It’s true. My son Visca will accumulate over eight million dollars without trying very hard. The fact is, he has been working and learning at my side for two solid years now. He was awarded this enviable position last summer by deciding, on his own, to get up at 5:00 AM, and to be dressed, ready to roll by the time I get out of the shower at 5:15.

Since he was born I told him that I would never force him to work by my side, but that if he did, I would teach him Entrepreneurship and make him a millionaire, in his own right, by the time he was eighteen. I knew he understood when one day he came home from school and proudly presented me with a page he had torn from a school coloring book. It was a magician he had colored and at the bottom was printed:

"When I grow up, I want to be __________________________."

And Visca, a first grader at the time, filled in "an Entrepreneur" on the blank line, and even spelled it correctly!

He works enthusiastically for what amounts to $2 an hour. At least three days a week during the summer and on weekends, he earns roughly $25 a day. (Don’t laugh, we go like two machines for 12-15 hours!)

He has been taught to save at least 10% of what he earns. He pays for his own haircuts (leaving his own tips); he buys his own ice cream at school and uses his own money to play video games. He told his teacher "all I want, is to be excellent and an Entrepreneur just like my dad.." By the way, she has him helping a Kindergartner, with self-esteem of all things. (Imagine…Visca...a third grade motivation coach!)

So how will a young gentleman accomplish this amazing feat and accumulate $8,403,388? Easy. It starts by saving $2.74 a day which he does effortlessly now by habit. $2.74 a day is a measly $1,000 a year and that, my friends, is half the maximum amount (of $2,000) one can currently contribute to an individual IRA.

Strategically, Visca’s is a Self-Directed IRA which we established for him and it consistently earns 12% per annum compounded monthly. Let me show you the math:

Contribution per Year = $1,000

ROI = 12%.

1^st Year Balance = $1,120

5^th Year Balance = $8,115

10^th Year Balance = $20,654

20^th Year Balance = $81,698

30^th Year Balance = $271,292

40^th Year Balance = $860,142

50^th Year Balance = $2,689,020

Now, what do suppose happens if, some day Visca can afford to make the maximum individual IRA contribution of $2,000? You guessed it: Everything doubles. Yep, the fifty year balance now becomes $5,378,041!

Just for the fun of it, let’s take this scenario just one step further. Imagine that Visca lives his "Dream Life" as an Entrepreneur. Consider this: he might choose (with the advice of his personal consigliere…me), to convert his individual IRA to a Self-Directed SEP/IRA and begin making the maximum contribution for the self-employed which is $22,500 or 15% of his compensation?

If Visca can save only $1,000 a year for the next ten years [until he is eighteen]; then $2,000 a year for the ten years following that [until he is twenty eight]; then $22,500 a year for the next thirty years [until he is fifty eight], he will retire with $8,403,388 in cash!

Optimistic? Yes but hey, this is his father writing, remember? Is this really possible? Absolutely. He’s got a huge head start with a plan such as this. Will there be obstacles and failure along the way? Definitely, but Visca already believes his father’s credo:

"Failure is not the opposite of success…it’s part of the process."

© MCMXCVII By Ray Como. All Rights Reserved

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