-IRA?

4. How Long Before I Earn $1,000,000 – One Million Dollars?

5. A Checklist

Before we proceed, A couple things to please keep in mind. A ROTH IRA, while completely simple and easy for all of us to understand, is not without complexity, and each individual is different. Laws change, so always check with your financial advisors before proceeding to take action. The information contained in this journal are solely opinions of this writer, so be sure to seek out solid financial advice before making any important decisions. Be sure to do your own research and conduct your own financial assessments prior to changing any investments or making any new financial decisions. While I welcome opportunity to introduce you to ROTH IRA in my own words, please make sure that you assess your retirement plans on your own, alongside those financial advisors that you trust and rely upon. With that said, let’s proceed!

1. What is a ROTH IRA?

a. A ROTH IRA is a wonderful product that came into existence as a result of Taxpayers Relief Act of 1997. It is a new tax-shelter for average American, and a new opportunity to take advantage of certain benefits that were previously unavailable.

b. A ROTH IRA, in part, reverses process from that of a regular traditional IRA account. The down side is that there are no tax deduction benefits for your contributions. The plus side is that contributions you make, are POST-TAX…In other words, you’re not using ROTH-IRA before taxes are taken out of your paycheck. You’re using ROTH-IRA from your Net proceeds of your paycheck, or after taxes are taken out. Why is this absolutely wonderful? Well, I’ll get to that in a minute.

c. Most of us can add up to $3000 (as of 2004) per individual into each account per year. Now of course, if you’re married, then you can add up to $6000 per household, combined into two ROTH-IRA accounts, per year! That’s enormous. Absorb that for a second. You and your family, can invest $6,000 additional monies, per year, in a tax-shelter, that will earn revenue TAX-FREE!

d. After 5 years, principal can be distributed, even though earnings should remain in account to avoid taxation and penalties. What this means is, that you are not restricted completely from this money. After 5 years, options become available to you. This is nice, because this means that you do not, necessarily, need to wait until retirement, to extract funds, should need arise. Of course, early withdrawal penalties may exist as they do in many tax-shelters, however, point is that there is added flexibility in ROTH-IRA, that was previously unavailable.

2. Which way should I go…ROTH IRA or Traditional IRA?...Perhaps!

a. Now whether to go with a ROTH IRA or a traditional IRA account is really up to you and and your financial advisors. This is a subjective decision, and each persons needs and requirements are different. Here are a couple things that I keep in mind, however, when I’m examining ROTH-IRA for my family:

b. Do I have a 401k, and a company sponsored Savings or Pension plan, and a Bonus plan, and a variety of other tax-shelters, and retirement programs? If I do, then perhaps I don’t necessarily need a traditional IRA account, because I already have investments working to my benefit, pre-tax. Perhaps if I were to sit down and do math, I would see that all my pre-tax bases are covered. What I need now, is next step…What I need now, is a way for my family to invest my POST-TAX dollars smartly. What I might need, is a ROTH IRA…Perhaps.

c. Am I planning on extracting EARNINGS of this fund, before I retire? Now, I’m not talking about Contributions. This is an important distinction that was previously discussed. I’m talking only about Earnings. Anyway, if answer is YES, then I may want to look into a regular, typical, standard brokerage account, and forget IRAs altogether. Remember, both ROTH-IRA and Standard IRA are designed as tax-shelters that average American family can use to grow their assets for retirement purposes. If my assets are much larger and robust, then perhaps a ROTH IRA may be small potatoes, too restrictive, and I should just go with a standard taxable account for much greater flexibility…Perhaps.

1. ON BENJAMIN FRANKLIN:

2. ON HOME OWNERSHIP:

3. On Financial Freedom:

4. ON THE BI-WEEKLY MORTGAGE:

5. ON THE 15 YEAR MORTGAGE:

6. CONCLUSIONS:

1. ON BENJAMIN FRANKLIN:

A: In 1757, Benjamin Franklin published "The Way To Wealth", a basic summary of his 25 year Poor Richards' Almanac. In "The Way To Wealth", Honorable Mr. Franklin states following:

"Then since, as he says, borrower is a slave to lender, and debtor to creditor, disdain chain, preserve your freedom; and maintain your independency: be industrious and free; be frugal and free. At present, perhaps, you may think yourself in thriving circumstances, and that you can bear a little extravagance without injury; but, For age and want, save while you may; No morning sun lasts a whole day..."

B: There's a chock full of great wisdom to be gleaned from this paragraph of text. I encourage you to read it carefully, and absorb as much as you can from this man. He was, after all, just a man. But a great man. In fact, Benjamin Franklin believed that you are no different than he. He also believed in hard work, and perseverance, and value of time management. These basic precepts, if mastered, could lead you down same path of immense wealth as Benjamin Franklin..

C: I also want you to notice, that Benjamin Franklin refers to borrower as a "slave to lender."

2. ON HOME OWNERSHIP:

A: Now, I personally advocate a strong belief in power of home ownership, but of course, that requires taking out a rather large loan. So, I would submit to you that this is in direct contradiction to what Mr. Franklin said, because by taking out that loan, in order to take ownership of your first piece of real estate, you are, in fact, becoming a borrower to lender, or as Mr. Franklin would say, a "Slave to Lender".

B: But, I simply must, initially, sway from our founding father, on this one. Times have, in fact, changed. It is impossible for any of us to purchase a home in today's times without placing oneself in position of slave to lender. How is it possible that an average working American, with no assets, no rich uncles, and no magic potions...How is it possible for that guy to buy a house, without a loan.

C: Well, frankly. It's not possible.

D: So, I am indeed, OF COURSE, advocating a mortgage for first time homeowner. In other words, I realize that I am advocating idea of intentionally becoming indentured servant to lender of your choice. But, what are alternatives really, Mr. Franklin? What can a 21st Century American do, to get into real estate, without borrowing money?

E: And with that all said, I absolutely agree with every word spoken by Benjamin. I do think you are, in fact, a slave to lender when you buy your first home.

F: I also think it's easiest way for you to make it to your first, cool million.

3. ON FINANCIAL FREEDOM:

A: So, I'm about to put a Twist on whole subject. For me, anyway, story begins with signing of your first deed of trust, and with singing of your first, big mortgage.

B: From there, you are on a quest to freedom.

From there, you are on a quest to independence.

From there, you are on a quest to removing lenders' bonds which shackle you.

From there, you are on a road to pay off your loan....and pay it off, as quickly as possible.

Do this, and I say, you will be eons ahead of everyone else.

You will no longer be a Slave to Lender...

You will be your own Benjamin Franklin.

You will be FREE.

C: You simply must restructure your loan to pay it off faster, either in beginning, or during a refinance process later on in your journey. Most people pay their mortgages off in 30 years. Some people walk down dangerous road of messing around with Adjustable Rate Mortgages, and taking risks that probably shouldn't be taken, only to discover that they are later in a required position to refinance their loan, irrespective of rate, and subsequently add an extra 5 years on to fully realized term of their loan. So for them, and many home owners, lender bonds them to 35 years, 40 years, and beyond.

D: Benjamin and I want you to pay your loan off much, much, much sooner than that.

4. ON THE BI-WEEKLY MORTGAGE: