INTRODUCTION


Learn How an 'Average' Investor Can Attain a $484 Million Account



 

Yes... that number really is $484 Million – the amount of wealth an 'average' American, earning an 'average' income can legitimately accumulate during their working years – when using an 'above-average' systematic ETF investment strategy.

Moreover, if your earnings are above average or you can save more than the average individual each year, then you can accumulate much more wealth than $484 million – or you can choose to retire 20 - 25 years early! Most people will only have to adjust one small detail in their busy lives, just once every four months (on average), which takes about 15 minutes on a relaxed, Saturday afternoon at home, to attain this impressive wealth.

There's no doubt that more than a few of the people reading these words and are thinking, "No way! ... Such X!#!"

Sadly, a response like that understandable. After all, misleading information and empty promises continuously bombard us from all sides as we move through life, practically ensuring this article will be met with a healthy amount of defensive cynicism. After all, for most people, the idea of accumulating $484 million – or any amount of millions – is unimaginable. How can the 'average' Joe or Jill build an estate worth $484 million – or $10 million – or even $1 million for that matter, they might ask?

 Imagine a retirement with unlimited personal freedom
 Imagine having enough wealth upon retirement that you can do virtually anything you choose. Having significant wealth allows you to have an incredible amount of freedom.

It's easy to understand why anyone might think like that. But what if you could see undeniable proof that the headline statement above is accurate?

You'll have to admit – it would be profoundly life-changing if it is true...

In fact, you may discover that the information on this page will offer you an entirely new way of thinking – perhaps an epiphany – about your finances, your potential wealth, and what's possible in his life that you may have long ago decided was out of reach. If the statement above is true, this page could send your life in a completely different direction –  couldn't it?

We hope the ideas presented on this page will prompt a paradigm shift in your thinking – presenting you with the possibility that you can become more wealthy than you ever imagined – just by making your money work more intelligently – while you go about toiling at your career and living your life. 

There isn't some big change of your life that's required – in fact, you needn't change anything except one minor detail, which you'll see by the end of this page is actually quite easy.

So, which is it? Is the statement at the head of this page really true – or is it just more marketing B.S.?


Answer: The Headline is 100% Factual!
Here's Proof...


We consider honesty and integrity
, along with reputation, to be a company's (and person's) most valuable assets, and we would never be facetious in a matter as important as this with you. If we did that, we wouldn't be in business very long, so there is no trick wording or 'hedging' involved in that headline – nor any other aspect of this page.

Nevertheless, I honestly do not expect you to begin reading and believing anything I say – at least not until I provide you with some evidence to back up my claims. After all, I'm a person whom you have never met, and you probably know nothing about me or this company. However, it's essential that at some point as you read this page, you realize that the information provided is 100% accurate. We believe we have developed a breakthrough service that will help you achieve your financial dreams – but to take advantage of it, you need to know the information we're providing here is credible.

If you will continue reading and invest just 5-10 minutes more of your time, I'll walk you through clear proof that the headline statement above is 100% true!  On this page you'll learn – based on conservative numbers that are readily available from US government statistical data and credible, independent third-party sources – how an average American (and professionals in many other countries) can attain an estate worth $484 million (and maybe much more) during your working lifetime – while doing nearly everything exactly the same as you're doing already. (If you're already saving 10% or more of your annual income for retirement, your 99.9% there!)

But what if you're not in your early to mid-20s and just beginning a career? What if you are already 10, 20, or more years into your career? Perhaps you have several decades of your career under your belt and for one reason or another, you just don't have much saved yet? Well, the good news is that you can still accumulate an account that is worth far more than you ever imagined was possible – perhaps even worth many tens of millions of dollars – in your remaining working years. At the end of this article, I will show you how to calculate the potential wealth you can attain by using a systematic ETF investment strategy.

If you've already been consistently saving for retirement – or another goal – then you are already doing 99% of what is necessary. And if you haven't been consistently saving, well, perhaps the information on this page will be enough motivation to encourage you to begin setting aside all you can. The approach we're going to tell you about doesn't require you to do anything unusual, take significant risks, or radically change any aspect of your life. It's also not some fast money-making scheme. Nothing like that!

Your money stays with you – in your secure brokerage account. All you need to do to accumulate the wealth mentioned earlier is to follow some simple instructions – on average, about once every four months.

Are you intrigued enough to spend a few more minutes with me? If so, then please invest another 5-10 minutes of your time – while I explain the logic behind that $484 million figure. I will show you how you can easily (yes, easily) become a multi-millionaire – perhaps even wealthy beyond your wildest dreams, by changing just one small aspect of your life – something that will only require a few minutes of your time, once every 3-4 months on average...

 

 One very large egg!

 

Let's Examine How We Derived that Headline Number

The possibility that an average American can attain $484 million of wealth during their income-producing years was presented in the headline of this page. We want you to understand that this is a legitimate number with a credible foundation. Therefore, we need to establish some facts to support the thesis. And we'll obtain these facts from independent, third-party sources and give you the links to confirm those facts for yourself.

First, let's look at the annual earnings and savings characteristics of an average American. These numbers serve as the foundation for our thesis about the potential wealth of an 'average' American.

       1) According to the Bureau of Labor Statistics' Economic News Release as of the 1st quarter of 2018, the average American over the age of 25 earns $47,944 per year ($922 per week, annualized). For the sake of this exercise, that's the number we'll use as a starting point. Of course, your income will be different, and we'll show you how to calculate your custom potential wealth in a moment.

For the sake of simplicity, we'll assume an average person earns the same average income every year they work, which is how the Bureau of Labor Statistics calculated the number.

       2) Financial advisors recommend that you should save a minimum of 10% (and preferably more) of your income each year toward retirement. Therefore, if an average American saved the minimum of 10% of the average US income per year, they would add $4,794.40 to their retirement account every year for 42 years – from age 23 to age 65. We use the first age (23) because it is when most individuals have graduated college and are beginning their careers.

The second age (65), is the classic age for retirement. Of course, today many people are working long past 65 as life expectancy increases as a result of modern medical advancements. However, we'll stick with the traditional age and next we'll show you how you can retire early – after working just half the typical number of years – by using an ETFOptimize investment strategy.

The sum of 42 years of equal annual additions of $4,794.40 is only $201,365 – the amount you would have if you stuffed the money under your mattress each year. It is nowhere near enough for retirement. We'll assume the average person lives 20 years after retirement, so that sum would only provide $10,000 per year. But here's where the beauty of compound interest enters the picture...

According to Morningstar.com (a leading investment and mutual fund resource), the S&P 500 (America's premier and most well-known stock benchmark) averages an annual return of about 7% over the long term, including dividends. Therefore, if a person invests passively, placing their 10% savings each year into the S&P 500 ETF (SPY, which has a CAGR of 7.17% for the last 20 years), they would have about $1.5 million upon retirement.

That might barely be enough to get a person through the final 20 years of their lives. But the rate of inflation during the 42-year span from the time they start working, plus the 20-30 years they live after retirement, will play a prominent role in the outcome. And what if you live more than 20 or 30 years after retirement? It would be easy to run out of money – which would be a devastating nightmare.


The Reality is Actually Much Worse...

Unfortunately, the S&P return of 7.17% is not what the average investor attains as a return. To get that return, an investor would have to consistently place money in the S&P 500 ETF on a regular basis regardless of what it is doing. That means, for example, even in September and October 2008 when the S&P 500 was violently plummeting following the collapse of Lehman Brothers and in the midst of the worst selloff in a generation, you still would have had to ignore that ferocious turbulence, stay with your long S&P 500 ETF position, and add your regularly-scheduled monthly retirement contribution – even as you watched it lose significant money (-20%) both before and right after you put it in! But really, is there anyone who would actually do that?

In the long run (more than 20 years), it is a very rare individual who can completely ignore everything the economy and the stock market are doing to achieve an annual return of about 7% – the same as the market. During your working years, your funds may gain 11% one year and 2% the next, or more than 20% for three consecutive years and then you could lose -60% in a bear market over the following two years. Because of the inherent volatility of markets, which are ruled by the sentiments of fear and greed, there are very few people who can consistently maintain this type of plan and continue to passively put money into an asset regardless of conditions.

Here's what really happens…

Dalbar, Inc., one of the leading financial services market research firms in the US, has published their annual Quantitative Analysis of Investor Behavior (QAIB) for the last 24 years. This report, which it markets to large investment firms, is an analysis of actual investor results – not the return a person might theoretically attain. Dalbar notes that because of human behavioral errors, the average investor has only garnered a gain of 2.6% per year during the last 20 years and just 1.9% over 30 years! That's exceptionally egregious when you consider that 1.9% is below the long-term rate of inflation at 2.4%.

 

 Dalbar analysis of performance for various investmentsThe average investor only attains a return of 2.6% over periods of 10 years or more. Using a systematic approach, the ETFOptimize strategies achieve an average annual return of 26.79%. Source: Dalbar, Inc.

What typically happens is that investors (and professional money managers) buy more stock after the market has been rising for some time, and sell shares when the market has been declining for a lengthy period. The result is a pattern of buying high and selling low – the opposite of a successful investment approach.

Based on the 2.6% average annual return of the proverbial 'average investor,' they would have just $366,835 upon retirement. That money could be divided into $20,000 increments that are deducted from your principal a year at a time during retirement. At that rate, you would be out of money after year 18 (and you would be living at the poverty line during those 18 years).

That's nowhere near enough money upon which to retire, but it is the condition in which the vast majority of Americans find themselves. In fact, the vast majority of people don't even have $366,000 saved at retirement. Many Americans believe that Social Security will bail them out, and for many, it will undoubtedly help, but how far can you stretch the average monthly Social Security check of a little over $1,300?

This is a state of affairs that is entirely unnecessary because there is something very straightforward you can do to resolve that dire situation.


Fortunately, there's an Alternative...

Historically, individuals who took saving for retirement seriously used one of two approaches; 1) investing using a mutual fund (which involves outsourcing the investment decisions to an expensive professional money manager, who selects individual stocks for you) or 2) managing your own account and picking individual stocks for yourself (but only after spending many years learning how, then gaining experience through expensive trial and error). Surprisingly, numerous studies have shown that for each approach – both amateur and professional alike – the investor attains almost the same (poor) performance of just 2.6% per year (slightly above the long-term rate of inflation)!

Why would the professional not have far better returns than the amateur? It's because both of their approaches are rife with the potential for human error, including the ubiquitous 'performance chasing' to find the best return.

Sadly, many discover too late that reversion-to-the-mean is ubiquitous in the performance of investment vehicles. That is, assets that have been outperforming will return back to their long-term moving average – usually right after you buy them). Another pervasive error is 'panic selling' – where investors try to salvage their principal when stock prices are plummeting, and fear takes over a person's decision-making.

And it's not just the amateurs making these mistakes. In fact, every year Standard & Poor's publishes a report showing that about 98% of mutual fund managers and other professional money managers fail to beat their closest benchmark and/or the S&P 500 index.

Fortunately, many investors are learning that there is an alternative to the inevitable errors that everyone (literally, everyone) makes – whether you have 20 years of investing experience or 20 minutes.

Today, many are discovering the significant benefits offered by systematic (aka, quantitative) investing when you are no longer required to make consequential investment decisions based on incomplete information. With the availability of the ETFOptimize Investment Strategies, investors can own the optimal Exchange Traded Fund (ETF) at any given time – for any combination of circumstances – and thereby achieve consistent, exceptionally high performance over long spans of time. These steady, predictable, higher-than-average annual returns will provide the basis for phenomenal account balances several decades down the road.

