Here is the last extra credit opportunity for this semester.
It is worth a total of 30 points. However, BOTH Part 1 AND Part 2 must be completed to receive any points. If you only do one of the 2 parts or you do not put forth hardly any effort in one of the two parts, you will NOT receive any extra credit.
I capitalized a few words to make sure everyone understands. It is my attempt to not receive any extra credit papers with only one part completed.
Part 1
Part 1 consists of 3 columns (and only 3 columns, no additional columns permitted).
Columns 1 is a list of names of Americans that are alive and are worth $1 Billion or more.
Column 2 is the approximate worth of the person listed in column 1 as of 2020 or 2019 (whichever is the most recent data available).
Column 3 is the company or the way each billionaire has accumulated his/her wealth. It may be inherited and that is what you would state in this column. For example, the Walton’s inherited the billions of dollars from Sam Walton when he died. So, you would not put Walmart, you would put inherited.
A fictitious example of the first 2 lines of what I am looking for is:
Name Net Worth How wealth was made/received
John Doe $12 Billion Founded XYZ corporation
Part 2
After reviewing Part 1, I would like to complete a SWOT analysis on yourself and provide it in this assignment. Once you complete the SWOT analysis, I you are to create an action plan that paves a way for you to become wealthy. Wealthy may be a billionaire or it may be a millionaire but it is not just having a JOB (Just Over Broke from the book Rich Dad Poor Dad by Robert Kiyosaki). This section must contain dollar amounts to show a realistic way to accumulate wealth and how you will accomplish it.
A brief fictitious example (not complete but a beginning) of the second part of Part 2 is:
My strength is my great grades and love for accounting. I will graduate with a bachelor’s degree in 2022 and then enroll in ECU’s masters of accounting program. I will graduate with a master’s in accounting in 2023. I will immediately begin working at one of the Big 4 accounting firms. The average starting pay for someone without a CPA and little to no experience is $40,000 to $45,000 so my starting pay will be in that range https://cpaexamguy.com/salary-breakdown-big-4-accounting-firms/
I will take the first part of the CPA exam before graduating and complete the exam and become a CPA within 15 months after graduation https://www.ais-cpa.com/take-and-pass-cpa-exam-in-college/
After 5 years of experience and living frugally, my student loan debt will be paid off and I will be debt-free. I will then launch my own CPA firm, recruiting other colleagues that I would enjoy working with as a partner in the new firm.
I will establish an LLC to purchase property to rent in both the residential and commercial markets including the building the account firm will be housed. The first purchase will be for the accounting firm that I am creating. Since I am debt free and have been living frugally, I will have 20% down payment funds to begin the LLC for rental property. I will create a PLLC for the accounting agency.
The profit before taxes from the accounting agencys rent will be saved until there is enough money for a 20% down payment on a second property. This model of saving and then purchasing more property will be repeated until my passive income through rent, after all expenses, is greater than $100,000 annually.
I will grow the accounting firm, adding more partners as needed, and then when the accounting firm has an annual profit the provides each partner with $500,000 of annual income, I will sell my percentage to the other partners.
At this point, I will have a large cash reserve from the sale of the accounting firm and passive income of $100,000 annually from the rental business. I will then determine what I may enjoy for the next phase in my life.
_________________
Since I have already written this fictitious example, you may not copy any part of it unless you are an accounting major and plan to become a CPA.
This is extra credit so it is voluntary.
Also, notice I provided links to verify my statements on starting pay and a realistic time frame to pass the CPA exam. If this was a real example, I would also have provided links to rental property monthly rates in the city I want to move to, what the selling prices are for these properties, and then state the actual dollar amount to have a 20% down payment for one of these buildings and what a realistic rental income will be. All numbers must have a link to substantiate them (no fictious numbers).
Also, I did not include an age when I will accomplish these goals. I have no control over the time frame to accomplish them. My goals are based on dollar amounts that I have control over. There may be another Great Recession that slows down the progress of this plan. There may be a great opportunity the reduces the time frame to accomplish these goals. Because I have no control over these events, if I put an age as a goal (e.g. I will be a millionaire before I am 30 years old) and I am not a millionaire by that age, I may give up because I dd not reach my goal. That is why a dollar goal is more productive than an age goal.
If you choose to do this, I hope you have fun and get many ideas from the people who have become Billionaires.
Please let me know if you have any questions.
Prof S
