Retirement – Are You Putting It Off?
Retirement – Are You Putting It Off?
Most Americans are great at putting things off. They will work their hobbies when they retire. They will play more golf when they retire. They will do more with the grandkids when they retire. With over 80% having less than $25,000 in savings, how can they retire?
Many people go through their working day dreaming of how life will be when they retire. The dream of the golden years when they have the time to do all the things they’ve been wanting to do. Travel, hobbies, golf, and just plain relaxing are on that list. Unfortunately, for many, it will always be a dream.
They were given bad advice. They were told that when they retire, they will only need 60-70% of the income they have now to maintain their lifestyle. Their house would be paid off. The college loans would be paid off. They wouldn’t have the expenses related to work, etc. This plan may pay off if all you plan on is sitting around the house watching TV all day.
If you have hobbies, travel or other fun things you’ve been putting off, they will require money in order to fulfill those dreams. Now, the smart money says that you will probably need more money than you are bringing now.
There’s also an 800 pound gorilla that no one is talking about and that is the rising health care costs that come with age.
Even after over 20 years of tax favored savings plans such as IRAs and 401(k)s, over 80% of people approaching retirement age have less than $25,000 in savings. The retirement age for Social Security is already being raised.
How do you pay for all of your dreams and care even if you have not saved anything?
The answer may surprise you. The main reason for acquiring a large nest egg for your golden years is to provide an income when your work income stops. In the past, many companies offered a Defined Benefit Plan (DBP) such as a pension which would pay as long as you lived. Employers are getting away from DBPs and going towards Defined Savings Plans (DSP) such as 401(k)s.
The main issue with DSPs is that it sets up a race to see what gives out first, you or your money.
What you are looking for is an income. Many are turning to a home based business for this income. Modern home based businesses often offer what is known as leveraged residual income. Let’s take a look at what that means.
First is the leverage. Most modern home based businesses allow you to introduce others to your opportunity. As they join your organization, you receive a percentage of their results. Thus, if you grow your organization to 100 people who work 1 hour per day then you would have benefitted from 100 hours of effort in a day.
Next is residual. There are two main types of income which are linear and residual. Linear is where you trade a unit of work for a unit of pay such as in a job. This kind of income is like running up a down escalator.
Residual income is where you do the work once and you get paid over and over again. Some of the more familiar types of residual income are the royalties an author receives for writing a book, or the income that comes from an oil well.
When you combine the leverage with residual income, you get a business where you will work harder at first to get it going and then it will reach a critical mass where you don’t have to work that hard but the income increases.
This aspect is especially important for senior citizens. There will probably be times where you won’t be able to work your business. In a traditional business with linear income, your income would come to a sudden stop. With leveraged residual income, it would continue.
Do your due diligence before joining an opportunity. It will take work, training and perseverance to achieve the results that you desire. The ability to travel, golf and be with the grandkids will make the effort worth it.
Rick Rule has taken control of his life and enjoys the lifestyle he wants. He also teaches others how to become financially free to enjoy their perfect lifestyle. To see what he can do for you, visit his site at http://www.DiscoverYourOwnFreedom.com