We're talking about using the extraordinary power of compound interest over long periods of time. However, with the advent of high-caliber financial databases, enhanced technical tools, and 50 years of collective expertise in systematic strategy design on the staff of ETFOptimize, we are able to consistently turbocharge compound interest, reduce risk, provide diversification in a single position. When you also consider that we are able to not just avoid the disastrous -50% bear markets that set an investor back many years each time it happens but instead turn market downturns into opportunities for profit. Our strategies provide exponentially faster growth when stocks are in an economic-expansion (bull market) phase. The result is an honest-to-goodness paradigm shift from an investment approach that produces profits regardless of the market environment...

ETFOptimize offers subscription investment strategies that rotate to the optimal ETF at the optimum time for any market condition. Our model portfolios average nearly quadruple the market's return and reduce drawdowns by 70%. Beating the S&P 500 in 54 of 57 years, each of our strategies has made money every year since inception (57 of 57 consecutive winning years).

What is an Exchange Traded Fund (ETF)?

The ETFOptimize investment strategies will reduce your portfolio's maximum drawdown, to an average of less than 1/3rd of what the market experiences – and increases annual returns to nearly quadruple the performance of the market – 385% greater than the S&P 500 index each year, on average, over the last 20 years.

Using the ETFOptimize systematic ETF investment strategies will allow you to eliminate worry about extreme declines (drawdowns) and bear markets – because they just don't occur with our quantitative strategies. Increased volatility in stocks can can happen for many reasons. But if the underlying fundamentals of the market are changing – the ultimate source of new investment trends (and volatility) – our strategies have usually already rotated to the optimum ETF that will take advantage of the developing macroeconomic and market conditions –  making money whether the market is rising or declining.

 

 

Volatility also occurs during market corrections, which are times when stocks revert back toward their mean after a period of overenthusiastic trading (such as occurred in January 2018 – with a subsequent correction from February to April 2018). Many discretionary investors are prone to selling shares when a correction occurs because they fear it could be the beginning of something worse. This is an all-to-common mistake because during corrections, the underlying fundamentals and trend of the market have not changed. By selling at some point after the downturn begins, when they become concerned about further, more extensive losses – they lock in that decline in turn paper losses into actual loss of capital. Then, many buy back the same stocks (at higher prices) whenever they are sure that the trend has indeed not reversed. In this way, investors repeatedly shoot themselves in the foot – and the punishment is much lower returns.

Instead, the ETFOptimize strategies eliminate investor's losses that can occur from errant trades during corrections by determining – based on instantaneous daily analysis of as many as 28 different critical data series  – whether the correction is simply temporary turbulence (that should be ignored) or the beginning of something more serious (such as a bear market) that should be avoided. The ETFOptimize strategies take the guesswork out of times of market volatility and always keep you in the optimum ETF-based asset – whatever conditions may occur.

Importantly, maximum drawdowns are usually at their greatest during bear markets (defined as a price decline of more than -20%). However, the ETFOptimize strategies always rotate to the optimum position for the upcoming circumstances – and bear markets virtually eliminated when using our strategies. Instead, the ETFOptimize strategies turn bear markets into profitable opportunities by switching to a defensive position, or for our more aggressive strategies, an inverse ETF that rises as the market declines.

 

 

The average annual return for all the ETFOptimize strategies since inception is 26.79% – with a range from 13% to 34% compound annual growth per year. Based on the average return of our systematic ETF strategies collectively, a young person could have a nest egg of more than $484 million when they finish their working years (or they can retire in half the normal time - which this kind of wealth makes quite possible).


The Opportunity to Retire 20 Years Early

You don't have to work for 42 years with the pace of investment gains offered by the ETFOptimize strategies if retiring early appeals to you. After just 22 years of working – at age 45 – and socking away $4,794.40 per year (10% of the average American's income), you would have more than $4 million in your account (a sum large enough upon which to retire without tapping into the principle). Note that the total of 22 deposits of $4,794 is $105,468. But with the magic of compound interest, your deposits will have grown to nearly 40-times that amount – to $4,181,831 in 22 years, when using the ETFOptimize investment strategies.

However, if you do continue to work and add to your account each year, you would subsequently be compounding your savings at more than 25% per year – which adds up very, very quickly.

