Our 4-Hour Workweek

The Millonaire Mommy Next Door's story inspired me to add a new twist in documenting my journey to achieving a 4-hour workweek. My main strategy is not going to change. I will still focus on the business aspect. But I would like to add a new twist - documenting each of my moves with my 401K plan and tracking my bonus plan investments. You see, the Millionaire Mommy Next Door achieved the freedom to live anywhere and financial independence through a combination of wise investments and business ownership.

I started work at Avionics Systems Inc. (not my real company name) in March 2006, and immediately began investing in the company's 401K plan. The company matches my investment with a 75% kicker for the first 8% of my earnings and provides an additional 2% for my retirement. Initially, I contributed 10% of my earnings and bumped it up to 15% after my pay raise. Since March 2006, my 401K account has grown to $68,464.

Over the past two years, I received two bonuses and invested the entire amount (after taxes) in four companies: FMC Technologies (FTI), Freeport McMoRan Copper and Gold (FCX), Holly Corporation (HOC) and The Procter and Gamble Company (PG).

Here are the details of my investments after the closing bell on December 31, 2007:

• Procter and Gamble (PG), 100 shares at $73.42 ($7,342);
• FMC Technologies (FTI), 100 shares at $56.70 ($5,670);
• Freeport Copper (FCX), 50 shares at $102.44 ($5,122);
• Holly Corp. (HOC), 100 shares at $50.89 ($5,089)
• Dodge and Cox Stock Fund, 60.581 shares at $138.26 ($8,375.93);
• Fidelity OTC Portfolio, 103.849 shares at $52.17 ($5,417.80);
• Fidelity International Discovery Fund, 125.877 shares at $43.08 ($5,472.78);
• Fidelity International Diversified, 337.894 shares at $39.90 ($13,481.97);
• Fidelity Blue Chip Growth, 303.568 shares at $44.06 ($13,375.21);
• Allianz NFJ Small-Cap Value Institutional Class, 402.044 shares at $30.76 ($12,366.87);
• Avionics Systems Inc., 273.024 shares at $35.25 ($9,624.10);
• Cash of $932.66;
• Total = $92,270.32

How many years will it take to grow this initial amont to $1,000,000? At 12% return on investment (ROI), 22 years; 15% ROI, 18 years; 20% ROI, 14 years; 25% ROI, 11 years. I hope to do it quicker by adding money each year to my 401K plan and investing all of my bonus each year.

Well, let's see how long it will take.

Pierre Cutler
Our 4-Hour Workweek