Here's an exercise for you. If you would like to retire on pretty much the income you are currently on, then you need to accumulate approximately 15 times that figure in order to live off the interest. If you are a couple and like the finer things in life, such as travel, going to restaurants, supporting the kids and grand-kids, and perhaps indulging in some hobbies such as Golf or Art, then it's not unreasonable to expect an annual maintenance figure approaching $100k.
Very few people will ever squirrel away $1.5 million in after tax savings in order to fund this type of lifestyle.
There are basically 5 strategies available to us:
Save-forgo current pleasures in order to hopefully live long enough to enjoy future wealth! Urggghh!
Inherit! Not a strategy for the motivated individual!
Lotto. Good fortune has its flip side, and in this instance, the problem is that there is a higher chance of being run over by a truck on the way to buy the ticket!
Hope! Actually hope is not a strategy but alas is the default for many.
Invest. Create a passive income through some form of leverage. Property, Shares, Business, Greyhounds, Racehorses, Music, or some appreciating asset. Investment can include investing TIME in knowledge accumulation, MONEY to launch a business, or ENERGY connecting and building community networks. (Incidentally I'm not specifically recommending any of the above-although if you do have potential million selling jingle/song in your head-go for it!)
The tone of this Blog seems bleak, but that is unintentional. Longevity should be celebrated, yet many that I've spoken to about the subject seem a little daunted by the consequences. The good news however, is that it's never too late to embark on an adventure. colonel Saunders started Kentucky Fried Chicken in his 60's and Ray Croc launched the franchising arm of MacDonalds in his 50's!
Let us know what your strategy is and how it's working for you. I'm online to Inspire and BE inspired.
Cheers Kiaran
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