How To Avoid Being Complacent About Your Retirement
How To Avoid Being Complacent About Your Retirement
Do you have what it takes to do what it takes to allow you to live
comfortably during your retirement years? You can hardly pick up
any business magazine without seeing an article discussing the plight
of the Baby Boomer generation. It's estimated that there are 76 million
Baby Boomers who were born between 1946 and 1964.
This year the oldest of the Baby Boomer Brigade turns 60. According to
what's being written over 90% of these early Baby Boomers don't have
sufficient funds for an adequate retirement. Holy Messaroo!
How come you might be wondering? Here's a simple truth. You have to
save some money. Like 5%, 10%, 15%, 20%, 25%, 30%, or more of your
gross income every year if you want compounding to work its magic for
you.
Last week I was giving a seminar to a group that specializes in retirement
planning services for small and medium-sized businesses. Naturally,
they understand an awful lot about the mechanics of saving for retirement.
We were kicking around some ideas that they could use with their customers
and I'd like to share some of these with you.
To get started you'll need two sheets of paper. On one sheet of paper list
the dollar value of everything you own. Take it easy on placing high values
on personal items. This is more about financial assets including your home,
stocks, mutual funds, bonds, and even boxes of $100 bills hidden under your
bed. Once your list is finished, total it up.
On another sheet of paper list everything you owe. This list includes your
mortgage, all balances on credit cards, and all other debts including personal
loans to anyone. Once your list is finished, total it up.
Now it's time for a third sheet of paper. Write the number that equals what
you own. Then subtract what you owe from this number. What you are left
with is your net worth.
This next step is important and probably will be enlightening for some of
you. When you retire your sources of income will include Social Security,
company pensions - which by the way are disappearing at an alarming rate,
IRAs, 401K's, and other funds included in your net worth.
Now I'm not a financial planner but I'd read what they write. Most financial
planners estimate you can pull out 5% of your net worth annually, to fund
your retirement, and expect the principle to last throughout your retirement
years.
Let me explain what most people don't get - plain and simple.
Describe your dream for retirement. It helps if you put it on paper.
How much will the ticket for your dream cost each year? When you're 72 years
old will you still have to work part-time to pay for the ticket to your dream
retirement?
Take a look at these numbers:
Net Worth $ 5% annual withdrawal Monthly income
$100,000 $5,000 $416
$500,000 $25,000 $2,083
$1,000,000 $50,000 $4,166
$1,500,000 $75,000 $6,250
$2,500,000 $125,000 $10,416
$3,000,000 $150,000 $12,500
$4,000,000 $200,000 $16,666
The best way to use this little chart is to work it backwards.
Ask yourself how much income you need monthly to pay for the ticket to
your retirement dream.
Then go to the first column to see how much (Own - owe) net worth you'll
need to pay for it.
The best time to start thinking and planning for your dream retirement
is now.
I know someone who has a net worth of $500,000. He thinks he's flush
with cash. Come retirement his income will be at the poverty level -
which is not a pleasant thought.
Your dream for your retirement is not an entitlement which is the bad news.
The good news is, it's never too late to start saving for your dream.
When you combine exuberant savings with moderate compounding the results
are staggering.
What you save today will determine how you'll live in retirement.
Two options - one choice. Dream or nightmare!
Let's go sell something . . .
Jim Meisenheimer
PS - one way to save more is to earn more. My new Ultimate No-Brainer
Selling Skills Manual Vol. II - won't cost you a penny because the
payback for you is immediate. You'd have to be brain-dead not to be
able to take these invaluable sales tips and convert them to new business.
Use this link to sign-up for Jim's F-R-E-E Knockout Selling Tips
Newsletter and to get your copy of his Special Report titled,
"The 12 Dumbest Things Salespeople Do."
http://www.meisenheimer.com
How To Avoid Being Complacent About Your Retirement - To learn more about this author, visit Jim Meisenheimer's Website.
