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Who Wants To Be A Millionaire?

by David Ledoux, Founder ILOVEMLM.com

Yesterday a nice couple won $239 million in the lottery. It was the second biggest lottery win in history. The wife was a little shaken. The husband was as low key as paint drying on a porch swing in the middle of summer. No big deal. He was going to keep his job for a while just so he could get used to the thought of the money.

Let's face it, $200 mil IS a big pile of Benjamins. Most people can't even imagine having $1 million. That's a problem. And that's the topic of conversation today.

Every Sunday morning on the A&E Channel is a show called "America's Castles". My wife likes to watch it, and I'm too lazy to argue. It's actually quite fabulous. Each week they showcase the old mansions built at the turn of the century by America's millionaires. Back in the day when $1 million actually bought you something.

It's hard to imagine making a million dollars until you actually get there. Note I said "make a million" as opposed to "win a million". Two very different things. But the problem is the same. It's really not very much money any more.

Don't get squeamish on me. A million really isn't enough. A million is not enough to quit your job, and it's not enough to retire on safely. Most people don't believe me, and that's why currently 8 out of 10 Americans retire at or below the poverty line.

Check out this madness. Let's play a little game. Let's say you have a great job paying you around $100,000 a year. Technically in most major cities you're middle class. Not rich, maybe a nice house in a nice neighborhood, two leased cars, and if you're somewhat careful with your money, you're fairly comfortable.

Your boss pats you on the back one day, says he's happy with your work, and gives you a MILLION DOLLAR BONUS! Holey moley, your ship has come in! Or has it?

In my province of Ontario, the top income tax bracket of 46.4% hits salaries above $105,000. That's you....BAM! Right off the top they clip $464,000 in taxes.

Your bonus is now $536,000.

The stock market is insane, the real estate market is overvalued, and there is a bubble in commodities. You play it safe and put the remainder in a Guaranteed Interest Certificate (GIC) paying 3%. Better safe than sorry, right?

A year goes by at the old job. You glance over at your bank statement and are somewhat displeased to find that the original million-dollar bonus has thrown off a whopping $16,080 in interest. Well whoop de do!

Wait, it gets better...I mean worse.

You can't quit your job with 16 grand coming in. So that interest is still taxable at the high rate....BAM! There goes $7,461 in income tax.

Your original million-dollar bonus is throwing off a stellar $8,619 in after tax income. Sure hope inflation doesn't climb back up to 3%....in which case your real return is zero.

Is it really that bleak? I say it's really much worse. People are getting hammered in the markets, on their credit card debt, and every time they turn around someone has a hand in their pocket. I am truly scared for the masses of people out there.

Here's an ominous prediction. The next 20 years are going to see millions of sick, broke people like the world has never seen. Prepare yourself not to be one of them.

How?

Wrap your brain around this. You start a little network marketing business for $150 on the side. Within a year or two it pays you $300 a week. Plus you have the home-based business tax deductions of thousands of dollars yearly. Pulling in $15,000 a year in your MLM gives you more than that $1 million salary bonus....

Makes you think, doesn't it? Will it make you value your business a little more?

I appreciate you!

David Ledoux

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