Millionaire Teacher by Andrew Hallam Read Free Book Online

market has generated returns exceeding nine percent annually. 3 This includes the crashes of 1929, 1973–1974, 1987, and 2008–2009. In Stocks for the Long Run , University of Pennsylvania’s Wharton School finance professor Jeremy Siegel suggests a dominant historical market, such as the U.S., isn’t the only source of impressive long-term returns. Despite the shrinking global importance of England, its stock market returns since 1926 have been very similar to that of the U.S. Meanwhile, not even two devastating world wars for Germany have hurt its long-term stock market performance, which also rivals that of the United States. 4
    My suggestion isn’t going to be to choose one country’s stock market over another. Some stock markets will do better than others, but without mythical crystal balls we’re not going to know ahead of time. Instead, to ensure the best chances of success, owning an interest in all of the world’s stock markets is a good idea. And you can benefit exponentially by investing as early as you can. The younger you are when you start investing, the better.
    Grow wealthier than your neighbor while investing less
    The question below showcases how powerful the “Noah Principle” of starting early really is.
    A. Would you rather invest $32,400 and turn it into $1,050,180? Or,
    B. Would you rather invest $240,000 and turn it into $813,128?
    Sure it’s a dumb question. Anyone who can fog a mirror would choose A. But because most people haven’t had a strong financial education, the vast majority would be lucky to face scenario B—never mind scenario A.
    If you know anyone who’s really young, they can benefit from your knowledge. They can feasibly turn $32,400 into more than a million dollars. But don’t weaken them by giving them money. Make them earn it . Here’s how it can be done.
    The Bohemian Millionaire—The Best of Historical-Based Fiction
    A five-year-old girl named Star is raised by her mother, Autumn, and brought up on a Bohemian island where the locals make their own clothes, where neither men nor women use razors to shave, and where no one tries to mask the aphrodisiac quality of good old-fashioned sweat.
    Unfortunately, despite how appealing this might sound (especially at tightly congested town hall meetings) it isn’t paradise. Islanders and locals alike often throw empty aluminum beverage cans into ditches. Autumn convinces Star that collecting those cans and recycling them can help the environment and eventually make her a millionaire. Autumn takes Star to the local recycling depot where Star collects an average of $1.45 a day from refunded cans and bottles. Although a Bohemian at heart, Autumn’s no provincial bumpkin. She recognizes that if she persuades Star to earn $1.45 a day from can returns, she can invest the daily $1.45 to make Star a millionaire.
    Putting it into the U.S. stock market, Star earns an average of nine percent a year (which is slightly less than what the stock market has averaged over the past 90 years). Autumn also understands what most parents do not: If she teaches Star to save, her daughter will become a financial powerhouse. But if she “gifts” Star money, rather than coaching her to earn it, then her daughter may become financially inept.
    Fast forward 20 years. Star is now 25 years old, and although she no longer collects cans from ditches, her mother insists Star sends her a $45 monthly check (roughly $1.45 per day). Autumn continues to invest Star’s money while Star hawks her handmade Dream Catchers at the local farmer’s market.
    Living in New York City, Star’s best friend Lucy works as an investment banker. (I know you’re wondering how these two hooked up, but roll with it. It’s my story.) Living the “good life,” Lucy drives a BMW, dines at gourmet restaurants and blows the rest of her significant income on clothing, theater shows, expensive