After just 22 years of saving $4,794.40 per year, more than $1 million will be added to your account each year for the next five years – and the size of that addition grows every year, which is the amazing power of compound interest – what Einstein called "the eighth wonder of the world" and "the most powerful force in the universe." 

So, if you want to retire early, after working for 22 years and contributing $4,794 each year, you would have $4.182 million at age 45. If you placed that money in a very conservative, 100% risk-free 20-year Treasury bond that is paying about 2.6%, you would have $165,000 each year on which to live for the next 40 years – and you would still have that $4.182 million estate to pass on to your progeny.

 
Enjoy the wealth you can attain with a systematic ETF investment approach
   Celebrate putting your money to work intelligently – and the wealth it can provide!


On the other hand, you could put your money in the ETFOptimize Adaptive Fixed Income Rotation Strategy (our most conservative strategy, with a 13.8% annual return), and it would pay out about $510,008 each year. For most people, half-a-million dollars a year is more than enough to live on in retirement.

If you worked another five years after the first 20, it would provide you with an extra $7 million, with which you could buy a beautiful beach house in Hawaii for your long, relaxing 40-plus year retirement.

I hope you can see how this breakthrough in the investment industry might change everything! Using systematic ETF investment strategies based on dozens of macroeconomic factors (only available currently with the ETFOptimize strategies), the average individual can watch their savings grow exponentially at a high rate, but without the high volatility that normally accompanies high returns.

The financial freedom you will experience by working for just 25 or 30 years - still retiring very early - can make a dramatic difference in the outcome and your satisfaction with your life.

If you one of the many individuals who – for whatever cruel realities life may have thrown at you – is getting a late start in saving for retirement as you read this, you probably already realize that the compounding that can enable a person to retire more than 20 years early is also the same compounding that can give you a second chance to meet those goals that you thought were all but history.

And it gets even better…

Become a Multi-Millionaire by Saving Just $500 per Year

For most people, their earnings are their primary source of financial freedom, and as a result, many people strive incredibly hard to climb the career ladder to increase their annual income. However, in doing so, they become a slave to their work, handing over all of the moments of their life to their employer or their business.

However, with the benefit of robust, systematic ETF investment strategies – which have only become available in this sophisticated form in the last 10-12 years  – instead of your job being your only source of potential wealth, a person's savings will become their primary source of substantial wealth. And if you lower your expectations a bit from that high bar we set earlier, will allow you to contribute far less and still attain a multi-million-dollar account upon retirement. 

Think about it – the average person, earning $47,944 per year would have earned $2,013,648 over the course of the typical, 42 year career. But when you set aside 10% of your income each year in place it into a systematic ETF investment strategy, that money is going to work far harder than you can – working for you around the clock, 24 hours a day, compounding every penny that's in the account and growing to $484 million during the same 42 years you were working. That's $2 million from your work versus $484 million generated by your savings – but it's not by making your money work hard for you...

So, how is this accomplished? By making your money work far more intelligently than most investors have come to expect from their investments.

On the other hand, what if you are unable to contribute $4,794 per year to a retirement (or other investment) account? After all, a lingering consequence of the Great Recession is a distinct dearth of wage increases over the last decade. Businesses are keeping a tight grip on profits; not wanting to give salary or wage increases. The result is an economy that's doing pretty well, but people feel incredibly squeezed. Most people these days are squeaking by with barely enough money as it is. If you're not already setting aside $4,800 per year, you may wonder how you can possibly do that every year in the future.

Well, the good news is, even if you have a lower-paying job or are unable to save that much every year, you can still become a multimillionaire! In fact, based on the average, ETFOptimize systematic investment strategy (such as the ones offered in the ETF Investment Strategy Suite), a person working as a checkout clerk and saving just $1,000 a year ($83 per month) can accumulate $101 million by the age of retirement at 65. Invest only half that – just $500 per year (a measly $42 per month), and you can have an account worth $50 million by the time you're 65. I don't know about you, but I bet most people could 'get by' on $50 million in retirement.

