1417Power’s mission is to empower families to help their children be more successful in life by providing Life Skills Development, Early Teen Work Experience, Retirement Wealth Building for their teenage family members in a risk free month to month relationship. 1417Power accomplishes this mission by accepting enrollment fees from sponsors. The fee entitles the child to a specific number of employment hours for the following month.
The 1417Power Program is pay as you go month to month relationship. Payment is due by the 15th of each month for the following month’s participation. If payment has cleared the bank by the 25th of the month the Student Employee is enrolled for the next month at the corresponding level. The table below is based on starting at age 14 with 36 months of participation. Participation can be started after age 14 and can be extend beyond the three-year period used in the examples.
THE FOLLOWING TABLE SUMMARIZES PARTICIPATION LEVELS WITH THE RESULTING WORK HOURS, TAKE HOME PAY, AND WEALTH BUILDING RESULTS OF A ROTH IRA ACCRUED BY AGE 70*.
Monthly |
||||
|---|---|---|---|---|
Sponsor Fee |
Work Hours |
Pay deposited to checking account |
Savings Contribution |
Roth IRA Value at age 70* |
200 |
4.00 |
$12.00 |
$89.12 |
$473,000 |
225 |
4.50 |
$13.50 |
$101.01 |
$536,000 |
250 |
5.00 |
$15.00 |
$112.90 |
$599,000 |
275 |
5.50 |
$16.50 |
$124.79 |
$662,000 |
300 |
6.00 |
$18.00 |
$136.68 |
$726,000 |
325 |
6.50 |
$19.50 |
$148.57 |
$789,000 |
350 |
7.00 |
$21.00 |
$160.46 |
$85,200 |
375 |
7.50 |
$22.50 |
$172.35 |
$915,000 |
400 |
8.00 |
$24.00 |
$184.24 |
$978,000 |
425 |
8.50 |
$25.50 |
$196.13 |
$1,041,000 |
450 |
9.00 |
$27.00 |
$208.02 |
$1,105,000 |
475 |
9.50 |
$28.50 |
$219.91 |
$1,168,000 |
500 |
10.00 |
$30.00 |
$231.80 |
$1,231,000 |
525 |
10.50 |
$31.50 |
$243.69 |
$1,294,000 |
550 |
11.00 |
$33.00 |
$255.58 |
$1,357,000 |
575 |
11.50 |
$34.50 |
$267.47 |
$1,420,000 |
600 |
12.00 |
$36.00 |
$279.36 |
$1,484,000 |
625 |
12.50 |
$37.50 |
$291.25 |
$1,547,000 |
650 |
13.00 |
$39.00 |
$303.14 |
$1,610,000 |
675 |
13.50 |
$40.50 |
$315.03 |
$1,673,000 |
700 |
14.00 |
$42.00 |
$326.92 |
$1,736,000 |
725 |
14.50 |
$43.50 |
$338.81 |
$1,799,000 |
750 |
15.00 |
$45.00 |
$350.70 |
$1,862,000 |
775 |
15.50 |
$46.50 |
$362.59 |
$1,926,000 |
800 |
16.00 |
$48.00 |
$374.48 |
$1,989,000 |
825 |
16.50 |
$49.50 |
$386.37 |
$2,052,000 |
850 |
17.00 |
$51.00 |
$398.26 |
$2,115,000 |
875 |
17.50 |
$52.50 |
$410.15 |
$2,178,000 |
The take home pay in this table is $3.00 per hour. Sponsors / Parents have the opportunity to modify this amount within certain limits. Increasing the take home pay rate decreases the IRA contribution amount. The Take home pay, Savings Contribution, and the Roth Value at age 70 can be 30% higher if the family provides sufficient referrals and/or performance credits are maximized.
1417Power RECOMMENDS the savings be deposited to a Roth IRA and allowed to compound until retirement. The Tax Exempt wealth accumulated by age 70 (expected retirement age after 2035). The Roth IRA values presented herein are based on an annual average of 9.5%. As examples the Russell 2000 ETF (NYSE: IWM) 15-year average annual return is 7.7%. The 50-year S&P500 index (NYS: SPY) has been 11.5%. The Roth IRA values herein are mathematical calculations; they are not a prediction or forecast. Past performance of a fund or index is not a predictor of future performance.
According to the US Government 70 is the expected retirement age after 2030 "the National Commission on Retirement Policy favors raising the retirement age to 70 by 2029 and increasing it in the future by 2 months every 3 years." Social Security Bulletin - Vol 63 - No.4 - 2000.
The value presented here is representative of the value achievable if the SE starts at age 14 and participates for 36 months and the ROTH IRA account earned 9.5% annually. 11.5% is the 100 plus year S&P index average. Wikipedia shows the S&P 500 index average annual rate of return has been 13.96% over the last five years, 13.83% over the last 10 years, 12.22% over the last 15 years, 12.71% over the last 20 years and 12.98% over the last 25 years.
See: Wikipedia/S&P 500. However, past performance is not a guarantee of future performance. The SE’s ROTH IRA account is held at the brokerage of your choice and you will have total control of the investment management. 1417Power has no involvement in anyone’s IRA account.
The Basic Program Roth contribution amount is based on Employer and Employee payroll tax rates, Income tax brackets and rates as well as Roth IRA contribution limits for 2016. If any factor changes, the amount of Roth IRA contribution can be impacted. Income or payroll tax rate changes at the federal, state, and local community can also impact the fund distribution amounts.
For SE's residing in states with income tax, and/or an employment tax the State Income Tax Premium is deducted from the amount available for savings contribution.
If the government changes the maximum level of annual Roth IRA contribution, or implements any other expansion of the Roth IRA, 1417Power may offer additional levels of participation. If the maximum level is decreased, levels may be eliminated. 1417Power has no control over Roth IRA rules, or regulations.
1417Power offers both referral credits and 1417 Pulse net revenue share credit. Credits can increase an SE’s participation level by as much as 30%. All credits earned will be applied to the SE’s account to (first) increase their level of participation or (second) increase the SE’s participation duration unused credits may be subject to forfeiture.