Here in Jeffreys Bay where I happen to live, we have a lot of ‘Retirees’. Besides being a holiday destination, Jeffreys Bay is also very much a Retirement Town.
As I am very interested in the topic of Financial Freedom, I always try to find out how others have secured an Income for themselves. What I normally find fall into one of the following categories:
(Keep reading to the end: I get to ‘ Why you must never Retire‘ a bit later)
- These people have enough income, and expect to have more than enough till they pass on.
- Often they have owned or still own their own business, in which they still play an active but often a reduced roll.
- Expats. Often they still do ad hoc consulting offshore.
- Normally these people have worked for one (mostly government or semi-government) employer most of their lives.
- They have a ‘good’ pension, have paid off the house they live in, and have some other passive investments as a backup.
- These people have decided (or were forced) to retire, but their pension is not adequate.
- Often they think they have enough to retire on, but over time find out that their pension and/or investments do not provide and income that keeps pace with inflation.
4. ‘In Trouble’
- These people, when they changed jobs over their working years, withdrew their savings and spent it on ‘groceries’.
- If they own their own businesses, it is often ‘one man shows’ where they live from hand to mouth. If they save, it’s only temporary and the savings are used up in periods when the ‘worked for’ income is inadequate.
- They are forced to work until they fall over.
Where are you going to find yourself in future?
Currently the ratios are as follows:
- Abundance? Less than 1 percent of us
- Adequate? Another 4 %
- Concerned and In Trouble? 95%
So what is the Right Way to prepare for this eventuality?
While you are still working, you have to create MR GP IS (Multiple Recurring Growing Passive Income Streams).
The beauty is this:
- You can create these while you are still working.
- You can set them up in a way that takes very little of your precious time to maintain.
- You can use ‘leverage’ (also called ‘scale’) to drastically increase your reach and reduce the time in which you can replace your Salary.
- You can create Income streams much larger than your current Salary if you so wish.
So why can you never Retire?
Because one type of Retiree stand out as the unhappiest of all Retirees, and they often fall within the top two (Enough Passive Income). So who am I talking about?
These lucky fellows often retired early after making a lot of money, invested well, but retired completely. After a few months on retirement they suddenly find out that they have given up much more than just having to ‘work’, they have also given up the perceived feeling of having a meaning in life.
They are often ‘young’ and healthy, but all their friends are busy working. Like my young retired friend said to me one day: ‘Playing golf every day very quickly becomes a job’.
There is little worse than being bored. Not having anything to do. It is demotivating and depressing. What often then happens is that your attention is turned inwards, and you start finding all kinds of physical ailments in your body. You won’t believe how quickly people that seem to have it all, especially free time and money, become drastically unhappy.
I know you don’t believe me. I didn’t either, until I saw it happen a number of times.
Retirement is a redundant concept that was started by government to force people to work till 65. What you want to do is ‘Earn Income‘, not ‘Work‘.
So don’t plan for ‘retirement’: plan to create MR GP IS, and stop ‘working’ for money as soon as you possibly can. Then you life can really begin.
If you want to learn more sign up for my FREE email course at FinancialFreedomMap.com. I update the course all the time, so even if you have done it before, do it again. Repetition is very important to change old habits anyway. :)
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