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Here's a mega sales tip that should be a high priority for every entrepreneur.
Do you have what it takes to do what it takes to allow you to live
comfortably during your retirement years? You can hardly pick up
any business magazine without seeing an article discussing the plight
of the Baby Boomer generation. It's estimated that there are 76 million
Baby Boomers who were born between 1946 and 1964.
This year the oldest of the Baby Boomer Brigade turns 60. According to
what's being written over 90% of these early Baby Boomers don't have
sufficient funds for an adequate retirement. Holy Messaroo!
How come you might be wondering? Here's a simple truth. You have to
save some money. Like 5%, 10%, 15%, 20%, 25%, 30%, or more of your
gross income every year if you want compounding to work its magic for
you.
Last week I was giving a seminar to a group that specializes in retirement
planning services for small and medium-sized businesses. Naturally,
they understand an awful lot about the mechanics of saving for retirement.
We were kicking around some ideas that they could use with their customers
and I'd like to share some of these with you.
To get started you'll need two sheets of paper. On one sheet of paper list
the dollar value of everything you own. Take it easy on placing high values
on personal items. This is more about financial assets including your home,
stocks, mutual funds, bonds, and even boxes of $100 bills hidden under your
bed. Once your list is finished, total it up.
On another sheet of paper list everything you owe. This list includes your
mortgage, all balances on credit cards, and all other debts including personal
loans to anyone. Once your list is finished, total it up.
Now it's time for a third sheet of paper. Write the number that equals what
you own. Then subtract what you owe from this number. What you are left
with is your net worth.
This next step is important and probably will be enlightening for some of
you. When you retire your sources of income will include Social Security,
company pensions - which by the way are disappearing at an alarming rate,
IRAs, 401K's, and other funds included in your net worth.
Now I'm not a financial planner but I'd read what they write. Most financial
planners estimate you can pull out 5% of your net worth annually, to fund
your retirement, and expect the principle to last throughout your retirement
years.
Let me explain what most people don't get - plain and simple.
Describe your dream for retirement. It helps if you put it on paper.
How much will the ticket for your dream cost each year? When you're 72 years
old will you still have to work part-time to pay for the ticket to your dream
retirement?
Take a look at these numbers:
Net Worth $ 5% annual withdrawal Monthly income
$100,000 $5,000 $416
$500,000 $25,000 $2,083
$1,000,000 $50,000 $4,166
$1,500,000 $75,000 $6,250
$2,500,000 $125,000 $10,416
$3,000,000 $150,000 $12,500
$4,000,000 $200,000 $16,666
The best way to use this little chart is to work it backwards.
Ask yourself how much income you need monthly to pay for the ticket to
your retirement dream.
Then go to the first column to see how much (Own - owe) net worth you'll
need to pay for it.
The best time to start thinking and planning for your dream retirement
is now.
I know someone who has a net worth of $500,000. He thinks he's flush
with cash. Come retirement his income will be at the poverty level -
which is not a pleasant thought.
Your dream for your retirement is not an entitlement which is the bad news.
The good news is, it's never too late to start saving for your dream.
When you combine exuberant savings with moderate compounding the results
are staggering.
What you save today will determine how you'll live in retirement.
Two options - one choice. Dream or nightmare!
Let's go sell something . . .
Jim Meisenheimer
PS - one way to save more is to earn more. My new Ultimate No-Brainer
Selling Skills Manual Vol. II - won't cost you a penny because the
payback for you is immediate. You'd have to be brain-dead not to be
able to take these invaluable sales tips and convert them to new business.
Use this link to sign-up for Jim's F-R-E-E Knockout Selling Tips
Newsletter and to get your copy of his Special Report titled,
"The 12 Dumbest Things Salespeople Do."
http://www.meisenheimer.com
How To Avoid Being Complacent About Your Retirement - To learn more about this author, visit Jim Meisenheimer's Website.
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