 Invest $500 per year for $48 million at retirement


Depending on how much money you wish to accumulate, and at what point in your life you would like to retire, this investing breakthrough allows you to design your wealth and the rest of your life. It only requires two things from the user to be successful: 1) the discipline to set aside a certain percentage of your income each year, and 2) you must follow the recommendations of your strategy to the letter. Do you think you can do that? (Many people cannot.)

To attain a more substantial estate, you could contribute more money each year – or if appropriate for you, choose one of the more aggressive ETFOptimize strategies – and the final amount grows exponentially more significant. For example, an average investor who can contribute an average of $4,794 per year (10% of the average American's annual income) during their working career to an account that uses the recommendations based on one of our higher-performing ETFOptimize strategies, can attain a net worth of more than $1 billion upon retirement. 

Some people might be questioning the legitimacy of these statements. You might be thinking, "If it were this easy, everyone would be a billionaire." However, remember that the ETFOptimize strategies, which use more than two dozen financial data series in their calculations to provide the robustness needed for very steady account growth, has only been available since 2006. And also keep in mind that the numbers quoted above are attained after 42 years of contributions. Many of those future billionaires are just getting started today – and many of them will be using a systematic ETF investment strategy to attain those billions.

In 2018 America, there are about 500-600 billionaires. Forty years from now, especially since many more people will have systematic ETF strategies available to them, there should be – literally – many millions of new billionaires in America in the next four decades. So, while not everyone will be a billionaire, a significant portion of the population will be. Why not include yourself in that group?

 

The Life You Live in the Future is (Literally) Up to You...

Wealth is important – but not simply for the sake of having money and prestige. More importantly, wealth gives you the space and time for following your heart – allowing you to revisit your passions and embrace your life's purpose. Wealth also allows you to be a benefactor to those who are less fortunate. Imagine being able to leave an estate of tens or hundreds of millions of dollars for your family that can be passed on for hundreds of years, assisting your progeny in myriad ways for many generations to come – or you can donate millions of dollars to your favorite charity or non-profit organization – perhaps for something that is near and dear to your heart – making a contribution that can really make a difference in the lives of others.

Systematic ETF investing is offering an investment approach that can honestly turn an average person, working an average job, and saving an average amount of money, into a wealthy multimillionaire. And the breakthroughs discovered by ETFOptimize – which are utilized by the plans in our ETF Investment Strategy Suite – provide a quantum leap in the development of this important investment approach.

This is something entirely new that many investors have never seen before!  In the past, the more sophisticated systematic ETF investment strategies – offered by quantitative investment shops – were made available only to professional money managers. If you didn't happen to be a client of one of those money managers, you would never be exposed to this exciting development.

Now ETFOptimize is making these important strategies available today to individual investors – the average American (or average German, average Swede, average Brazilian, average Spaniard... well, you get the idea...) now has the capability of getting average returns that are consistently above 20% to 25%. As we showed you in the material above, that makes an immense impact on your account.


Calculate your Potential Wealth


To confirm the $484 million figure used on this page for an average-income investor, see the instructions below the calculator.

To calculate a custom wealth target for yourself, choose the ETFOptimize Investment Strategy that’s right for you from the Step #1: Investment Strategy Choices Table below. Then enter its Annual Return (second column from the left) in the Step 2: Wealth Calculator at “Growth Rate.” Next, determine how much you can save each year ("Annual Addition") and think about how many years more you wish to work ("Years to Grow."

STEP 1:
ETFOptimize Investment Strategy Selection

Risk and Return Matrix


Strategy


Annual
Return


Risk-Adjusted
Return

(Definition)


Maximum
   Drawdown

(Definition)


  Risk Spectrum:
Conservative to Aggressive



Recommended
Years of Experience

(Definition)

Adaptive Fixed Income Rotation

13.8%

2.74

-9.17%

Very conservative

No Exp Required

Asset Allocation 2-2

26.79%

2.22

-21.49%

Moderate

1 years +

Asset Allocation 2-4

29.10%

2.14

-22.17%

More Aggressive

2 Years +

S&P 500 Aggressive

30.56%

2.14

-25.55%

More Aggressive

2 Years +

Adaptive Equity Rotation

33.56%

2.12

-26.33%

Most Aggressive

2-3 years +

 
To obtain additional details for each of the above ETF investment strategies, please...

