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TRUMP UNIVERSITY WEALTH BUILDING 101

Downloadable Exhibit 16.1 (Continued)
Years to Retirement Your Assumed Investment Return

6% 7% 8% 9% 10%
14 .0357 .0331 .0307 .0285 .0264
16 .0283 .0260 .0238 .0219 .0200
18 .0228 .0207 .0188 .0170 .0154
20 .0186 .0167 .0150 .0134 .0120

Step 15: $________________________
Percent of annual income you should save each year (Step 14 by Step 1).
*Note: A blank version of this exhibit can be downloaded from www.trumpuniversity.com/
wealth building101 for your personal use.
Source: Copyright: Retirement Wealth Management Inc. Used with permission.

How to Find a Good Stock

Let’s start with stocks. As I said earlier, I recommend most people put most of
their stock investments in mutual funds and avoid buying individual stocks.
However, if you decide to invest the time and effort in doing your own

research, there are numerous proven strategies for finding good stocks. These
are five of the best:

1. Look for undervalued companies, based on such criteria as low price/
earnings ratios or asset value.
2. Seek growth companies that are generating rapid, accelerating earn-
ings per share.
3. Unearth possible “takeover” candidates—companies that may be bought
out at a higher price—is a long-term strategy.
4. Invest in “fallen angel” companies that are in the midst of a turnaround.
5. Identify big trends, and the companies that will benefit can also be

very profi table.

When I say these and others are “proven” investment strategies, I mean
that they have worked over long periods of time. But no single strategy works
all the time because different types of stocks become fashionable or go out of
favor on Wall Street, sometimes for long periods of time. Even the profes-
sional investors who focus on one specifi c approach or another, such as buy-
ing assets cheap or focusing on fast-growth companies, typically go though
cycles when their specialties are out of sync with the market. In the late 1990s,

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