Wilma and Willy Jazz up their Wealth Induction Loop
Wilma is the daughter of the orangutan ranchers, Mary and Harry. Her parents have had such a positive experience with orangutan ranching, as illustrated in a previous article in this blog, that they hope Wilma will continue the orangutan legacy. They are willing to give Wilma (20 years old) and her husband, Willy (19 years old) 48 orangutans (24 male and 24 female). Wilma and Willy are concerned that the orangutan market may have reached a saturation point because, after all, there are only so many zoos and wildlife parks in the world. They do some research before deciding whether or not to accept the gracious offer and discover that Dr. Toodumbforarealjob, at the world famous Orangutan Habitat Research Center, has had great success in training orangutans to be financial planners, truck drivers, ballet dancers, and hockey players.
Wilma does not foresee too much demand for financial planners, but, “Hey!” truck drivers, ballet dancers, and hockey players!!! Wilma senses that a much larger market for orangutans is about to explode. They accept the 48 orangutans and they put 12 each in 4 enclosures they construct on some land given to them by Wilma’s grandfather. The animals require a lot of work to properly take care of. They earn their living working at Burly Buford’s Car Wash and plan to grow the strange zoo throughout their lives as one of their ways to prepare for retirement.
Wilma likes the way her parents have grown their ranch by starting early and adding 1 unit every year, but has always believed that she could find a way to get a better rate of growth than the 8 1/3 % her parents got. She decides to run a test by breaking the orangutans into 4 groups of 12 each (6 male and 6 female) to try different things on each group that she believes will cause a greater rate of increase.
With Group 1, she has the orangutans take a bath once a week, well heck, just so they will feel better and to enhance the quality of their lives. They don’t like it very much, you know how cantankerous an orangutan can be, but she wins them over. She takes them on outings to McDonald’s, to the mall, and to tapings of Oprah. Some of the females receive makeovers on Oprah’s show. The girl orangutans start using perfume and the guy orangutans start using cologne. The 12 orangutans in Group 1 become more desirable to each other and start to mate more often than before. Group 1, over the years, experiences a growth rate of 1 % higher than the 8 1/3 % of Wilma’s parents. The growth rate for Group 1 through the decades is 9 1/3 %. She puts in the money each year to add one orangutan to this group.
Wilma and Willy’s Orangutan Group 1 Starting with 12 Animals when Wilma is 20
(Growth Rate of 9 1/3 % with 1 Orangutan Added at Beginning of Each Year)
Wilma’s Age: 20 Number of Orangutans: 12
Wilma’s Age: 21 Number of Orangutans: 14
Wilma’s Age: 22 Number of Orangutans: 17
Wilma’s Age: 23 Number of Orangutans: 19
Wilma’s Age: 24 Number of Orangutans: 22
Wilma’s Age: 25 Number of Orangutans: 25
Wilma’s Age: 26 Number of Orangutans: 29
Wilma’s Age: 27 Number of Orangutans: 33
Wilma’s Age: 28 Number of Orangutans: 37
Wilma’s Age: 29 Number of Orangutans: 41
Wilma’s Age: 30 Number of Orangutans: 46
Wilma’s Age: 31 Number of Orangutans: 52
Wilma’s Age: 32 Number of Orangutans: 57
Wilma’s Age: 33 Number of Orangutans: 64
Wilma’s Age: 34 Number of Orangutans: 71
Wilma’s Age: 35 Number of Orangutans: 79
Wilma’s Age: 36 Number of Orangutans: 87
Wilma’s Age: 37 Number of Orangutans: 96
Wilma’s Age: 38 Number of Orangutans: 106
Wilma’s Age: 39 Number of Orangutans: 117
Wilma’s Age: 40 Number of Orangutans: 130
Wilma’s Age: 41 Number of Orangutans: 143
Wilma’s Age: 43 Number of Orangutans: 173
Wilma’s Age: 45 Number of Orangutans: 209
Wilma’s Age: 50 Number of Orangutans: 333
Wilma’s Age: 55 Number of Orangutans: 527
Wilma’s Age: 56 Number of Orangutans: 577
Wilma’s Age: 57 Number of Orangutans: 632
Wilma’s Age: 58 Number of Orangutans: 692
Wilma’s Age: 59 Number of Orangutans: 758
Wilma’s Age: 60 Number of Orangutans: 830
Wilma’s Age: 61 Number of Orangutans: 908
Wilma’s Age: 62 Number of Orangutans: 904
Wilma’s Age: 63 Number of Orangutans: 1088
Wilma’s Age: 64 Number of Orangutans: 1191
Wilma’s Age: 65 Number of Orangutans: 1303
Wilma’s Age: 66 Number of Orangutans: 1427
Wilma’s Age: 67 Number of Orangutans: 1560
Wilma’s Age: 68 Number of Orangutans: 1706
Wilma’s Age: 69 Number of Orangutans: 1867
Wilma’s Age: 70 Number of Orangutans: 2042
With Wilma’s parents, the total for a growth rate of 8 1/3 %, with the addition of 1 orangutan each year, was 1353 at age 70.
For Wilma and Willy with a growth rate of 9 1/3 % and with adding 1 orangutan each year, the total number of orangutans is 2042.
There are 689 more orangutans at the end at 9 1/3 % growth than there was at 8 1/3 % growth.
An increase of 1 % in the rate of return has caused an increase of 50 % in the number of orangutans at the end. This illustrates how much impact a slight increase in the rate of return can have over the long run.
Tags: Debt Destruction, Financial Planning, Humor, Wealth Building