Visit our Suite of ETF-based Investment Strategies

 

 


STEP 2:
Wealth Calculator

See instructions below for guidance on how to use this calculator.

Wealth Calculator

 


Instructions for Using the Wealth Calculator:

First: Click the Calculator to open a fresh version in a new window. Choose the "Compound Interest" button from the top of the list of the left (blue) side, under "Mode." The settings provided on the right side then determine the savings you can accumulate at different rates of return (Growth Rate), Different starting amounts (Current Principal) different rates of savings each year (Annual Addition), over different lengths of time (Years to Grow).

   

Instructions to Confirm the 'Average' American's
Potential Wealth of $484 million

If you would like to confirm the "Average American's" Potential Wealth of $484 million example shown in the article above, please follow these steps:

1) Enter $0 in the top window for "Current Principle (i.e., current savings)" (the average young person just out of college will have no savings with which to start).
2) Enter $4,794.40 in the second window for the annual savings rate for "Annual Addition" (for a savings rate of 10% of the average, annual American income of $47,944 (according to the US Bureau of Labor Statistics).
3) Enter "42" in the window labeled, "Years to Grow," - this number represents the span of the typical American's adult working years from age 23 to 65.
4) For 'Growth Rate,' enter 26.79% for the average annual return across all current ETFOptimize strategies. Then you can enter 2.6% to see the long-term annual return of the average investor (according to Dalbar's annual QAIB study).
5) Press "Calculate." You should see the figure of $484,614,379 shown in the article for "Future Value."
6) Early Retirement: Change "Years to pay out" to 22 to see the amount you would have if you retired after working 22 years (to age 45) with contributions of just $4,794 per year.
7) Other Variations: Change "Annual Addition" to $500 and keep "Years to Grow at 42

   


Calculate Your Potential Wealth
(Instructions):

To see the potential wealth you can achieve by using an ETFOptimize strategy, follow the instructions above, but customize the amounts for your particular situation. Make these specific customizations:

1) Enter the amount of money you have saved to-date in 'Current Principle.'
2) Change 'Annual Addition' to your yearly savings amount, and
3) Change 'Years to Grow' to the number of years before you expect to retire.
4) Then input the return from the ETFOptimize strategy of your choice from Table 1 above (also see our "Strategy Selection" article for suggestions on choosing a strategy).
5) You will see that the amount you can attain is will surprise you!
(Copy this final number from your custom calculation for use in determining your Retirement Income amount in the next section.)

   

Calculate Your Retirement Income
(Instructions):

A simple way to see your annual income during retirement after using an ETFOptimize strategy during your working years is to choose the "Annuity" radio button on the left side of the calculator. You could also use the "Retirement" selection, but it is more complicated and combines both your earning years and your retirement years in one calculation.

1) Click the "Annuity" button on the left (blue) side of the calculator, then enter the final amount from your 'Potential Wealth' calculation (previous section) in the top line, "Starting Principal."
2) Enter the "Return Rate" from a very conservative investment, such as the 20-year US Treasury bond ETF (TLT), which at the time of this writing, is currently paying interest of 2.59%. You could also buy the actual Treasury Bonds, which are paying about 3.03% at the time of this writing. Fixed income investments are considered very safe, and US Treasury Bonds are considered the least risky investment available. The interest rate paid changes frequently, but for the last year or so has been heading higher. For a higher – but still very safe – income, you could also choose our 'Adaptive Fixed Income Rotation (1 ETF) Strategy,' which has an annual return of about 13% and has less than one transaction per year, on average.
3) Enter "Years to Pay Out" at the number of years you expect to collect income after you stop working. If you retire early (as the ETFOptimize strategies provide) at age 45, you might want to enter 45 years in this box. This will take you to the ripe 'ol age of 90.


To obtain additional details on each of our ETF investment strategies, please...

Visit our Suite of ETF-based Investment Strategies

 


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